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Essay of the 10 Principles
Ozwell Wang & Lena Liu & Lexi Dong
Nanjing Foreign Language School British Columbia Academy
Mr.Duggan
Introduction:
The study of economics refers to the management of scarce resources. Due to the
limited resources, people need to make decisions accordingly and interact with each
other in the market. The economy, as a whole will naturally act according to the
changes in policies, which derives to the ten principles of economy that applies to
both individual components of economy and the economy as a whole.
Principle 1: Trade-offs among individuals and society
It is spontaneous of people to face trade-offs in daily life. Every time one needs to
make a decision on two or more options, one either try to make oneself content, or
choose the best by comparing among the available options. Take a microeconomic
example, if one has one extra class for self-study, one needs to choose whether review
Physics or all other subjects. Choosing one means losing the knowledge gained from
the other option. When it comes to the trade-offs that individuals face, there is one
particular trade-off between efficiency and equality. Take a microeconomic example,
if one has one extra class for self-study, one will choose to review Physics from all
subjects because he will have a test in the afternoon. In this case, one chooses the best
option according to his demand.
Principle 2: The cost of something is what you give up to get it
As it was mentioned above, people make decisions by comparing among the available
options, to be more specific, “comparing the costs and benefits of alternative courses
