1, people are faced with a trade-off: resources are limited, and people need to make a trade-off between different choices.
2. Opportunity cost: When you make a choice, you will inevitably give up other choices. These costs of giving up choices are opportunity costs.
3. Marginal thinking: People usually make decisions based on marginal revenue and marginal cost, that is, an extra unit increment.
Trade can benefit everyone: By participating in trade, people can get higher benefits from exchange, because everyone has different resources and skills.
5. The market can achieve effective allocation: the market economy can spontaneously adjust the allocation of resources, form prices through the relationship between supply and demand, and guide the allocation of resources.
6. The role of the government: In a market economy, the government sometimes needs to intervene to correct market failures or provide public goods.
7. Currency impact: Changes in the money supply will affect economic activities and price levels.
8. Personal behavior and market results: Personal behavior determines market results, and market results in turn affect personal behavior.
9. Importance of information: Information is the basis of economic decision-making, and asymmetric or incomplete information may lead to the decline of market efficiency.
10. fluctuation: the economy fluctuates, which may be caused by external shocks, policy changes or market failures.
There are two basic reasons why economics has become a prominent school in China.
The first reason is that the basic national policy centered on economic construction has applied economics to China's environment, which has enabled China's economy to develop today. The second reason is that the thinking method and analysis method of economics are very powerful. Because its theme is economy, society and people, but at the same time it has scientific calmness. Once this method is abstracted, it can be used to analyze other problems besides economic problems, so its power goes beyond the economic problems themselves.
The most important starting point for resisting erroneous views and policy suggestions is to correctly understand the principles of economics. This is why economists can resist many wrong views and policy suggestions, while non-economists find it difficult to do so.