Go to this in-class Economics lecture by Dr. Yoram Bauman and write your thoughts on what he presented. http://www.youtube.com/watch?v=LPUEgEdCTp8&feature=related
Dr. Bauman answers this question - "What do we need governments for?" Give your answer.
Dr. Yoram Bauman interprets Mankiw's 10 principles of economics and on the first principle relating to people facing trade offs he states that choices or trade offs are bad because people have to give up something to acquire. In trade off an individual has to give up something in exchange for another thing therefore more of one thing leads to less in the other. On the second principle he interprets that choices are really bad because economic profits decrease with trade offs.
Dr. Bauman states that 'people are stupid' since they are not rational when purchasing and do not think at the margin when purchasing something. On the fourth principle he provides that people are not that ...
Mankiw's 10 principles of economics are interpreted from a youtube excerpt in this solution.