Front Matter

Front Matter Introduction

About the Author

Acknowledgments

Chapter 1: Exploring Economics

Chapter Introduction

What Is Economics About?

Key Principles of Economics

Chapter Summary

Key Concepts

Questions and Problems

Appendix: Working with Graphs and Formulas

Graphs and Data

Graphs and Models

Linear Relationships

Nonlinear Relationships

Ceteris Paribus, Simple Equations, and Shifting Curves

Correlation Is Not Causation

Chapter 2: Production, Economic Growth, and Trade

Chapter Introduction

Basic Economic Questions and Production

Production Possibilities and Economic Growth

Specialization, Comparative Advantage, and Trade

Chapter Summary

Key Concepts

Questions and Problems

Chapter 3: Supply and Demand

Chapter Introduction

Markets

Demand

Supply

Market Equilibrium

Chapter Summary

Key Concepts

Questions and Problems

Chapter 4: Markets and Governments

Chapter Introduction

Consumer and Producer Surplus: A Tool for Measuring Economic Efficiency

Using Consumer and Producer Surplus: The Gains from Trade

Price Ceilings and Price Floors

Chapter Summary

Key Concepts

Questions and Problems

Chapter 5: Elasticity

Chapter Introduction

Elasticity of Demand

Total Revenue and Other Measures of Elasticity

Elasticity of Supply

Taxes and Elasticity

Chapter Summary

Key Concepts

Questions and Problems

Chapter 6: Consumer Choice and Demand

Chapter Introduction

The Budget Line and Choices

Marginal Utility Analysis

Behavioral Economics

Chapter Summary

Key Concepts

Questions and Problems

Appendix: Indifference Curve Analysis

Indifference Curves and Consumer Preferences

Optimal Consumer Choice

Using Indifference Curves

Appendix Key Concepts

Appendix Questions and Problems

Chapter 7: Production and Costs

Chapter Introduction

Firms, Profits, and Economic Costs

Production in the Short Run

Costs of Production

Chapter Summary

Key Concepts

Questions and Problems

Chapter 8: Perfect Competition

Chapter Introduction

Market Structure Analysis

Perfect Competition: Short-Run Decisions

Perfect Competition: Long-Run Adjustments

Chapter Summary

Key Concepts

Questions and Problems

Chapter 9: Monopoly

Chapter Introduction

Monopoly Markets

Comparing Monopoly and Competition

Price Discrimination

Regulation and Antitrust

Chapter Summary

Key Concepts

Questions and Problems

Chapter 10: Monopolistic Competition, Oligopoly, and Game Theory

Chapter Introduction

Monopolistic Competition

Oligopoly

Game Theory

Applications of Game Theory

Chapter Summary

Key Concepts

Questions and Problems

Chapter 11: The Labor Market

Chapter Introduction

Competitive Labor Supply

Competitive Labor Demand

Economic Discrimination

Labor Unions and Collective Bargaining

The Changing World of Work

Chapter Summary

Key Concepts

Questions and Problems

Appendix: Imperfect Labor Markets

Monopoly Power in Product Markets

Monopsony

Appendix Key Concepts

Appendix Summary

Appendix Questions and Problems

Chapter 12: Land, Capital Markets, and Innovation

Chapter Introduction

Land and Physical Capital

Financial Capital

Investment in Human Capital

Entrepreneurship and Innovation

Chapter Summary

Key Concepts

Questions and Problems

Chapter 13: Externalities and Public Goods

Chapter Introduction

Externalities

Public Goods

Environmental Policy

Putting It All Together: An Analysis of Climate Change

Chapter Summary

Key Concepts

Questions and Problems

Chapter 14: Network Goods

Chapter Introduction

What Is a Network Good?

Demand Curve for a Network Good

Market Equilibrium for a Network Good

Competition and Market Structure for Network Goods

Should Network Goods Be Regulated?

Chapter Summary

Key Concepts

Questions and Problems

Chapter 15: Poverty and Income Distribution

Chapter Introduction

The Distribution of Income and Wealth

Poverty

Chapter Summary

Key Concepts

Questions and Problems

Chapter 16: Introduction to Macroeconomics

Chapter Introduction

Business Cycles

National Income Accounting

GDP and Our Standard of Living

Chapter Summary

Key Concepts

Questions and Problems

Chapter 17: Measuring Inflation and Unemployment

Chapter Introduction

Inflation

Unemployment

Unemployment and the Economy

Chapter Summary

Key Concepts

Questions and Problems

Chapter 18: Economic Growth

Chapter Introduction

Why Is Economic Growth Important?

Thinking About Short-Run and Long-Run Economic Growth

Applying the Production Function: Achieving Economic Growth

The Role of Government in Promoting Economic Growth

Chapter Summary

Key Concepts

Questions and Problems

Chapter 19: Aggregate Expenditures

Chapter Introduction

Aggregate Expenditures

The Simple Aggregate Expenditures Model

The Full Aggregate Expenditures Model

Chapter Summary

Key Concepts

Questions and Problems

Chapter 20: Aggregate Demand and Supply

Chapter Introduction

Aggregate Demand

Aggregate Supply

Macroeconomic Equilibrium

Chapter Summary

Key Concepts

Questions and Problems

Appendix: Deriving the Aggregate Demand Curve

Chapter 21: Fiscal Policy and Debt

Chapter Introduction

Fiscal Policy and Aggregate Demand

Fiscal Policy and Aggregate Supply

Implementing Fiscal Policy

Financing the Federal Government

Why Is the Public Debt So Important?

Chapter Summary

Key Concepts

Questions and Problems

Chapter 22: Saving, Investment, and the Financial System

Chapter Introduction

What Is Money?

The Market for Loanable Funds

The Financial System

Types of Financial Assets

Financial Tools for a Better Future

Chapter Summary

Key Concepts

Questions and Problems

Chapter 23: Money Creation and the Federal Reserve

Chapter Introduction

How Banks Create Money

The Money Multiplier and Its Leakages

The Federal Reserve System

The Federal Reserve at Work: Tools, Targets, and Policy Lags

Chapter Summary

Key Concepts

Questions and Problems

Chapter 24: Monetary Policy

Chapter Introduction

What Is Monetary Policy?

Monetary Theories

Modern Monetary Policy

New Monetary Policy Challenges

Chapter Summary

Key Concepts

Questions and Problems

Chapter 25: Macroeconomic Policy: Challenges in a Global Economy

Chapter Introduction

The Great Recession and Macroeconomic Policy

Effectiveness of Macroeconomic Policy: Phillips Curves and Rational Expectations

Macroeconomic Issues That Confront Our Future

Chapter Summary

Key Concepts

Questions and Problems

Chapter 26: International Trade

Chapter Introduction

The Gains from Trade

The Terms of Trade

Arguments Against Free Trade

Chapter Summary

Key Concepts

Questions and Problems

Chapter 27: Open Economy Macroeconomics

Chapter Introduction

The Balance of Payments

Exchange Rates

Monetary and Fiscal Policy in an Open Economy

Chapter Summary

Key Concepts

Questions and Problems

Sources for By the Numbers

Sources for By the Numbers