All economics can be explained by a combination of six key principles. By understanding these principles, you will be able to understand some of the major economic events of the past, and also use this understanding to help you avoid being a victim of future economic events.
Summary
- Economics is essentially about reward for effort
- Value is relative not absolute
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- Individuals value different things
- Value is effected by circumstance
- Survival
- Stability
- Pursuit of happiness
- Value is effected by life stage
- Trade requires a difference in value
- Money is a catalyst
- Trade creates economic ecosystems
- Economic measurements are incomplete