5 Basic Principles of Economics

Thinking Like an Economist

Tag: Gains from Trade

  • The Gains from Trade Principle

    Most economic activities involving more than one person are not “zero-sum games”. They involve trading of some kind. Production without consumption is a waste and consumption without production is impossible. This perspective is not isolated to economics. Marketers encourage firms to adopt a “marketing orientation”, in which a firm seeks a profitable strategy which creates…