Answer:
Explanation:
1. The four principles of economic decision making are: (1) people face tradeoffs; (2) the cost of something is what you give up to get it; (3) rational people think at the margin; and (4) people respond to incentives. people face tradeoffs because to get one thing that they like, they usually have to give up another thing that they like. the cost of something is what you give up to get it, not just in terms of monetary cost but all opportunity cost. rational people think at the margin by taking an action if and only if the marginal benefits exceeds the marginals costs. people respond to incentives because as they compare benefits to costs, a change in incentives may cause their behavior to change.
2. The three principles concerning economic.
