Current microeconomic theory and thinking is based on the same premises it has been based on for years. These thoughts and theories were developed through research, observation, trial and error. There are essentially ten principles in Economics. These principles will be discussed as well as the ideas and lessons that support them. Furthermore, this article will explain how individuals make decisions within an economy, how individuals interact economically, how scarce resources are managed, as well as various economic terms and their correlation with each other. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay The first economics lesson that should be used and referred to is the ten principles of economics. The ten principles establish how individuals make decisions, how they interact, and how the economy as a whole works. The first four principles concern how individuals make decisions. According to Mankiw (2015), people essentially always give up one thing for another, whether it is money, resources, or time. Whatever someone gives up in exchange for what they are gaining is essentially the cost for which they are getting it. Mankiw also stated that rational individuals use and make decisions based on margin. Finally, related to how individuals make decisions, they respond to incentives. The second set of principles refers to how individuals interact with each other. These principles state that trade can benefit everyone, that a good way to organize economic activities is through a market, and that governments have the capabilities to improve market outcomes (Mankiw, 2015). The third part of the principles concerns the functioning of the economy as a whole. These principles state that a country's ability to produce goods and services directly influences a country's standard of living. Furthermore, prices within a country will increase due to excessive money printing by the government. Furthermore, “society faces a short-run trade-off between inflation and unemployment” (Mankiw, 2015). Society manages its scarce resources by allowing a free market to exist (Mankiw, 2015). Free markets allow individuals to work at their optimal levels and contribute to the overall efficiency of the whole. Furthermore, all of the previously mentioned principles work together to determine how scarce resources are allocated. The supply and demand curves have opposite slopes because when the demand for a good increases, the supply of that good decreases. As demand increases, supply decreases. For example, if a hundred people want to buy the same brand of a particular product at about the same time from the same seller, the supply decreases. If shown in a graphical representation, we would see the supply curve going in one direction while demand goes in the opposite direction. Economic interdependence is essentially the idea that all individuals in society depend on and benefit from each other. Products or services that a person needs are provided by another individual in exchange for something of value needed by the person to whom those products or services are provided. This exchange between individuals is constantly evolving and never ends, thus allowing the economy to continue to function properly. Government policies aim to ensure that the economy functions optimally. Public policies established and implemented by the government are designed to enable market equality for a.