- TEN PRINCIPLES OF ECONOMIC
- CHAPTER 1
How People Make Decision Principle 1 - People face trade offs
- Indeed most people are faced with many choices. For example , as for the markets, the markets have a variety of clothing , food , books and others . We will definitely face a choice . For example we will need food , clothes for our needs . But our money is less than enough to buy food and clothing . Then we have to make a choice . For example , I need clothes more than food . Then I’m considered to have made a choice . The choice is made according to the needs and desires of an individual .
Principle 2 - The cost of something is what you give up to get it
- Everything has its value . Everybody often spend his means important for his or her daily life . However it should be worth to give up what we want to get . Nowadays we watch and hear about such kinds of books on TV or in adverts . In my point of view the price of advertising books are expensive for instance famous two popular books between children and grown ups are “Booknomy” and “Tedbook” . Despite the fact that it is expensive these books help us to learn language better and quickly so these books become famous among people in short time . I don’t regret that I expend my money for this objects .
Principle 3 - Rational people think at the margin
- For example , if we puts money with a banana in front of the monkey , the monkey gets the banana because the monkey does not know that money can buy many bananas . There is a similar difference between a wise man and a foolish man . Why foolish people choose black labor instead of running a business because , the minds of foolish people are not enough to run a business . So smart people think better than foolish people and the authorities give them more business management .
Principle 4 - People respond to incentives
- Everyone deserves a future incentive . To achieve this incentive , people have to try for years . For example if we take the allowance for the elderly , they will have to try hard for it . The retirement age is 65 for men and 55 for women . They must have accumulated the required length of service for retirement by this time . Only then will they be able to receive benefits . There is always an incentive for every move but to get it you need to make more effort and not stop moving again . In conclusion , we all need to strive for the future .
How people interact Principle 5 - Trade can make everyone better off
- Of course , trade can create good conditions for everyone . Today trading has become an important part of our lives . For example , if we take an ordinary farmer , he can sell the products he grows in the market . Instead , they can buy products they do not have from the market . It does not matter if he is just a farmer , a trader or a shoemaker . They , too , can exchange the products they grow for the products they need . Most importantly , the markets have everything we need . That is why trade plays a big role for us .
Principle 6 - Markets are usually a good way to organize economic activity
- It is well known to all of us the most of the economy is made up markets . For example , clothing markets , food markets , car markets , and others are clear examples of this principle . Such markets provide for our domestic economy . In addition , our products are exported to foreign countries , which also benefits our economy . In conclusion , markets are beneficial to our economy .
Principle 7 - Government can sometimes improve market out comes
- If the government does not intervene in the markets , prices in the markets may rise . Everyone starts trading at the prices they want the least . For example , as for eggs , the real price of an egg is 1000 sums but in some places 1200 to 1300 are sold by some sellers . But so far , prices have fallen back to standard by a government decision . All this happened through government intervention . So I agree that the government will improve the market completely , not sometimes .
How the economy as a whole work Principle 8 - A country’s standard of living depends on its ability to produce goods and services
- Of course the standard of living of the country depends on its ability to produce goods , I fully agree with this opinion the production of goods plays an important role . Today quality and natural products are produced in our country . The better the quality of the goods and products the higher the level of its development . The main thing for the development of the country’s standard of living is the production of quality goods and services .
Principle 9 - Prices rise when the government prints too much money
- . A clear proof of this principle is that the value of money is declining , as shown in the picture . For example , in previous years , it was worth the money , for a pittance you could easily buy the products you need for your home . For example , in previous years , if you had 100000 sums , you could buy food for 1 month for that money . But nowadays , prices are rising and the value of money is declining . For the previous 100000 sums , you can now get only 2 kg of meat . Most people think time is to blame for this , but people are to blame for the problem . We are also ones who are raising prices
Principle 10 - Society faces a short-run trade off between inflation and unemployment
- Indeed one of the big problem facing the state is unemployment . Unemployment is caused by people’s laziness interest in easy money jobs and non-payment of wages in some areas . The rise in the price of everything to money inflation is the rapid change in exchange rates . Unemployment is due to insufficient experience and scientific potential of bachelors , as well as the lack of good staff due to the poor quality of education in some institutions .
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