Chapter Introduction
The Ordinary Business of Life
Principles That Underlie Individual Choice: The Core of Economics
Interaction: How Economies Work
Economy-Wide Interactions
Summary
Key Terms
Problems
Chapter Introduction
Models in Economics: Some Important Examples
Using Models
Worked Problem: It’s Not Magic
Summary
Key Terms
Problems
Getting the Picture
Graphs, Variables, and Economic Models
How Graphs Work
A Key Concept: The Slope of a Curve
Calculating the Area Below or Above a Curve
Graphs That Depict Numerical Information
Problems
Business Cases
Chapter Introduction
Supply and Demand: A Model of a Competitive Market
The Demand Curve
The Supply Curve
Supply, Demand, and Equilibrium
Changes in Supply and Demand
Competitive Markets—And Others
Worked Problem: The Tortilla Price Stabilization Pact
Summary
Key Terms
Problems
Chapter Introduction
Consumer Surplus and the Demand Curve
Producer Surplus and the Supply Curve
The Gains from Trade
Why Governments Control Prices
Price Ceilings
Price Floors
Controlling Quantities
Worked Problem: The World’s Most Expensive City
Summary
Key Terms
Problems
Chapter Introduction
Defining and Measuring Elasticity
Interpreting the Price Elasticity of Demand
Other Demand Elasticities
The Price Elasticity of Supply
An Elasticity Menagerie
The Benefits and Costs of Taxation
Worked Problem: Drive We Must
Summary
Key Terms
Problems
Business Cases
Chapter Introduction
The Production Function
Two Key Concepts: Marginal Cost and Average Cost
Short-Run versus Long-Run Costs
Worked Problem: Production Challenges for Tesla: The Model S
Summary
Key Terms
Problems
Chapter Introduction
Perfect Competition
Production and Profits
The Industry Supply Curve
Worked Problem: Is There a Catch
Summary
Key Terms
Problems
Business Cases
Chapter Introduction
Types of Market Structure
The Meaning of Monopoly
The Meaning of Oligopoly
Monopoly, Oligopoly, and Public Policy
The Meaning of Monopolistic Competition
Worked Problem: The World’s Most Expensive City: The Ups (and Downs) of Oil Prices
Summary
Key Terms
Problems
Chapter Introduction
The Economics of Pollution
Policies Toward Pollution
Positive Externalities
Public Goods
Worked Problem: Reducing Greenhouse Gases
Summary
Key Terms
Problems
Business Cases
Chapter Introduction
The Nature of Macroeconomics
The Business Cycle
Long-Run Economic Growth
Inflation and Deflation
International Imbalances
Summary
Key Terms
Problems
Chapter Introduction
Measuring the Macroeconomy
Real GDP: A Measure of Aggregate Output
Price Indexes and the Aggregate Price Level
Worked Problem: A Change in Fortune?
Summary
Key Terms
Problems
Chapter Introduction
The Unemployment Rate
The Natural Rate of Unemployment
Inflation and Deflation
Worked Problem: The Current Population Survey
Summary
Key Terms
Problems
Business Cases
Chapter Introduction
Comparing Economies Across Time and Space
The Sources of Long-Run Growth
Why Growth Rates Differ
Success, Disappointment, and Failure
Is World Growth Sustainable?
Worked Problem: Fluctuations and Economic Growth
Summary
Key Terms
Problems
Chapter Introduction
Aggregate Demand
Aggregate Supply
The AD–AS Model
Macroeconomic Policy
Worked Problem: A Shocking Analysis
Summary
Key Terms
Problems
Business Cases
Chapter Introduction
Fiscal Policy: The Basics
Fiscal Policy and the Multiplier
The Budget Balance
Long-Run Implications of Fiscal Policy
Worked Problem: Mind the Gap
Summary
Key Terms
Problems
Chapter Introduction
The Meaning of Money
The Monetary Role of Banks
Determining the Money Supply
The Federal Reserve System
The Evolution of the American Banking System
Worked Problem: Multiplying Money
Summary
Key Terms
Problems
Chapter Introduction
The Demand for Money
Money and Interest Rates
Monetary Policy and Aggregate Demand
Money, Output, and Prices in the Long Run
Worked Problem: The Great Mistake of 1937
Summary
Key Terms
Problems
Chapter Introduction
Banking: Benefits and Dangers
Banking Crises and Financial Panics
The Consequences of Banking Crises
The 2008 Crisis and Its Aftermath
Regulation in the Wake of the Crisis
Summary
Key Terms
Problems
Business Cases
Chapter Introduction
Comparative Advantage and International Trade
Supply, Demand, and International Trade
The Effects of Trade Protection
Capital Flows and the Balance of Payments
The Role of the Exchange Rate
Worked Problem: Trade Is Sweet
Summary
Key Terms
Problems
Business Cases