Eight Guideposts to Economic Thinking (Gwartney)

The use of scarce resources is costly; trade-offs must always be made.

Individuals choose purposefully; they try to get the most from their limited resources

Incentives matter; choice is influenced in a predictable way by changes in incentives 

Individuals must make decisions at the margin

Although information can help us make better choices, its acquisition is costly.

Economic actions often generate secondary effects in addition to their immediate effects.

The value of a good or service is subjective.

The test of a theory is its ability to predict.

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