Table of contents for Economics : the basics / Michael Mandel.

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CONTENTS
CH 01 INTRODUCTION
WHAT YOU?LL GET FROM THIS TEXTBOOK
KEY FORCES SHAPING TODAY?S ECONOMY
	Technological Change
	Globalization
	The Evolution of Financial Markets
THE GREAT ECONOMIC POLICY DEBATE
	Economic Competition
	Government Intervention
	Finding a Balance
THE DEFINITION OF ECONOMICS
 Indicators of Prosperity
 The Safety Net
DISAGREEMENTS IN ECONOMICS
WHAT YOU?LL GET FROM THIS TEXTBOOK
CH 02 DEMAND AND SUPPLY: THE BASICS OF THE MARKET ECONOMY
PRICES, BUYERS, AND SELLERS
	Local, National, and Global Markets
	The Market Price
HOW PRICE AFFECTS THE QUANTITY DEMANDED
	The Law of Demand
	The Special Case of Zero Price
	Our First Graph
HOW PRICE AFFECTS THE QUANTITY SUPPLIED
	The Law of Supply
	Graphing the Supply Schedule
NEW MARKETS
CH 03 MARKET EQUILIBRIUM AND SHIFTS
MATCHING SUPPLY AND DEMAND
	The Case of Excess Demand
	The Case of Excess Supply
	The Invisible Hand
MARKET EQUILIBRIUM
	The Basic Supply?Demand Graph
	Equilibrium in Numbers
MARKET SHIFTS
	Market Shifts and Market Equilibrium
	Shifts versus Movements
	An Example of an Increase in Global Demand
	An Example of a Supply Shift
SOME CAUSES OF MARKET SHIFTS
	Technological Change
	Globalization
	Changes in Financial Markets
	Government Action
	Changes in Raw Material Prices
	Shifts in Tastes
THE EFFECT OF INCOME ON DEMAND
A BRIEF LOOK AT ELASTICITY
CH 04 HOW BUSINESSES WORK
THE NATURE OF BUSINESS
	The Flow of Money
	Profit Maximization
PRODUCTION
	Inputs
	The Production Function
	The Marginal Product of Labor
	Average Product
COST
	Total Cost of Production
	The Cost Function
	Marginal Cost
	Variable versus Fixed Costs
REVENUE
	A Simple Example
	Marginal Revenue
PROFIT MAXIMIZATION
	An Example
	The Law of Supply Revisited
	Short-Term Profit Maximization and Long-Term Decisions
CH 05 COMPETITION AND MARKET POWER
PERFECT COMPETITION
	Examples of Perfect Competition
	Profit Maximization in Perfect Competition
	Market Equilibrium in Perfect Competition
PERFECT COMPETITION IN THE LONG RUN
	Long-Term Survival
	The Shutdown Decision
ESCAPING PERFECT COMPETITION
MARKET STRUCTURE
	Monopolistic Competition
	Oligopoly
	Monopoly
PERFECT COMPETITION VERSUS MARKET POWER
	The Benefits of Perfect Competition 
	The Downsides of Market Power
CH 06 GOVERNMENT AND THE ECONOMY
HISTORICAL BACKGROUND
	The Great Depression and the New Deal
	The Era of Government Growth
	The Era of Deregulation
	International Comparisons
THE PLUSES AND MINUSES OF GOVERNMENT ACTION
	The Benefits of the Command Approach
	The Downsides of Government Action
	The Inefficiency of Taxation
THE RIGHT ROLE FOR GOVERNMENT ECONOMIC POLICY	
	Public Good Provision
	Market Regulation
	Externalities
	Income Redistribution
CH 07 THE FIRST STEP INTO MACROECONOMICS
MEASURING THE ECONOMY
	The Basics of Gross Domestic Product
	The Components of GDP
	No Double-Counting
UNDERSTANDING GDP
	Personal Consumption
	Nonresidential Investment
	Residential Investment
	Government Consumption and Investment
	Change in Private Inventories
	Net Exports
WHAT GDP DOES NOT INCLUDE
INTERNATIONAL COMPARISONS OF GDP
	GDP per Capita
CH 08 INFLATION
THE BASICS OF INFLATION
	The Average Price Level
	The Inflation Rate
	Relative Price Shifts
	Globalization and Inflation
	Quality Improvements and Inflation
ADJUSTING FOR INFLATION
	Avoiding Money Illusion
EXPECTATIONS AND INFLATION
	Hyperinflation
	The Harm from Unanticipated Inflation
	The Harm from Anticipated Inflation
	Deflation
CH 09 GROWTH
THE SIGNIFICANCE OF GROWTH
	Improved Living Standards
	Production Possibility Frontier
	Growth versus the Zero-Sum Economy
	What Growth Doesn?t Buy
MEASURING GROWTH
	Real GDP
	A Word of Warning
THE INCREASE IN LIVING STANDARDS
	Short-Term versus Long-Term Growth
WHAT DRIVES GROWTH
	Increase in Labor
	Increase in Education and Skills	
	Investment in Physical Capital
	Increase in Raw Materials
	Increases in Knowledge
PRODUCTIVITY
	The History of U.S. Productivity Growth
GOVERNMENT AND GROWTH
CH 10 BUSINESS CYCLES, UNEMPLOYMENT, AND INFLATION
POTENTIAL VERSUS ACTUAL GDP 
	Potential Growth
	The Output Gap
UNEMPLOYMENT
	Types of Unemployment
	The Unemployment Puzzle
THE TRADE-OFF BETWEEN UNEMPLOYMENT AND INFLATION
	Inflation and Potential GDP
	The Natural Rate of Unemployment
RECESSIONS
	The Business Cycle
	The Impact of Recession on Workers
	The Impact of Recession on Businesses
WHY DO RECESSIONS HAPPEN?
	Negative Supply Shifts
	Negative Demand Shifts
	Inflation Fighting
	Problems in Financial Markets
CONCLUSION: THE POLICY RESPONSE
CH 11 FISCAL POLICY
THE GOVERNMENT AND THE ECONOMY
THE SHORT-TERM IMPACT OF GOVERNMENT SPENDING
	The Multiplier Effect
	The Marginal Propensity to Consume
	Overseas Leakage
	The Size of the Multiplier
THE LIMITATIONS OF SPENDING STIMULUS
	The Perils of Inflation
	Lags in Policy
TAXATION
	The Basics
	Changes in the Tax System
	The Direct Impact of Taxes
	Using Tax Cuts to Fight Recession
	Incentives and Taxes
BORROWING
	Budget Deficits and Surpluses
	The Stimulative Effect of Borrowing
	Crowding Out
	The Impact of Budget Deficits in the Long Run
PUTTING IT ALL TOGETHER
CH 12 MANAGING THE ECONOMY: MONETARY POLICY
THE USES OF MONEY
THE HISTORY OF THE FEDERAL RESERVE
	The Structure of the Fed
THE GOALS OF MONETARY POLICY
	Controlling Inflation
	Smoothing Out the Business Cycle
	Ensuring Financial Stability
POLICY TOOL: CONTROL OVER SHORT-TERM INTEREST RATES	
	Open Market Operations
	Effect on Other Interest Rates
	Effect of Monetary Policy on the Economy
	Effect of Monetary Policy on Inflation
	Example: Volcker?s Fight against Inflation	
	Example: Greenspan?s Response to the 2001 Recession
THE DISCOUNT WINDOW
	Example: The Fed?s Response to the 2001 Terrorist Attacks
	Example: The Fed?s Response to the 2007?2008 Housing Bust
	Policy Tool: The Reserve Requirement and Other Regulations
THE PRACTICE OF MONETARY POLICY	
	Monetary versus Fiscal Policy
	Discretion versus Rules
	Long-Term Effects of Monetary Policy
CH 13 THE FINANCIAL MARKETS
THE MARKET FOR LOANS
	Why Borrow?
	The Demand Curve for Loans
	The Supply Curve for Loans
	Some Factors Affecting Interest Rates
FINANCIAL INTERMEDIARIES
	The Bank Credit Channel
	The Venture Capital Credit Channel
RISK AND RETURN
	The Stock Market
	Stocks, Risk, and Diversification
THE DIVERSITY OF FINANCIAL INTERMEDIARIES
	The Bond Market Credit Channel
	Government Borrowing
CH 14 INTERNATIONAL TRADE
THE NATURE OF INTERNATIONAL TRADE
	Falling Natural Barriers to Trade
	The Lowering of Legal Barriers
THE GAINS FROM TRADE
	Lower Prices of Goods and Services
	Access to Natural Resources
	Access to Global Markets	
	Access to New Ideas
COMPARATIVE ADVANTAGE VERSUS ABSOLUTE ADVANTAGE
	Absolute Advantage
	The Theory of Comparative Advantage
WINNERS AND LOSERS
	Who Gets the Gains
	The Flow of Jobs
	Individual Losers
	Arguments for Protectionism
EXCHANGE RATES
	Effects of Appreciation and Depreciation
APPENDIX 14A: AN EXAMPLE OF GAINS FROM TRADE
CH 15 TECHNOLOGICAL CHANGE
THE NATURE OF TECHNOLOGICAL CHANGE
THE INFORMATION REVOLUTION
THREE TYPES OF INNOVATION
	Productivity Enhancements	
	New Goods and Services
	Quality of Life
INNOVATIVE ACTIVITIES
 The Market for Innovative Activities
INNOVATION: THE SUPPLY SIDE
	Availability of Scientists and Engineers
	Venture Capital
	Innovation Clusters
INNOVATION: THE DEMAND SIDE
	The Return on R&D
	Patents and Other Intellectual Property Protection
	Competition
THE DIFFUSION OF NEW TECHNOLOGIES
CONCLUSION
CH 16 ECONOMICS OF THE LABOR MARKET
THE BASICS OF THE LABOR MARKET
	The Labor Supply Curve
	The Labor Demand Schedule
	An Example of Labor Demand
LABOR MARKET EQUILIBRIUM AND WAGES
	The Impact of Technological Change
	The Impact of Globalization
WHY NOT ALL WORKERS ARE THE SAME
	Education
	Age and Experience
REGULATION OF THE LABOR MARKET
	The Minimum Wage
	The Working Day
	Licensing
	Unions
LONG-TERM LABOR SUPPLY
	Working-Age Population
	The Impact of Immigration
	Location
CH 17 THE DISTRIBUTION OF INCOME
THE BASICS OF INCOME DISTRIBUTION
	Quintiles
	One Way to Measure Inequality
CHANGING INCOME INEQUALITY
	The 80/20 Ratio
	An Alternative View	
	Reasons for Rising Inequality
POVERTY
THE DEBATE OVER INEQUALITY
	Two Competing Notions of Fairness
	Inequality, Growth, and Politics
	Misleading Statistics
TAXES AND REDISTRIBUTION
	Adding It All Up
EARNINGS AND DISCRIMINATION
CH 18 DELVING DEEPER INTO MICROECONOMICS
CONSUMER CHOICE
	The Utility Function
	The Budget Constraint
	Utility Maximization
	Decisions over Time
	Price Elasticity of Demand
	Consumer Surplus
PRODUCER DECISIONS
	Choosing the Right Inputs
	Substitutes and Complements in Production
	A Cost Minimization Example
OUTPUT AND PRICING DECISIONS
	Price Elasticity of Supply
	Application: Tax Incidence
CH 19 DELVING DEEPER INTO MACROECONOMICS
AGGREGATE DEMAND AND SUPPLY
	Aggregate Demand
	Aggregate Supply	
	Long-Term Aggregate Equilibrium
	Shifts in Aggregate Supply
	Shifts in Aggregate Demand
SAVINGS AND INVESTMENT
	The Basics of Savings and Investment
	What Determines Savings?
	Do Savings Matter in a Global Economy?
THE TRADE DEFICIT
	Three Explanations for the Trade Deficit
	Paying for Trade
CH 20 THE ECONOMICS OF RETIREMENT AND HEALTH CARE 
THE BASICS OF RETIREMENT 
	The Life Cycle Model
	Problems with the Life Cycle Model
EMPLOYER RETIREMENT PLANS
	Defined Benefit versus Defined Contribution	
	The Limitations of Employer Retirement Plans
SOCIAL SECURITY
	How Social Security Works Today
	The Demographic Challenge Facing Social Security
	Will Social Security Run Out of Money?
 Fixing the Retirement Shortfall
THE BASICS OF HEALTH CARE SPENDING
	The Life Cycle Model of Health Spending
	Problems with the Health Care Life Cycle Model
EMPLOYER HEALTH INSURANCE PLANS
THE ROLE OF MEDICARE AND MEDICAID
THE RISING COST OF HEALTH CARE
	Demographic Change
	Rising Incomes
	Third-Party Payments
	Tax Deductions for Employer Health Care
	Rapid Technological Change
	Bad Medicine
POLICY RESPONSES
	Increased Government Responsibility
	Increased Individual Responsibility
CH 21 THE ECONOMICS OF ENERGY, THE ENVIRONMENT, AND GLOBAL 
CLIMATE CHANGE
THE BASICS OF ENERGY SUPPLY AND DEMAND
	Energy Consumption
	Energy Supply: Fossil Fuels
	Energy Supply: Renewable and Nuclear
	Distribution of Supply
	The Price of Energy
ENERGY SUSTAINABILITY
	The Long-Term Future of Oil
	The Economics of Conservation
	Alternatives to Oil
ECONOMICS OF THE ENVIRONMENT
	Sources of Pollution Externalities
	The Impact of Pollution Externalities
	Measuring the Damage Done by Pollution Externalities
	Equilibrium in a Market with Externalities
CONTROLLING POLLUTION
	Command-and-Control Approaches
	Market-Based Approaches
GLOBAL CLIMATE CHANGE
	The Potential Damages of Global Climate Change
	Policy Response: Adaptation
	Policy Response: Mitigation
GLOSSARY
INDEX

Library of Congress Subject Headings for this publication:

Economics.