Description
Preface
1 Welcome to Economics!
Introduction
1.1 What Is Economics, and Why Is It Important?
1.2 Microeconomics and Macroeconomics
1.3 How Economists Use Theories and Models to Understand Economic Issues
1.4 How To Organize Economies: An Overview of Economic Systems
Key Terms
Key Concepts and Summary
Self-Check Questions
Review Questions
Critical Thinking Questions
2 Choice in a World of Scarcity
Introduction to Choice in a World of Scarcity
2.1 How Individuals Make Choices Based on Their Budget Constraint
2.2 The Production Possibilities Frontier and Social Choices
2.3 Confronting Objections to the Economic Approach
Key Terms
Key Concepts and Summary
Self-Check Questions
Review Questions
Critical Thinking Questions
Problems
3 Demand and Supply
Introduction to Demand and Supply
3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
3.2 Shifts in Demand and Supply for Goods and Services
3.3 Changes in Equilibrium Price and Quantity: The Four-Step Process
3.4 Price Ceilings and Price Floors
3.5 Demand, Supply, and Efficiency
Key Terms
Key Concepts and Summary
Self-Check Questions
Review Questions
Critical Thinking Questions
Problems
4 Labor and Financial Markets
Introduction to Labor and Financial Markets
4.1 Demand and Supply at Work in Labor Markets
4.2 Demand and Supply in Financial Markets
4.3 The Market System as an Efficient Mechanism for Information
Key Terms
Key Concepts and Summary
Self-Check Questions
Review Questions
Critical Thinking Questions
Problems
5 Elasticity
Introduction to Elasticity
5.1 Price Elasticity of Demand and Price Elasticity of Supply
5.2 Polar Cases of Elasticity and Constant Elasticity
5.3 Elasticity and Pricing
5.4 Elasticity in Areas Other Than Price
Key Terms
Key Concepts and Summary
Self-Check Questions
Review Questions
Critical Thinking Questions
Problems
6 Consumer Choices
Introduction to Consumer Choices
6.1 Consumption Choices
6.2 How Changes in Income and Prices Affect Consumption Choices
6.3 Labor-Leisure Choices
6.4 Intertemporal Choices in Financial Capital Markets
Key Terms
Key Concepts and Summary
Self-Check Questions
Review Questions
Critical Thinking Questions
Problems
7 Production, Costs and Industry Structure
Introduction to Production, Costs, and Industry Structure
7.1 Explicit and Implicit Costs, and Accounting and Economic Profit
7.2 Production in the Short Run
7.3 Costs in the Short Run
7.4 Production in the Long Run
7.5 Costs in the Long Run
Key Terms
Key Concepts and Summary
Self-Check Questions
Review Questions
Critical Thinking Questions
Problems
8 Perfect Competition
Introduction to Perfect Competition
8.1 Perfect Competition and Why It Matters
8.2 How Perfectly Competitive Firms Make Output Decisions
8.3 Entry and Exit Decisions in the Long Run
8.4 Efficiency in Perfectly Competitive Markets
Key Terms
Key Concepts and Summary
Self-Check Questions
Review Questions
Critical Thinking Questions
Problems
9 Monopoly
Introduction to a Monopoly
9.1 How Monopolies Form: Barriers to Entry
9.2 How a Profit-Maximizing Monopoly Chooses Output and Price
Key Terms
Key Concepts and Summary
Self-Check Questions
Review Questions
Critical Thinking Questions
Problems
10 Monopolistic Competition and Oligopoly
Introduction to Monopolistic Competition and Oligopoly
10.1 Monopolistic Competition
10.2 Oligopoly
Key Terms
Key Concepts and Summary
Self-Check Questions
Review Questions
Critical Thinking Questions
Problems
11 Monopoly and Antitrust Policy
Introduction to Monopoly and Antitrust Policy
11.1 Corporate Mergers
11.2 Regulating Anticompetitive Behavior
11.3 Regulating Natural Monopolies
11.4 The Great Deregulation Experiment
Key Terms
Key Concepts and Summary
Self-Check Questions
Review Questions
Critical Thinking Questions
Problems
12 Environmental Protection and Negative Externalities
Introduction to Environmental Protection and Negative Externalities
12.1 The Economics of Pollution
12.2 Command-and-Control Regulation
12.3 Market-Oriented Environmental Tools
12.4 The Benefits and Costs of U.S. Environmental Laws
12.5 International Environmental Issues
12.6 The Tradeoff between Economic Output and Environmental Protection
Key Terms
Key Concepts and Summary
Self-Check Questions
Review Questions
Critical Thinking Questions
Problems
13 Positive Externalities and Public Goods
Introduction to Positive Externalities and Public Goods
13.1 Why the Private Sector Underinvests in Innovation
13.2 How Governments Can Encourage Innovation
13.3 Public Goods
Key Terms
Key Concepts and Summary
Self-Check Questions
Review Questions
Critical Thinking Questions
Problems
14 Poverty and Economic Inequality
Introduction to Poverty and Economic Inequality
14.1 Drawing the Poverty Line
14.2 The Poverty Trap
14.3 The Safety Net
14.4 Income Inequality: Measurement and Causes
14.5 Government Policies to Reduce Income Inequality
Key Terms
Key Concepts and Summary
Self-Check Questions
Review Questions
Critical Thinking Questions
Problems
15 Labor Markets and Income
Introduction to Labor Markets and Income
15.1 Market Power on the Supply Side of Labor Markets: Unions
15.2 Employment Discrimination
15.3 Immigration
Key Terms
Key Concepts and Summary
Self-Check Questions
Review Questions
Critical Thinking Questions
16 Information, Risk, and Insurance
Introduction to Information, Risk, and Insurance
16.1 The Problem of Imperfect Information and Asymmetric Information
16.2 Insurance and Imperfect Information
Key Terms
Key Concepts and Summary
Self-Check Questions
Review Questions
Critical Thinking Questions
Problems
17 Financial Markets
Introduction to Financial Markets
17.1 How Businesses Raise Financial Capital
17.2 How Households Supply Financial Capital
17.3 How to Accumulate Personal Wealth
Key Terms
Key Concepts and Summary
Self-Check Questions
Review Questions
Critical Thinking Questions
Problems
18 Public Economy
Introduction to Public Economy
18.1 Voter Participation and Costs of Elections
18.2 Special Interest Politics
18.3 Flaws in the Democratic System of Government
Key Terms
Key Concepts and Summary
Self-Check Questions
Review Questions
Critical Thinking Questions
Problems
19 International Trade
Introduction to International Trade
19.1 Absolute and Comparative Advantage
19.2 What Happens When a Country Has an Absolute Advantage in All Goods
19.3 Intra-industry Trade between Similar Economies
19.4 The Benefits of Reducing Barriers to International Trade
Key Terms
Key Concepts and Summary
Self-Check Questions
Review Questions
Critical Thinking Questions
Problems
20 Globalization and Protectionism
Introduction to Globalization and Protectionism
20.1 Protectionism: An Indirect Subsidy from Consumers to Producers
20.2 International Trade and Its Effects on Jobs, Wages, and Working Conditions
20.3 Arguments in Support of Restricting Imports
20.4 How Governments Enact Trade Policy: Globally, Regionally, and Nationally
20.5 The Tradeoffs of Trade Policy
Key Terms
Key Concepts and Summary
Self-Check Questions
Review Questions
Critical Thinking Questions
Problems
A | The Use of Mathematics in Principles of Economics
B | Indifference Curves
C | Present Discounted Value
Answer Key
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Chapter 11
Chapter 12
Chapter 13
Chapter 14
Chapter 15
Chapter 16
Chapter 17
Chapter 18
Chapter 19
Chapter 20
References
Index
