Download - Group Philippines - 10 Principles
![Page 1: Group Philippines - 10 Principles](https://reader034.vdocuments.net/reader034/viewer/2022052621/5589784cd8b42a301e8b45ee/html5/thumbnails/1.jpg)
T E A M P H I L I P P I N E Scabacub | espina | goyena | morales | tapan | yodico
10E C O N O M I C P R I N C I P L E SO F G R E G O R Y M A N K I W
![Page 2: Group Philippines - 10 Principles](https://reader034.vdocuments.net/reader034/viewer/2022052621/5589784cd8b42a301e8b45ee/html5/thumbnails/2.jpg)
Principle #1: People face trade offs
![Page 3: Group Philippines - 10 Principles](https://reader034.vdocuments.net/reader034/viewer/2022052621/5589784cd8b42a301e8b45ee/html5/thumbnails/3.jpg)
Principle #2 The cost of something is what you give up to get it.
I have a small sari-sari store and I only have a capital of 100Php for candies. One pack of Potchi costs 50Php. One pack of Lollipop costs 50Php also. I can only buy the products based on the schedule table below.
Potchi LollipopLollipop Potchi
2 0
1 1
0 2
![Page 4: Group Philippines - 10 Principles](https://reader034.vdocuments.net/reader034/viewer/2022052621/5589784cd8b42a301e8b45ee/html5/thumbnails/4.jpg)
PRINCIPLE #3: RATIONAL PEOPLE THINK AT THE MARGIN
![Page 5: Group Philippines - 10 Principles](https://reader034.vdocuments.net/reader034/viewer/2022052621/5589784cd8b42a301e8b45ee/html5/thumbnails/5.jpg)
Principle #4: People respond to incentives
![Page 6: Group Philippines - 10 Principles](https://reader034.vdocuments.net/reader034/viewer/2022052621/5589784cd8b42a301e8b45ee/html5/thumbnails/6.jpg)
Principle #5 Trade can make everyone better off.
Thank you for your traded abaca fibers. I
can now finish manufacturing my
abaca bags.
No worries! Thank you also for your
traded cotton threads. My cloth
production increased.
![Page 7: Group Philippines - 10 Principles](https://reader034.vdocuments.net/reader034/viewer/2022052621/5589784cd8b42a301e8b45ee/html5/thumbnails/7.jpg)
PRINCIPLE
6Markets are usually a good way to organize economic activity
FIRMS HOUSEHOLDS
WHO to hire
WHAT to produce
WHO to work forHOW to spend
INTERACTION
MARKET ECONOMYAllocates resources
through the decentralized
decisions of many household and firms as they interact in
markets
![Page 8: Group Philippines - 10 Principles](https://reader034.vdocuments.net/reader034/viewer/2022052621/5589784cd8b42a301e8b45ee/html5/thumbnails/8.jpg)
PRINCIPLE 6 Markets are usually a good way to organize economic
activity Farm Markets Supermarkets Bakeshop/
Consu-mers
INTERACTION(Buying and Selling)
MARKET ECONOMY
Allocates resources through the
decentralized decisions of many
household and firms as they interact in
markets
![Page 9: Group Philippines - 10 Principles](https://reader034.vdocuments.net/reader034/viewer/2022052621/5589784cd8b42a301e8b45ee/html5/thumbnails/9.jpg)
MARKET POWER+
MARKET FAILURE
ADJUSTING TAXESCONTROLLING PRICE HIKES
ESTABLISHING POLICIES
![Page 10: Group Philippines - 10 Principles](https://reader034.vdocuments.net/reader034/viewer/2022052621/5589784cd8b42a301e8b45ee/html5/thumbnails/10.jpg)
Principle #8: A Country's Standard of Living Depends on Its Ability to Produce Goods and Services
Auld, C. (2011). The Global Liveability Survey’s less than compelling methods, and an alternative. From The Global Liveability Survey’s less than compelling methods, and an
alternative2011/08/31/the-global-liveability-surveys-less-than-compelling-methods-and-an-alternative/
![Page 11: Group Philippines - 10 Principles](https://reader034.vdocuments.net/reader034/viewer/2022052621/5589784cd8b42a301e8b45ee/html5/thumbnails/11.jpg)
Principle # 9
![Page 12: Group Philippines - 10 Principles](https://reader034.vdocuments.net/reader034/viewer/2022052621/5589784cd8b42a301e8b45ee/html5/thumbnails/12.jpg)
PRINCIPLE 10Society Faces a Short-Run Tradeoff between Inflation and Unemployment
SA
LES
JOB
DEM
AN
D
BU
YIN
G P
OW
ER