1.1
What Is Economics, and Why Is It Important?
1.2
Microeconomics and Macroeconomics
1.3
How Economists Use Theories and Models to Understand Economic Issues
1.4
How To Organize Economies: An Overview of Economic Systems
2.1
How Individuals Make Choices Based on Their Budget Constraint
2.2
The Production Possibilities Frontier and Social Choices
2.3
Confronting Objections to the Economic Approach
3.1
Demand, Supply, and Equilibrium in Markets for Goods and Services
3.2
Shifts in Demand and Supply for Goods and Services
3.3
Changes in Equilibrium Price and Quantity: The Four-Step Process
3.4
Price Ceilings and Price Floors
3.5
Demand, Supply, and Efficiency
4.1
Demand and Supply at Work in Labor Markets
4.2
Demand and Supply in Financial Markets
4.3
The Market System as an Efficient Mechanism for Information
5.1
Price Elasticity of Demand and Price Elasticity of Supply
5.2
Polar Cases of Elasticity and Constant Elasticity
5.3
Elasticity and Pricing
5.4
Elasticity in Areas Other Than Price
6.1
Consumption Choices
6.2
How Changes in Income and Prices Affect Consumption Choices
6.3
Behavioral Economics: An Alternative Framework for Consumer Choice
7.1
Explicit and Implicit Costs, and Accounting and Economic Profit
7.2
Production in the Short Run
7.3
Costs in the Short Run
7.4
Production in the Long Run
7.5
Costs in the Long Run
8.1
Perfect Competition and Why It Matters
8.2
How Perfectly Competitive Firms Make Output Decisions
8.3
Entry and Exit Decisions in the Long Run
8.4
Efficiency in Perfectly Competitive Markets
9.1
How Monopolies Form: Barriers to Entry
9.2
How a Profit-Maximizing Monopoly Chooses Output and Price
10.1
Monopolistic Competition
10.2
Oligopoly
11.1
Corporate Mergers
11.2
Regulating Anticompetitive Behavior
11.3
Regulating Natural Monopolies
11.4
The Great Deregulation Experiment
12.1
The Economics of Pollution
12.2
Command-and-Control Regulation
12.3
Market-Oriented Environmental Tools
12.4
The Benefits and Costs of U.S. Environmental Laws
12.5
International Environmental Issues
12.6
The Tradeoff between Economic Output and Environmental Protection
13.1
Investments in Innovation
13.2
How Governments Can Encourage Innovation
13.3
Public Goods
14.1
The Theory of Labor Markets
14.2
Wages and Employment in an Imperfectly Competitive Labor Market
14.3
Market Power on the Supply Side of Labor Markets: Unions
14.4
Bilateral Monopoly
14.5
Employment Discrimination
14.6
Immigration
15.1
Drawing the Poverty Line
15.2
The Poverty Trap
15.3
The Safety Net
15.4
Income Inequality: Measurement and Causes
15.5
Government Policies to Reduce Income Inequality
16.1
The Problem of Imperfect Information and Asymmetric Information
16.2
Insurance and Imperfect Information
17.1
How Businesses Raise Financial Capital
17.2
How Households Supply Financial Capital
17.3
How to Accumulate Personal Wealth
18.1
Voter Participation and Costs of Elections
18.2
Special Interest Politics
18.3
Flaws in the Democratic System of Government
19.1
Measuring the Size of the Economy: Gross Domestic Product
19.2
Adjusting Nominal Values to Real Values
19.3
Tracking Real GDP over Time
19.4
Comparing GDP among Countries
19.5
How Well GDP Measures the Well-Being of Society
20.1
The Relatively Recent Arrival of Economic Growth
20.2
Labor Productivity and Economic Growth
20.3
Components of Economic Growth
20.4
Economic Convergence
21.1
How Economists Define and Compute Unemployment Rate
21.2
Patterns of Unemployment
21.3
What Causes Changes in Unemployment over the Short Run
21.4
What Causes Changes in Unemployment over the Long Run
22.1
Tracking Inflation
22.2
How to Measure Changes in the Cost of Living
22.3
How the U.S. and Other Countries Experience Inflation
22.4
The Confusion Over Inflation
22.5
Indexing and Its Limitations
23.1
Measuring Trade Balances
23.2
Trade Balances in Historical and International Context
23.3
Trade Balances and Flows of Financial Capital
23.4
The National Saving and Investment Identity
23.5
The Pros and Cons of Trade Deficits and Surpluses
23.6
The Difference between Level of Trade and the Trade Balance
24.1
Macroeconomic Perspectives on Demand and Supply
24.2
Building a Model of Aggregate Demand and Aggregate Supply
24.3
Shifts in Aggregate Supply
24.4
Shifts in Aggregate Demand
24.5
How the AD/AS Model Incorporates Growth, Unemployment, and Inflation
24.6
Keynes’ Law and Say’s Law in the AD/AS Model
25.1
Aggregate Demand in Keynesian Analysis
25.2
The Building Blocks of Keynesian Analysis
25.3
The Phillips Curve
25.4
The Keynesian Perspective on Market Forces
26.1
The Building Blocks of Neoclassical Analysis
26.2
The Policy Implications of the Neoclassical Perspective
26.3
Balancing Keynesian and Neoclassical Models
27.1
Defining Money by Its Functions
27.2
Measuring Money: Currency, M1, and M2
27.3
The Role of Banks
27.4
How Banks Create Money
28.1
The Federal Reserve Banking System and Central Banks
28.2
Bank Regulation
28.3
How a Central Bank Executes Monetary Policy
28.4
Monetary Policy and Economic Outcomes
28.5
Pitfalls for Monetary Policy
29.1
How the Foreign Exchange Market Works
29.2
Demand and Supply Shifts in Foreign Exchange Markets
29.3
Macroeconomic Effects of Exchange Rates
29.4
Exchange Rate Policies
30.1
Government Spending
30.2
Taxation
30.3
Federal Deficits and the National Debt
30.4
Using Fiscal Policy to Fight Recession, Unemployment, and Inflation
30.5
Automatic Stabilizers
30.6
Practical Problems with Discretionary Fiscal Policy
30.7
The Question of a Balanced Budget
31.1
How Government Borrowing Affects Investment and the Trade Balance
31.2
Fiscal Policy and the Trade Balance
31.3
How Government Borrowing Affects Private Saving
31.4
Fiscal Policy, Investment, and Economic Growth
32.1
The Diversity of Countries and Economies across the World
32.2
Improving Countries’ Standards of Living
32.3
Causes of Unemployment around the World
32.4
Causes of Inflation in Various Countries and Regions
32.5
Balance of Trade Concerns
33.1
Absolute and Comparative Advantage
33.2
What Happens When a Country Has an Absolute Advantage in All Goods
33.3
Intra-Industry Trade between Similar Economies
33.4
The Benefits of Reducing Barriers to International Trade
34.1
Protectionism: An Indirect Subsidy from Consumers to Producers
34.2
International Trade and Its Effects on Jobs, Wages, and Working Conditions
34.3
Arguments in Support of Restricting Imports
34.4
How Governments Enact Trade Policy: Globally, Regionally, and Nationally
34.5
The Tradeoffs of Trade Policy