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Edition by N. Gregory Mankiw
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CompleteChapterSolutionsManual
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are included (Ch 1 to 19)
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** Immediate Download
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** Swift Response
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** All Chapters included
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,Instructor Manual ix
Mankiw, Brief Principles of Macroeconomics, 10e, 9780357722718; Chapter 1: Ten
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Principles of Economics
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Prepared by David R. Hakes, University of Northern Iowa
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TABLE OF CONTENTS IX IX
Purpose and Perspective of the Chapter ....................................................................................................... 2
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Chapter Objectives ............................................................................................................................................. 2
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Complete List of Chapter Activities and Assessments ................................................................................ 3
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Key Terms............................................................................................................................................................. 3
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What's New in This Chapter ............................................................................................................................. 4
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Chapter Outline ................................................................................................................................................... 4
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Solutions to Text Problems ........................................................................................................................... 10
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Questions for Review ............................................................................................................................................................. 10
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Problems and Applications.................................................................................................................................................. 11
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Additional Activities and Assignments....................................................................................................... 14
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Additional Resources ..................................................................................................................................... 15
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Cengage Video Resources ..................................................................................................................................................... 15
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,PURPOSE AND PERSPECTIVE OF THE CHAPTER IX IX IX IX IX
Chapter 1 is the first chapter in a three-chapter section that serves as the introduction to the text.
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Chapter 1 introduces ten fundamental principles on which the study of economics is based. In a
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broad sense, the rest of the text is an elaboration on these ten principles. Chapter 2 will develop how
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economists approach problems while Chapter 3 will explain how individuals and countries gain
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from trade.
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The purpose of Chapter 1 is to lay out ten economic principles that will serve as building blocks for
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the rest of the text. The ten principles can be grouped into three categories: how people make
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decisions, how people interact, and how the economy works as a whole. Throughout the text,
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references will be made repeatedly to these ten principles.
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Key points addressed in this chapter:
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• The fundamental lessons about individual decision making are that people face trade-offs
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among alternative goals, that the cost of any action is measured in terms of forgone
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opportunities, that rational people make decisions by comparing marginal costs and
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marginal benefits, and that people change their behavior in response to the incentives they
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face.
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• The fundamental lessons about economic interactions among people are that trade and
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interdependence can be mutually beneficial, that markets are usually a good way of
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coordinating economic activity, and that the government can potentially improve market
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outcomes by remedying a market failure or by promoting greater economic equality.
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• The fundamental lessons about the economy as a whole are that productivity is the ultimate
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source of improving living standards, that growth in the quantity of money is the ultimate
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source of inflation, and that society faces a short-run trade-off between inflation and
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unemployment.
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CHAPTER OBJECTIVES IX
The following objectives are addressed in this chapter:
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• Explainhow scarcity influences decisions. ix ix ix ix
• Explainhow individuals evaluate opportunity costs to make decisions. ix ix ix ix ix ix ix ix
• Explainhow marginal analysisinfluences decision making. ix ix ix ix ix ix
• Apply basic, economic principles of individual decision making that determine how an
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economy generally works.
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• Explain how the terms of trade can lead to gains. ix ix ix ix ix ix ix ix ix
, • Given a scenario, identify the distribution system being used.
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COMPLETE LIST OF CHAPTER ACTIVITIES AND ASSESSMENTS IX IX IX IX IX IX
The following table organizes activities and assessments so that you can make decisions about which
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content you would like to emphasize in your class. For additional guidance, refer to the Teaching
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Online Guide.
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Activity/Assessment Source (i.e.,PPT slide, ix ix ix Duration
Workbook)
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Icebreaker Activity ix PPT Slide 2 ix ix 5–10 mins. ix
Active Learning 1 ix ix PPT Slide 14 ix ix 5 mins.
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Active Learning 2 ix ix PPT Slide 17 ix ix 5 mins.
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Active Learning 3 ix ix PPT Slide 28 ix ix 20–25 mins. ix
Think-Pair-Share Activity ix PPT Slide 39 ix ix 5–10 mins. ix
Self-Assessment PPT Slide 40 ix ix 5–10 mins. ix
Section 01-1 QuickQuiz ix ix MindTap eBook ix 5 mins.
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Section 01-2 QuickQuiz ix ix MindTap eBook ix 5 mins.
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Section 01-3 QuickQuiz ix ix MindTap eBook ix 5 mins.
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ConceptClip: Efficiency ix MindTap Learn It Folder ix ix ix 5 mins.
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ConceptClip: Opportunity Cost ix ix MindTap Learn It Folder ix ix ix 5 mins.
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ConceptClip: Externality ix MindTap Learn It Folder ix ix ix 5 mins.
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Chapter 01 Problems & Applications ix ix ix ix MindTap Study It Folder ix ix ix 45–60 mins. ix
Chapter 01 A+ Test Prep ix ix ix ix MindTap Study It Folder ix ix ix N/A
Chapter 01 Homework ix ix MindTap Apply It Folder ix ix ix 30–45 mins. ix
Chapter 01 Quiz: Ten Principles of ix ix ix ix ix MindTap Apply It Folder ix ix ix 20–30 mins. ix
Economics
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KEY TERMS IX
Business Cycle: fluctuations in economic activity, such as employment and production
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Economics: the study of how society manages its scarce resources
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Efficiency: the property of society getting the most it can from its scarce resources
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Equality: the property of distributing economic prosperity uniformly among the members of society
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