Ten Principles of Economics

Ten Principles of Economics

How People Make Decisions:

1. People face tradeoff:


To get one thing we usually have to give up another thing.


For Example Gun Vs Butter, Food v Clothing, Efficiency v equity.


· Efficiency: Means society gets the most that it can from its scarce resources.


· Equity: Means the benefits of those resources are distributed fairly among the members of the society.

2. The cost of something is what you give up to get it:


The decision requires comparing costs and benefits of alternatives.


For example: Whether to go to college or to work, Study or go out on a date, Sleep or go to class.


· Opportunity Cost: The opportunity cost of an item is what you give up to obtain that item.

3. Rational people thinks at the margin:


People make decisions by comparing costs and benefits at the margin.


· Marginal Changes are small, incremental adjustments to an existing plan of action.

4. People respond to incentives:


The incentive is something that causes a person to act. Because people use cost and benefit analysis, they also respond to incentives Ex. Higher taxes on cigarettes to prevent smoking

How People Interact:

5. Trade can make everyone better off:


Trade allows countries to specialize according to their comparative advantages and to enjoy a greater variety of goods and services

6. Markets are usually a good way to organize economic activities.


Adam Smith made the observation that when households and firms interact in markets guided by the invisible hand, they will produce the most surpluses for the economy

7. Governments can sometimes improve economic outcomes.

When the market fails government can intervene to promote efficiency and equity.

How the Economy as a Whole Works:

8. The standard of living depends on country’s production:


The more goods and services produced in a country, the higher the standard of living. As people consume a larger quantity of goods and services, their standard of living will increase.

9. Prices rise when governments print too much money.

When too much money is floating in the economy, there will be the higher demand for goods and services. This will cause firms to increase their price, in the long run, causing inflation.

10. Society faces a short run tradeoff between inflation and unemployment.


In the short run, when prices increase, suppliers will want to increase their production of goods and services. In order to achieve this, they need to hire more workers to produce those goods and services. More hiring means lower unemployment while there is still inflation. However, this is not the case in the long-run.

Learning Styles

Understanding the way that you learn new things, your individual learning style, will help you choose your learning activities to ensure you learn most effectively. This does not mean that you cannot learn from activities that are not specifically suited to your own style - in fact it can be good to choose activities outside your normal style occasionally, to create a balance and help to hone your learning skills.

What is my style?

There are four distinct styles, although it is possible that you may have traits from more than one. This is perfectly normal, and means that you will be able to learn well in more than one way. They are Activist, Reflector, Theorist and Pragmatist.

If you are an Activist

*Activists involve themselves fully and without bias in new experiences. They enjoy the here and now, and are happy to be dominated by immediate experiences. They are open-minded, not doubtful, and this tends to make them enthusiastic about anything new. Their philosophy is: "I’ll try anything once". They tackle problems by brainstorming. As soon as the excitement from one activity has died down they are busy looking for the next. They tend to thrive on the challenge of new experiences but are bored with implementation and longer term consolidation.

If you are a Reflector –

you will appreciate working closely with someone experienced in this area, and learning through observation and discussing your reflections and plans with a mentor. You will also learn much from books, articles and case studies.*Reflectors like to stand back to consider experiences and observe them from many different perspectives. They collect data, both first hand and from others, and prefer to think about it thoroughly before coming to a conclusion. The thorough collection and analysis of data about experiences and events is what counts so they tend to postpone reaching definitive conclusions for as long as possible. Their philosophy is to be cautious. They are thoughtful people who like to consider all possible angles and implications before making a move. They prefer to take a back seat in meetings and discussions. They enjoy observing other people in action. They listen to others and get the drift of the discussion before making their own points.

If you are a Theorist –

You will most value theory-based courses with well-qualified and experienced trainers, well-written books and articles.

*Theorists adapt and integrate observations into complex but logically sound theories. They think problems through in a vertical, step-by-step logical way. They assimilate disparate facts into logical theories. They tend to be perfectionists who won’t rest easy until things are organized and fit into a rational scheme. They are keen on basic assumptions, principles, theories models and systems thinking. Their philosophy prizes rationality and logic. "If its logical its good." Questions they frequently ask are: "Does it make sense?" "How does this fit with that?" "What are the basic assumptions?" They tend to be detached, analytical and dedicated to rational objectivity rather than anything subjective or ambiguous. Their approach to problems is consistently logical. This is their ‘mental set’ and they rigidly reject anything that doesn’t fit with it. They prefer to maximize certainty and feel uncomfortable with subjective judgments, imaginative thinking and so on.

If you are a Pragmatist

 You will find that to the point, practical books and open and flexible learning are good ways of quickly putting new learning to practical use. You will be particularly attracted to working on real-life projects and appreciate the help of someone who can give you some valuable feedback and coaching.

*Pragmatists are keen on trying out ideas, theories and techniques to see if they work in practice. They positively search out new ideas and take the first opportunity to experiment with applications. They are the sort of people who return from courses overflowing with new ideas that they want to try out in practice. They like to get on with things and act quickly and confidently on ideas that attract them. They are essentially practical, down to earth people who like making practical decisions and solving problems. They respond to problems and opportunities ‘as a challenge’. Their philosophy is "There is always a better way" and "If it works it's good".

Successful Self-Management

The starting point of maturity is the realization that, “No one is coming to the rescue.” Everything you are or ever will be is entirely up to you.This life is not a rehearsal for anything else. This is the real thing. Time is passing quickly, and all of your decisions and indecisions, your actions and inactions, to this point have added up to create the life you’re living at this very moment. If you want things to be different in the future, you’ll have to make things different in the present. You’ll have to take complete charge of yourself and your life. You have to make things change, because they won’t change by themselves.

Self-management is really personal management, time management, and life management all rolled into one. It’s putting your hands firmly on the steering wheel of your life and then taking yourself in the direction in which you want to go. Remember the old saying, “If you don’t change the road you’re traveling on, you’ll probably end up where you’re going.” Every successful man or woman made, at one time or another, a firm decision about where he or she wanted to go and then took deliberate steps to get there.

Most people make themselves into a commodity. They will define themselves in terms of their work or what they spend most of their time doing. They will describe themselves as a salesperson, or a manager, or an executive assistant, etc. Since we tend to become what we think about, we describe ourselves as being what we do for a living or as what we do most of the time. This is one of the main reasons why people who have been fired or laid off go through a period of shock and emotional disorder. It’s as though they’ve been cut off from their identities.

You are a business. You have to view yourself as the president of your own personal services corporation. You have a combination of ingredients that makes you a unique and remarkable person, different from anyone else who has ever lived or will live. You’ve undergone a wide variety of experiences, both positive and negative. You’ve had a remarkable education; you’ve had a formal education, and you’ve learned from the various jobs and activities you’ve engaged in. You have a unique intelligence, much of which isn’t yet developed to the fullest. You have the skills that you’ve acquired through hard work, discipline, and practice. When you put all of your abilities and skills together, you’re probably capable of excelling at hundreds of jobs, doing different things in different organizations, businesses, and industries.

One of the great tragedies of our educational system is that almost everyone is brought up to think of himself or herself as an employee rather than a business owner or an entrepreneur. This attitude or myth that most people have been brought up to accept is a major cause of unhappiness and underachievement in life. The myth of just being a good employee leads people to see themselves as helpless and dependent. From an early age, they look for someone to provide them with work to do and money to live on.

When you accept complete responsibility for your life and take charge of your working destiny, you begin to realize that self-management is the vehicle that will take you from where you are to wherever you want to go. You’re in charge. You determine your own cause of action. You decide where you want to work and what you want to do. Then you, first, prepare yourself, and then, go out to get the job that most satisfies you and allows you to use yourself to your best advantage.

You start the process of self-management by looking deeply into yourself and asking questions, such as, “What do I most enjoy doing? What have I most enjoyed in my work and activities in the past?”

To manage yourself better, look at your major interests in life. What do you most enjoy talking about, reading, or learning? What sort of books and magazines do you read? What type of subjects or conversations most attract and fascinate you? You should always pay attention to what you value most and what is most important to you. When you’re able to “identify yourself” in your life, that’s a clear indicator that you should be managing yourself successfully to accomplish more of it.

An important key to self-management is strategic thinking. Strategic thinkers are those who take the time to sit down and work out where they are and where they want to go. They determine how to achieve their goals in a step-by-step fashion. They look into the future and think about how they could allocate their resources to move more rapidly toward the accomplishment of their goals.

In personal strategic thinking and planning, you look at your unique talents and abilities and ask yourself, “Where can I best deploy myself in this marketplace to bring myself the greatest rewards?”

Another key part of self-management is disciplining yourself to work on only those things that can make the greatest difference in your life. If you’re not extremely well-managed personally, you will find yourself spreading your efforts across a wide variety of things and getting nothing really important done. Self-management means putting off doing all the things of a low-priority so that you can work on just the one or two things that make all the difference.

Self-management means getting things done through yourself. It means standing back and looking at all your unique talents, abilities, and assets, and getting the highest possible return on everything you do. You need to organize, manage, and motivate yourself as if you were your own employee.

Productivity improvement is an essential part of self-management. This means you need to continually manage yourself to produce more, faster, cheaper, and better than you have before.

Innovation is another important part of self-management. You are born with enormous reserves of creativity that enable you to improve every part of your life. Constantly look for faster, better, and easier ways to achieve your tasks and goals. Read, research and ask questions. Talk to others who are ahead of you on the road of life, and ask for their advice. Look into yourself, and listen to your intuition.

You can achieve any goal; you can overcome any difficulty, and solve any problem on the path to your goal, as long as the goal is clear. You have the creative resources within you and you can do anything that you could possibly want. The only limitations are the ones you place on yourself and your mind.

Due to all the advances in technology and the Internet, you can achieve far more in far less time than ever before. People who practice self-management are the ones who rise to the top. Self-management techniques can make you rich, happy, healthy, and fulfilled beyond your wildest imagination. It’s up to you to learn them and apply them in every area of your life.

Skills of Effective Managers

• Verbal communication (including listening)
• Managing time and stress
• Managing individual decisions
• Recognizing, defining, and solving problems
• Motivating and influencing others
• Delegating
• Setting Goals and articulating a vision
• Self-awareness
• Team building
• Managing conflict

What are some of the benefits of self management?

• Looking at yourself in (perhaps) a new light.
• Assessing where you are at and where you want to go.
• Putting in the effort in a constructive way to improve yourself.
• Moving forward with enthusiasm and with increased motivation.
• Finding that balance in your life that gives you a solid foundation.
• Giving yourself the time and encouragement to move things forward.
• Going easy on yourself if (or when) you meet hurdles or barriers.
• Develop yourself, day to day, on the path of the struggle in order to make u a better and a successful person.
• Seeing that life wants to see you succeed.
• Looking to the future with confidence.
• Realizing the talents you have and using them productively.

How to be Pro in Games?

Hello Gamers, sometimes people comment on us that we have no life, haha but they don't know how much we enjoy when we kick asses of players in games. It's better to play the game for time pass than to go outside and have weed lol.
So you are here because you are noob :P don't mind and you want to be a pro in your game.I will tell you few step to be a Legend in the game you want, like me :P haha I used to be #1 in a game called Stick Empires and right now I am playing World of Tanks blitz and still I am new in that but I am in top 1000 hahaha.

So here are some tips:

• Watch videos on youtube of pro players.
• Check out how they play.
• Be their friends and ask them to teach you.
• Set a target and always use your mind while playing.
• Don't blame others for losing, blame yourself.
• Join the best team possible or create your own.

In last, lol don't waste your fucking team reading these types of things just concentrate on your play and show a great spirit of sportsmanship. 

How to stay Happy in Your Life?

Well, It's been 21 years I am in this crucial world lol, and I am not able to find a person who has no stress or something which is ruining his/her life. It's a fact, we all have problems, some problems are so funny and just luxury like everyone wants to buy an iPhone and that's turn into their tension when they see other people have that iPhone lol and they just start cursing their life to be poor.

I know you are here and reading this that's mean you have some fucking problem in your life, but trust me every night has a day and your day will be so bright after kicking that problem out of your life.

So, what I suggest to be happy in life? and yeah you might be thinking WTF he is talking so here is the answer to overcome all the problems.

If something is in your hands, you have to do it and if it's not in your hand just say to yourself Shut the fuck off and leave this to your fate. If it's gonna happen it will if not then life has a lot more for you. 

Treat your life as a cricket match, where you are the batsman or woman lol I don't discriminate, so what I am saying is life is the bowler and it will fire a smooth ball sometimes or it will fire a bouncer which will hit your face lol and yeah in this cricket match there is no wicket so don't be afraid of losing, so try your level best to give a hit or if you missed the 1st ball than life will give you another ball. In this case, the ball is an opportunity some idiots will think that WTF, how life is going to have ball hahaha.

So, in last just enjoy your life and I don't have solutions for your problem lol, but find a friend with whom you can discuss your serious of funny iPhone problems.

Btw, I am the gamer so I Suggest to play some games when you feel you are in tension and always say AAAAAAL IS WELL :p hahaha and just smile because everyone has some problems you aren't the only one lol.