Exploring Economics , 4th Edition

Title Page......Page 1
Copyright......Page 2
Brief Contents......Page 3
CONTENTS......Page 4
Module 1 Fundamentals I......Page 33
CHAPTER 1 The Role and Method of Economics......Page 35
1.1 Economics: A Brief Introduction......Page 36
1.2 Economic Behavior......Page 39
1.3 Economic Theory......Page 42
1.4 Pitfalls to Avoid in Scientific Thinking......Page 45
1.5 Positive Analysis and Normative Analysis......Page 48
Interactive Summary......Page 50
Section Check Answers......Page 51
Study Guide......Page 53
Appendix: Working with Graphs......Page 57
CHAPTER 2 The Economic Way of Thinking......Page 65
2.1 Scarcity......Page 66
2.2 Choices, Costs, and Trade-Offs......Page 69
2.3 Marginal Thinking......Page 72
2.4 Incentives Matter......Page 75
2.5 Specialization and Trade......Page 77
2.6 Markets and Improved Efficiency......Page 79
Interactive Summary......Page 82
Section Check Answers......Page 84
Study Guide......Page 89
CHAPTER 3 Scarcity, Trade-Offs, and Economic Growth......Page 95
3.1 The Three Economic Questions Every Society Faces......Page 96
3.2 The Circular Flow Model......Page 99
3.3 The Production Possibilities Curve......Page 101
3.4 Economic Growth and the Production Possibilities Curve......Page 106
Interactive Summary......Page 110
Section Check Answers......Page 111
Study Guide......Page 115
CHAPTER 4 Supply and Demand......Page 121
4.1 Markets......Page 122
4.2 Demand......Page 123
4.3 Shifts in the Demand Curve......Page 126
4.4 Supply......Page 133
4.5 Shifts in the Supply Curve......Page 135
Interactive Summary......Page 139
Key Terms and Concepts......Page 140
Section Check Answers......Page 141
Study Guide......Page 143
CHAPTER 5 Bringing Supply and Demand Together......Page 149
5.1 Market Equilibrium Price and Quantity......Page 150
5.2 Changes in Equilibrium Price and Quantity......Page 153
5.3 Price Controls......Page 161
Key Terms and Concepts......Page 167
Section Check Answers......Page 168
Study Guide......Page 171
Module 2 Fundamentals II......Page 177
CHAPTER 6 Elasticities......Page 179
6.1 Price Elasticity of Demand......Page 180
6.2 Total Revenue and the Price Elasticity of Demand......Page 185
6.3 Other Types of Demand Elasticities......Page 189
6.4 Price Elasticity of Supply......Page 191
Interactive Summary......Page 197
Section Check Answers......Page 198
Study Guide......Page 201
CHAPTER 7 Market Efficiency and Welfare......Page 205
7.1 Consumer Surplus and Producer Surplus......Page 206
7.2 The Welfare Effects of Taxes, Subsidies, and Price Controls......Page 213
Interactive Summary......Page 222
Section Check Answers......Page 223
Study Guide......Page 225
CHAPTER 8 Market Failure......Page 231
8.1 Externalities......Page 232
8.2 Public Goods......Page 237
8.3 Asymmetric Information......Page 240
Interactive Summary......Page 243
Section Check Answers......Page 244
Study Guide......Page 247
CHAPTER 9 Public Sector and Public Choice......Page 251
9.1 Other Functions of Government......Page 252
9.2 Government Spending and Taxation......Page 255
9.3 Public Choice......Page 262
Interactive Summary......Page 266
Section Check Answers......Page 267
Study Guide......Page 269
Module 3 Households, Firms, and Market Structure......Page 273
CHAPTER 10 Consumer Choice Theory......Page 275
10.1 Consumer Behavior......Page 276
10.2 The Consumer’s Choice......Page 281
Interactive Summary......Page 285
Section Check Answers......Page 286
Study Guide......Page 289
Appendix: A More Advanced Theory of Consumer Choice......Page 293
CHAPTER 11 The Firm and Financial Markets......Page 303
11.1 Different Forms of Business Organizations......Page 304
11.2 Financing Corporations......Page 308
11.3 The Stock Market......Page 310
Key Terms and Concepts......Page 312
Section Check Answers......Page 313
Study Guide......Page 315
Appendix: Calculating Present Value......Page 321
CHAPTER 12 The Firm: Production and Costs......Page 323
12.1 Firms and Profits: Total Revenues Minus Total Costs......Page 324
12.2 Production in the Short Run......Page 327
12.3 Costs in the Short Run......Page 330
12.4 The Shape of the Short-Run Cost Curves......Page 334
12.5 Cost Curves: Short Run Versus Long Run......Page 338
Interactive Summary......Page 343
Section Check Answers......Page 344
Study Guide......Page 347
Appendix: Using Isoquants and Isocosts......Page 355
CHAPTER 13 Firms in Perfectly Competitive Markets......Page 363
13.1 The Four Market Structures......Page 364
13.2 An Individual Price Taker’s Demand Curve......Page 367
13.3 Profit Maximization......Page 369
13.4 Short-Run Profits and Losses......Page 371
13.5 Long-Run Equilibrium......Page 377
13.6 Long-Run Supply......Page 380
Interactive Summary......Page 384
Key Terms and Concepts......Page 385
Section Check Answers......Page 386
Study Guide......Page 389
CHAPTER 14 Monopolistic Competition and Product Differentiation......Page 397
14.1 Monopolistic Competition......Page 398
14.2 Price and Output Determination in Monopolistic Competition......Page 400
14.3 Monopolistic Competition Versus Perfect Competition......Page 404
14.4 Advertising......Page 407
Interactive Summary......Page 410
Section Check Answers......Page 411
Study Guide......Page 415
CHAPTER 15 Oligopoly and Strategic Behavior......Page 419
15.1 Oligopoly......Page 420
15.2 Collusion and Cartels......Page 422
15.3 Other Oligopoly Models......Page 425
15.4 Game Theory and Strategic Behavior......Page 428
Interactive Summary......Page 434
Key Terms and Concepts......Page 435
Section Check Answers......Page 436
Study Guide......Page 439
CHAPTER 16 Monopoly......Page 445
16.1 Monopoly: The Price Maker......Page 446
16.2 Demand and Marginal Revenue in Monopoly......Page 447
16.3 The Monopolist’s Equilibrium......Page 452
16.4 Monopoly and Welfare Loss......Page 456
16.5 Monopoly Policy......Page 459
16.6 Price Discrimination and Peak Load Pricing......Page 464
Interactive Summary......Page 471
Section Check Answers......Page 472
Study Guide......Page 475
Module 4 Input Markets, Income, and Poverty......Page 481
CHAPTER 17 The Markets for Labor, Capital, and Land......Page 483
17.1 Input Markets......Page 484
17.2 Supply and Demand in the Labor Market......Page 485
17.3 Labor Market Equilibrium......Page 490
17.4 Labor Unions......Page 494
17.5 The Markets for Land and Capital......Page 498
Interactive Summary......Page 501
Key Terms and Concepts......Page 502
Section Check Answers......Page 503
Study Guide......Page 507
CHAPTER 18 Income and Poverty......Page 515
18.1 Income Distribution......Page 516
18.2 Income Redistribution......Page 522
18.3 The Economics of Discrimination......Page 525
18.4 Poverty......Page 528
Interactive Summary......Page 533
Key Terms and Concepts......Page 534
Section Check Answers......Page 535
Study Guide......Page 539
Module 5 The Environment and Health Care......Page 545
CHAPTER 19 The Environment......Page 547
19.1 Negative Externalities and Pollution......Page 548
19.2 Public Policy and the Environment......Page 550
19.3 Property Rights......Page 558
Key Terms and Concepts......Page 561
Section Check Answers......Page 562
Study Guide......Page 565
CHAPTER 20 Health Care......Page 573
20.1 The Rising Cost of Health Care......Page 574
20.2 The Health Care Market......Page 576
Interactive Summary......Page 583
Section Check Answers......Page 584
Study Guide......Page 587
GLOSSARY......Page 593
INDEX......Page 601