I am reading fundamental groups from Munkres book.
As stated in the definition, I understand a fundamental group relative to a base point $x_0$ includes all the loops based at point $x_0$.
Later they give example of a fundamental group in $\mathbb{R}^n$. This group, $\pi_1(X,x_0)$ is a trivial fundamental group as it consists of the identity alone.
I am having trouble understanding the definition of a trivial fundamental group. Here, by identity do they refer to $e_{x_0}$ as $e_{x_0}$ includes the paths originating and ending at $x_0$. Also, how does a unit ball in $\mathbb{R}^n$ have a trivial fundamental group?
Remember the fundamental group includes not the loops themselves, but the homotopy classes of loops.
So stating that the fundamental group $\pi_1(X,x_0)$ is trivial is equivalent to stating that every loop going from and to $x_0$ are homotopic. This is true for $\mathbb{R}^n$. Up to a translation, we can assume $x_0$ is $0$. Now, let $\gamma : [0,1] \to X$ be a loop based at $0$. Then we have an homotopy $\Gamma : [0,1]^2 \to \mathbb{R}^n$ between $\gamma$ and the constant loop $t \mapsto 0$, given by :
\begin{equation} \Gamma_s(t) = s \cdot \gamma(t) \end{equation}
Indeed, $\Gamma_0(t) = 0 \cdot \gamma(t) = 0$ and $\gamma_1(t) = 1 \cdot \gamma(t) = \gamma(t)$. $\Gamma$ is moreover obviously continuous, so it is a valid homotopy.
Now if you have two paths, $\gamma_1$, and $\gamma_2$, their must be homotopic since both are homotopic to $t \mapsto 0$ and the "is homotopic" relation is an equivalence relation (certainly proved somewhere in your book).
The homotopy used to prove the same result in a ball is identical.