Summary Mankiw

Economic equilibrium , Economics , Demand curve

| | |Microeconomics | |N. Gregory Mankiw | | | | | |Inga Oswald | |Semester I 2010/2011 |

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Part 1 - Introduction

Chapter 1 – The Principles of Economics

Scarcity = the limited nature of society's resources

Economics = the study of how society manages its scarce resources

• “Economy” is Greek for “managing a household”


1.People Face Tradeoffs
Making decisions requires trading off one goal against another. (Es geht um Kompromisse; man opfert eine Alternative um der anderen Willen)

A classic tradeoff is between “guns and butter” (military vs. living standard) • Leisure time vs. work
• Food vs. clothing
• Efficienty vs. equity
Efficiency = the property of society getting the most it can from its scarce resources.

Equity = the property of...
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