Front Matter

Introduction

ABOUT THE AUTHORS

BRIEF CONTENTS

CONTENTS

PREFACE

TOOLS FOR LEARNING WALKTHROUGH

Resources for Students and Instructors

Part 1

Introduction

The Invisible Hand

My Benefit, Your Cost

Good Times, Bad Times

Onward and Upward

An Engine for Discovery

KEY TERMS

1: First Principles

Chapter Introduction

Principles That Underlie Individual Choice: The Core of Economics

Interaction: How Economies Work

Economy-Wide Interactions

Summary

Key Terms

Problems

2: Economic Models: Trade-offs and Trade

Chapter Introduction

Models in Economics: Some Important Examples

Opportunity Cost

Using Models

Summary

Key Terms

Problems

2 APPENDIX: Graphs in Economics

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

3: Supply and Demand

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

Summary

Key Terms

Problems

4: Consumer and Producer Surplus

Chapter Introduction

Consumer Surplus and the Demand Curve

Producer Surplus and the Supply Curve

Consumer Surplus, Producer Surplus, and the Gains from Trade

A Market Economy

Summary

Key Terms

Problems

5: Price Controls and Quotas: Meddling with Markets

Chapter Introduction

Why Governments Control Prices

Price Ceilings

Price Floors

Controlling Quantities

Summary

Key Terms

Problems

6: Elasticity

Chapter Introduction

Defining and Measuring Elasticity

Interpreting the Price Elasticity of Demand

Other Demand Elasticities

The Price Elasticity of Supply

An Elasticity Menagerie

Summary

Key Terms

Problems

7: Taxes

Chapter Introduction

The Economics of Taxes: A Preliminary View

The Benefits and Costs of Taxation

Tax Fairness and Tax Efficiency

Understanding the Tax System

Summary

Key Terms

Problems

8: International Trade

Chapter Introduction

Comparative Advantage and International Trade

Supply, Demand, and International Trade

The Effects of Trade Protection

The Political Economy of Trade Protection

Summary

Key Terms

Problems

9: Decision Making by Individuals and Firms

Chapter Introduction

Costs, Benefits, and Profits

Making 'How Much' Decisions: The Role of Marginal Analysis

Sunk Costs

Behavioral Economics

Summary

Key Terms

Problems

9 Appendix

Understanding Present Value

How to Calculate the Present Value of a One-Year Project

How to Calculate the Present Value of Multiyear Projects

How to Calculate the Present Value of Projects with Revenues and Costs

Key Terms

Problems

10: The Rational Consumer

Chapter Introduction

Utility: Getting Satisfaction

Budgets and Optimal Consumption

Spending the Marginal Dollar

From Utility to the Demand Curve

Summary

Key Terms

Problems

10 Appendix

Consumer Preferences and Consumer Choice

Mapping the Utility Function

Indifference Curves and Consumer Choice

Using Indifference Curves: Substitutes and Complements

Prices, Income, and Demand

Problems

11: Behind the Supply Curve: Inputs and Costs

Chapter Introduction

The Production Function

Two Key Concepts: Marginal Cost and Average Cost

Short-Run versus Long-Run Costs

Summary

Key Terms

Problems

12: Perfect Competition and the Supply Curve

Chapter Introduction

Perfect Competition

Production and Profits

The Industry Supply Curve

Summary

Key Terms

Problems

13: Monopoly

Chapter Introduction

Types of Market Structure

The Meaning of Monopoly

How a Monopolist Maximizes Profit

Monopoly and Public Policy

Price Discrimination

Summary

Key Terms

Problems

14: Oligopoly

Chapter Introduction

The Prevalence of Oligopoly

Understanding Oligopoly

Games Oligopolists Play

Oligopoly in Practice

Summary

Key Terms

Problems

15: Monopolistic Competition and Product Differentiation

Chapter Introduction

The Meaning of Monopolistic Competition

Product Differentiation

Understanding Monopolistic Competition

Monopolistic Competition versus Perfect Competition

Controversies About Product Differentiation

Summary

Key Terms

Problems

16: Externalities

Chapter Introduction

External Costs and Benefits

Policies Toward Pollution

Positive Externalities

Network Externalities

Summary

Key Terms

Problems

17: Public Goods and Common Resources

Chapter Introduction

Private Goods - and Others

Public Goods

Common Resources

Artificially Scarce Goods

Summary

Key Terms

Problems

18: The Economics of the Welfare State

Chapter Introduction

Poverty, Inequality, and Public Policy

The U.S. Welfare State

The Economics of Health Care

The Debate over the Welfare State

Summary

Key Terms

Problems

19: Factor Markets and the Distribution of Income

Chapter Introduction

The Economy#&39;s Factors of Production

Marginal Productivity and Factor Demand

Shifts of the Factor Demand Curve

Is the Marginal Productivity Theory of Income Distribution Really True?

The Supply of Labor

Summary

Key Terms

Problems

19 APPENDIX

Indifference Curve Analysis of Labor Supply

The Time Allocation Budget Line

The Effect of a Higher Wage Rate

Indifference Curve Analysis

Problems

20: Uncertainty, Risk, and Private Information

Chapter Introduction

The Economics of Risk Aversion

Buying, Selling, and Reducing Risk

Private Information: What You Don’t Know Can Hurt You

Summary

Key Terms

Problems