Chapter 10 - Using economics to make better policy decisions. After completing this chapter, students will be able to: Describe how the Scarcity Principle applies to choices involving health, use the incentive principle to explain why health care costs have been rising so rapidly, discuss pollution taxes and effluent permits as a means to reduce the cost of improved air quality, . | Lecture Principles of economics 2e Chapter 10 - Robert H. Frank Ben S. Bernanke