Identify two of the Ten Principles of Economics.
I need help finding 2 articles from website http://www.economist.com about the economy that have been in the news lately. For each story, identify 2 Principles of Economics which are current, and identify one unique principle for both articles.
The Ten Principles of Economics are:
- The cost of something is what you give up to get it
- Rational people think at the margin
- People respond to Incentives
- Trade can make everyone better off
- Markets are usually a good way to organize economic activity
- Governments can sometimes improve market outcomes
- A country's standard of living depends on its ability to produce goods and services
- Society faced a short-run tradeoff between inflation and unemployment
The first article about the economy is "From buy, buy to bye-bye" retrieved on April 12, 2009, http://www.economist.com/research/articlesBySubject/displaystory.cfm?subjectid=348876&story_id=13415207
The article discusses the impact of recession on the way people shop. The first principle of economics that is noticed in this article is that " People respond to incentives", "Inmar, an American firm that processes discount coupons, says that redemptions in America were 17% higher in the first quarter of 2009 than in the same period last year" http://www.economist.com
This shows that the incentive to buy is provided by the discount coupons and the customers respond to this incentive.
The solution chooses two articles from economist.com, "From buy, buy to bye-bye" and "Sacred territory", and discusses which two principles they each identify with as well as which principle they have in common. The solution is 438 words in length and has provided references for the two articles.