文档介绍：A Lecture Presentation in PowerPoint to pany
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
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Economy. . .
. . . The word es from a Greek word for “one who manages a household.”
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 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.
Economics
Economics is the study of how society manages its scarce resources.
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
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.
How People Make Decisions
Ten Principles of Economics
5. Trade can make everyone better off.
6. Markets are usually a good way anize economic activity.
7. Governments can sometimes improve economic es.
How People Interact