Micro Ch01 Lecnotes6e

PowerPoint Lecture Notes for Chapter 1
Ten Principles of Economics

Principles of Microeconomics 6th edition, by N. Gregory Mankiw
Premium PowerPoint Slides by Ron Cronovich
N. Gregory Mankiw Dear Colleague,

Principles of
Microeconomics Sixth Edition
Thank you for using the Premium PowerPoints for Mankiws
Principles of Economics. I update these approximately once
1 per year to update the data, fix any typos, and incorporate the
best suggestions from users like yourself. If you have any
Ten Principles of
Economics Premium
suggestions, corrections, or feedback, please email me at
PowerPoint
Slides by
rcronovich@carthage.edu. Check the textbooks website to
2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Ron Cronovich
make sure youre always using the most recent version.
In this area (the notes section), I occasionally include notes

that are visible only to you and will not display during your
presentation in class. In slides with data tables or charts, the
notes area provides the source information (often a URL or
web address to the original data). In other slides, the notes
area provides information that might be helpful when
teaching this material, particularly for new instructors and
graduate assistant teachers.
Notes about Chapter 1:
Most instructors try to cover this chapter in a single class

session (especially those that are teaching the second of a
two-semester sequence). If you are teaching principles of
microeconomics, you might consider skipping Principles 8-
10, which deal with macroeconomics.
Near the end of the chapter are four slides titled FYI: How to
Read Your Textbook. In the notes section of these slides, I
describe an in-class activity that teaches effective reading
skills.
The 6th edition of the textbook includes a new case study on

the incentive effects of changing gasoline prices. Encourage
your students to check it out.
In this chapter,
look for the answers to these questions:
What kinds of questions does economics
address?
What are the principles of how people make
decisions?
What are the principles of how people interact?
What are the principles of how the economy as
a whole works?
1
2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license
distributed with a certain product or service or otherwise on a password-protected website for classroom use.
What Economics Is All About
You might want to elaborate a bit on some of the points made
Scarcity: the limited nature of societys
here. Some examples:
resources
Economics: the study of how society manages
its scarce resources, e.g. How do people decide how much to work? Time is scarce
how people decide what to buy,
how much to work, save, and spend
resourcetheres just not enough time to do everything wed
how firms decide how much to produce, like to do. How do we decide how much of our time to spend
how many workers to hire
how society decides how to divide its resources working? Theres a tradeoff: the more time we spend
between national defense, consumer goods,
protecting the environment, and other needs working, the higher our income, and therefore the more stuff
2
we can buy. But, the more time we spend working, the less
time we have for leisurehanging out with friends, going
hiking, watching movies, etc. (You might want to ask your
students how THEY decide how much time to spend working.
Some will say it depends on how many classes they are
taking, or the time requirements of the available jobs. But
probably at least a few will say the wage: the higher the
wage, the more worthwhile to work.)
How do firms decide what kind of labor to hire? Firms can

hire unskilled or skilled workers. The skilled workers are
more productive, but cost more than the unskilled workers.
How do firms decide how much to produce? Ask your

students, and see if any of them say, It depends on the price
of the product they sell. (Probably some will say it depends
on whether theres a lot of demand for the product. To
which you might respond and if theres a lot of demand for
the product, what does that mean for the price that firms can
get for the product?)
The principles of Decision-making is at the heart of economics. The individual

HOW PEOPLE must decide how much to save for retirement, how much to
MAKE DECISIONS spend on different goods and services, how many hours a
week to work. The firm must decide how much to produce,
what kind of labor to hire. Society as a whole must decide
how much to spend on national defense (guns) versus how
much to spend on consumer goods (butter).
PRINCIPLE #1:
People Face Tradeoffs
All decisions involve tradeoffs. Examples:
Going to a party the night before your midterm
leaves less time for studying.
Having more money to buy stuff requires
working longer hours, which leaves less time
for leisure.
Protecting the environment requires resources
that could otherwise be used to produce
consumer goods.
4
PRINCIPLE #1: You may want to elaborate verbally on the last bullet to insure
People Face Tradeoffs
Society faces an important tradeoff:
that the point is clear.
efficiency vs. equality
Efficiency: when society gets the most from its
scarce resources
Redistribute income from wealthy to poor. This is
Equality: when prosperity is distributed accomplished through the progressive tax system, as well as
uniformly among societys members
Tradeoff: To achieve greater equality,
social programs like food stamps and unemployment
could redistribute income from wealthy to poor. insurance that try to provide a safety net for people at the low
But this reduces incentive to work and produce,
shrinks the size of the economic pie. end of the income distribution.
5
But this reduces the incentive to work The reward for

working hard is a high income. Taxes reduce this reward, and
therefore reduce the incentive to work hard.
PRINCIPLE #2:
The Cost of Something Is
What You Give Up to Get It
Making decisions requires comparing the costs
and benefits of alternative choices.
The opportunity cost of any item is
whatever must be given up to obtain it.
It is the relevant cost for decision making.
6
PRINCIPLE #2: Heres a fun tangent if you have the class time and are so
The Cost of Something Is
What You Give Up to Get It inclined:
Examples:
The opportunity cost of
going to college for a year is not just the tuition,
Ask your students about the saying The best things in life are
books, and fees, but also the foregone wages. free. Ask them to name some of these things that
seeing a movie is not just the price of the ticket,
but the value of the time you spend in the theater. supposedly are free. Ask them what free means in this
context. The idea here is to get them to see that even things
without an explicit monetary cost are not truly free because
7
they have an opportunity cost.
For example, when you ask them to name the best things
that are free, they will respond with answers like love,
sitting at the top of a mountain you just climbed and enjoying
an awesome view, or maybe witnessing the joy of a child who
has just been given a new toy. In each case, there is no
explicit monetary cost, but theres an opportunity cost.
For example, a day spent climbing a mountain represents a

day of foregone wages. And the fact that the mountain offers
the incredible view probably means that land has been set
aside for a national park that might otherwise have been used
to produce industrial chemicals, or for a subdivision of
million-dollar homes.
With love, its less obvious, but if prodded enough, your

students will be able to think of non-monetary costs
associated with love. For example, you might not want to see
the latest Ashton Kutcher film; you might think hes the
worlds worst actor. But your boyfriend/girlfriend/teenage
daughter or other loved one is DYING to see it and
BEGGING you to take them. So you take them. Thats true
love, dont you think? And its certainly not free.
PRINCIPLE #3:
Rational People Think at the Margin
Rational people
systematically and purposefully do the best they
can to achieve their objectives.
make decisions by evaluating costs and benefits
of marginal changes, incremental adjustments
to an existing plan.
8
PRINCIPLE #3: See the textbook for two classic examples:
Rational People Think at the Margin
Examples:
When a student considers whether to go to 1. The diamond-water paradox: water is essential for life but
college for an additional year, he compares the
fees & foregone wages to the extra income
virtually free; diamonds are inessential but expensive.
he could earn with the extra year of education.
When a manager considers whether to increase
output, she compares the cost of the needed 2. The near-zero marginal cost of an airline taking an extra
labor and materials to the extra revenue. passenger when the flight isnt full.
9
PRINCIPLE #4:
People Respond to Incentives
Incentive: something that induces a person to
act, i.e. the prospect of a reward or punishment.
Rational people respond to incentives.
Examples:
When gas prices rise, consumers buy more
hybrid cars and fewer gas guzzling SUVs.
When cigarette taxes increase,
teen smoking falls.
10
ACTIVE LEARNING 1 Most of these PowerPoint chapters have two or three Active
Applying the principles
Learning activities. They break up the lecture with short in-
You are selling your 1996 Mustang. You have already
spent $1000 on repairs. class activities for immediate reinforcement, application, or
At the last minute, the transmission dies. You can
pay $600 to have it repaired, or sell the car as is.
assessment of the material in the preceding slides. A good
In each of the following scenarios, should you have idea is to give students time to formulate their answers before
the transmission repaired? Explain.
A. Blue book value (what you could get for the car) is
asking for volunteers to share their answers with the class.
$6500 if transmission works, $5700 if it doesnt
B. Blue book value is $6000 if transmission works,
When the questions or exercises are more complex, consider
$5500 if it doesnt having them work in pairs.
Digression on class participation:
In general, its not a good idea to try to solicit participation by

saying Now who can tell me the answer to X? The
invariable result is regular participation by very few students
the quick thinkers who have the confidence to answer
spontaneously in front of the classwith little participation
from anyone else. Better is to give students a quiet moment
to think through their answers before requesting volunteers.
Better yet is a simple, time-tested activity called THINK-

PAIR-SHARE. Pair students up. Pose a question or
problem. Have students work on the problem individually for
a couple minutes. Then, allow a couple minutes for pair
work: each student tries to explain to the other why his or her
answer is correct, and the other offers feedback. In many
cases, students come up with better answers by working
together. After this pair time, ask for volunteers. Students
are much more likely to participate since theyll have had the
opportunity to test run answers by a classmate. And those
who do not participate will at least have had the chance to
share their answer with, and get feedback from, one other
student.
Activities like these are useful to break up a lecture every 20

minutes or so. They help maintain students attention spans
and increase their comprehension of the material you cover.
These activities are also useful for quick, informal assessment
often, they will alert you to problems in student
understanding, which you can then correct before moving on
to cover additional material.
End of digression.
ACTIVE LEARNING 1
Answers
Cost of fixing transmission = $600
A. Blue book value is $6500 if transmission works,
$5700 if it doesnt
Benefit of fixing the transmission = $800
($6500 5700).
Its worthwhile to have the transmission fixed.
B. Blue book value is $6000 if transmission works,
$5500 if it doesnt
Benefit of fixing the transmission is only $500.
Paying $600 to fix transmission is not worthwhile.
ACTIVE LEARNING 1 If you wish, you can omit this slide and just give this
Observations
information to the class verbally.
The $1000 you previously spent on repairs is
irrelevant. What matters is the cost and benefit
of the marginal repair (the transmission).
The change in incentives from scenario A
to scenario B caused your decision to change.
The principles of
Whether were talking about the U.S. economy or the local
HOW PEOPLE economy, the term economy simply means a group of
INTERACT people interacting with each other.
These interactions play a critical role in the allocation of

societys scarce resources. For example, the interaction of
buyers and sellers determines the prices of goods and the
amounts produced and sold. These interactions are an
important part of what economists study.
PRINCIPLE #5: If each person had to grow his own food, make his own
Trade Can Make Everyone Better Off
Rather than being self-sufficient,
clothes, cut his own hair, we would have a world full of
people can specialize in producing one good or skinny, unfashionable poor people having bad hair days every
service and exchange it for other goods.
Countries also benefit from trade and
day of the week.
specialization:
Get a better price abroad for goods they
produce Its far more efficient for each person to specialize in
Buy other goods more cheaply from abroad
than could be produced at home
producing a good or service, and then exchanging it with
other people for the things they produce.
15
The statement trade can make everyone better off should

not be hard to understand, if you think about it for a moment:
Each of two parties would not voluntarily enter into an
exchange if it made either of them worse off, now would
they?
The same principles apply at the national and international

level: International trade allows countries to sell their exports
abroad and get a higher price, and to buy things from abroad
more cheaply than they could produce at home.
In addition, trade gives a countrys consumers access to a

greater variety of goods including goods they might not be
able to get at all. For example, U.S. consumers enjoy a
variety of fresh produce year-round. This would not be
possible without international trade.
PRINCIPLE #6: A market economy is decentralized, meaning that there is

Markets Are Usually A Good Way to
Organize Economic Activity no government committee that makes the decisions about
Market: a group of buyers and sellers what goods to produce and so forth. Instead, many
(need not be in a single location)
households and firms make their own decisions:
Organize economic activity means determining
what goods to produce
how to produce them * Each of many households decides who to work for and what
how much of each to produce
who gets them goods to buy.
16
* Each of many firms decides whom to hire and what goods
to produce.
PRINCIPLE #6:
Organize Economic Activity In all versions of this textbook except Brief Principles of
A market economy allocates resources through Macroeconomics, market efficiency and the invisible hand are
the decentralized decisions of many households
and firms as they interact in markets.
covered more thoroughly in Chapter 7.
Famous insight by Adam Smith in
The Wealth of Nations (1776):
Each of these households and firms
acts as if led by an invisible hand
to promote general economic well-being.
17
PRINCIPLE #6: Milton Friedman introduces these concepts using a very
Organize Economic Activity famous, simple, effective story. See it here:
The invisible hand works through the price
system:
http://www.youtube.com/watch?v=4ERbC7JyCfU
The interaction of buyers and sellers
determines prices.
Each price reflects the goods value to buyers
and the cost of producing the good.
Prices guide self-interested households and
firms to make decisions that, in many cases,
maximize societys economic well-being.
18
PRINCIPLE #7: Govt is an abbreviation for government. Throughout all of

Governments Can Sometimes
Improve Market Outcomes the Premium PowerPoint chapters, I try to use abbreviations
Important role for govt: enforce property rights the way a thoughtful instructor would use them if writing on a
(with police, courts)
whiteboard or chalkboard. If you prefer to spell the word out,
People are less inclined to work, produce,
invest, or purchase if large risk of their property highlight govt with your mouse, then type out the full word.
being stolen.
Two examples of the idea in the second bullet point:

A restaurant wont serve meals if customers do not pay
19
before they leave.
A music company wont produce CDs if too many people
avoid paying by making illegal copies.
Many fledging market economies are struggling through the

transition from central planning because they have not
developed institutions that protect and enforce property rights.
The British news magazine The Economist has lots of current
examples of this. An older but still interesting example comes
from a column that Mankiw wrote in the June 12, 2000, issue
of Fortune magazine entitled Ukraine: How Not To Run An
Economy.
PRINCIPLE #7:
Improve Market Outcomes
Market failure: when the market fails to allocate
societys resources efficiently
Causes of market failure:
Externalities, when the production or consumption
of a good affects bystanders (e.g. pollution)
Market power, a single buyer or seller has
substantial influence on market price
(e.g. monopoly)
Public policy may promote efficiency.
20
PRINCIPLE #7:
Improve Market Outcomes
Govt may alter market outcome to
promote equity.
If the markets distribution of economic well-being
is not desirable, tax or welfare policies can
change how the economic pie is divided.
21
ACTIVE LEARNING 2 The items in this list are meant to get students thinking about
Discussion Question
Principles 6 and 7 in the context of specific examples, and to
In each of the following situations, what is the
governments role? Does the governments generate discussion rather than arrive at definitive answers.
intervention improve the outcome?
a. Public schools for K-12
NOTE: Discussing the entire list would consume a lot of
b. Workplace safety regulations class time (20-25 minutes). Two would suffice. Pick your
c. Public highways favorite two and delete the others. Of course, you can skip
d. Patent laws, which allow drug companies to
charge high prices for life-saving drugs
this slide entirely if you wish to get through the chapter as
quickly as possible.
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Here are some notes that might help guide the discussion:
a. Public schools. The alternative would be private schools.
The cost of education would be concentrated among those
with school-aged children, rather than spread over all
taxpayers, so the price per child would likely be high. Some
families would not be able to afford to enroll their children in
schools, and would either home-school the children or raise
them without education. Is the benefit to society of having an
educated population large enough to justify making people
without children share in the cost? Could the private sector
provide education more efficiently (either at lower cost or
higher quality) than the public sector?
b. Workplace safety regulations. Without such regulations,
would firms provide a safe environment for their workers?
Some students will say nolook at how bad working
conditions are in poor countries that have no safety
regulations. Another view is that dropping such regulations
would make workers better off. Workers may view the safety
of their work environment as part of their wage: the less safe
the environment at a specific firm, the higher the wage the
firm will have to offer to make workers willing to work there.
If workers vary with respect to their tolerance for unsafe
conditions, then workers with a high risk tolerance would be
better off if given the option to work for higher wages in
factories that arent as safe. Such workers would be worse off
if the government required all firms to provide equally safe
conditions.
c. Public highways. The alternative would be toll highways
operated by the private sector. People who use highways
more would pay more, and people who use them less would
pay less, which seems fairer than having everyone pay
equally for highways. (Actually, everyone does not pay
equally - people who use public roads more buy more gas,
and therefore pay more gas tax.) If there are external benefits
to society of having a national highway system, then the
private sector would under-provide this good.
d. Patent laws. Ive kind of loaded the question with the
wording on the slide. If you wish, change it to just Patent
laws. Is it fair that drug companies charge such high prices
for drugs that some people need to stay alive? If drug prices
are regulated, how might pharmaceutical firms respond?
The principles of
HOW THE
ECONOMY
AS A WHOLE
WORKS
PRINCIPLE #8: Rich countries refers to countries like the U.S. and
A Countrys Standard of Living Depends
on Its Ability to Produce Goods & Services Germany.
Huge variation in living standards across
countries and over time:
Poor countries refers to countries like India, Indonesia, and
Average income in rich countries is more than
ten times average income in poor countries. Nigeria.
The U.S. standard of living today is about
eight times larger than 100 years ago.
24
PRINCIPLE #8:
A Countrys Standard of Living Depends
on Its Ability to Produce Goods & Services
The most important determinant of living
standards: productivity, the amount of goods
and services produced per unit of labor.
Productivity depends on the equipment, skills,
and technology available to workers.
Other factors (e.g., labor unions, competition from
abroad) have far less impact on living standards.
25
PRINCIPLE #9:
Prices Rise When the Government Prints
Too Much Money
Inflation: increases in the general level of prices.
In the long run, inflation is almost always caused
by excessive growth in the quantity of money,
which causes the value of money to fall.
The faster the govt creates money,
the greater the inflation rate.
26
PRINCIPLE #10: While the long-run effect of increasing the quantity of money
Society Faces a Short-run Tradeoff
Between Inflation and Unemployment is inflation, the short-run effects are more complicatedand
In the short-run (12 years), controversial. However, most mainstream economists believe
many economic policies push inflation and
unemployment in opposite directions.
the following: An increase in the quantity of money causes
Other factors can make this tradeoff more or less spending to rise, which causes prices to rise, which induces
favorable, but the tradeoff is always present.
firms to produce more goods and services, which requires that
they hire more workers. Hence, in the short-run, increasing
the quantity of money causes inflation to rise, but
27
unemployment to fall.
Of course, REDUCING the quantity of money would have

the opposite effects (inflation would fall, while
unemployment would rise) in the short run.
Keep in mind, though, the lesson from Principle #9: In the
long run, changing the quantity of money only affects
inflation. We will learn in a later chapter what determines the
rate of unemployment in the long run, and we will see that it
has nothing to do with the quantity of money.
The second bullet addresses the following point: In some

decades, due to factors outside of the control of policymakers,
inflation and unemployment are both high (e.g. 1970s) or
both low (e.g. 1990s). Yet, given these other factors,
policymakers can always reduce unemployment temporarily
by creating more inflation, or vice versa.
FYI: How to Read Your Textbook

Most new college students have not been taught good study
1. Read before class.
skills, yet we professors often assume they have such skills.
Youll get more out of class. This is the first of four slides that summarize an FYI box from
2. Summarize, dont highlight.
Highlighting is a passive activity that wont the textbook which describes proven strategies for learning
improve your comprehension or retention.
Instead, summarize each section in your own
and retention.
words. Then, compare your summary to the one
at the end of the chapter.
If youre pressed for time, you can of course skip these slides,
but please urge your students to read this FYI box.
28
But if you can spare 30 minutes of class time, theres a very

effective activity you can do in class which lets students see
for themselves the power of active reading and teaching a
partner. I describe this activity in the notes section of the
fourth FYI: How to Read Your Textbook slide. This
activity could replace showing these four slides in class,
though your students should still read the corresponding FYI
box in the book.
If you do not like They are often good practice for the
3. Test yourself.
exams, please feel free to delete it. Ive found, though, that
Try the Quick Quiz that follows each section students are more motivated to work practice problems when
before moving on to the next section.
Write your answers down, compare them to the
answers in the back of the book. If your answers
they think that doing so will help them earn a higher score on
are incorrect, review the section before moving on. the exam.
4. Practice, practice, practice.
Work through the end-of-chapter review questions
and problems. They are often good practice for
the exams. And the more you use your new
knowledge, the more solid it will become.
29

If your classroom computer has a live Internet connection,
5. Go online.
you should be able to click on the link and visit the textbooks
The book comes with excellent web resources,
including practice quizzes, tools to strengthen
website. Its worth taking 2-3 minutes of class time to show
your graphing skills, helpful video clips, and other
resources to help you learn the textbook material
students the resources there.
more easily and effectively. Visit:
http://academic.cengage.com/economics/mankiw
6. Study in groups.
Get together with a few classmates to review each
chapter, quiz each other, and help each other
understand the material.
30

Heres the activity I mentioned a few slides back. I have used
7. Teach someone.
it many times with terrific results.
The best way to learn something is to teach it to
someone else, such as a study partner or friend.
8. Dont skip the real world examples. Find two newspaper articles on topical economic issues. The
Read the Case Studies and In The News boxes
in each chapter. They will help you see how the articles must be (1) short enough that a beginning college
new terms, concepts, models, and graphs apply to
the real world. As you read the newspaper or student can read either of them in about 10 minutes, (2)
watch the evening news, see if you can find the
connections with what youre learning in the appropriate for the lay reader, and (3) very interesting. Make
textbook.
enough copies for all students in your class. Use different
31
colored paper for each article, e.g. yellow for Article 1 and
blue for Article 2. In class, instruct students to pair up. In
each student pair, one student is assigned Article 1, the other
assigned Article 2. Tell students they will have 15 minutes to
read their assigned article. Then, each student will have 5
minutes to teach the contents of his or her article to his or her
partner. Tell students it is not acceptable to merely give a
paragraph-by-paragraph summary when teaching their article
to their partner.
Use your timer or a watch to announce when the 15 minutes

are up and its time to start teaching. Five minutes later,
announce when its time for the other student to teach his/her
article. Five minutes later, stop the activity and re-group as a
class. Ask your students the following questions.
1) How did you read your article, knowing that you were
going to have to teach it to someone in a few minutes? Did
you read it the same way as when youre reading the
newspaper on your own? Explain. Summarize their
responses on the board; likely responses will include I took
notes, I tried to identify the main point and the supporting
information, I kept going back and re-reading sections of
the article, or I kept jumping around the article, looking for
connections between ideas or facts. After taking students
responses, you can add a couple of your own if you like.
2) Having read the article using these techniques, do you

think you learned more from it and will retain more than if
you read the article they way you would when youre reading
the paper on your own? Explain. There should be a
consensus that, yes, using these techniques leads to more
learning and better retention.
3) Are there any other contexts in which you might benefit

from using these techniques while reading? The students
should realize the obvious answer: reading their textbooks or
other assigned readings in their college courses.
S U M M ARY
The principles of decision making are:

People face tradeoffs.
Each Premium PowerPoint chapter ends with a summary
The cost of any action is measured in terms of similar to the textbooks chapter summaries. Many
foregone opportunities.
Rational people make decisions by comparing
instructors do not cover these chapter summaries in class.
marginal costs and marginal benefits.
People respond to incentives.
S U M M ARY
The principles of interactions among people are:

Trade can be mutually beneficial.
Markets are usually a good way of coordinating
trade.
Govt can potentially improve market outcomes if
there is a market failure or if the market outcome
is inequitable.
S U M M ARY
The principles of the economy as a whole are:

Productivity is the ultimate source of living
standards.
Money growth is the ultimate source of inflation.
Society faces a short-run tradeoff between
inflation and unemployment.

Micro Ch01 Lecnotes6e

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Micro Ch01 Lecnotes6e

Uploaded by

Copyright:

Available Formats

PowerPoint Lecture Notes for Chapter 1

Ten Principles of Economics

N. Gregory Mankiw Dear Colleague,

In this area (the notes section), I occasionally include notes

Notes about Chapter 1:

Most instructors try to cover this chapter in a single class

The 6th edition of the textbook includes a new case study on

How do firms decide what kind of labor to hire? Firms can

How do firms decide how much to produce? Ask your

The principles of Decision-making is at the heart of economics. The individual

But this reduces the incentive to work The reward for

For example, a day spent climbing a mountain represents a

With love, its less obvious, but if prodded enough, your

Digression on class participation:

In general, its not a good idea to try to solicit participation by

Better yet is a simple, time-tested activity called THINK-

Activities like these are useful to break up a lecture every 20

These interactions play a critical role in the allocation of

The statement trade can make everyone better off should

The same principles apply at the national and international

In addition, trade gives a countrys consumers access to a

PRINCIPLE #6: A market economy is decentralized, meaning that there is

PRINCIPLE #7: Govt is an abbreviation for government. Throughout all of

Two examples of the idea in the second bullet point:

Many fledging market economies are struggling through the

Of course, REDUCING the quantity of money would have

The second bullet addresses the following point: In some

FYI: How to Read Your Textbook

But if you can spare 30 minutes of class time, theres a very

FYI: How to Read Your Textbook

FYI: How to Read Your Textbook

Use your timer or a watch to announce when the 15 minutes

2) Having read the article using these techniques, do you

3) Are there any other contexts in which you might benefit

The principles of decision making are:

The principles of interactions among people are:

The principles of the economy as a whole are:

You might also like