Solution Manual For Principles of Macroeconomics 11CE John Sayre, Alan Morris Chapter 1-13
CHAPTER ONE The Economic Problem Overview Comments In Chapter One, we decided to begin by giving students an idea of how diverse and how engaged our discipline is by looking at a number of current controversies. This, we hope helps to correct the perception that many students have of economics as being a dry and theoretical subject with little relevance to the real world. We then focus on what is, arguably, the most important idea in economics: that scarcity forces choice and choice involves the concept of opportunity cost. We look at the three fundamental questions in economics and four methods of co-ordinating an economy and we have found that students react well to a discussion of both of these topics. Perhaps we should remind ourselves that introductory chapters are probably the only opportunity for us to encourage students to look beyond the market structure and realize that it is only one of various possible ways for society to organize its economic affairs. We discuss the fact that the discipline‘s methodology is, by necessity, abstract, since this is the only way one can deal with such a broad range of topics. The discussion of the use of abstract methodology leads naturally into a discussion of the role of models in economics. We then look at our first model in economics, production possibilities, and show how illuminating this idea can be since it allows us to illustrate some of the basic, but vital topics in economics: choice, cost, economic growth, technological improvement and the immense importance of investment. Starting with 1st edition, we have felt that a first chapter in Macroeconomics should discuss economic goals. Doing so illustrates the importance of relating economic theory to the policy decisions that governments have to make. In addition, we wanted to ensure that students had immediate exposure to the most important macro terms such as economic growth, unemployment, and inflation. We present several tables and figures, using the most recent data available, in order to give students some idea of how the Canadian economy has performed in recent years.
Suggested Approaches and Helpful Hints As a starting point in a new course, it may be useful for you to walk students through the Study Guide (as well as the Test your Understanding questions in the body of each chapter) and explain that answers can be found in the Student Solutions Manual. Answers to all questions, including Problems for Further Study, are found below.
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