Principles of Economics

Cover
About the Author
Preface: To the Instructor
Brief Contents
Contents
Preface: To the Student
Part I: Introduction
	Chapter 1: Ten Principles of Economics
		1-1 How People Make Decisions
		1-2 How People Interact
		1-3 How the Economy as a Whole Works
		1-4 Conclusion
		Chapter in a Nutshell
		Key Concepts
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
	Chapter 2: Thinking Like an Economist
		2-1 The Economist as Scientist
		2-2 The Economist as Policy Adviser
		2-3 Why Economists Disagree
		2-4 Let\'s Get Going
		Chapter in a Nutshell
		Key Concepts
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
		Appendix: Graphing: A Brief Review
	Chapter 3: Interdependence and the Gains from Trade
		3-1 A Parable for the Modern Economy
		3-2 Comparative Advantage: The Driving Force of Specialization
		3-3 Applications of Comparative Advantage
		3-4 Conclusion
		Chapter in a Nutshell
		Key Concepts
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
Part II: How Markets Work
	Chapter 4: The Market Forces of Supply and Demand
		4-1 Markets and Competition
		4-2 Demand
		4-3 Supply
		4-4 Supply and Demand Together
		4-5 Conclusion: How Prices Allocate Resources
		Chapter in a Nutshell
		Key Concepts
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
	Chapter 5: Elasticity and Its Application
		5-1 The Elasticity of Demand
		5-2 The Elasticity of Supply
		5-3 Three Applications of Supply, Demand, and Elasticity
		5-4 Conclusion
		Chapter in a Nutshell
		Key Concepts
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
	Chapter 6: Supply, Demand, and Government Policies
		6-1 Controls on Prices
		6-2 Taxes
		6-3 Conclusion
		Chapter in a Nutshell
		Key Concepts
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
Part III: Markets and Welfare
	Chapter 7: Consumers, Producers, and the Efficiency of Markets
		7-1 Consumer Surplus
		7-2 Producer Surplus
		7-3 Market Efficiency
		7-4 Conclusion: Market Efficiency and Market Failure
		Chapter in a Nutshell
		Key Concepts
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
	Chapter 8: Application: The Costs of Taxation
		8-1 The Deadweight Loss of Taxation
		8-2 The Determinants of the Deadweight Loss
		8-3 Deadweight Loss and Tax Revenue as Taxes Vary
		8-4 Conclusion
		Chapter in a Nutshell
		Key Concept
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
	Chapter 9: Application: International Trade
		9-1 The Determinants of Trade
		9-2 The Winners and Losers from Trade
		9-3 The Arguments for Restricting Trade
		9-4 Conclusion
		Chapter in a Nutshell
		Key Concepts
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
Part IV: The Economics of the Public Sector
	Chapter 10: Externalities
		10-1 Externalities and Market Inefficiency
		10-2 Public Policies toward Externalities
		10-3 Private Solutions to Externalities
		10-4 Conclusion
		Chapter in a Nutshell
		Key Concepts
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
	Chapter 11: Public Goods and Common Resources
		11-1 The Different Kinds of Goods
		11-2 Public Goods
		11-3 Common Resources
		11-4 Conclusion: The Importance of Property Rights
		Chapter in a Nutshell
		Key Concepts
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
	Chapter 12: The Design of the Tax System
		12-1 An Overview of U.S. Taxation
		12-2 Taxes and Efficiency
		12-3 Taxes and Equity
		12-4 Conclusion: The Trade-Off between Equity and Efficiency
		Chapter in a Nutshell
		Key Concepts
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
Part V: Firm Behavior and the Organization of Industry
	Chapter 13: The Costs of Production
		13-1 What Are Costs?
		13-2 Production and Costs
		13-3 The Various Measures of Cost
		13-4 Costs in the Short Run and in the Long Run
		13-5 Conclusion
		Chapter in a Nutshell
		Key Concepts
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
	Chapter 14: Firms in Competitive Markets
		14-1 What Is a Competitive Market?
		14-2 Profit Maximization and the Competitive Firm\'s Supply Curve
		14-3 The Supply Curve in a Competitive Market
		14-4 Conclusion: Behind the Supply Curve
		Chapter in a Nutshell
		Key Concepts
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
	Chapter 15: Monopoly
		15-1 Why Monopolies Arise
		15-2 How Monopolies Make Production and Pricing Decisions
		15-3 The Welfare Cost of Monopolies
		15-4 Price Discrimination
		15-5 Public Policy toward Monopolies
		15-6 Conclusion: The Prevalence of Monopolies
		Chapter in a Nutshell
		Key Concepts
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
	Chapter 16: Monopolistic Competition
		16-1 Between Monopoly and Perfect Competition
		16-2 Competition with Differentiated Products
		16-3 Advertising
		16-4 Conclusion
		Chapter in a Nutshell
		Key Concepts
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
	Chapter 17: Oligopoly
		17-1 Markets with Only a Few Sellers
		17-2 The Economics of Cooperation
		17-3 Public Policy toward Oligopolies
		17-4 Conclusion
		Chapter in a Nutshell
		Key Concepts
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
Part VI: The Economics of Labor Markets
	Chapter 18: The Markets for the Factors of Production
		18-1 The Demand for Labor
		18-2 The Supply of Labor
		18-3 Equilibrium in the Labor Market
		18-4 The Other Factors of Production: Land and Capital
		18-5 Conclusion
		Chapter in a Nutshell
		Key Concepts
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
	Chapter 19: Earnings and Discrimination
		19-1 Some Determinants of Equilibrium Wages
		19-2 The Economics of Discrimination
		19-3 Conclusion
		Chapter in a Nutshell
		Key Concepts
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
	Chapter 20: Income Inequality and Poverty
		20-1 Measuring Inequality
		20-2 The Political Philosophy of Redistributing Income
		20-3 Policies to Reduce Poverty
		20-4 Conclusion
		Chapter in a Nutshell
		Key Concepts
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
Part VII: Topics for Further Study
	Chapter 21: The Theory of Consumer Choice
		21-1 The Budget Constraint: What a Consumer Can Afford
		21-2 Preferences: What a Consumer Wants
		21-3 Optimization: What a Consumer Chooses
		21-4 Three Applications
		21-5 Conclusion: Do People Really Think This Way?
		Chapter in a Nutshell
		Key Concepts
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
	Chapter 22: Frontiers of Microeconomics
		22-1 Asymmetric Information
		22-2 Political Economy
		22-3 Behavioral Economics
		22-4 Conclusion
		Chapter in a Nutshell
		Key Concepts
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
Part VIII: The Data of Macroeconomics
	Chapter 23: Measuring a Nation\'s Income
		23-1 The Economy\'s Income and Expenditure
		23-2 The Measurement of GDP
		23-3 The Components of GDP
		23-4 Real versus Nominal GDP
		23-5 Is GDP a Good Measure of Economic Well-Being?
		23-6 Conclusion
		Chapter in a Nutshell
		Key Concepts
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
	Chapter 24: Measuring the Cost of Living
		24-1 The Consumer Price Index
		24-2 Correcting Economic Variables for the Effects of Inflation
		24-3 Conclusion
		Chapter in a Nutshell
		Key Concepts
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
Part IX: The Real Economy in the Long Run
	Chapter 25: Production and Growth
		25-1 Economic Growth around the World
		25-2 Productivity: Its Role and Determinants
		25-3 Economic Growth and Public Policy
		25-4 Conclusion: The Importance of Long-Run Growth
		Chapter in a Nutshell
		Key Concepts
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
	Chapter 26: Saving, Investment, and the Financial System
		26-1 Financial Institutions in the U.S. Economy
		26-2 Saving and Investment in the National Income Accounts
		26-3 The Market for Loanable Funds
		26-4 Conclusion
		Chapter in a Nutshell
		Key Concepts
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
	Chapter 27: The Basic Tools of Finance
		27-1 Present Value: Measuring the Time Value of Money
		27-2 Managing Risk
		27-3 Asset Valuation
		27-4 Conclusion
		Chapter in a Nutshell
		Key Concepts
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
	Chapter 28: Unemployment
		28-1 Identifying Unemployment
		28-2 Job Search
		28-3 Minimum-Wage Laws
		28-4 Unions and Collective Bargaining
		28-5 The Theory of Efficiency Wages
		28-6 Conclusion
		Chapter in a Nutshell
		Key Concepts
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
Part X: Money and Prices in the Long Run
	Chapter 29: The Monetary System
		29-1 The Meaning of Money
		29-2 The Federal Reserve System
		29-3 Banks and the Money Supply
		29-4 The Fed\'s Tools of Monetary Control
		29-5 Conclusion
		Chapter in a Nutshell
		Key Concepts
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
	Chapter 30: Money Growth and Inflation
		30-1 The Classical Theory of Inflation
		30-2 The Costs of Inflation
		30-3 Conclusion
		Chapter in a Nutshell
		Key Concepts
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
Part XI: The Macroeconomics of Open Economies
	Chapter 31: Open-Economy Macroeconomics: Basic Concepts
		31-1 The International Flows of Goods and Capital
		31-2 The Prices for International Transactions: Real and Nominal Exchange Rates
		31-3 A First Theory of Exchange-Rate Determination: Purchasing-Power Parity
		31-4 Conclusion
		Chapter in a Nutshell
		Key Concepts
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
	Chapter 32: A Macroeconomic Theory of the Open Economy
		32-1 Supply and Demand for Loanable Funds and for Foreign-Currency Exchange
		32-2 Equilibrium in the Open Economy
		32-3 How Policies and Events Affect an Open Economy
		32-4 Conclusion
		Chapter in a Nutshell
		Key Concepts
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
Part XII: Short-Run Economic Fluctuations
	Chapter 33: Aggregate Demand and Aggregate Supply
		33-1 Three Key Facts about Economic Fluctuations
		33-2 Explaining Short-Run Economic Fluctuations
		33-3 The Aggregate-Demand Curve
		33-4 The Aggregate-Supply Curve
		33-5 Two Causes of Economic Fluctuations
		33-6 Conclusion
		Chapter in a Nutshell
		Key Concepts
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
	Chapter 34: The Influence of Monetary and Fiscal Policy on Aggregate Demand
		34-1 How Monetary Policy Influences Aggregate Demand
		34-2 How Fiscal Policy Influences Aggregate Demand
		34-3 Using Policy to Stabilize the Economy
		34-4 Conclusion
		Chapter in a Nutshell
		Key Concepts
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
	Chapter 35: The Short-Run Trade-Off between Inflation and Unemployment
		35-1 The Phillips Curve
		35-2 Shifts in the Phillips Curve: The Role of Expectations
		35-3 Shifts in the Phillips Curve: The Role of Supply Shocks
		35-4 The Cost of Reducing Inflation
		35-5 Conclusion
		Chapter in a Nutshell
		Key Concepts
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
Part XIII: Final Thoughts
	Chapter 36: Six Debates over Macroeconomic Policy
		36-1 Should Monetary and Fiscal Policymakers Try to Stabilize the Economy?
		36-2 Should the Government Fight Recessions with Spending Hikes Rather Than Tax Cuts?
		36-3 Should Monetary Policy Be Made by Rule Rather Than by Discretion?
		36-4 Should the Central Bank Aim for Zero Inflation?
		36-5 Should the Government Balance Its Budget?
		36-6 Should the Tax Laws Be Reformed to Encourage Saving?
		36-7 Conclusion
		Chapter in a Nutshell
		Questions for Review
		Problems and Applications
		QuickQuiz Answers
Glossary
Index