Instructor Manual: Mankiw, Principles of Economics, 10e, 9780357722718; na na na na na na na
Chapter 1: Ten Principles of Economics na na na na na
InstructorManual an
Mankiw, Principles of Economics, 10e, 9780357722718; Chapter 1: Ten Principles of
na na na na na na na na na na
Economics
na
TABLE OF CONTENTS NA NA
Purpose and Perspective of the Chapter ..................................................................................................... 2
na na na na na
Chapter Objectives ............................................................................................................................................. 2
na
Complete List of Chapter Activities and Assessments.............................................................................. 3
na na na na na na
Key Terms ............................................................................................................................................................ 3
na
What's New in This Chapter ............................................................................................................................ 4
na na na na
Chapter Outline................................................................................................................................................... 4
na
Solutions to Text Problems ............................................................................................................................. 9
na na na
Questions for Review ............................................................................................................................................................... 9
na na
Problems and Applications .................................................................................................................................................10
na na
Additional Activities and Assignments ...................................................................................................... 13
na na na
Additional Resources..................................................................................................................................... 14
na
Cengage Video Resources.....................................................................................................................................................14
na na
, Instructor Manual: Mankiw, Principles of Economics, 10e, 9780357722718; na na na na na na na
Chapter 1: Ten Principles of Economics na na na na na
PURPOSE AND PERSPECTIVE OF THE CHAPTER NA NA NA NA NA
Chapter 1 is the first chapter in a three-chapter section that serves as the introduction to the text.
na na na na na na na na na na na na na na na na na
Chapter 1 introduces ten fundamental principles on which the study of economics is based. In a
na na na na na na na na na na na na na na na na
broad sense, the rest of the text is an elaboration on these ten principles. Chapter 2 will develop
na na na na na na na na na na na na na na na na na na
how economists approach problems while Chapter 3 will explain how individuals and countries
na na na na na na na na na na na na na
gain from trade.
na na na
The purpose of Chapter 1 is to lay out ten economic principles that will serve as building blocks for
na na na na na na na na na na na na na na na na na na
the rest of the text. The ten principles can be grouped into three categories: how people make
na na na na na na na na na na na na na na na na na
decisions, how people interact, and how the economy works as a whole. Throughout the text,
na na na na na na na na na na na na na na na
references will be made repeatedly to these ten principles.
na na na na na na na na na
Key points addressed in this chapter:
na na na na na
• The fundamental lessons about individual decision making are that people face trade-offs
na na na na na na na na na na na
among alternative goals, that the cost of any action is measured in terms of forgone
na na na na na na na na na na na na na na na
opportunities, that rational people make decisions by comparing marginal costs and
na na na na na na na na na na na
marginal benefits, and that people change their behavior in response to the incentives they
na na na na na na na na na na na na na na
face.
na
• The fundamental lessons about economic interactions among people are that trade and
na na na na na na na na na na na
interdependence can be mutually beneficial, that markets are usually a good way of
na na na na na na na na na na na na na
coordinating economic activity, and that the government can potentially improve market
na na na na na na na na na na na
outcomes by remedying a market failure or by promoting greater economic equality.
na na na na na na na na na na na na
• The fundamental lessons about the economy as a whole are that productivity is the ultimate
na na na na na na na na na na na na na na
source of improving living standards, that growth in the quantity of money is the ultimate
na na na na na na na na na na na na na na na
source of inflation, and that society faces a short-run trade-off between inflation and
na na na na na na na na na na na na na
unemployment.
na
CHAPTER OBJECTIVES NA
The following objectives are addressed in this chapter:
na na na na na na na
• Explain how scarcity influences decisions. na na na na
• Explain how individuals evaluate opportunity costs to make decisions.
na na na na na na na na
• Explain how marginal analysis influences decision making.na na na na na na
• Apply basic, economic principles of individual decision making that determine how an
na na na na na na na na na na na
economy generally works.
na na na
• Explain how the terms of trade can lead to gains. na na na na na na na na na
• Given a scenario, identify the distribution system being used.
na na na na na na na na
, Instructor Manual: Mankiw, Principles of Economics, 10e, 9780357722718; na na na na na na na
Chapter 1: Ten Principles of Economics na na na na na
COMPLETE LIST OF CHAPTER ACTIVITIES AND ASSESSMENTS NA NA NA NA NA NA
The following table organizes activities and assessments so that you can make decisions about
na na na na na na na na na na na na na
which content you would like to emphasize in your class. For additional guidance, refer to the
na na na na na na na na na na na na na na na na
Teaching Online Guide.
na na na
Activity/Assessment Source (i.e., PPT slide, na na na Duration
Workbook)
na
Icebreaker Activity na PPT Slide 2 na na 5–10 mins. na
Active Learning 1
na na PPT Slide 14 na na 5 mins.
na
Active Learning 2
na na PPT Slide 17 na na 5 mins.
na
Active Learning 3
na na PPT Slide 28 na na 20–25 mins. na
Think-Pair-Share Activity n a PPT Slide 39 na na 5–10 mins. na
Self-Assessment PPT Slide 40 na na 5–10 mins. na
Section 01-1 QuickQuiz
na na MindTap eBook na 5 mins.
na
Section 01-2 QuickQuiz
na na MindTap eBook na 5 mins.
na
Section 01-3 QuickQuiz
na na MindTap eBook na 5 mins.
na
ConceptClip: Efficiency na MindTap Learn It Folder na na na 5 mins.
na
ConceptClip: Opportunity Cost na na MindTap Learn It Folder na na na 5 mins.
na
ConceptClip: Externality na MindTap Learn It Folder na na na 5 mins.
na
Chapter 01 Problems & Applications
na na na na MindTap Study It Folder na na na 45–60 mins. na
Chapter 01 A+ Test Prep
na na na na MindTap Study It Folder na na na N/A
Chapter 01 Homework na na MindTap Apply It Folder na na na 30–45 mins. na
Chapter 01 Quiz: Ten Principles of
na na na na na MindTap Apply It Folder na na na 20–30 mins. na
Economics
na
[return to top] na na
KEY TERMS NA
Business Cycle: fluctuations in economic activity, such as employment and production
na na na na na na na na na na
Economics: the study of how society manages its scarce resources
na na na na na na na na na
Efficiency: the property of society getting the most it can from its scarce resources
na na na na na na na na na na na na na
Equality: the property of distributing economic prosperity uniformly among the members of
na na na na na na na na na na na
society
na
Externality: the uncompensated impact of one person’s actions on the well-being of a bystander
na na na na na na na na na na na na na
Incentive: something that induces a person to act
na na na na na na na
Inflation: an increase in the overall level of prices in the economy
na na na na na na na na na na na
Marginal Change: an incremental adjustment to a plan of action
na na na na na na na na na
, Instructor Manual: Mankiw, Principles of Economics, 10e, 9780357722718; na na na na na na na
Chapter 1: Ten Principles of Economics na na na na na
Market Economy: an economy that allocates resources through the decentralized decisions of
na na na na na na na na na na na
many firms and households as they interact in markets for goods and services
na na na na na na na na na na na na na
Market Failure: a situation in which a market left on its own does not allocate resources efficiently
na na na na na na na na na na na na na na na na
Market Power: the ability of a single economic actor (or small group of actors) to have a
na na na na na na na na na na na na na na na na
substantial influence on market prices
na na na na na
Opportunity Cost: whatever must be given up to obtain some item na na na na na na na na na na
Productivity: the quantity of goods and services produced from each unit of labor
na na na na na na na na na na na na
Property Rights: the ability of an individual to own and exercise control over scarce resources
na na na na na na na na na na na na na na
Rational People: people who systematically and purposefully do the best they can to achieve their
na na na na na na na na na na na na na na
objectives
na
Scarcity: the limited nature of society’s resources
na na na na na na
[return to top] na na
WHAT'S NEW IN THIS CHAPTER NA NA NA NA
The following elements are improvements in this chapter from the previous edition:
na na na na na na na na na na na
• An expanded discussion of inflation in the United States following the coronavirus recession
na na na na na na na na na na na na
of 2020.
na na
[return to top] na na
CHAPTER OUTLINE NA
The following outline organizes activities (including any existing discussion questions in
na na na na na na na na na na
PowerPoints or other supplements) and assessments by chapter (and therefore by topic), so that
na na na na na na na na na na na na na na
you can see how all the content relates to the topics covered in the text.
na na na na na na na na na na na na na na na
I. Introduction
A. The word “economy” comes from the Greek word oikonomos meaning “one who na na na na na na na na na na na
manages a household.” na na na
1. Instruction Idea: Begin by pointing out that economics is a subject that na na na na na na na na na na na
students must confront in their daily lives. Point out that they already na na na na na na na na na na na na
spend a great deal of their time thinking about economic issues: changes in na na na na na na na na na na na na na
prices, buying decisions, use of their time, concerns about employment, na na na na na na na na na na
etc. n a
B. Both households and economies face many decisions about how to allocate na na na na na na na na na na
resources. na
C. Resources are scarce so they must be managed carefully. na na na na na na na na
Chapter 1: Ten Principles of Economics na na na na na
InstructorManual an
Mankiw, Principles of Economics, 10e, 9780357722718; Chapter 1: Ten Principles of
na na na na na na na na na na
Economics
na
TABLE OF CONTENTS NA NA
Purpose and Perspective of the Chapter ..................................................................................................... 2
na na na na na
Chapter Objectives ............................................................................................................................................. 2
na
Complete List of Chapter Activities and Assessments.............................................................................. 3
na na na na na na
Key Terms ............................................................................................................................................................ 3
na
What's New in This Chapter ............................................................................................................................ 4
na na na na
Chapter Outline................................................................................................................................................... 4
na
Solutions to Text Problems ............................................................................................................................. 9
na na na
Questions for Review ............................................................................................................................................................... 9
na na
Problems and Applications .................................................................................................................................................10
na na
Additional Activities and Assignments ...................................................................................................... 13
na na na
Additional Resources..................................................................................................................................... 14
na
Cengage Video Resources.....................................................................................................................................................14
na na
, Instructor Manual: Mankiw, Principles of Economics, 10e, 9780357722718; na na na na na na na
Chapter 1: Ten Principles of Economics na na na na na
PURPOSE AND PERSPECTIVE OF THE CHAPTER NA NA NA NA NA
Chapter 1 is the first chapter in a three-chapter section that serves as the introduction to the text.
na na na na na na na na na na na na na na na na na
Chapter 1 introduces ten fundamental principles on which the study of economics is based. In a
na na na na na na na na na na na na na na na na
broad sense, the rest of the text is an elaboration on these ten principles. Chapter 2 will develop
na na na na na na na na na na na na na na na na na na
how economists approach problems while Chapter 3 will explain how individuals and countries
na na na na na na na na na na na na na
gain from trade.
na na na
The purpose of Chapter 1 is to lay out ten economic principles that will serve as building blocks for
na na na na na na na na na na na na na na na na na na
the rest of the text. The ten principles can be grouped into three categories: how people make
na na na na na na na na na na na na na na na na na
decisions, how people interact, and how the economy works as a whole. Throughout the text,
na na na na na na na na na na na na na na na
references will be made repeatedly to these ten principles.
na na na na na na na na na
Key points addressed in this chapter:
na na na na na
• The fundamental lessons about individual decision making are that people face trade-offs
na na na na na na na na na na na
among alternative goals, that the cost of any action is measured in terms of forgone
na na na na na na na na na na na na na na na
opportunities, that rational people make decisions by comparing marginal costs and
na na na na na na na na na na na
marginal benefits, and that people change their behavior in response to the incentives they
na na na na na na na na na na na na na na
face.
na
• The fundamental lessons about economic interactions among people are that trade and
na na na na na na na na na na na
interdependence can be mutually beneficial, that markets are usually a good way of
na na na na na na na na na na na na na
coordinating economic activity, and that the government can potentially improve market
na na na na na na na na na na na
outcomes by remedying a market failure or by promoting greater economic equality.
na na na na na na na na na na na na
• The fundamental lessons about the economy as a whole are that productivity is the ultimate
na na na na na na na na na na na na na na
source of improving living standards, that growth in the quantity of money is the ultimate
na na na na na na na na na na na na na na na
source of inflation, and that society faces a short-run trade-off between inflation and
na na na na na na na na na na na na na
unemployment.
na
CHAPTER OBJECTIVES NA
The following objectives are addressed in this chapter:
na na na na na na na
• Explain how scarcity influences decisions. na na na na
• Explain how individuals evaluate opportunity costs to make decisions.
na na na na na na na na
• Explain how marginal analysis influences decision making.na na na na na na
• Apply basic, economic principles of individual decision making that determine how an
na na na na na na na na na na na
economy generally works.
na na na
• Explain how the terms of trade can lead to gains. na na na na na na na na na
• Given a scenario, identify the distribution system being used.
na na na na na na na na
, Instructor Manual: Mankiw, Principles of Economics, 10e, 9780357722718; na na na na na na na
Chapter 1: Ten Principles of Economics na na na na na
COMPLETE LIST OF CHAPTER ACTIVITIES AND ASSESSMENTS NA NA NA NA NA NA
The following table organizes activities and assessments so that you can make decisions about
na na na na na na na na na na na na na
which content you would like to emphasize in your class. For additional guidance, refer to the
na na na na na na na na na na na na na na na na
Teaching Online Guide.
na na na
Activity/Assessment Source (i.e., PPT slide, na na na Duration
Workbook)
na
Icebreaker Activity na PPT Slide 2 na na 5–10 mins. na
Active Learning 1
na na PPT Slide 14 na na 5 mins.
na
Active Learning 2
na na PPT Slide 17 na na 5 mins.
na
Active Learning 3
na na PPT Slide 28 na na 20–25 mins. na
Think-Pair-Share Activity n a PPT Slide 39 na na 5–10 mins. na
Self-Assessment PPT Slide 40 na na 5–10 mins. na
Section 01-1 QuickQuiz
na na MindTap eBook na 5 mins.
na
Section 01-2 QuickQuiz
na na MindTap eBook na 5 mins.
na
Section 01-3 QuickQuiz
na na MindTap eBook na 5 mins.
na
ConceptClip: Efficiency na MindTap Learn It Folder na na na 5 mins.
na
ConceptClip: Opportunity Cost na na MindTap Learn It Folder na na na 5 mins.
na
ConceptClip: Externality na MindTap Learn It Folder na na na 5 mins.
na
Chapter 01 Problems & Applications
na na na na MindTap Study It Folder na na na 45–60 mins. na
Chapter 01 A+ Test Prep
na na na na MindTap Study It Folder na na na N/A
Chapter 01 Homework na na MindTap Apply It Folder na na na 30–45 mins. na
Chapter 01 Quiz: Ten Principles of
na na na na na MindTap Apply It Folder na na na 20–30 mins. na
Economics
na
[return to top] na na
KEY TERMS NA
Business Cycle: fluctuations in economic activity, such as employment and production
na na na na na na na na na na
Economics: the study of how society manages its scarce resources
na na na na na na na na na
Efficiency: the property of society getting the most it can from its scarce resources
na na na na na na na na na na na na na
Equality: the property of distributing economic prosperity uniformly among the members of
na na na na na na na na na na na
society
na
Externality: the uncompensated impact of one person’s actions on the well-being of a bystander
na na na na na na na na na na na na na
Incentive: something that induces a person to act
na na na na na na na
Inflation: an increase in the overall level of prices in the economy
na na na na na na na na na na na
Marginal Change: an incremental adjustment to a plan of action
na na na na na na na na na
, Instructor Manual: Mankiw, Principles of Economics, 10e, 9780357722718; na na na na na na na
Chapter 1: Ten Principles of Economics na na na na na
Market Economy: an economy that allocates resources through the decentralized decisions of
na na na na na na na na na na na
many firms and households as they interact in markets for goods and services
na na na na na na na na na na na na na
Market Failure: a situation in which a market left on its own does not allocate resources efficiently
na na na na na na na na na na na na na na na na
Market Power: the ability of a single economic actor (or small group of actors) to have a
na na na na na na na na na na na na na na na na
substantial influence on market prices
na na na na na
Opportunity Cost: whatever must be given up to obtain some item na na na na na na na na na na
Productivity: the quantity of goods and services produced from each unit of labor
na na na na na na na na na na na na
Property Rights: the ability of an individual to own and exercise control over scarce resources
na na na na na na na na na na na na na na
Rational People: people who systematically and purposefully do the best they can to achieve their
na na na na na na na na na na na na na na
objectives
na
Scarcity: the limited nature of society’s resources
na na na na na na
[return to top] na na
WHAT'S NEW IN THIS CHAPTER NA NA NA NA
The following elements are improvements in this chapter from the previous edition:
na na na na na na na na na na na
• An expanded discussion of inflation in the United States following the coronavirus recession
na na na na na na na na na na na na
of 2020.
na na
[return to top] na na
CHAPTER OUTLINE NA
The following outline organizes activities (including any existing discussion questions in
na na na na na na na na na na
PowerPoints or other supplements) and assessments by chapter (and therefore by topic), so that
na na na na na na na na na na na na na na
you can see how all the content relates to the topics covered in the text.
na na na na na na na na na na na na na na na
I. Introduction
A. The word “economy” comes from the Greek word oikonomos meaning “one who na na na na na na na na na na na
manages a household.” na na na
1. Instruction Idea: Begin by pointing out that economics is a subject that na na na na na na na na na na na
students must confront in their daily lives. Point out that they already na na na na na na na na na na na na
spend a great deal of their time thinking about economic issues: changes in na na na na na na na na na na na na na
prices, buying decisions, use of their time, concerns about employment, na na na na na na na na na na
etc. n a
B. Both households and economies face many decisions about how to allocate na na na na na na na na na na
resources. na
C. Resources are scarce so they must be managed carefully. na na na na na na na na
