Principles of Microeconomics for AP® Courses 2e

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Principles of Microeconomics for AP® Courses 2e......Page 3 3. About Principles of Microeconomics for AP® Courses 2e......Page 9 4. Additional resources......Page 13 5. About the authors......Page 14 Chapter 1. Welcome to Economics!......Page 17 1.1. What Is Economics, and Why Is It Important?*......Page 18 1.2. Microeconomics and Macroeconomics*......Page 22 1.3. How Economists Use Theories and Models to Understand Economic Issues*......Page 23 1.4. How To Organize Economies: An Overview of Economic Systems*......Page 26 Glossary......Page 31 Chapter 2. Choice in a World of Scarcity......Page 35 2.1. How Individuals Make Choices Based on Their Budget Constraint*......Page 36 2.2. The Production Possibilities Frontier and Social Choices*......Page 41 2.3. Confronting Objections to the Economic Approach*......Page 46 Glossary......Page 50 Chapter 3. Demand and Supply......Page 53 3.1. Demand, Supply, and Equilibrium in Markets for Goods and Services*......Page 54 3.2. Shifts in Demand and Supply for Goods and Services*......Page 60 3.3. Changes in Equilibrium Price and Quantity: The Four-Step Process*......Page 69 3.4. Price Ceilings and Price Floors*......Page 75 3.5. Demand, Supply, and Efficiency*......Page 79 Glossary......Page 83 Chapter 4. Labor and Financial Markets......Page 91 4.1. Demand and Supply at Work in Labor Markets*......Page 92 4.2. Demand and Supply in Financial Markets*......Page 100 4.3. The Market System as an Efficient Mechanism for Information*......Page 106 Glossary......Page 111 Chapter 5. Elasticity......Page 115 5.1. Price Elasticity of Demand and Price Elasticity of Supply*......Page 116 5.2. Polar Cases of Elasticity and Constant Elasticity*......Page 121 5.3. Elasticity and Pricing*......Page 123 5.4. Elasticity in Areas Other Than Price*......Page 131 Glossary......Page 135 Chapter 6. Consumer Choices......Page 141 6.1. Consumption Choices*......Page 142 6.2. How Changes in Income and Prices Affect Consumption Choices*......Page 149 6.3. Labor-Leisure Choices*......Page 154 6.4. Intertemporal Choices in Financial Capital Markets*......Page 159 Glossary......Page 166 Chapter 7. Production, Costs and Industry Structure......Page 171 7.1. Explicit and Implicit Costs, and Accounting and Economic Profit*......Page 173 7.2. Production in the Short Run*......Page 174 7.3. Costs in the Short Run*......Page 180 7.4. Production in the Long Run*......Page 187 7.5. Costs in the Long Run*......Page 188 Glossary......Page 197 Chapter 8. Perfect Competition......Page 203 8.1. Perfect Competition and Why It Matters*......Page 204 8.2. How Perfectly Competitive Firms Make Output Decisions*......Page 205 8.3. Entry and Exit Decisions in the Long Run*......Page 220 8.4. Efficiency in Perfectly Competitive Markets*......Page 222 Glossary......Page 225 Chapter 9. Monopoly......Page 231 9.1. How Monopolies Form: Barriers to Entry*......Page 232 9.2. How a Profit-Maximizing Monopoly Chooses Output and Price*......Page 236 Glossary......Page 247 Chapter 10. Monopolistic Competition and Oligopoly......Page 251 10.1. Monopolistic Competition*......Page 252 10.2. Oligopoly*......Page 260 Glossary......Page 266 Chapter 11. Monopoly and Antitrust Policy......Page 271 11.1. Corporate Mergers*......Page 272 11.2. Regulating Anticompetitive Behavior*......Page 278 11.3. Regulating Natural Monopolies*......Page 280 11.4. The Great Deregulation Experiment*......Page 283 Glossary......Page 286 Chapter 12. Environmental Protection and Negative Externalities......Page 291 12.1. The Economics of Pollution*......Page 292 12.2. Command-and-Control Regulation*......Page 296 12.3. Market-Oriented Environmental Tools*......Page 297 12.4. The Benefits and Costs of U.S. Environmental Laws*......Page 301 12.5. International Environmental Issues*......Page 304 12.6. The Tradeoff between Economic Output and Environmental Protection*......Page 305 Glossary......Page 307 Chapter 13. Positive Externalities and Public Goods......Page 317 13.1. Why the Private Sector Underinvests in Innovation*......Page 319 13.2. How Governments Can Encourage Innovation*......Page 322 13.3. Public Goods*......Page 325 Glossary......Page 330 Chapter 14. Poverty and Economic Inequality......Page 335 14.1. Drawing the Poverty Line*......Page 336 14.2. The Poverty Trap*......Page 339 14.3. The Safety Net*......Page 342 14.4. Income Inequality: Measurement and Causes*......Page 346 14.5. Government Policies to Reduce Income Inequality*......Page 352 Glossary......Page 357 Chapter 15. Labor Markets and Income......Page 363 15.1. Market Power on the Supply Side of Labor Markets: Unions*......Page 364 15.2. Employment Discrimination*......Page 371 15.3. Immigration*......Page 377 Glossary......Page 381 Chapter 16. Information, Risk, and Insurance......Page 385 16.1. The Problem of Imperfect Information and Asymmetric Information*......Page 386 16.2. Insurance and Imperfect Information*......Page 392 Glossary......Page 400 Chapter 17. Financial Markets......Page 405 17.1. How Businesses Raise Financial Capital*......Page 407 17.2. How Households Supply Financial Capital*......Page 410 17.3. How to Accumulate Personal Wealth*......Page 422 Glossary......Page 427 Chapter 18. Public Economy......Page 433 18.1. Voter Participation and Costs of Elections*......Page 434 18.2. Special Interest Politics*......Page 436 18.3. Flaws in the Democratic System of Government*......Page 439 Glossary......Page 444 Chapter 19. International Trade......Page 447 19.1. What Happens When a Country Has an Absolute Advantage in All Goods*......Page 448 19.2. Intra-industry Trade between Similar Economies*......Page 453 19.3. The Benefits of Reducing Barriers to International Trade*......Page 456 19.4. What Happens When a Country Has an Absolute Advantage in All Goods*......Page 458 Glossary......Page 463 Chapter 20. Globalization and Protectionism......Page 469 20.1. Protectionism: An Indirect Subsidy from Consumers to Producers*......Page 470 20.2. International Trade and Its Effects on Jobs, Wages, and Working Conditions*......Page 477 20.3. Arguments in Support of Restricting Imports*......Page 480 20.4. How Governments Enact Trade Policy: Globally, Regionally, and Nationally*......Page 485 20.5. The Tradeoffs of Trade Policy*......Page 489 Glossary......Page 492 A.1. Algebraic Models......Page 497 A.3. Displaying Data Graphically and Interpreting the Graph......Page 501 A.5. Review Questions......Page 512 B.1. What Is an Indifference Curve?......Page 513 B.2. Utility-Maximizing with Indifference Curves......Page 515 B.3. Changes in Income......Page 516 B.4. Responses to Price Changes: Substitution and Income Effects......Page 517 B.5. Indifference Curves with Labor-Leisure and Intertemporal Choices......Page 518 B.6. Sketching Substitution and Income Effects......Page 521 B.7. Key Concepts and Summary......Page 524 B.8. Review Questions......Page 525 C.1. Applying Present Discounted Value to a Stock......Page 527 C.3. Other Applications......Page 528 Chapter 2......Page 531 Chapter 3......Page 532 Chapter 4......Page 534 Chapter 5......Page 537 Chapter 6......Page 539 Chapter 7......Page 542 Chapter 8......Page 543 Chapter 10......Page 544 Chapter 11......Page 545 Chapter 12......Page 546 Chapter 13......Page 550 Chapter 14......Page 551 Chapter 15......Page 555 Chapter 17......Page 556 Chapter 19......Page 557 Chapter 20......Page 559 References......Page 561 Index......Page 571 APMicroeconomics2e-cover.pdf......Page 0 Blank Page......Page 2