Principles Of Economics

Description

Cover About the Author Preface: To the Instructor Brief Contents Contents Preface: To the Student Part I: Introduction Chapter 1: Ten Principles of Economics 1-1 How People Make Decisions 1-2 How People Interact 1-3 How the Economy as a Whole Works 1-4 Conclusion Chapter in a Nutshell Key Concepts Questions for Review Problems and Applications QuickQuiz Answers Chapter 2: Thinking Like an Economist 2-1 The Economist as Scientist 2-2 The Economist as Policy Adviser 2-3 Why Economists Disagree 2-4 Let's Get Going Chapter in a Nutshell Key Concepts Questions for Review Problems and Applications QuickQuiz Answers Appendix: Graphing: A Brief Review Chapter 3: Interdependence and the Gains from Trade 3-1 A Parable for the Modern Economy 3-2 Comparative Advantage: The Driving Force of Specialization 3-3 Applications of Comparative Advantage 3-4 Conclusion Chapter in a Nutshell Key Concepts Questions for Review Problems and Applications QuickQuiz Answers Part II: How Markets Work Chapter 4: The Market Forces of Supply and Demand 4-1 Markets and Competition 4-2 Demand 4-3 Supply 4-4 Supply and Demand Together 4-5 Conclusion: How Prices Allocate Resources Chapter in a Nutshell Key Concepts Questions for Review Problems and Applications QuickQuiz Answers Chapter 5: Elasticity and Its Application 5-1 The Elasticity of Demand 5-2 The Elasticity of Supply 5-3 Three Applications of Supply, Demand, and Elasticity 5-4 Conclusion Chapter in a Nutshell Key Concepts Questions for Review Problems and Applications QuickQuiz Answers Chapter 6: Supply, Demand, and Government Policies 6-1 Controls on Prices 6-2 Taxes 6-3 Conclusion Chapter in a Nutshell Key Concepts Questions for Review Problems and Applications QuickQuiz Answers Part III: Markets and Welfare Chapter 7: Consumers, Producers, and the Efficiency of Markets 7-1 Consumer Surplus 7-2 Producer Surplus 7-3 Market Efficiency 7-4 Conclusion: Market Efficiency and Market Failure Chapter in a Nutshell Key Concepts Questions for Review Problems and Applications QuickQuiz Answers Chapter 8: Application: The Costs of Taxation 8-1 The Deadweight Loss of Taxation 8-2 The Determinants of the Deadweight Loss 8-3 Deadweight Loss and Tax Revenue as Taxes Vary 8-4 Conclusion Chapter in a Nutshell Key Concept Questions for Review Problems and Applications QuickQuiz Answers Chapter 9: Application: International Trade 9-1 The Determinants of Trade 9-2 The Winners and Losers from Trade 9-3 The Arguments for Restricting Trade 9-4 Conclusion Chapter in a Nutshell Key Concepts Questions for Review Problems and Applications QuickQuiz Answers Part IV: The Economics of the Public Sector Chapter 10: Externalities 10-1 Externalities and Market Inefficiency 10-2 Public Policies toward Externalities 10-3 Private Solutions to Externalities 10-4 Conclusion Chapter in a Nutshell Key Concepts Questions for Review Problems and Applications QuickQuiz Answers Chapter 11: Public Goods and Common Resources 11-1 The Different Kinds of Goods 11-2 Public Goods 11-3 Common Resources 11-4 Conclusion: The Importance of Property Rights Chapter in a Nutshell Key Concepts Questions for Review Problems and Applications QuickQuiz Answers Chapter 12: The Design of the Tax System 12-1 An Overview of U.S. Taxation 12-2 Taxes and Efficiency 12-3 Taxes and Equity 12-4 Conclusion: The Trade-Off between Equity and Efficiency Chapter in a Nutshell Key Concepts Questions for Review Problems and Applications QuickQuiz Answers Part V: Firm Behavior and the Organization of Industry Chapter 13: The Costs of Production 13-1 What Are Costs? 13-2 Production and Costs 13-3 The Various Measures of Cost 13-4 Costs in the Short Run and in the Long Run 13-5 Conclusion Chapter in a Nutshell Key Concepts Questions for Review Problems and Applications QuickQuiz Answers Chapter 14: Firms in Competitive Markets 14-1 What Is a Competitive Market? 14-2 Profit Maximization and the Competitive Firm's Supply Curve 14-3 The Supply Curve in a Competitive Market 14-4 Conclusion: Behind the Supply Curve Chapter in a Nutshell Key Concepts Questions for Review Problems and Applications QuickQuiz Answers Chapter 15: Monopoly 15-1 Why Monopolies Arise 15-2 How Monopolies Make Production and Pricing Decisions 15-3 The Welfare Cost of Monopolies 15-4 Price Discrimination 15-5 Public Policy toward Monopolies 15-6 Conclusion: The Prevalence of Monopolies Chapter in a Nutshell Key Concepts Questions for Review Problems and Applications QuickQuiz Answers Chapter 16: Monopolistic Competition 16-1 Between Monopoly and Perfect Competition 16-2 Competition with Differentiated Products 16-3 Advertising 16-4 Conclusion Chapter in a Nutshell Key Concepts Questions for Review Problems and Applications QuickQuiz Answers Chapter 17: Oligopoly 17-1 Markets with Only a Few Sellers 17-2 The Economics of Cooperation 17-3 Public Policy toward Oligopolies 17-4 Conclusion Chapter in a Nutshell Key Concepts Questions for Review Problems and Applications QuickQuiz Answers Part VI: The Economics of Labor Markets Chapter 18: The Markets for the Factors of Production 18-1 The Demand for Labor 18-2 The Supply of Labor 18-3 Equilibrium in the Labor Market 18-4 The Other Factors of Production: Land and Capital 18-5 Conclusion Chapter in a Nutshell Key Concepts Questions for Review Problems and Applications QuickQuiz Answers Chapter 19: Earnings and Discrimination 19-1 Some Determinants of Equilibrium Wages 19-2 The Economics of Discrimination 19-3 Conclusion Chapter in a Nutshell Key Concepts Questions for Review Problems and Applications QuickQuiz Answers Chapter 20: Income Inequality and Poverty 20-1 Measuring Inequality 20-2 The Political Philosophy of Redistributing Income 20-3 Policies to Reduce Poverty 20-4 Conclusion Chapter in a Nutshell Key Concepts Questions for Review Problems and Applications QuickQuiz Answers Part VII: Topics for Further Study Chapter 21: The Theory of Consumer Choice 21-1 The Budget Constraint: What a Consumer Can Afford 21-2 Preferences: What a Consumer Wants 21-3 Optimization: What a Consumer Chooses 21-4 Three Applications 21-5 Conclusion: Do People Really Think This Way? Chapter in a Nutshell Key Concepts Questions for Review Problems and Applications QuickQuiz Answers Chapter 22: Frontiers of Microeconomics 22-1 Asymmetric Information 22-2 Political Economy 22-3 Behavioral Economics 22-4 Conclusion Chapter in a Nutshell Key Concepts Questions for Review Problems and Applications QuickQuiz Answers Part VIII: The Data of Macroeconomics Chapter 23: Measuring a Nation's Income 23-1 The Economy's Income and Expenditure 23-2 The Measurement of GDP 23-3 The Components of GDP 23-4 Real versus Nominal GDP 23-5 Is GDP a Good Measure of Economic Well-Being? 23-6 Conclusion Chapter in a Nutshell Key Concepts Questions for Review Problems and Applications QuickQuiz Answers Chapter 24: Measuring the Cost of Living 24-1 The Consumer Price Index 24-2 Correcting Economic Variables for the Effects of Inflation 24-3 Conclusion Chapter in a Nutshell Key Concepts Questions for Review Problems and Applications QuickQuiz Answers Part IX: The Real Economy in the Long Run Chapter 25: Production and Growth 25-1 Economic Growth around the World 25-2 Productivity: Its Role and Determinants 25-3 Economic Growth and Public Policy 25-4 Conclusion: The Importance of Long-Run Growth Chapter in a Nutshell Key Concepts Questions for Review Problems and Applications QuickQuiz Answers Chapter 26: Saving, Investment, and the Financial System 26-1 Financial Institutions in the U.S. Economy 26-2 Saving and Investment in the National Income Accounts 26-3 The Market for Loanable Funds 26-4 Conclusion Chapter in a Nutshell Key Concepts Questions for Review Problems and Applications QuickQuiz Answers Chapter 27: The Basic Tools of Finance 27-1 Present Value: Measuring the Time Value of Money 27-2 Managing Risk 27-3 Asset Valuation 27-4 Conclusion Chapter in a Nutshell Key Concepts Questions for Review Problems and Applications QuickQuiz Answers Chapter 28: Unemployment 28-1 Identifying Unemployment 28-2 Job Search 28-3 Minimum-Wage Laws 28-4 Unions and Collective Bargaining 28-5 The Theory of Efficiency Wages 28-6 Conclusion Chapter in a Nutshell Key Concepts Questions for Review Problems and Applications QuickQuiz Answers Part X: Money and Prices in the Long Run Chapter 29: The Monetary System 29-1 The Meaning of Money 29-2 The Federal Reserve System 29-3 Banks and the Money Supply 29-4 The Fed's Tools of Monetary Control 29-5 Conclusion Chapter in a Nutshell Key Concepts Questions for Review Problems and Applications QuickQuiz Answers Chapter 30: Money Growth and Inflation 30-1 The Classical Theory of Inflation 30-2 The Costs of Inflation 30-3 Conclusion Chapter in a Nutshell Key Concepts Questions for Review Problems and Applications QuickQuiz Answers Part XI: The Macroeconomics of Open Economies Chapter 31: Open-Economy Macroeconomics: Basic Concepts 31-1 The International Flows of Goods and Capital 31-2 The Prices for International Transactions: Real and Nominal Exchange Rates 31-3 A First Theory of Exchange-Rate Determination: Purchasing-Power Parity 31-4 Conclusion Chapter in a Nutshell Key Concepts Questions for Review Problems and Applications QuickQuiz Answers Chapter 32: A Macroeconomic Theory of the Open Economy 32-1 Supply and Demand for Loanable Funds and for Foreign-Currency Exchange 32-2 Equilibrium in the Open Economy 32-3 How Policies and Events Affect an Open Economy 32-4 Conclusion Chapter in a Nutshell Key Concepts Questions for Review Problems and Applications QuickQuiz Answers Part XII: Short-Run Economic Fluctuations Chapter 33: Aggregate Demand and Aggregate Supply 33-1 Three Key Facts about Economic Fluctuations 33-2 Explaining Short-Run Economic Fluctuations 33-3 The Aggregate-Demand Curve 33-4 The Aggregate-Supply Curve 33-5 Two Causes of Economic Fluctuations 33-6 Conclusion Chapter in a Nutshell Key Concepts Questions for Review Problems and Applications QuickQuiz Answers Chapter 34: The Influence of Monetary and Fiscal Policy on Aggregate Demand 34-1 How Monetary Policy Influences Aggregate Demand 34-2 How Fiscal Policy Influences Aggregate Demand 34-3 Using Policy to Stabilize the Economy 34-4 Conclusion Chapter in a Nutshell Key Concepts Questions for Review Problems and Applications QuickQuiz Answers Chapter 35: The Short-Run Trade-Off between Inflation and Unemployment 35-1 The Phillips Curve 35-2 Shifts in the Phillips Curve: The Role of Expectations 35-3 Shifts in the Phillips Curve: The Role of Supply Shocks 35-4 The Cost of Reducing Inflation 35-5 Conclusion Chapter in a Nutshell Key Concepts Questions for Review Problems and Applications QuickQuiz Answers Part XIII: Final Thoughts Chapter 36: Six Debates over Macroeconomic Policy 36-1 Should Monetary and Fiscal Policymakers Try to Stabilize the Economy? 36-2 Should the Government Fight Recessions with Spending Hikes Rather Than Tax Cuts? 36-3 Should Monetary Policy Be Made by Rule Rather Than by Discretion? 36-4 Should the Central Bank Aim for Zero Inflation? 36-5 Should the Government Balance Its Budget? 36-6 Should the Tax Laws Be Reformed to Encourage Saving? 36-7 Conclusion Chapter in a Nutshell Questions for Review Problems and Applications QuickQuiz Answers Glossary Index