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BUS 171 Foundations of Economics

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Five foundations of economics as per the course BUS 171 Foundations of Economics are as follows:

  • Incentives
  • Tradeoffs
  • Opportunity cost
  • Marginal thinking
  • The principle that trade creates value

The foundations of economics as per the course BUS 171 Foundations of Economics are the application of basic economic concepts and decision-making skills. The scarcity and the different methods of allocation of goods and services are included in it.

Following are four principles of economic decision-making as per the course BUS 171 Foundations of Economics:

(1) People face tradeoffs

(2) The cost of something is what you give up to get it

(3) Rational people think at the margin

(4) People respond to incentives

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