Purpose of Assignment
In Week 1, students are introduced to the ten fundamental principles on which the study of economics is based. Throughout this course, the students will use these ten principles to better develop their understanding of economics and how society manages its scarce resources. Students will see how markets work using supply and demand for a good to determine both the quantity produced and the price at which the good sells. The concepts of equilibrium and elasticity are used to explain the sensitivity of quantity supplied and quantity demanded to changes in economic variables. Students will see how government policies impact prices and quantities in markets.
Resources: Principles of Microeconomics, by N. Gregory Mankiw
Using the textbook, Principles of Microeconomics, as your only source (do not quote the textbook it will not count towards your answers, put everything in your own words) answer the following questions (make sure you number each answer):
- Explain how people make decisions using the appropriate Ten Principles of Economics. Provide a personal example.
- Explain how people interact using the Ten Principles of Economics. Provide a personal example.
- Explain how the economy as a whole works using the Ten Principles of Economics.
- Explain how society manages its scarce resources and benefits from economic interdependence.
- Explain why the demand curve slopes downward and the supply curve slopes upward.
- Explain where the point of equilibrium is and what it determines.
- Explain the impact of price controls and taxes on the market. Provide examples.
- Explain price elasticity of demand and what can affect it. Provide personal examples.
Cite the textbook as your only source. Failure to properly cite and reference the presentation is considered plagiarism, even if you use your own words (paraphrase). Remember, you should not quote the textbook or any other source. Quotations will not count towards your answers. See the CWE page of the Library on how to prevent plagiarism.
The correct in-text citation is (Mankiw, 2015) and reference (make sure it is a hanging indent) is:
Mankiw, N.Gregory. (2015). Principles of Microeconomics, 7th Edition, Stamford, CT. Cengage Learning.