Guideposts to Economic Thinking:
1. Resources are scarce. Tradeoffs must be made.
2. Individuals use economizing behavior to get the most from their limited resources.
3. Incentives matter.
4. Individuals make decisions at the margin.
5. Information helps us make better decisions but is costly to acquire.
6. There are consequences to economic actions.
7. The value of goods and services is subjective.
8. The test of a theory is its ability to predict.
(Adapted from Gwartney, Stroup, Sobel, and Macpherson. 2003. Microeconomics: Private and Public Choice. Thomson/South-Western Publishers. Pages 9-15)