Instructor Manual: Mankiw, Principles of Economics, 10e, 9780357722718; .6t .6t .6t .6t .6t .6t .6t
Chapter 1: Ten Principles of Economics .6t .6t .6t .6t .6t
InstructorManual t
.6
Mankiw, Principles of Economics, 10e, 9780357722718; Chapter 1: Ten Principles of
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
Economics
.6t
TABLE OF CONTENTS .6T .6T
Purpose and Perspective of the Chapter ..................................................................................................... 2
.6t .6t .6t .6t .6t
Chapter Objectives ............................................................................................................................................. 2
.6t
Complete List of Chapter Activities and Assessments .............................................................................. 3
.6t .6t .6t .6t .6t .6t
Key Terms ............................................................................................................................................................ 3
.6t
What's New in This Chapter ............................................................................................................................ 4
.6t .6t .6t .6t
Chapter Outline................................................................................................................................................... 4
.6t
Solutions to Text Problems.............................................................................................................................. 9
.6t .6t .6t
Questions for Review ............................................................................................................................................................... 9
.6t .6t
Problems and Applications .................................................................................................................................................10
.6t .6t
Additional Activities and Assignments ...................................................................................................... 13
.6t .6t .6t
Additional Resources..................................................................................................................................... 14
.6 t
Cengage Video Resources.....................................................................................................................................................14
.6t .6t
, Instructor Manual: Mankiw, Principles of Economics, 10e, 9780357722718; .6t .6t .6t .6t .6t .6t .6t
Chapter 1: Ten Principles of Economics .6t .6t .6t .6t .6t
PURPOSE AND PERSPECTIVE OF THE CHAPTER .6T .6T .6T .6T .6T
Chapter 1 is the first chapter in a three-chapter section that serves as the introduction to the text.
.6t .6t .6t .6 t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
Chapter 1 introduces ten fundamental principles on which the study of economics is based. In a
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
broad sense, the rest of the text is an elaboration on these ten principles. Chapter 2 will develop
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
how economists approach problems while Chapter 3 will explain how individuals and countries
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
gain from trade.
.6t .6t .6t
The purpose of Chapter 1 is to lay out ten economic principles that will serve as building blocks for
.6t .6 t .6t .6t .6 t .6t .6 t .6 t .6 t .6t .6t .6t .6t .6t .6t .6t .6t .6t
the rest of the text. The ten principles can be grouped into three categories: how people make
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
decisions, how people interact, and how the economy works as a whole. Throughout the text,
.6t .6t .6t .6t .6t .6 t .6t .6t .6t .6t .6t .6t .6t .6t .6t
references will be made repeatedly to these ten principles.
.6t .6t .6t .6t .6t .6t .6t .6t .6t
Key points addressed in this chapter:
.6t .6t .6t .6t .6t
• The fundamental lessons about individual decision making are that people face trade-offs
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
among alternative goals, that the cost of any action is measured in terms of forgone
.6t .6t .6t .6t .6 t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
opportunities, that rational people make decisions by comparing marginal costs and
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
marginal benefits, and that people change their behavior in response to the incentives they
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
face.
.6t
• The fundamental lessons about economic interactions among people are that trade and
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
interdependence can be mutually beneficial, that markets are usually a good way of
.6t .6 t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
coordinating economic activity, and that the government can potentially improve market
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
outcomes by remedying a market failure or by promoting greater economic equality.
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
• The fundamental lessons about the economy as a whole are that productivity is the ultimate
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
source of improving living standards, that growth in the quantity of money is the ultimate
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
source of inflation, and that society faces a short-run trade-off between inflation and
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
unemployment.
.6t
CHAPTER OBJECTIVES .6T
The following objectives are addressed in this chapter:
.6t .6t .6t .6t .6t .6t .6t
• Explain how scarcity influences decisions. .6t .6t .6t .6t
• Explain how individuals evaluate opportunity costs to make decisions.
.6t .6t .6t .6t .6t .6t .6t .6t
• Explainhow marginal analysis influences decision making. .6t .6t .6t .6t .6t .6t
• Apply basic, economic principles of individual decision making that determine how an
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
economy generally works.
.6t .6t .6t
• Explain how the terms of trade can lead to gains. .6t .6t .6t .6t .6t .6t .6t .6t .6t
• Given a scenario, identify the distribution system being used.
.6t .6t .6t .6t .6t .6t .6t .6t
, Instructor Manual: Mankiw, Principles of Economics, 10e, 9780357722718; .6t .6t .6t .6t .6t .6t .6t
Chapter 1: Ten Principles of Economics .6t .6t .6t .6t .6t
COMPLETE LIST OF CHAPTER ACTIVITIES AND ASSESSMENTS .6T .6T .6T .6T .6T .6T
The following table organizes activities and assessments so that you can make decisions about
.6t .6t .6t .6 t .6 t .6t .6t .6t .6t .6t .6t .6t .6t
which content you would like to emphasize in your class. For additional guidance, refer to the
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
Teaching Online Guide.
.6t .6t .6t
Activity/Assessment Source (i.e., PPT slide, .6t .6t .6t Duration
Workbook)
.6t
Icebreaker Activity .6t PPT Slide 2 .6t .6t 5–10 mins. .6t
Active Learning 1
.6t .6t PPT Slide 14 .6t .6t 5 mins.
.6t
Active Learning 2
.6t .6t PPT Slide 17 .6t .6t 5 mins.
.6t
Active Learning 3
.6t .6t PPT Slide 28 .6t .6t 20–25 mins. .6t
Think-Pair-Share Activity .6 t PPT Slide 39 .6t .6t 5–10 mins. .6t
Self-Assessment PPT Slide 40 .6t .6t 5–10 mins. .6t
Section 01-1 QuickQuiz
.6t .6t MindTap eBook .6t 5 mins.
.6t
Section 01-2 QuickQuiz
.6t .6t MindTap eBook .6t 5 mins.
.6t
Section 01-3 QuickQuiz
.6t .6t MindTap eBook .6t 5 mins.
.6t
ConceptClip: Efficiency .6 t MindTap Learn It Folder .6t .6t .6t 5 mins.
.6t
ConceptClip: Opportunity Cost .6t .6t MindTap Learn It Folder .6t .6t .6t 5 mins.
.6t
ConceptClip: Externality .6 t MindTap Learn It Folder .6t .6t .6t 5 mins.
.6t
Chapter 01 Problems & Applications
.6t .6t .6 t .6t MindTap Study It Folder .6t .6t .6t 45–60 mins. .6t
Chapter 01 A+ Test Prep .6t .6t .6t .6t MindTap Study It Folder .6t .6t .6t N/A
Chapter 01 Homework .6t .6t MindTap Apply It Folder .6t .6t .6t 30–45 mins. .6t
Chapter 01 Quiz: Ten Principles of
.6t .6t .6t .6t .6t MindTap Apply It Folder .6t .6t .6t 20–30 mins. .6t
Economics
.6t
[return to top] .6t .6t
KEY TERMS .6T
Business Cycle: fluctuations in economic activity, such as employment and production
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
Economics: the study of how society manages its scarce resources
.6t .6t .6t .6t .6t .6t .6t .6t .6t
Efficiency: the property of society getting the most it can from its scarce resources
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
Equality: the property of distributing economic prosperity uniformly among the members of
.6t .6 t .6t .6t .6t .6t .6t .6t .6t .6t .6t
society
.6t
Externality: the uncompensated impact of one person’s actions on the well-being of a bystander
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
Incentive: something that induces a person to act
.6t .6t .6t .6t .6t .6t .6t
Inflation: an increase in the overall level of prices in the economy
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
Marginal Change: an incremental adjustment to a plan of action
.6t .6t .6t .6t .6t .6t .6t .6t .6t
, Instructor Manual: Mankiw, Principles of Economics, 10e, 9780357722718; .6t .6t .6t .6t .6t .6t .6t
Chapter 1: Ten Principles of Economics .6t .6t .6t .6t .6t
Market Economy: an economy that allocates resources through the decentralized decisions of
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
many firms and households as they interact in markets for goods and services
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
Market Failure: a situation in which a market left on its own does not allocate resources efficiently
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
Market Power: the ability of a single economic actor (or small group of actors) to have a
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
substantial influence on market prices
.6t .6t .6t .6t .6t
Opportunity Cost: whatever must be given up to obtain some item .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
Productivity: the quantity of goods and services produced from each unit of labor .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
Property Rights: the ability of an individual to own and exercise control over scarce resources
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
Rational People: people who systematically and purposefully do the best they can to achieve their
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
objectives
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Scarcity: the limited nature of society’s resources
.6t .6t .6t .6t .6t .6t
[return to top] .6t .6t
WHAT'S NEW IN THIS CHAPTER .6T .6T .6T .6T
The following elements are improvements in this chapter from the previous edition:
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
• An expanded discussion of inflation in the United States following the coronavirus recession
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
of 2020.
.6t .6t
[return to top] .6t .6t
CHAPTER OUTLINE .6T
The following outline organizes activities (including any existing discussion questions in
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
PowerPoints or other supplements) and assessments by chapter (and therefore by topic), so that
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
you can see how all the content relates to the topics covered in the text.
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
I. Introduction
A. The word “economy” comes from the Greek word oikonomos meaning “one who .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
manages a household.” .6t .6t .6t
1. Instruction Idea: Begin by pointing out that economics is a subject that .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
students must confront in their daily lives. Point out that they already .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
spend a great deal of their time thinking about economic issues: changes in .6t .6t .6t .6 t .6t .6t .6t .6t .6t .6t .6t .6t .6t
prices, buying decisions, use of their time, concerns about employment, .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
etc. . 6 t
B. Both households and economies face many decisions about how to allocate .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
resources. .6t
C. Resources are scarce so they must be managed carefully. .6t .6t .6t .6t .6t .6t .6t .6t
Chapter 1: Ten Principles of Economics .6t .6t .6t .6t .6t
InstructorManual t
.6
Mankiw, Principles of Economics, 10e, 9780357722718; Chapter 1: Ten Principles of
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
Economics
.6t
TABLE OF CONTENTS .6T .6T
Purpose and Perspective of the Chapter ..................................................................................................... 2
.6t .6t .6t .6t .6t
Chapter Objectives ............................................................................................................................................. 2
.6t
Complete List of Chapter Activities and Assessments .............................................................................. 3
.6t .6t .6t .6t .6t .6t
Key Terms ............................................................................................................................................................ 3
.6t
What's New in This Chapter ............................................................................................................................ 4
.6t .6t .6t .6t
Chapter Outline................................................................................................................................................... 4
.6t
Solutions to Text Problems.............................................................................................................................. 9
.6t .6t .6t
Questions for Review ............................................................................................................................................................... 9
.6t .6t
Problems and Applications .................................................................................................................................................10
.6t .6t
Additional Activities and Assignments ...................................................................................................... 13
.6t .6t .6t
Additional Resources..................................................................................................................................... 14
.6 t
Cengage Video Resources.....................................................................................................................................................14
.6t .6t
, Instructor Manual: Mankiw, Principles of Economics, 10e, 9780357722718; .6t .6t .6t .6t .6t .6t .6t
Chapter 1: Ten Principles of Economics .6t .6t .6t .6t .6t
PURPOSE AND PERSPECTIVE OF THE CHAPTER .6T .6T .6T .6T .6T
Chapter 1 is the first chapter in a three-chapter section that serves as the introduction to the text.
.6t .6t .6t .6 t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
Chapter 1 introduces ten fundamental principles on which the study of economics is based. In a
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
broad sense, the rest of the text is an elaboration on these ten principles. Chapter 2 will develop
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
how economists approach problems while Chapter 3 will explain how individuals and countries
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
gain from trade.
.6t .6t .6t
The purpose of Chapter 1 is to lay out ten economic principles that will serve as building blocks for
.6t .6 t .6t .6t .6 t .6t .6 t .6 t .6 t .6t .6t .6t .6t .6t .6t .6t .6t .6t
the rest of the text. The ten principles can be grouped into three categories: how people make
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
decisions, how people interact, and how the economy works as a whole. Throughout the text,
.6t .6t .6t .6t .6t .6 t .6t .6t .6t .6t .6t .6t .6t .6t .6t
references will be made repeatedly to these ten principles.
.6t .6t .6t .6t .6t .6t .6t .6t .6t
Key points addressed in this chapter:
.6t .6t .6t .6t .6t
• The fundamental lessons about individual decision making are that people face trade-offs
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
among alternative goals, that the cost of any action is measured in terms of forgone
.6t .6t .6t .6t .6 t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
opportunities, that rational people make decisions by comparing marginal costs and
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
marginal benefits, and that people change their behavior in response to the incentives they
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
face.
.6t
• The fundamental lessons about economic interactions among people are that trade and
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
interdependence can be mutually beneficial, that markets are usually a good way of
.6t .6 t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
coordinating economic activity, and that the government can potentially improve market
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
outcomes by remedying a market failure or by promoting greater economic equality.
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
• The fundamental lessons about the economy as a whole are that productivity is the ultimate
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
source of improving living standards, that growth in the quantity of money is the ultimate
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
source of inflation, and that society faces a short-run trade-off between inflation and
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
unemployment.
.6t
CHAPTER OBJECTIVES .6T
The following objectives are addressed in this chapter:
.6t .6t .6t .6t .6t .6t .6t
• Explain how scarcity influences decisions. .6t .6t .6t .6t
• Explain how individuals evaluate opportunity costs to make decisions.
.6t .6t .6t .6t .6t .6t .6t .6t
• Explainhow marginal analysis influences decision making. .6t .6t .6t .6t .6t .6t
• Apply basic, economic principles of individual decision making that determine how an
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
economy generally works.
.6t .6t .6t
• Explain how the terms of trade can lead to gains. .6t .6t .6t .6t .6t .6t .6t .6t .6t
• Given a scenario, identify the distribution system being used.
.6t .6t .6t .6t .6t .6t .6t .6t
, Instructor Manual: Mankiw, Principles of Economics, 10e, 9780357722718; .6t .6t .6t .6t .6t .6t .6t
Chapter 1: Ten Principles of Economics .6t .6t .6t .6t .6t
COMPLETE LIST OF CHAPTER ACTIVITIES AND ASSESSMENTS .6T .6T .6T .6T .6T .6T
The following table organizes activities and assessments so that you can make decisions about
.6t .6t .6t .6 t .6 t .6t .6t .6t .6t .6t .6t .6t .6t
which content you would like to emphasize in your class. For additional guidance, refer to the
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
Teaching Online Guide.
.6t .6t .6t
Activity/Assessment Source (i.e., PPT slide, .6t .6t .6t Duration
Workbook)
.6t
Icebreaker Activity .6t PPT Slide 2 .6t .6t 5–10 mins. .6t
Active Learning 1
.6t .6t PPT Slide 14 .6t .6t 5 mins.
.6t
Active Learning 2
.6t .6t PPT Slide 17 .6t .6t 5 mins.
.6t
Active Learning 3
.6t .6t PPT Slide 28 .6t .6t 20–25 mins. .6t
Think-Pair-Share Activity .6 t PPT Slide 39 .6t .6t 5–10 mins. .6t
Self-Assessment PPT Slide 40 .6t .6t 5–10 mins. .6t
Section 01-1 QuickQuiz
.6t .6t MindTap eBook .6t 5 mins.
.6t
Section 01-2 QuickQuiz
.6t .6t MindTap eBook .6t 5 mins.
.6t
Section 01-3 QuickQuiz
.6t .6t MindTap eBook .6t 5 mins.
.6t
ConceptClip: Efficiency .6 t MindTap Learn It Folder .6t .6t .6t 5 mins.
.6t
ConceptClip: Opportunity Cost .6t .6t MindTap Learn It Folder .6t .6t .6t 5 mins.
.6t
ConceptClip: Externality .6 t MindTap Learn It Folder .6t .6t .6t 5 mins.
.6t
Chapter 01 Problems & Applications
.6t .6t .6 t .6t MindTap Study It Folder .6t .6t .6t 45–60 mins. .6t
Chapter 01 A+ Test Prep .6t .6t .6t .6t MindTap Study It Folder .6t .6t .6t N/A
Chapter 01 Homework .6t .6t MindTap Apply It Folder .6t .6t .6t 30–45 mins. .6t
Chapter 01 Quiz: Ten Principles of
.6t .6t .6t .6t .6t MindTap Apply It Folder .6t .6t .6t 20–30 mins. .6t
Economics
.6t
[return to top] .6t .6t
KEY TERMS .6T
Business Cycle: fluctuations in economic activity, such as employment and production
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
Economics: the study of how society manages its scarce resources
.6t .6t .6t .6t .6t .6t .6t .6t .6t
Efficiency: the property of society getting the most it can from its scarce resources
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
Equality: the property of distributing economic prosperity uniformly among the members of
.6t .6 t .6t .6t .6t .6t .6t .6t .6t .6t .6t
society
.6t
Externality: the uncompensated impact of one person’s actions on the well-being of a bystander
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
Incentive: something that induces a person to act
.6t .6t .6t .6t .6t .6t .6t
Inflation: an increase in the overall level of prices in the economy
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
Marginal Change: an incremental adjustment to a plan of action
.6t .6t .6t .6t .6t .6t .6t .6t .6t
, Instructor Manual: Mankiw, Principles of Economics, 10e, 9780357722718; .6t .6t .6t .6t .6t .6t .6t
Chapter 1: Ten Principles of Economics .6t .6t .6t .6t .6t
Market Economy: an economy that allocates resources through the decentralized decisions of
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
many firms and households as they interact in markets for goods and services
.6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
Market Failure: a situation in which a market left on its own does not allocate resources efficiently
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Market Power: the ability of a single economic actor (or small group of actors) to have a
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substantial influence on market prices
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Opportunity Cost: whatever must be given up to obtain some item .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
Productivity: the quantity of goods and services produced from each unit of labor .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
Property Rights: the ability of an individual to own and exercise control over scarce resources
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Rational People: people who systematically and purposefully do the best they can to achieve their
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objectives
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Scarcity: the limited nature of society’s resources
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WHAT'S NEW IN THIS CHAPTER .6T .6T .6T .6T
The following elements are improvements in this chapter from the previous edition:
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• An expanded discussion of inflation in the United States following the coronavirus recession
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of 2020.
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CHAPTER OUTLINE .6T
The following outline organizes activities (including any existing discussion questions in
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PowerPoints or other supplements) and assessments by chapter (and therefore by topic), so that
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you can see how all the content relates to the topics covered in the text.
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I. Introduction
A. The word “economy” comes from the Greek word oikonomos meaning “one who .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
manages a household.” .6t .6t .6t
1. Instruction Idea: Begin by pointing out that economics is a subject that .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
students must confront in their daily lives. Point out that they already .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
spend a great deal of their time thinking about economic issues: changes in .6t .6t .6t .6 t .6t .6t .6t .6t .6t .6t .6t .6t .6t
prices, buying decisions, use of their time, concerns about employment, .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
etc. . 6 t
B. Both households and economies face many decisions about how to allocate .6t .6t .6t .6t .6t .6t .6t .6t .6t .6t
resources. .6t
C. Resources are scarce so they must be managed carefully. .6t .6t .6t .6t .6t .6t .6t .6t
