People create economic systems, and these systems influence incentives and peoples choices. How people
cooperate is governed by written and unwritten rules. As rules change, incentives change and choices change.
The United Stat
Summary #6: Peoples choices have consequences that lie in the future. The most important costs and benefits
are those that will appear in the future. Economics stresses the importance of making choices about the
future. People cannot choose
Summary of Principle #5
People gain when they trade voluntarily. People can produce more in less time by concentrating
on what they do best. The surplus goods or services they can be traded for other valuable goods
The U.S. has
February 3, 2009
Dr. Richard Wilson
This paper covers three economical views in this society. John Keynes, Adolph Burke,
and Milton Friedman shared somewhat similar views on the various economic systems.
Firstly, John Keynes spoke o
People respond to incentives in predictable ways. Incentives are benefits that encourage
people to act. When incentives change, peoples choices change.
This principle is self-explanatory. For example, gas prices have been fluct
Summary of Principle #2
Peoples choices have costs monetary costs and opportunity costs. Opportunity cost is
the second-best alternative people give up in making a choice. When you decide on one thing,
you always give up another option. For
Summaries: #1: People choose. People choose the alternative that seems best to them because it involves the
least cost and greatest benefit. People economize. #2: Peoples choices have costs monetary costs and