Principles of Economics, 2nd Edition

1.1 What Is Economics, and Why Is It Important?

1.2 Economic Theories, Models, and 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

Examples
Example 1: Work It Out: Shift in Demand

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 Utility-Maximizing with Indifference Curves

7.2 Responses to Changes in Income and Prices

7.3 Indifference Curves with Labor-Leisure and Intertemporal Choices

8.1 Explicit and Implicit Costs, and Accounting and Economic Profit

Examples
Example 1: Work It Out: Calculating Implicit Costs

8.2 Production in the Short Run

8.3 Costs in the Short Run

8.4 Production in the Long Run

8.5 Costs in the Long Run

9.1 Perfect Competition and Why It Matters

9.2 How Perfectly Competitive Firms Make Output Decisions

9.3 Entry and Exit Decisions in the Long Run

9.4 Efficiency in Perfectly Competitive Markets

10.1 How Monopolies Form: Barriers to Entry

10.2 How a Profit-Maximizing Monopoly Chooses Output and Price

Examples
Example 1: Work It Out: Maximizing Profits

11.1 Monopolistic Competition

11.2 Oligopoly

12.1 Corporate Mergers

Examples
Example 1: Work It Out: Calculating HHI

12.2 Regulating Anticompetitive Behavior

12.3 Regulating Natural Monopolies

12.4 The Great Deregulation Experiment

13.1 The Economics of Pollution

13.2 Policies to Reduce Pollution

13.3 The Benefits and Costs of U.S. Environmental Laws

13.4 International Environmental Issues

13.5 The Tradeoff between Economic Output and Environmental Protection

14.1 Why the Private Sector Underinvests in Innovation

14.2 How Governments Can Encourage Innovation

14.3 Public Goods

15.1 The Theory of Labor Markets

15.2 Wages and Employment in an Imperfectly Competitive Labor Market

15.3 Market Power on the Supply Side of Labor Markets

15.4 Employment Discrimination

15.5 Immigration

16.1 Drawing the Poverty Line

16.2 The Poverty Trap

16.3 The Safety Net

16.4 Income Inequality: Measurement and Causes

16.5 Government Policies to Reduce Income Inequality

17.1 The Problem of Imperfect Information and Asymmetric Information

17.2 Insurance and Imperfect Information

18.1 How Businesses Raise Financial Capital

18.2 How Households Supply Financial Capital

Examples
Example 1: Work It Out: Calculating the Bond Yield

18.3 How to Accumulate Personal Wealth

19.1 Voter Participation and Costs of Elections

19.2 Special Interest Politics

Examples
Example 1: Work It Out: Paying to Get Your Way

19.3 Flaws in the Democratic System of Government

20.1 Measuring the Size of the Economy: Gross Domestic Product

20.2 Adjusting Nominal Values to Real Values

Examples
Example 1: Work It Out: Computing GDP

20.3 Comparing GDP among Countries

20.4 How Well GDP Measures the Well-Being of Society

21.1 The Relatively Recent Arrival of Economic Growth

21.2 Labor Productivity and Economic Growth

21.3 Components of Economic Growth

21.4 Economic Convergence

22.1 How Economists Define and Compute Unemployment Rate

22.2 Patterns of Unemployment

22.3 What Causes Changes in Unemployment over the Short Run

22.4 What Causes Changes in Unemployment over the Long Run

23.1 Tracking Inflation

23.2 How to Measure Changes in the Cost of Living

23.3 How the U.S. and Other Countries Experience Inflation

23.4 The Confusion over Inflation

23.5 Indexing and Its Limitations

24.1 Measuring Trade Balances

24.2 Trade Balances and Flows of Financial Capital

24.3 The National Saving and Investment Identity

24.4 The Pros and Cons of Trade Deficits and Surpluses

24.5 The Difference between Level of Trade and the Trade Balance

25.1 Building a Model of Aggregate Demand and Aggregate Supply

25.2 Shifts in Aggregate Supply

25.3 Shifts in Aggregate Demand

25.4 How the AD/AS Model Incorporates Growth, Unemployment, and Inflation

25.5 Keynes' Law and Say's Law in the AD/AS Model

26.1 Aggregate Demand in Keynesian Analysis

26.2 The Building Blocks of Keynesian Analysis

26.3 The Phillips Curve

26.4 Keynesian Policy and the Keynesian Perspective on Market Forces

27.1 The Building Blocks of Neoclassical Analysis

27.2 The Policy Implications of the Neoclassical Perspective

27.3 Balancing Keynesian and Neoclassical Models

28.1 Defining Money by Its Functions

28.2 Measuring Money: Currency, M1, and M2

28.3 The Role of Banks

28.4 How Banks Create Money

29.1 The Federal Reserve Banking System and Central Banks

29.2 Bank Regulation

29.3 How a Central Bank Executes Monetary Policy

29.4 Monetary Policy and Economic Outcomes

29.5 Pitfalls for Monetary Policy

30.1 How the Foreign Exchange Market Works

30.2 Demand and Supply Shifts in Foreign Exchange Markets

30.3 Macroeconomic Effects of Exchange Rates

30.4 Exchange Rate Policies

31.1 Government Spending

31.2 Taxation

31.3 Federal Deficits and the National Debt

31.4 Using Fiscal Policy to Fight Recession, Unemployment, and Inflation

31.5 Automatic Stabilizers

31.6 Practical Problems with Discretionary Fiscal Policy

31.7 The Question of a Balanced Budget

32.1 How Government Borrowing Affects Investment and the Trade Balance

32.2 Fiscal Policy and the Trade Balance

32.3 How Government Borrowing Affects Private Saving

32.4 Fiscal Policy, Investment, and Economic Growth

33.1 The Diversity of Countries and Economies across the World

33.2 Improving Countries' Standards of Living

33.3 Causes of Unemployment and Inflation around the World

33.4 Balance of Trade Concerns

34.1 Absolute and Comparative Advantage

34.2 What Happens When a Country Has an Absolute Advantage in All Goods

34.3 Intra-industry Trade between Similar Economies

34.4 The Benefits of Reducing Barriers to International Trade

35.1 Protectionism: An Indirect Subsidy from Consumers to Producers

Examples
Example 1: Work It Out: Effects of Trade Barriers

35.2 International Trade and Its Effects on Jobs, Wages, and Working Conditions

35.3 Arguments in Support of Restricting Imports

35.4 Trade Policy

A.1 Addition and Subtraction

A.2 Multiplication and Division

A.3 Order of Operations

A.4 Algebraic Expressions

A.5 Basics of Percent

A.6 Linear Equations

A.7 Graphing

A.8 Calculating Area