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TABLE OF CONTENTS


Part I.

Ten main ideas of economics


Incentives affect behavior

Total to pay

Trade is always helpful

Barriers to trade harm

Revenues are defined production

Four sources of income growth

Personal income has a reward for services rendered by others

Profit motivates businesses to work for social welfare

The principle of the "invisible hand": market prices direct self-interest for the common good

Neglect side effects

Part II.

Seven sources of economic progress


Private property: people work hard and better use of resources, where the property is private

Freedom of exchanges: the political measures against the exchange, constrain economic growth

Competition: competition forces to capitalize on the resources and is a constant source of progressive innovations

Capital market: in order to make rational use of its resources, the country should have a mechanism for channeling capital into efficient production

Financial stability: inflation distorts price signals and undermining the market economy

Low taxes: the more money is available to people, the more they produce

Freedom of foreign trade: country benefits by selling goods produced cheaply and buying goods with the money that it is expensive to produce

Part III.

Economic progress and the role of the state


The state protects the rule of law and provide benefits that society can get "in the market", promotes the welfare of the country, but ...

The state - not a stop-gap for each barrel. It can not be used to correct all the flaws of society

Price of state tax

Interest groups can use the political mechanism of the state, to rob taxpayers and consumers

The state often creates a budget deficit threatens economy

Reallocation of society contributes to the state of their plundering

The costs of income redistribution is much greater than the benefits of those who are meant to reallocate funds

Central planning - only the substitution of the power market of political power, leading to empty waste of resources and economic decline

Competition between authorities is as important as competition among firms competition authorities among themselves and with private enterprise makes governments better serve people

Constitutional provisions should ensure the harmonious combination of democracy with a strong economy

NOTES


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