Principles of Economics

Module I

Module II

Module III

Module IV

Important Questions

Syllabus Analysis

Model Question Paper with Answer

Previous Year SAFI College Questions and Answer

1- Introduction to Principles of Economics 

Principle I - People Face Trade-offs

Principle 2: The Cost of Something Is What You Give Up to Get It

Principle 3: Rational People Think at the Margin

Principle 4: People Respond to Incentives

Principle 5: Trade Can Make Everyone Better Off

Principle 6: Markets Are Usually a Good Way to Organize Economic Activity

Principle 7: Governments Can Sometimes Improve Market Outcomes

Principle 8: A Country’s Standard of Living Depends on Its Ability to Produce Goods and Services

Principle 9: Prices Rise When the Government Prints Too Much Money

Principle 10: Society Faces a Short-Run Trade-off Between Inflation and Unemployment

The Economist as Scientist

Circular Flow of Income and Output

Production Possibility Curve

Microeconomics vs Macroeconomics

The Economist as Policy Adviser

Positive vs. Normative Economics

Why Economists’ Advice Is Not Always Followed

Why Economists Disagree?

Part I

Part II

 Part III

Economic Systems

Characteristics of the Market System

Five Fundamental Questions in a Market

The "Invisible Hand" and Market System

 The Demise of Command Systems

How the Market System Deals with Risk