SOLUTION MANUAL
© 2022 Cengage. All Rights Reserved. Maỵ not be scanned, copied or duplicated, or posted to a publiclỵ 1
accessible website, in whole or in part.
,Part I: INTRODUCTION.
1. Ten Principles of Economics.
2. Thinking Like an Economist.
3. Interdependence and the Gains from Trade.
Part II: HOW MARKETS WORK.
4. The Market Forces of Supply and Demand.
5. Elasticity and Its Application.
6. Supply, Demand, and Government Policies.
Part III: MARKETS AND WELFARE.
7. Consumers, Producers, and the Efficiency of Markets.
8. Applications: The Costs of Taxation.
9. Application: International Trade.
Part IV: THE ECONOMICS OF THE PUBLIC SECTOR.
10. Externalities.
11. Public Goods and Common Resources.
12. The Economics of Healthcare.
13. The Design of the Tax System.
Part V: FIRM BEHAVIOR AND THE ORGANIZATION OF INDUSTRY.
14. The Costs of Production.
15. Firms in Competitive Markets.
16. Monopoly.
17. Monopolistic Competition.
18. Oligopoly.
Part VI: THE ECONOMICS OF THE LABOR MARKET.
19. The Markets for the Factors of Production.
20. Earnings and Discrimination.
21. Income Inequality and Poverty.
© 2022 Cengage. All Rights Reserved. Maỵ not be scanned, copied or duplicated, or posted to a publiclỵ 2
accessible website, in whole or in part.
,Part VII: TOPICS FOR FURTHER STUDY.
22. The Theory of Consumer Choice.
23. Frontiers in Microeconomics.
Part VIII: THE DATA OF MACROECONOMICS.
24. Measuring a Nation’s Income.
25. Measuring the Cost of Living.
Part IX: THE REAL ECONOMY IN THE LONG RUN.
26. Production and Growth.
27. Saving, Investment, and the Financial System.
28. The Basic Tools of Finance.
29. Unemployment.
Part X: MONEY AND PRICES IN THE LONG RUN.
30. The Monetary System.
31. Money Growth and Inflation.
Part XI: THE MACROECONOMICS OF OPEN ECONOMICS.
32. Open-Economy Macroeconomics: Basic Concepts.
33. A Macroeconomic Theory of the Open Economy.
Part XII: SHORT-RUN ECONOMIC FLUCTUATIONS.
34. Aggregate Demand and Aggregate Supply.
35. The Influence of Monetary and Fiscal Policy on Aggregate Demand.
36. The Short-Run Trade-off between Inflation and Unemployment.
Part XIII: FINAL THOUGHTS.
37. Six Debates over Macroeconomic Policy.
38. Appendix: How Economists Use Data.
© 2022 Cengage. All Rights Reserved. Maỵ not be scanned, copied or duplicated, or posted to a publiclỵ 3
accessible website, in whole or in part.
, Mankiw, Principles of Economics, 10e, 9780357722718; Chapter 1: Ten Principles of Economics
Prepared bỵ David R. Hakes, Universitỵ of Northern Iowa
TABLE OF CONTENTS
Purpose and Perspective of the Chapter ........................................................................................... 2
Chapter Objectives......................................................................................................................... 2
Complete List of Chapter Activities and Assessments ......................................................................... 3
Keỵ Terms .................................................................................................................................... 3
What's New in This Chapter ............................................................................................................ 4
Chapter Outline ............................................................................................................................. 4
Solutions to Text Problems.............................................................................................................. 9
Questions for Review ........................................................................................................................... 9
Problems and Applications ................................................................................................................. 10
Additional Activities and Assignments ............................................................................................. 13
Additional Resources.................................................................................................................... 14
Cengage Video Resources ................................................................................................................. 14
© 2022 Cengage. All Rights Reserved. Maỵ not be scanned, copied or duplicated, or posted to a publiclỵ 4
accessible website, in whole or in part.
© 2022 Cengage. All Rights Reserved. Maỵ not be scanned, copied or duplicated, or posted to a publiclỵ 1
accessible website, in whole or in part.
,Part I: INTRODUCTION.
1. Ten Principles of Economics.
2. Thinking Like an Economist.
3. Interdependence and the Gains from Trade.
Part II: HOW MARKETS WORK.
4. The Market Forces of Supply and Demand.
5. Elasticity and Its Application.
6. Supply, Demand, and Government Policies.
Part III: MARKETS AND WELFARE.
7. Consumers, Producers, and the Efficiency of Markets.
8. Applications: The Costs of Taxation.
9. Application: International Trade.
Part IV: THE ECONOMICS OF THE PUBLIC SECTOR.
10. Externalities.
11. Public Goods and Common Resources.
12. The Economics of Healthcare.
13. The Design of the Tax System.
Part V: FIRM BEHAVIOR AND THE ORGANIZATION OF INDUSTRY.
14. The Costs of Production.
15. Firms in Competitive Markets.
16. Monopoly.
17. Monopolistic Competition.
18. Oligopoly.
Part VI: THE ECONOMICS OF THE LABOR MARKET.
19. The Markets for the Factors of Production.
20. Earnings and Discrimination.
21. Income Inequality and Poverty.
© 2022 Cengage. All Rights Reserved. Maỵ not be scanned, copied or duplicated, or posted to a publiclỵ 2
accessible website, in whole or in part.
,Part VII: TOPICS FOR FURTHER STUDY.
22. The Theory of Consumer Choice.
23. Frontiers in Microeconomics.
Part VIII: THE DATA OF MACROECONOMICS.
24. Measuring a Nation’s Income.
25. Measuring the Cost of Living.
Part IX: THE REAL ECONOMY IN THE LONG RUN.
26. Production and Growth.
27. Saving, Investment, and the Financial System.
28. The Basic Tools of Finance.
29. Unemployment.
Part X: MONEY AND PRICES IN THE LONG RUN.
30. The Monetary System.
31. Money Growth and Inflation.
Part XI: THE MACROECONOMICS OF OPEN ECONOMICS.
32. Open-Economy Macroeconomics: Basic Concepts.
33. A Macroeconomic Theory of the Open Economy.
Part XII: SHORT-RUN ECONOMIC FLUCTUATIONS.
34. Aggregate Demand and Aggregate Supply.
35. The Influence of Monetary and Fiscal Policy on Aggregate Demand.
36. The Short-Run Trade-off between Inflation and Unemployment.
Part XIII: FINAL THOUGHTS.
37. Six Debates over Macroeconomic Policy.
38. Appendix: How Economists Use Data.
© 2022 Cengage. All Rights Reserved. Maỵ not be scanned, copied or duplicated, or posted to a publiclỵ 3
accessible website, in whole or in part.
, Mankiw, Principles of Economics, 10e, 9780357722718; Chapter 1: Ten Principles of Economics
Prepared bỵ David R. Hakes, Universitỵ of Northern Iowa
TABLE OF CONTENTS
Purpose and Perspective of the Chapter ........................................................................................... 2
Chapter Objectives......................................................................................................................... 2
Complete List of Chapter Activities and Assessments ......................................................................... 3
Keỵ Terms .................................................................................................................................... 3
What's New in This Chapter ............................................................................................................ 4
Chapter Outline ............................................................................................................................. 4
Solutions to Text Problems.............................................................................................................. 9
Questions for Review ........................................................................................................................... 9
Problems and Applications ................................................................................................................. 10
Additional Activities and Assignments ............................................................................................. 13
Additional Resources.................................................................................................................... 14
Cengage Video Resources ................................................................................................................. 14
© 2022 Cengage. All Rights Reserved. Maỵ not be scanned, copied or duplicated, or posted to a publiclỵ 4
accessible website, in whole or in part.
