• Scarcity is the condition in which our wants are greater than our limited resources. Although it has many facets, the field is unified by several central ideas. Economics is a science that is about making choices, monetary and non-monetary. People Act. • Economics is the science of scarcity. • Since we are unable to have everything we desire, we must make choices on how we will use our resources. One of the main principles of economics is that everything has a cost and incentive, and that these incentives matter. Here’s my version, based on Chapter 1 of The Economic Way of Thinking.1. Professor Greg Mankiw teaches economics at Harvard University and is the author of a popular economics text book called Principles of Economics which is used at many Ivy League schools. Mankiw’s status within the economics profession makes him uniquely well placed to help us understand the basic principles of economics. Economics is the study of _____. The Ten Principles of Economics offer an overview of how people make decisions, interact with each other and how the economy works as a whole. Basic Principles of Economics Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. “Ten Principles of Economics” or “Ten Big Ideas” or “Ten Key Elements of Economics” are pretty standard in most introductory economics books. A small set of ideas does most of the heavy lifting in economics. If you continue browsing the site, you agree to the use of cookies on this website.