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Principle 5 trade can make everyone better off

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Unformatted text preview: an make everyone better off specialization more goods available at lower P Principle # 6: Markets are usually a good way to organize economic activity market economy "invisible hand" Principle # 7: Gov't can sometimes improve market outcomes gov't intervention: promote efficiency or promote equity market failure: externality market power How The economy as a whole works? Principle # 8: A country's standard of living depends on its ability to produce goods & services productivity increase in productivity = increase in standard of living Principle # 9: P increases when gov't prints too much money inflation Principle # 10: Society faces SR tradeoff between inflation and unemployment Phillips curve Business cycle...
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