A Lecture presentation in powerpoint to accompany Principles of Economics Second edition N. Gregory Mankiw Prepared by Mark P Karscig, Department of Economics Finance. Central missouri state universit
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. A Lecture Presentation in PowerPoint to Accompany Principles of Economics Second Edition by N. Gregory Mankiw Prepared by Mark P. Karscig, Department of Economics & Finance, Central Missouri State University
Ten Principles of Economics Chapter 1 Copyright C 2001 by Harcourt, Inc All rights reserved. Requests for permission to make copies of any part of the work should be mailed to Permissions Department, Harcourt College Publishers 6277 Sea harbor Drive. Orlando. Florida 32887-6777
Ten Principles of Economics Chapter 1 Copyright © 2001 by Harcourt, Inc. All rights reserved. Requests for permission to m ake copies of any part of the work should be mailed to: Permissions Department, Harcourt Colleg e Publishers, 6277 Sea Harbor Drive, Orlando, Florida 32887-6777
Economy. The word economy comes from a Greek word for one who manages a household
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Economy. . . . . . The word economy comes from a Greek word for “one who manages a household
A household and an economy face many decisions ◆ Who willl work? o What goods and how many of them should be produced? o What resources should be used in production? o At what price should the goods be sold?
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. A household and an economy face many decisions: Who will work? What goods and how many of them should be produced? What resources should be used in production? At what price should the goods be sold?
Society and Scarce Resources The management of societys resources is important because resources are scarce
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Society and Scarce Resources: The management of society’s resources is important because resources are scarce
Scarcity means that society has limited resources and therefore cannot produce all the goods and services people wish to have
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Scarcity . . . . . . means that society has limited resources and therefore cannot produce all the goods and services people wish to have
Economics Economics is the study of how society manages its scarce resources
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Economics Economics is the study of how society manages its scarce resources
Economists study o How people make decisions. o How people interact with each other. o The forces and trends that affect the economy as a whole
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Economists study. . . How people make decisions. How people interact with each other. The forces and trends that affect the economy as a whole
Ten Principles of Economics How People make Decisions 1. People face tradeoffs 2. The cost of something is what you give up to get it 3. Rational people think at the margin 4. People respond to incentives
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Ten Principles of Economics How People Make Decisions 1. People face tradeoffs. 2. The cost of something is what you give up to get it. 3. Rational people think at the margin. 4. People respond to incentives
Ten Principles of Economics How People Interact 5. Trade can make everyone better off 6. Markets are usually a good way to organize economic activity 7. Governments can sometimes improve economic outcomes
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Ten Principles of Economics How People Interact 5. Trade can make everyone better off. 6. Markets are usually a good way to organize economic activity. 7. Governments can sometimes improve economic outcomes
