<p>
15
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
w
WHAT’S NEW IN THE SIXTH EDITION:
There are some updates to the FYI on Who Studies Economics? There is a new In the News on “The
Economics of President Obama.” Table 1 has been updated and expanded.
LEARNING OBJECTIVES:
By the end of this chapter, students should understand:
how economists apply the methods of science.
how assumptions and models can shed light on the world.
two simple models—the circular flow and the production possibilities frontier.
the difference between microeconomics and macroeconomics.
the difference between positive and normative statements.
the role of economists in making policy.
why economists sometimes disagree with one another.
CONTEXT AND PURPOSE:
Chapter 2 is the second chapter in a three chapter section that serves as the introduction of the text.
Chapter 1 introduced ten principles of economics that will be revisited throughout the text. Chapter 2
develops how economists approach problems while Chapter 3 will explain how individuals and countries
gain from trade.
The purpose of Chapter 2 is to familiarize students with how economists approach economic
problems. With practice, they will learn how to approach similar problems in this dispassionate systematic
way. They will see how economists employ the scientific method, the role of assumptions in model
building, and the application of two specific economic models. Students will also learn the important
distinction between two roles economists can play: as scientists when we try to explain the economic
world and as policymakers when we try to improve it.
2 THINKING LIKE AN ECONOMIST
16 ❖ Chapter 2/Thinking Like an Economist
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
KEY P