Bibliographic record and links to related information available from the Library of Congress catalog.
Note: Contents data are machine generated based on pre-publication provided by the publisher. Contents may have variations from the printed book or be incomplete or contain other coding.
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: