What are your preconceptions of economics

What are your preconceptions of economics

In Chapter 1, Mankiw (2015) discusses his ten principles of economics and provides the following definition of economics:


Economics is the study of how society manages its scarce resources.  (p. 4)

Let’s set that definition and Mankiw’s principles aside for now and consider your preconceptions of economics.  For many students, economics has a reputation similar to Voldemort from the Harry Potter series.  Voldemort was the antagonist; he was the bad wizard.  In fact, Voldemort was so bad that the students of Hogwarts were even afraid to say his name.  Consequently, they called him “he who shall not be named.”  Economics has a reputation like Voldemort’s; its name brings on anxiety.

Class — What are your preconceptions of economics?  Do you think microeconomics will be a relatively difficult course or a relatively easy course?  Why or why not?  For those of you who have taken microeconomics, how do you think microeconomics will differ from microeconomics?


Mankiw, N.G. (2015). Brief principles of microeconomics,7e (7th ed.). Stamford, CT: Cengage Learning.

#2  Ch. 1: Ten Principles of Economics

Read Ch. 1 of Principles of Microeconomics:

1-1 How People Make Decisions, pp. 4-8

1-2 How People Interact, pp. 9-11

1-3 How the Economy as a Whole Works, pp. 12-15

Consider the following as you read:

Methods of understanding and applying the Ten Principles of Economics.

Consider how economics are applied in a society of consumers.

Consider how limited resources apply to an expanding society.

Consider how the economy reflects the behavior of the individuals who make up the economy.

#3 How does the economy work? (Professor)

Hello, Everyone – Throughout this class, we will discuss economic models.  In Chapter 2, Mankiw (2015), the author of our textbook, discusses two models of the economy including: (1) the circular flow model and (2) the production possibilities frontier, which are graphical models of the economy.  Chapter 2 also covers the following topics:

a)  The Scientific Method: Observation, Theory, and More Observations.

b)  The Role of Assumptions.

c)  Economic Models.

d)  Our First Model: The Circular Flow Model.

e)  Our Second Model: The Production Possibilities Frontier.

f)  Microeconomics and Macroeconomics. (pp. 20 – 27)

Class – Choose one of the items listed in the above bulleted list.  What real-world examples do you have of the above items?

P.S. Throughout this class, you will be asked to provide real-world examples, which are examples of actual people, workplaces, events, etc.


Mankiw, N.G. (2015). Brief principles of macroeconomics,7e (7th ed.). Stamford, CT: Cengage Learning.

Solution preview

In concurrence, economics is a hard discipline to master. Many of the students go to the university to get a degree in economics, but they do not achieve complete mastery of the discipline. Nonetheless, of the different sections of economics, microeconomics can be considered to be the easiest to master………………………


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