Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed.
PART 1 Introduction
Chapter 1 of 36 Ten Principles of Economics
Section 3 of 14
…
Principle 1 of the Ten Principles of Economics: people face trade-offs.
A study of economics starts by considering life's trade-offs.
When people are grouped into societies, they face various trade-offs.
The classic trade-off is between "guns and butter.”
The more a society spends on national defense (guns) the less it can spend on consumer goods (butter).
Higher taxes means less income left for consumption.
…
Another trade-off society faces is between efficiency and equality.
Efficiency means society is getting maximum benefits from its scarce resources.
Equality means those benefits are distributed uniformly among society's members.
Efficiency refers to the size of the economic pie.
Equality refers to how the pie is sliced.
When government policies are created, these two goals often conflict.
…
Recognizing people face trade-offs does not tell us what decisions they will or should make.
A student should not abandon the study of psychology just because doing so would increase the time available for the study of economics.
Society should not stop protecting the environment just because environmental regulations reduce our material standard of living.
The poor should not be ignored just because helping them distorts work incentives.
…
Principle 2: the cost of something is what you give up to get it.
Making decisions requires comparing the costs and benefits of alternative courses of action.
The opportunity cost of an item is what you give up to get that item.
Decision makers must be aware of the opportunity costs of each possible action.
… …
government policies
seifu no seisaku
政府の政策

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