1. TEN PRINCIPLES OF ECONOMICS Chapter 1 ECON202, Maclachlan

4. 1. People face trade-offs. ECON202, Maclachlan

5. 2. The cost of something is what you give up to get it. ECON202, Maclachlan

6. 3. Rational people think at the margin. ECON202, Maclachlan

7. 4. People respond to incentives. ECON202, Maclachlan

8. 5. Trade can make everyone better off. ECON202, Maclachlan

9. 6. Markets are usually a good way to organize economic activity. ECON202, Maclachlan

10. Governments can sometimes improve market outcomes. ECON202, Maclachlan

11. 8. A country’s standard of living depends on its ability to produce goods and services. ECON202, Maclachlan

12. 9. Prices rise when the government prints too much money. ECON202, Maclachlan

13. 10. Society faces a short-run tradeoff between inflation and unemployment. ECON202, Maclachlan

18. Thinking Like an Economist Chapter 2 ECON202, Maclachlan

22. The Production Possibilities Frontier ECON202, Maclachlan

23. A Shift in the Production Possibilities Frontier ECON202, Maclachlan

24. The Circular Flow ECON202, Maclachlan

27. Figure A-1 Types of Graphs ECON202, Maclachlan

28. Figure A-2 Using the Coordinate System ECON202, Maclachlan

29. Table A-1 Novels Purchased by Emma Copyright©2003 Southwestern/Thomson Learning

30. Figure A-3 Demand Curve ECON202, Maclachlan

31. Figure A-4 Shifting Demand Curves ECON202, Maclachlan

32. Figure A-5 Calculating the Slope of a Line ECON202, Maclachlan

33. Figure A-6 Graph with an Omitted Variable ECON202, Maclachlan

34. Figure A-7 Graph Suggesting Reverse Causality ECON202, Maclachlan