The Four Principles of Individual Choice

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1.)
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People must make choices because resources are scarce.
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2.)
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The opportunity cost of an item – what you must give up in order to get it – is its true cost.
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“How much” decisions require making trade-offs at the margin: comparing the costs and benefits of doing a little bit more of an activity versus doing a little bit less.
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People usually respond to incentives, exploiting opportunities to make themselves better off.

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