Principles of Microeconomics (Mankiw's Principles of Economics) 8th Edition

Cover
Brief Contents
Contents
Preface: To the Student
Acknowledgments
Part I: Introduction
	Chapter 1: Ten Principles of Economics
		1-1 How People Make Decisions
			1-1a Principle 1: People Face Trade-offs
			1-1b Principle 2: The Cost of Something
 Is What You Give Up to Get It
			1-1c Principle 3: Rational People Think at the Margin
			1-1d Principle 4: People Respond to Incentives
		1-2 How People Interact
			1-2a Principle 5: Trade Can Make Everyone Better Off
			1-2b Principle 6: Markets Are Usually a Good Way to
 Organize Economic Activity
			FYI: Adam Smith and the Invisible Hand
			Case Study: Adam Smith Would Have Loved Uber
			1-2c Principle 7: Governments Can Sometimes
 Improve Market Outcomes
		1-3 How the Economy as a Whole Works
			1-3a Principle 8: A Country’s Standard of Living Depends
 on Its Ability to Produce Goods and Services
			1-3b Principle 9: Prices Rise When the Government
 Prints Too Much Money
			1-3c Principle 10: Society Faces a Short-Run Trade-off
 between Inflation and Unemployment
		1-4 Conclusion
		Summary
		Key Concepts
		Questions for Review
		Problems and Applications
	Chapter 2: Thinking Like an Economist
		2-1 The Economist as Scientist
			2-1a The Scientific Method: Observation,
 Theory, and More Observation
			2-1b The Role of Assumptions
			2-1c Economic Models
			2-1d Our First Model: The Circular-Flow Diagram
			2-1e Our Second Model: The Production Possibilities Frontier
			2-1f Microeconomics and Macroeconomics
		2-2 The Economist as Policy Adviser
			2-2a Positive versus Normative Analysis
			2-2b Economists in Washington
			2-2c Why Economists’ Advice Is Not Always Followed
		2-3 Why Economists Disagree
			2-3a Differences in Scientific Judgments
			2-3b Differences in Values
			2-3c Perception versus Reality
			Ask The Experts: Ticket Resale
		2-4 Let’s Get Going
			In The News: Why You Should Study Economics
		Summary
		Key Concepts
		Questions for Review
		Problems and Applications
		Appendix Graphing: A Brief Review
	Chapter 3: Interdependence and the Gains  from Trade
		3-1 A Parable for the Modern Economy
			3-1a Production Possibilities
			3-1b Specialization and Trade
		3-2 Comparative Advantage: The Driving Force
 of Specialization
			3-2a Absolute Advantage
			3-2b Opportunity Cost and Comparative Advantage
			3-2c Comparative Advantage and Trade
			3-2d The Price of the Trade
			FYI: The Legacy of Adam Smith and David Ricardo
		3-3 Applications of Comparative Advantage
			3-3a Should Serena Williams Mow Her Own Lawn
			In The News: Economics within a Marriage
			3-3b Should the United States Trade with Other Countries
			Ask The Experts: Trade between China and
 the United States
		3-4 Conclusion
		Summary
		Key Concepts
		Questions for Review
		Problems and Applications
Part II: How Markets Work
	Chapter 4: The Market Forces of Supply and  Demand
		4-1 Markets and Competition
			4-1a What Is a Market
			4-1b What Is Competition
		4-2 Demand
			4-2a The Demand Curve: The Relationship between
 Price and Quantity Demanded
			4-2b Market Demand versus Individual Demand
			4-2c Shifts in the Demand Curve
			Case Study: Two Ways to Reduce the Quantity of Smoking
 Demanded
		4-3 Supply
			4-3a The Supply Curve: The Relationship between Price
 and Quantity Supplied
			4-3b Market Supply versus Individual Supply
			4-3c Shifts in the Supply Curve
		4-4 Supply and Demand Together
			4-4a Equilibrium
			4-4b Three Steps to Analyzing Changes in Equilibrium
		4-5 Conclusion: How Prices Allocate Resources
			Ask The Experts: Price Gouging
			In The News: Price Increases after Disasters
		Summary
		Key Concepts
		Questions for Review
		Problems and Applications
	Chapter 5: Elasticity and Its Application
		5-1 The Elasticity of Demand
			5-1a The Price Elasticity of Demand and Its Determinants
			5-1b Computing the Price Elasticity of Demand
			5-1c The Midpoint Method: A Better Way to Calculate
 Percentage Changes and Elasticities
			5-1d The Variety of Demand Curves
			FYI: A Few Elasticities from the Real World
			5-1e Total Revenue and the Price Elasticity of Demand
			5-1f Elasticity and Total Revenue along a Linear
 Demand Curve
			5-1g Other Demand Elasticities
		5-2 The Elasticity of Supply
			5-2a The Price Elasticity of Supply and Its Determinants
			5-2b Computing the Price Elasticity of Supply
			5-2c The Variety of Supply Curves
		5-3 Three Applications of Supply, Demand, and Elasticity
			5-3a Can Good News for Farming Be Bad News for
 Farmers
			5-3b Why Did OPEC Fail to Keep the Price of Oil High
			5-3c Does Drug Interdiction Increase or Decrease
 Drug-Related Crime
		5-4 Conclusion
		Summary
		Key Concepts
		Questions for Review
		Problems and Applications
	Chapter 6: Supply, Demand, and Government Policies
		6-1 Controls on Prices
			Case Study: Rent Control in the Short Run and the Long
 Run
			6-1b How Price Floors Affect Market Outcomes
			Ask The Experts: Rent Control
			Case Study: The Minimum Wage
			Ask The Experts: The Minimum Wage
			6-1c Evaluating Price Controls
			6-1a How Price Ceilings Affect Market Outcomes
			Case Study: Lines at the Gas Pump
		6-2 Taxes
			6-2a How Taxes on Sellers Affect Market Outcomes
			6-2b How Taxes on Buyers Affect Market Outcomes
			Case Study: Can Congress Distribute the Burden
 of a Payroll Tax
			6-2c Elasticity and Tax Incidence
			Case Study: Who Pays the Luxury Tax
		6-3 Conclusion
		Summary
		Key Concepts
		Questions for Review
		Problems and Applications
Part III: Markets and  Welfare
	Chapter 7: Consumers, Producers, and the Efficiency of Markets
		7-1 Consumer Surplus
			7-1a Willingness to Pay
			7-1b Using the Demand Curve to Measure Consumer
 Surplus
			7-1c How a Lower Price Raises Consumer Surplus
			7-1d What Does Consumer Surplus Measure
		7-2 Producer Surplus
			7-2a Cost and the Willingness to Sell
			7-2b Using the Supply Curve to Measure Producer Surplus
			7-2c How a Higher Price Raises Producer Surplus
		7-3 Market Efficiency
			7-3a The Benevolent Social Planner
			7-3b Evaluating the Market Equilibrium
			In The News: The Invisible Hand Can Park Your Car
			Case Study: Should There Be a Market for Organs
			Ask The Experts: Supplying Kidneys
		7-4 Conclusion: Market Efficiency and Market Failure
		Summary
		Key Concepts
		Questions for Review
		Problems and Applications
	Chapter 8: Application: The Costs of Taxation
		8-1 The Deadweight Loss of Taxation
			8-1a How a Tax Affects Market Participants
			8-1b Deadweight Losses and the Gains from Trade
		8-2 The Determinants of the Deadweight Loss
			Case Study: The Deadweight Loss Debate
		8-3 Deadweight Loss and Tax Revenue as Taxes Vary
			Case Study: The Laffer Curve and Supply-Side
 Economics
			Ask The Experts: The Laffer Curve
		8-4 Conclusion
		Summary
		Key Concept
		Questions for Review
		Problems and Applications
	Chapter 9: Application: International Trade
		9-1 The Determinants of Trade
			9-1a The Equilibrium without Trade
			9-1b The World Price and Comparative Advantage
		9-2 The Winners and Losers from Trade
			9-2a The Gains and Losses of an Exporting Country
			9-2b The Gains and Losses of an Importing Country
			9-2c Effects of a Tariff
			FYI: Import Quotas: Another Way to Restrict Trade
			9-2d The Lessons for Trade Policy
			9-2e Other Benefits of International Trade
			In The News: Trade as a Tool for Economic Development
		9-3 The Arguments for Restricting Trade
			9-3a The Jobs Argument
			In The News: Should the Winners from Free Trade
 Compensate the Losers
			9-3b The National-Security Argument
			9-3c The Infant-Industry Argument
			9-3d The Unfair-Competition Argument
			9-3e The Protection-as-a-Bargaining-Chip Argument
			Case Study: Trade Agreements and the World Trade
 Organization
			Ask The Experts: Trade Deals
		9-4 Conclusion
		Summary
		Key Concepts
		Questions for Review
		Problems and Applications
Part IV: The Economics of the Public Sector
	Chapter 10: Externalities
		10-1 Externalities and Market Inefficiency
			10-1a Welfare Economics: A Recap
			10-1b Negative Externalities
			10-1c Positive Externalities
			Case Study: Technology Spillovers, Industrial Policy,
 and Patent Protection
		10-2 Public Policies toward Externalities
			10-2a Command-and-Control Policies: Regulation
			10-2b Market-Based Policy 1: Corrective Taxes and
 Subsidies
			Ask The Experts: Vaccines
			Case Study: Why Is Gasoline Taxed So Heavily
			In The News: What Should We Do about Climate
 Change
			10-2c Market-Based Policy 2: Tradable Pollution
 Permits
			Ask The Experts: Carbon Taxes
			10-2d Objections to the Economic Analysis of Pollution
		10-3 Private Solutions to Externalities
			10-3a The Types of Private Solutions
			10-3b The Coase Theorem
			10-3c Why Private Solutions Do Not Always Work
			In The News: The Coase Theorem in Action
		10-4 Conclusion
		Summary
		Key Concepts
		Questions for Review
		Problems and Applications
	Chapter 11: Public Goods and Common  Resources
		11-1 The Different Kinds of Goods
		11-2 Public Goods
			11-2a The Free-Rider Problem
			11-2b Some Important Public Goods
			Case Study: Are Lighthouses Public Goods
			11-2c The Difficult Job of Cost–Benefit Analysis
			Case Study: How Much Is a Life Worth
		11-3 Common Resources
			11-3a The Tragedy of the Commons
			11-3b Some Important Common Resources
			Ask The Experts: Congesting Pricing
			In The News: The Case for Toll Roads
			Case Study: Why the Cow Is Not Extinct
		11-4 Conclusion: The Importance of Property Rights
		Summary
		Key Concepts
		Questions for Review
		Problems and Applications
	Chapter 12: The Design of the Tax System
		12-1 An Overview of U.S. Taxation
			12-1a Taxes Collected by the Federal Government
			12-1b Taxes Collected by State and Local Governments
		12-2 Taxes and Efficiency
			12-2a Deadweight Losses
			Case Study: Should Income or Consumption
 Be Taxed
			12-2b Administrative Burden
			12-2c Marginal Tax Rates versus Average Tax Rates
			12-2d Lump-Sum Taxes
		12-3 Taxes and Equity
			12-3a The Benefits Principle
			12-3b The Ability-to-Pay Principle
			Case Study: How the Tax Burden Is Distributed
			12-3c Tax Incidence and Tax Equity
			In The News: Tax Expenditures
			Case Study: Who Pays the Corporate Income Tax
		12-4 Conclusion: The Trade-off between Equity and
 Efficiency
		Summary
		Key Concepts
		Questions for Review
		Problems and Applications
Part V: Firm Behavior and the Organization of  Industry
	Chapter 13: The Costs of Production
		13-1 What Are Costs
			13-1a Total Revenue, Total Cost, and Profit
			13-1b Costs as Opportunity Costs
			13-1c The Cost of Capital as an Opportunity Cost
			13-1d Economic Profit versus Accounting Profit
		13-2 Production and Costs
			13-2a The Production Function
			13-2b From the Production Function to the Total-Cost
 Curve
		13-3 The Various Measures of Cost
			13-3a Fixed and Variable Costs
			13-3b Average and Marginal Cost
			13-3c Cost Curves and Their Shapes
			13-3d Typical Cost Curves
		13-4 Costs in the Short Run and in the Long Run
			13-4a The Relationship between Short-Run and Long-Run
 Average Total Cost
			13-4b Economies and Diseconomies of Scale
			FYI: Lessons from a Pin Factory
		13-5 Conclusion
		Summary
		Key Concepts
		Questions for Review
		Problems and Applications
	Chapter 14: Firms in Competitive Markets
		14-1 What Is a Competitive Market
			14-1a The Meaning of Competition
			14-1b The Revenue of a Competitive Firm
		14-2 Profit Maximization and the Competitive Firm’s
 Supply Curve
			14-2a A Simple Example of Profit Maximization
			14-2b The Marginal-Cost Curve and the Firm’s Supply
 Decision
			14-2c The Firm’s Short-Run Decision to Shut Down
			14-2d Spilt Milk and Other Sunk Costs
			Case Study: Near-Empty Restaurants and Off-Season
 Miniature Golf
			14-2e The Firm’s Long-Run Decision to Exit or Enter a
 Market
			14-2f Measuring Profit in Our Graph for the Competitive
 Firm
		14-3 The Supply Curve in a Competitive Market
			14-3a The Short Run: Market Supply with a Fixed Number
 of Firms
			14-3b The Long Run: Market Supply with Entry
 and Exit
			14-3c Why Do Competitive Firms Stay in Business
 If They Make Zero Profit
			14-3d A Shift in Demand in the Short Run and
 Long Run
			14-3e Why the Long-Run Supply Curve Might Slope
 Upward
		14-4 Conclusion: Behind the Supply Curve
		Summary
		Key Concepts
		Questions for Review
		Problems and Applications
	Chapter 15: Monopoly
		15-1 Why Monopolies Arise
			15-1a Monopoly Resources
			15-1b Government-Created Monopolies
			15-1c Natural Monopolies
		15-2 How Monopolies Make Production and Pricing
 Decisions
			15-2a Monopoly versus Competition
			15-2b A Monopoly’s Revenue
			15-2c Profit Maximization
			15-2d A Monopoly’s Profit
			FYI: Why a Monopoly Does Not Have a Supply Curve
			Case Study: Monopoly Drugs versus Generic Drugs
		15-3 The Welfare Cost of Monopolies
			15-3a The Deadweight Loss
			15-3b The Monopoly’s Profit: A Social Cost
		15-4 Price Discrimination
			15-4a A Parable about Pricing
			15-4b The Moral of the Story
			15-4c The Analytics of Price Discrimination
			15-4d Examples of Price Discrimination
			In The News: Price Discrimination in Higher
 Education
		15-5 Public Policy toward Monopolies
			15-5a Increasing Competition with Antitrust Laws
			15-5b Regulation
			Ask The Experts: Airline Mergers
			15-5c Public Ownership
			15-5d Doing Nothing
		15-6 Conclusion: The Prevalence of Monopolies
		Summary
		Key Concepts
		Questions for Review
		Problems and Applications
	Chapter 16: Monopolistic Competition
		16-1 Between Monopoly and Perfect Competition
		16-2 Competition with Differentiated Products
			16-2a The Monopolistically Competitive Firm in the
 Short Run
			16-2b The Long-Run Equilibrium
			16-2c Monopolistic versus Perfect Competition
			16-2d Monopolistic Competition and the Welfare of
 Society
		16-3 Advertising
			16-3a The Debate over Advertising
			Case Study: Advertising and the Price of Eyeglasses
			16-3b Advertising as a Signal of Quality
			16-3c Brand Names
		16-4 Conclusion
		Summary
		Key Concepts
		Questions for Review
		Problems and Applications
	Chapter 17: Oligopoly
		17-1 Markets with Only a Few Sellers
			17-1a A Duopoly Example
			17-1b Competition, Monopolies, and Cartels
			17-1c The Equilibrium for an Oligopoly
			17-1d How the Size of an Oligopoly Affects the Market
 Outcome
			Ask The Experts: Nash Equilibrium
		17-2 The Economics of Cooperation
			17-2a The Prisoners’ Dilemma
			17-2b Oligopolies as a Prisoners’ Dilemma
			Case Study: OPEC and the World Oil Market
			17-2c Other Examples of the Prisoners’ Dilemma
			17-2d The Prisoners’ Dilemma and the Welfare of Society
			17-2e Why People Sometimes Cooperate
			Case Study: The Prisoners’ Dilemma Tournament
		17-3 Public Policy toward Oligopolies
			17-3a Restraint of Trade and the Antitrust Laws
			Case Study: An Illegal Phone Call
			17-3b Controversies over Antitrust Policy
			Case Study: The Microsoft Case
			In The News: Europe versus Google
		17-4 Conclusion
		Summary
		Key Concepts
		Questions for Review
		Problems and Applications
Part VI: The Economics  of Labor Markets
	Chapter 18: The Markets for the Factors  of Production
		18-1 The Demand for Labor
			18-1a The Competitive Profit-Maximizing Firm
			18-1b The Production Function and the Marginal Product of
 Labor
			18-1c The Value of the Marginal Product and the Demand for
 Labor
			18-1d What Causes the Labor-Demand Curve to Shift
			FYI: Input Demand and Output Supply: Two Sides
 of the Same Coin
		18-2 The Supply of Labor
			18-2a The Trade-off between Work and Leisure
			18-2b What Causes the Labor-Supply Curve to Shift
			Ask The Experts: Immigration
		18-3 Equilibrium in the Labor Market
			18-3a Shifts in Labor Supply
			18-3b Shifts in Labor Demand
			In The News: The Economics of Immigration
			Case Study: Productivity and Wages
			FYI: Monopsony
		18-4 The Other Factors of Production: Land and Capital
			18-4a Equilibrium in the Markets for Land and Capital
			FYI: What Is Capital Income
			18-4b Linkages among the Factors of Production
			Case Study: The Economics of the Black Death
		18-5 Conclusion
		Summary
		Key Concepts
		Questions for Review
		Problems and Applications
	Chapter 19: Earnings and Discrimination
		19-1 Some Determinants of Equilibrium Wages
			19-1a Compensating Differentials
			19-1b Human Capital
			Case Study: The Increasing Value of Skills
			Ask The Experts: Inequality and Skills
			In The News: Schooling as a Public Investment
			19-1c Ability, Effort, and Chance
			Case Study: The Benefits of Beauty
			19-1d An Alternative View of Education: Signaling
			19-1e The Superstar Phenomenon
			19-1f Above-Equilibrium Wages: Minimum-Wage Laws,
 Unions, and Efficiency Wages
		19-2 The Economics of Discrimination
			19-2a Measuring Labor-Market Discrimination
			Case Study: Is Emily More Employable than
 Lakisha
			19-2b Discrimination by Employers
			Case Study: Segregated Streetcars and the Profit
 Motive
			19-2c Discrimination by Customers and
 Governments
			Case Study: Discrimination in Sports
		19-3 Conclusion
		Summary
		Key Concepts
		Questions for Review
		Problems and Applications
	Chapter 20: Income Inequality and Poverty
		20-1 The Measurement of Inequality
			20-1a U.S. Income Inequality
			20-1b Inequality around the World
			In The News: A Worldwide View of the Income
 Distribution
			20-1c The Poverty Rate
			20-1d Problems in Measuring Inequality
			Case Study: Alternative Measures of Inequality
			20-1e Economic Mobility
		20-2 The Political Philosophy of Redistributing Income
			20-2a Utilitarianism
			20-2b Liberalism
			20-2c Libertarianism
		20-3 Policies to Reduce Poverty
			20-3a Minimum-Wage Laws
			20-3b Welfare
			20-3c Negative Income Tax
			20-3d In-Kind Transfers
			20-3e Antipoverty Programs and Work Incentives
			In The News: International Differences in Income
 Redistribution
		20-4 Conclusion
		Summary
		Key Concepts
		Questions for Review
		Problems and Applications
Part VII: Topics for Further Study
	Chapter 21: The Theory of Consumer Choice
		21-1 The Budget Constraint: What the Consumer
 Can Afford
		21-2 Preferences: What the Consumer Wants
			21-2a Representing Preferences with Indifference
 Curves
			21-2b Four Properties of Indifference Curves
			21-2c Two Extreme Examples of Indifference Curves
		21-3 Optimization: What the Consumer Chooses
			21-3a The Consumer’s Optimal Choices
			FYI: Utility: An Alternative Way to Describe Preferences and
 Optimization
			21-3b How Changes in Income Affect the Consumer’s
 Choices
			21-3c How Changes in Prices Affect the Consumer’s
 Choices
			21-3d Income and Substitution Effects
			21-3e Deriving the Demand Curve
		21-4 Three Applications
			21-4a Do All Demand Curves Slope Downward
			Case Study: The Search for Giffen Goods
			21-4b How Do Wages Affect Labor Supply
			Case Study: Income Effects on Labor Supply: Historical
 Trends, Lottery Winners, and the Carnegie Conjecture
			21-4c How Do Interest Rates Affect Household Saving
		21-5 Conclusion: Do People Really Think This Way
		Summary
		Key Concepts
		Questions for Review
		Problems and Applications
	Chapter 22: Frontiers of Microeconomics
		22-1 Asymmetric Information
			22-1a Hidden Actions: Principals, Agents, and Moral
 Hazard
			FYI: Corporate Management
			22-1b Hidden Characteristics: Adverse Selection and
 the Lemons Problem
			22-1c Signaling to Convey Private Information
			Case Study: Gifts as Signals
			22-1d Screening to Uncover Private Information
			22-1e Asymmetric Information and Public Policy
		22-2 Political Economy
			22-2a The Condorcet Voting Paradox
			22-2b Arrow’s Impossibility Theorem
			22-2c The Median Voter Is King
			22-2d Politicians Are People Too
		22-3 Behavioral Economics
			22-3a People Aren’t Always Rational
			22-3b People Care about Fairness
			In The News: Using Deviations from Rationality
			22-3c People Are Inconsistent over Time
		22-4 Conclusion
			Summary
			Key Concepts
			Questions for Review
			Problems and Applications
Glossary
Index