Instructor Manual: Mankiw, Principles of Economics, 10e,
9780357722718;
Chapter 1: Ten Principles of
Economics
https://www.stuvia.com/user/lectkeshi
Instructor Manual
Mankiw, Principles of Economics, 10e, 9780357722718;
Chapter 1: Ten Principles of Economics
Prepared by David R. Hakes, University of Northern
Iowa
TABLE OF CONTENTS
Purpose and Perspective of the Chapter
.......................................................................................
................ 2
Chapter Objectives
.......................................................................................
......................................................... 2
Complete List of Chapter Activities and Assessments
.............................................................................. 3
Key Terms
.......................................................................................
......................................................................... 3
© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 1
accessible website, in whole or in part .
, Instructor Manual: Mankiw, Principles of Economics, 10e,
9780357722718;
Chapter 1: Ten Principles of
Economics
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
© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 2
accessible website, in whole or in part .
, Instructor Manual: Mankiw, Principles of Economics, 10e,
9780357722718;
Chapter 1: Ten Principles of
Economics
Additional Resources
.......................................................................................
................................................. 14
Cengage Video Resources
............................................................................................
.................................................. 14
PURPOSE AND PERSPECTIVE OF THE CHAPTER
Chapter 1 is the first chapter in a three-chapter section
that serves as the introduction to the text. Chapter 1
introduces ten fundamental principles on which the
study of economics is based. In a broad sense, the rest of
the text is an elaboration on these ten principles.
Chapter 2 will develop how economists approach
problems while Chapter 3 will explain how individuals
and countries gain from trade.
The purpose of Chapter 1 is to lay out ten economic
principles that will serve as building blocks for the rest of
© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 3
accessible website, in whole or in part .
, Instructor Manual: Mankiw, Principles of Economics, 10e,
9780357722718;
Chapter 1: Ten Principles of
Economics
the text. The ten principles can be grouped into three
categories: how people make decisions, how people
interact, and how the economy works as a whole.
Throughout the text, references will be made repeatedly
to these ten principles.
Key points addressed in this chapter:
• The fundamental lessons about individual decision
making are that people face trade-offs among
alternative goals, that the cost of any action is
measured in terms of forgone opportunities, that
rational people make decisions by comparing
marginal costs and marginal benefits, and that
people change their behavior in response to the
incentives they face.
• The fundamental lessons about economic
interactions among people are that trade and
interdependence can be mutually beneficial, that
markets are usually a good way of coordinating
economic activity, and that the government can
potentially improve market outcomes by remedying
© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 4
accessible website, in whole or in part .
9780357722718;
Chapter 1: Ten Principles of
Economics
https://www.stuvia.com/user/lectkeshi
Instructor Manual
Mankiw, Principles of Economics, 10e, 9780357722718;
Chapter 1: Ten Principles of Economics
Prepared by David R. Hakes, University of Northern
Iowa
TABLE OF CONTENTS
Purpose and Perspective of the Chapter
.......................................................................................
................ 2
Chapter Objectives
.......................................................................................
......................................................... 2
Complete List of Chapter Activities and Assessments
.............................................................................. 3
Key Terms
.......................................................................................
......................................................................... 3
© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 1
accessible website, in whole or in part .
, Instructor Manual: Mankiw, Principles of Economics, 10e,
9780357722718;
Chapter 1: Ten Principles of
Economics
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
© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 2
accessible website, in whole or in part .
, Instructor Manual: Mankiw, Principles of Economics, 10e,
9780357722718;
Chapter 1: Ten Principles of
Economics
Additional Resources
.......................................................................................
................................................. 14
Cengage Video Resources
............................................................................................
.................................................. 14
PURPOSE AND PERSPECTIVE OF THE CHAPTER
Chapter 1 is the first chapter in a three-chapter section
that serves as the introduction to the text. Chapter 1
introduces ten fundamental principles on which the
study of economics is based. In a broad sense, the rest of
the text is an elaboration on these ten principles.
Chapter 2 will develop how economists approach
problems while Chapter 3 will explain how individuals
and countries gain from trade.
The purpose of Chapter 1 is to lay out ten economic
principles that will serve as building blocks for the rest of
© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 3
accessible website, in whole or in part .
, Instructor Manual: Mankiw, Principles of Economics, 10e,
9780357722718;
Chapter 1: Ten Principles of
Economics
the text. The ten principles can be grouped into three
categories: how people make decisions, how people
interact, and how the economy works as a whole.
Throughout the text, references will be made repeatedly
to these ten principles.
Key points addressed in this chapter:
• The fundamental lessons about individual decision
making are that people face trade-offs among
alternative goals, that the cost of any action is
measured in terms of forgone opportunities, that
rational people make decisions by comparing
marginal costs and marginal benefits, and that
people change their behavior in response to the
incentives they face.
• The fundamental lessons about economic
interactions among people are that trade and
interdependence can be mutually beneficial, that
markets are usually a good way of coordinating
economic activity, and that the government can
potentially improve market outcomes by remedying
© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 4
accessible website, in whole or in part .
