Lecture Slide for Chapter 1: 10 Principles of Economics

Principles of Economics, Ninth
Edition
N. Gregory Mankiw




PowerPoint Slides prepared by:
V. Andreea CHIRITESCU
Eastern Illinois University




N. Gregory Mankiw, Principles of Economics, 9th Edition © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in 1
part.

, Chapter 1

Ten Principles of Economics




N. Gregory Mankiw, Principles of Economics, 9th Edition © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in 2
part.

, Ten Principles of Economics, Part 1
• Economy, “oikonomos” (Greek)
– “One who manages a household”
– Households and economies have much in
common
• A household faces many decisions
– Allocate scarce resources
• Taking into account: ability, effort, desire
• Society faces many decisions
– Allocate resources and output
N. Gregory Mankiw, Principles of Economics, 9th Edition © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, 3in whole or in
part.

, Ten Principles of Economics, Part 2
• Resources are scarce
• Scarcity: the limited nature of society’s
resources
– Society has limited resources and
therefore cannot produce all the goods
and services people wish to have
• Economics
– The study of how society manages its
scarce resources
N. Gregory Mankiw, Principles of Economics, 9th Edition © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in 4
part.