Instructor Manual: Tucker, Economics for Today, ISBN: 9780357720936; Chapter 01: Introducing the Economic Way of Thinking

Instructor Manual: Tucker, Economics for Today, ISBN: 9780357720936; Chapter 01: Introducing the Economic Way of Thinking

• © 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible

website, in whole or in part.Instructor Manual Tucker, Economics for Today, ISBN: 9780357720936; Chapter 01: Introducing the Economic Way of Thinking Table of Contents Purpose and Perspective of the Chapter .................................................................................... 2 Cengage Supplements ............................................................................................................... 2 Chapter Objectives .................................................................................................................... 2 Complete List of Chapter Activities and Assessments ................................................................ 2 Key Terms ................................................................................................................................. 3 What’s New in This Chapter ....................................................................................................... 4 Chapter Outline .......................................................................................................................... 5 Discussion Questions ................................................................................................................. 5 Additional Activities and Assignments ........................................................................................ 6 Appendix ...................................................................................................................................10 Generic Rubrics ........................................................................................................................................ 10 Standard Writing Rubric .......................................................................................................................... 10 Standard Discussion Rubric...................................................................................................................... 10

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Instructor Manual: Tucker, Economics for Today, ISBN: 9780357720936; Chapter 01: Introducing the Economic Way of Thinking

• © 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible

website, in whole or in part.Purpose and Perspective of the Chapter The purpose of this chapter is to explore the nature of scarcity. Human wants are unlimited, and forever greater than the available supply of time, goods, and resources. Further, our productive capabilities are limited by factors of production, which include land, labor (including the entrepreneur), and capital. Because we are faced with scarcity, we must make choices. Choices are made at the “macro” and “micro” level. Macroeconomics is concerned with the entire economic system, whereas microeconomics focuses on a particular segment of the economy.The What, How and For Whom are fundamental economic questions that structure decision making under scarcity. The What question requires an economy to decide the mix and quantity of goods and services it will produce. After deciding what products to make, the second question for society to decide is how to mix existing technology and resources to produce these goods. The For Whom question concerns how the economic pie is divided.This takes us to a look at the methodology of economics, broken down here into four steps: (1) Identifying the problem; (2) Developing a model; (3) Gathering data and testing whether the theory can be supported by the data; and (4) Formulating a conclusion. Theories can be expressed verbally, numerically, graphically, or mathematically. Theories are helpful in understanding the relationship between economic variables but should be used responsibly.Two common pitfalls to clear thinking are the failure to understand the ceteris paribus assumption and confusing correlation and causation.

Economists sometimes disagree. When disagreements do exist, the reason can often be explained by either the tradeoff between efficiency and equity or the difference between positive and normative economics. Positive economics focuses on “what is” while normative economics deals with “what ought to be.” A key economic skill is to first have a firm handle on “what is” and using facts to argue "what ought to be." The appendix to this chapter focuses on how theories can be expressed graphically. Graphs are visual aids that help us see the relationships between two or more sets of data or variables.Cengage Supplements The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center.• PowerPoint Slides • Test Bank Chapter Objectives

The following objectives are addressed in this chapter:

• Describe economics as a field of study.
• Describe the three fundamental economic questions that arise from

scarcity.

• Discuss the steps and common pitfalls in the economic model-building

process.

• Describe common sources of disagreement among economists.

Complete List of Chapter Activities and Assessments For additional guidance refer to the Teaching Online Guide. 2 / 4

Instructor Manual: Tucker, Economics for Today, ISBN: 9780357720936; Chapter 01: Introducing the Economic Way of Thinking

• © 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible

website, in whole or in part.Chapter Objective PPT Slide Activity/Assessment Duration

• 10 Discussion Activity #1 2-3 minutes
• 20 Discussion Activity #2 3-4 minutes
• 21 Knowledge Check Activity #1 2-3 minutes
• 26 Discussion Activity #3 3-4 minutes
• 32 Knowledge Check Activity #2 2-3 minutes
• 41 Knowledge Check Activity #3 2-3 minutes

[return to top] Key Terms

Capital: A human-made good used to produce other goods and services.

Ceteris paribus: A Latin phrase that means while certain variables change, “all other things remain unchanged.”

Economics: The study of how society chooses to allocate its scarce resources to the production of goods and services to satisfy unlimited wants.

Efficiency: A situation where society is “doing the best it can” with existing resources and technology.

Entrepreneurship: The creative ability of individuals to seek profits by taking risks and combining resources to produce innovative products.

Equity: Fairness in the way production is distributed among members of society.

Labor: The mental and physical capacity of workers to produce goods and services.

Land: Any natural resource provided by nature that is used to produce a good or service.

Macroeconomics: The branch of economics that studies decision making for the economy as a whole.

Microeconomics: The branch of economics that studies decision making by a single individual, household, firm, industry, or level of government.

Model: A simplified description of reality used to understand and predict the relationship between variables.

Normative economics: An analysis based on subjective value judgments regarding “what ought to be” that cannot be tested.

Positive economics: An analysis limited to statements about “what is” that can be tested and determined to be true or false.

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Instructor Manual: Tucker, Economics for Today, ISBN: 9780357720936; Chapter 01: Introducing the Economic Way of Thinking

• © 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible

website, in whole or in part.Resources: The basic categories of inputs used to produce goods and services. Resources are also called factors of production. Economists divide resources into three categories: land, labor, and capital.

Scarcity: The condition in which human wants are forever greater than the available supply of time, goods, and resources.

[return to top] What’s New in This Chapter The following elements are improvements in this chapter from the previous edition: • This chapter now begins with clearly stated Chapter Objectives that outline the key learning goals students should achieve after having studied the chapter.• The “Conclusion” statements of the previous edition have been replaced with “Take Note” statements. These Take Note statements have been carefully designed and updated to highlight key concepts and are strategically placed within the chapter to enhance pedagogy. Students will be able to use these to remember key points when reviewing the chapter and studying for quizzes and tests. A summary of these Take Note statements is provided at the end of the chapter.• This new edition has also added a new feature entitled “Am I on Track?” which are multiple-choice questions testing students’ understanding as they move through the chapter. They are designed to pique interest and to maximize mastery of the material presented in the chapter. They have been strategically placed throughout the chapter to maximize learning. These questions spark students’ interest and enable them to check their progress by comparing their answers against the key provided at the end of the chapter. Students who answer correctly earn the satisfaction of knowing they are on track and can feel more confident taking quizzes and tests because these questions are very similar to those they will face on their exams!• The “Checkpoint” features of the previous edition have become new “Study Questions and Problems” found at the end of the chapter. Students are encouraged to see Appendix A for answers to the odd-numbered questions. This Instructor’s Manual contains the answers for even-numbered questions.• The previous edition’s “You’re the Economist” boxed sections have been updated and replaced with a new feature entitled “A Closer Look.” The previous “Analyze the Issue” questions associated with these inserts have now been moved to this Instructor’s Manual’s “Additional Activities and Assignments” section found further, along with some suggested answers to these “Analyze the Issue” questions.• This revised chapter has added a brief introduction to the efficiency versus equity trade- off and has an updated “A Closer Look” Feature on Unusual Economic Indicators to add interest for students.• In addition, the discussion of the three fundamental economic questions that result from scarcity has been moved to Chapter 01 (from the previous edition’s Chapter 2), where scarcity is introduced.• Three “Am I on Track?” multiple-choice questions and two “Study Questions and Problems” have been created.[return to top]

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