About the Authors
Acknowledgments
Dedication
Preface
Chapter 1: Economics: The Study of Choice
1.1 Start Up: Economics in the News
1.2 Defining Economics
1.3 The Field of Economics
1.4 The Economist’s Tool Kit
1.5 Review and Practice
Chapter 2: Confronting Scarcity: Choices in Production
2.1 Start Up: An Attempt to Produce Safer Air Travel
2.2 Factors of Production
2.3 The Production Possibilities Curve
2.4 Applications of the Production Possibilities Model
2.5 Review and Practice
Chapter 3: Demand and Supply
3.1 Start Up: Crazy for Coffee
3.2 Demand
3.3 Supply
3.4 Demand, Supply, and Equilibrium
3.5 Review and Practice
Chapter 4: Applications of Demand and Supply
4.1 Start Up: Better. Faster. Cheaper.
4.2 Putting Demand and Supply to Work
4.3 Government Intervention in Markets: Price Floors and Price Ceilings
4.4 Government Intervention in Markets: Taxes
4.5 Review and Practice
Chapter 5: Elasticity: A Measure of Response
5.1 Start Up: Raise Fares? Lower Fares? What’s a Public Transit Manager to Do?
5.2 The Price Elasticity of Demand
5.3 Responsiveness of Demand to Other Factors
5.4 Price Elasticity of Supply and Putting It All Together
5.5 Review and Practice
Chapter 6: Markets, Maximizers, and Efficiency
6.1 Start Up: A Drive in the Country
6.2 The Logic of Maximizing Behavior
6.3 Maximizing in the Marketplace
6.4 Market Failure
6.5 Review and Practice
Chapter 7: The Analysis of Consumer Choice
7.1 Start Up: A Day at the Grocery Store
7.2 The Concept of Utility
7.3 Utility Maximization and Demand
7.4 Review and Practice
Chapter 8: Production and Cost
8.1 Start Up: Street Cleaning Around the World
8.2 Production Choices and Costs: The Short Run
8.3 Production Choices and Costs: The Long Run
8.4 Review and Practice
Chapter 9: Competitive Markets for Goods and Services
9.1 Start Up: Always on the Margin; Always on the Edge
9.2 Perfect Competition: A Model
9.3 Profit Maximization in the Short Run
9.4 Perfect Competition in the Long Run
9.5 Review and Practice
Chapter 10: Monopoly
10.1 Start Up: Surrounded by Monopolies
10.2 The Nature of Monopoly
10.3 The Monopoly Model
10.4 Assessing Monopoly
10.5 Review and Practice
Chapter 11: The World of Imperfect Competition
11.1 Start Up: Looking at the World Through Cash-Colored Glasses
11.2 Monopolistic Competition: Competition Among the Many
11.3 Oligopoly: Competition Among the Few
11.4 Extensions of Imperfect Competition: Advertising and Price Discrimination
11.5 Review and Practice
Chapter 12: Factor Markets
12.1 Start Up: College Pays
12.2 Labor Markets: Demand and Supply
12.3 Labor Markets in Perfect Competition
12.4 Imperfectly Competitive Labor Markets: Monopoly and Monopsony
12.5 Review and Practice
Chapter 13: Public Finance and Public Choice
13.1 Start Up: Your Tax Dollars at Work
13.2 The Role of Government in a Market Economy
13.3 Financing Government
13.4 Choices in the Public Sector
13.5 Review and Practice
Chapter 14: International Trade
14.1 Start Up: Support Your Local Poet
14.2 The Gains from Trade
14.3 Partial Equilibrium and Two-Way Trade
14.4 Restrictions on International Trade
14.5 Review and Practice
Chapter 15: The Economics of the Environment and Natural Resources
15.1 Start Up: Environmental Headwinds
15.2 Maximizing the Net Benefits of Pollution
15.3 Alternatives in Pollution Control
15.4 Natural Resources and Conservation
15.5 Review and Practice
Chapter 16: Inequality, Poverty, and Discrimination
16.1 Start Up: Occupy Wall Street; Change the World?
16.2 Income Inequality
16.3 The Economics of Poverty
16.4 The Economics of Discrimination
16.5 Review and Practice
Chapter 17: Introduction to the Macroeconomy: Measuring the Economy’s Output
17.1 Start Up: Your Uncertain Future
17.2 Measuring Total Output: GDP and Its Components
17.3 Real GDP, Economic Growth, and Business Cycles
17.4 GDP and Economic Well-Being
17.5 Review and Practice
Chapter 18: The Price Level and Inflation
18.1 Start Up: College Is More Expensive Than Ever . . . Or Is It?
18.2 Measuring Prices and Inflation
18.3 The Causes of Inflation
18.4 The Consequences of Inflation
18.5 Review and Practice
Chapter 19: Unemployment
19.1 Start Up: This One Was Different . . . But Was That Better or Worse?
19.2 Measuring Unemployment
19.3 The Nature of Unemployment
19.4 Policy Implications of Unemployment
19.5 Review and Practice
Chapter 20: Aggregate Demand and Aggregate Supply
20.1 Start Up: The Great Warning
20.2 Aggregate Demand
20.3 Aggregate Demand and Aggregate Supply: The Long Run and the Short Run
20.4 Recessionary and Inflationary Gaps and Long-Run Macroeconomic Equilibrium
20.5 Review and Practice
Chapter 21: Economic Growth
21.1 Start Up: How Important Is Economic Growth?
21.2 The Significance of Economic Growth
21.3 Growth and the Long-Run Aggregate Supply Curve
21.4 A Recipe for Economic Growth
21.5 Review and Practice
Chapter 22: The Nature and Creation of Money
22.1 Start Up: Holy Mackerel—This Fish Story Is True!
22.2 What Is Money?
22.3 The Banking System and Money Creation
22.4 The Federal Reserve System
22.5 Review and Practice
Chapter 23: Financial Markets and the Economy
23.1 Start Up: Who Wants to Be a Millionaire?
23.2 The Functions of Financial Instruments
23.3 The Bond and Foreign Exchange Markets
23.4 Demand, Supply, and Equilibrium in the Money Market
23.5 Review and Practice
Chapter 24: Monetary Policy and the Fed
24.1 Start Up: The Fed Goes to War
24.2 Monetary Policy in the United States
24.3 Problems and Controversies of Monetary Policy
24.4 The Trade-Off Between Inflation and Unemployment
24.5 Review and Practice
Chapter 25: Government and Fiscal Policy
25.1 Start Up: A Massive Stimulus
25.2 Government and the Economy
25.3 The Use of Fiscal Policy to Stabilize the Economy
25.4 Fiscal Policy in Practice
25.5 Review and Practice
Chapter 26: Consumption and the Aggregate Expenditures Model
26.1 Start Up: Consumption Spending Plummets as the COVID-19 Recession Begins
26.2 Determining the Level of Consumption
26.3 The Aggregate Expenditures Model
26.4 Aggregate Expenditures and Aggregate Demand
26.5 Review and Practice
Chapter 27: Investment and Economic Activity
27.1 Start Up: Jittery Firms Slash Investment as Great Recession Unfolds
27.2 The Role and Nature of Investment
27.3 Determinants of Investment
27.4 Investment and the Economy
27.5 Review and Practice
Chapter 28: Net Exports and International Finance
28.1 Start Up: Currency Crises Shake the World
28.2 The International Sector: An Introduction
28.3 International Finance
28.4 Exchange Rate Systems
28.5 Review and Practice
Chapter 29: A Brief History of Macroeconomic Thought and Policy
29.1 Start Up: Three Revolutions in Macroeconomic Thought
29.2 The Great Depression and Keynesian Economics
29.3 Keynesian Economics in the 1960s and 1970s
29.4 Macroeconomics for the Twenty-First Century
29.5 Review and Practice
Appendix A: Graphs in Economics
A.1 Graphs in Economics
A.2 Nonlinear Relationships and Graphs Without Numbers
A.3 Using Graphs and Charts to Show Values of Variables
A.4 Review and Practice
Appendix B: The Solow Model of Economic Growth
B.1 Capital Accumulation and Economic Growth
B.2 Review and Practice
Appendix C: Indifference Curve Analysis of Consumer Choice
C.1 Indifference Curve Analysis: An Alternative Approach to Understanding Consumer Choice
C.2 Review and Practice