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 The Macroeconomic Perspective
Introduction to the Macroeconomic Perspective
5.1 Measuring the Size of the Economy: Gross Domestic Product
5.2 Adjusting Nominal Values to Real Values
5.3 Tracking Real GDP over Time
5.4 Comparing GDP among Countries
5.5 How Well GDP Measures the Well-Being of Society
Key Terms
Key Concepts and Summary
Self-Check Questions
Review Questions
Critical Thinking Questions
Problems
6 Economic Growth
Introduction to Economic Growth
6.1 The Relatively Recent Arrival of Economic Growth
6.2 Labor Productivity and Economic Growth
6.3 Components of Economic Growth
6.4 Economic Convergence
Key Terms
Key Concepts and Summary
Self-Check Questions
Review Questions
Critical Thinking Questions
Problems
7 Unemployment
Introduction to Unemployment
7.1 How Economists Define and Compute Unemployment Rate
7.2 Patterns of Unemployment
7.3 What Causes Changes in Unemployment over the Short Run
7.4 What Causes Changes in Unemployment over the Long Run
Key Terms
Key Concepts and Summary
Self-Check Questions
Review Questions
Critical Thinking Questions
Problems
8 Inflation
Introduction to Inflation
8.1 Tracking Inflation
8.2 How to Measure Changes in the Cost of Living
8.3 How the U.S. and Other Countries Experience Inflation
8.4 The Confusion Over Inflation
8.5 Indexing and Its Limitations
Key Terms
Key Concepts and Summary
Self-Check Questions
Review Questions
Critical Thinking Questions
Problems
9 The International Trade and Capital Flows
Introduction to the International Trade and Capital Flows
9.1 Measuring Trade Balances
9.2 Trade Balances in Historical and International Context
9.3 Trade Balances and Flows of Financial Capital
9.4 The National Saving and Investment Identity
9.5 The Pros and Cons of Trade Deficits and Surpluses
9.6 The Difference between Level of Trade and the Trade Balance
Key Terms
Key Concepts and Summary
Self-Check Questions
Review Questions
Critical Thinking Questions
Problems
10 The Aggregate Demand/Aggregate Supply Model
Introduction to the Aggregate Supply–Aggregate Demand Model
10.1 Macroeconomic Perspectives on Demand and Supply
10.2 Building a Model of Aggregate Demand and Aggregate Supply
10.3 Shifts in Aggregate Supply
10.4 Shifts in Aggregate Demand
10.5 How the AD/AS Model Incorporates Growth, Unemployment, and Inflation
10.6 Keynes’ Law and Say’s Law in the AD/AS Model
Key Terms
Key Concepts and Summary
Self-Check Questions
Review Questions
Critical Thinking Questions
Problems
11 The Keynesian Perspective
Introduction to the Keynesian Perspective
11.1 Aggregate Demand in Keynesian Analysis
11.2 The Building Blocks of Keynesian Analysis
11.3 The Expenditure-Output (or Keynesian Cross) Model
11.4 The Phillips Curve
11.5 The Keynesian Perspective on Market Forces
Key Terms
Key Concepts and Summary
Self-Check Questions
Review Questions
Critical Thinking Questions
12 The Neoclassical Perspective
Introduction to the Neoclassical Perspective
12.1 The Building Blocks of Neoclassical Analysis
12.2 The Policy Implications of the Neoclassical Perspective
12.3 Balancing Keynesian and Neoclassical Models
Key Terms
Key Concepts and Summary
Self-Check Questions
Review Questions
Critical Thinking Questions
Problems
13 Money and Banking
Introduction to Money and Banking
13.1 Defining Money by Its Functions
13.2 Measuring Money: Currency, M1, and M2
13.3 The Role of Banks
13.4 How Banks Create Money
Key Terms
Key Concepts and Summary
Self-Check Questions
Review Questions
Critical Thinking Questions
Problems
14 Monetary Policy and Bank Regulation
Introduction to Monetary Policy and Bank Regulation
14.1 The Federal Reserve Banking System and Central Banks
14.2 Bank Regulation
14.3 How a Central Bank Executes Monetary Policy
14.4 Monetary Policy and Economic Outcomes
14.5 Pitfalls for Monetary Policy
Key Terms
Key Concepts and Summary
Self-Check Questions
Review Questions
Critical Thinking Questions
Problems
15 Exchange Rates and International Capital Flows
Introduction to Exchange Rates and International Capital Flows
15.1 How the Foreign Exchange Market Works
15.2 Demand and Supply Shifts in Foreign Exchange Markets
15.3 Macroeconomic Effects of Exchange Rates
15.4 Exchange Rate Policies
Key Terms
Key Concepts and Summary
Self-Check Questions
Review Questions
Critical Thinking Questions
Problems
16 Government Budgets and Fiscal Policy
Introduction to Government Budgets and Fiscal Policy
16.1 Government Spending
16.2 Taxation
16.3 Federal Deficits and the National Debt
16.4 Using Fiscal Policy to Fight Recession, Unemployment, and Inflation
16.5 Automatic Stabilizers
16.6 Practical Problems with Discretionary Fiscal Policy
16.7 The Question of a Balanced Budget
Key Terms
Key Concepts and Summary
Self-Check Questions
Review Questions
Critical Thinking Questions
Problems
17 The Impacts of Government Borrowing
Introduction to the Impacts of Government Borrowing
17.1 How Government Borrowing Affects Investment and the Trade Balance
17.2 Fiscal Policy, Investment, and Economic Growth
17.3 How Government Borrowing Affects Private Saving
17.4 Fiscal Policy and the Trade Balance
Key Terms
Key Concepts and Summary
Self-Check Questions
Review Questions
Critical Thinking Questions
Problems
18 Macroeconomic Policy Around the World
Introduction to Macroeconomic Policy around the World
18.1 The Diversity of Countries and Economies across the World
18.2 Improving Countries’ Standards of Living
18.3 Causes of Unemployment around the World
18.4 Causes of Inflation in Various Countries and Regions
18.5 Balance of Trade Concerns
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
References
Index
