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Survey of Economics
First Edition   ©2019

Survey of Economics

David Anderson

  • ISBN-10: 1-4292-5956-6; ISBN-13: 978-1-4292-5956-9; Format: Paper Text, 352 pages

Part I. Introduction to Economics

Chapter 1 Foundations of Economics

  • Scarcity: It
  • Specialization: It Brings You More of What You Want
  • Opportunity Costs and the Production Possibilities Frontier
    • The Shape of the Production Possibilities Frontier
    • Economic Growth the Production Possibilities Frontier

  • Q&A How do I know whether to make the PPF curved or straight?
  • The Three Fundamental Economic Questions
    • What to Produce
    • How to Produce It
    • For Whom to Produce

  • Categories of Economics
    • Positive and Normative Economics
    • Microeconomics and Macroeconomics

  • Summary
  • Key Terms
  • Problems for Review

Chapter 1A Understanding Graphs

  • Coordinate Graphs
    • Slopes
    • Areas

  • Other Types of Graphs
    • Bar Charts
    • Pie Charts
    • Scatter Diagrams

  • Summary
  • Key Terms
  • Problems for Review

Chapter 2 Markets and the Economy

  • Factors of Production
    • Land
    • Labor
    • Capital
    • Entrepreneurship

  • The Participants in an Economy
    • Households
    • Firms

  • Q&A What is a nonprofit organization?
    • Government

  • The Circular Flow
    • Government and the Circular Flow

  • The Goal of Efficiency
    • What Should Be Produced?
    • For Whom Should It Be Produced?
    • How Should It Be Produced?

  • Economic Systems
    • Traditional Economies
    • Market Economies
    • Command Economies
    • Mixed Economies

  • Summary
  • Key Terms
  • Problems for Review

Chapter 3 Demand

  • The Demand Schedule
    • Diminishing Marginal Utility

  • The Demand Graph
    • Smooth Demand Curves

  • Q&A I buy more $60 Polo brand polo shirts than $15 Walmart brand polo shirts. Doesn
    • Changes in Demand versus Movements along the Demand Curve

  • Demand Shifters
    • Tastes
    • Expectations
    • Income
    • The Prices of Related Goods
    • The Number of Consumers

  • Consumer Surplus
  • Steps to Solving Demand Problems
  • Summary
  • Key Terms
  • Problems for Review

Chapter 4 Supply

  • The Supply Schedule
  • The Supply Graph
    • The Rising Cost of Supplying One More
    • Marginal Cost and Supply
    • Changes in Supply versus Movements along the Supply Curve

  • Q&A Stores sometimes offer lower prices when consumers buy a larger quantity. Does that contradict the law of supply?
  • Supply Shifters
    • Input costs
    • Expectations
    • Natural Disasters and Weather
      Prices of Related Goods and Services
    • The Number of Firms

  • Producer Surplus
  • Steps to Solving Supply Problems
  • Summary
  • Key Terms
  • Problems for Review

Chapter 5 Market Equilibrium

  • Market Equilibrium
  • Price Controls
    • Price Ceilings

  • Q&A Why are some things that we can
    • Price Floors

  • Shifts in Supply and Demand
    • An Increase in Demand
    • A Decrease in Demand
    • An Increase in Supply
    • A Decrease in Supply
    • Double Shifts

  • Key Terms
  • Problems for Review

Chapter 6 Elasticity

  • The Price Elasticity of Demand
    • Elastic, Inelastic, and Unit-Elastic Demand
    • Total Revenue and the Price Elasticity of Demand
    • Perfectly Inelastic Demand
    • Perfectly Elastic Demand

  • The Price Elasticity of Supply
  • Q&A Is the price elasticity of demand equal to the slope of a demand curve?
  • The Cross-Price Elasticity of Demand
  • Apply What You
  • Summary
  • Key Terms
  • Problems for Review

Part II. Microeconomics

Chapter 7 Consumer Behavior

  • Marginal Utility and Total Utility
  • Budget Constraints
  • Q&A If I get more utility out of my first poster than out of my second or third, shouldn
  • The Optimal Consumption Rule
  • The Substitution Effect and the Income Effect
  • Lessons from Behavioral Economics
    • Consumers Want Balance
    • Consumers Want Options, But Not Too Many
    • Consumers Want Fairness
    • Consumers Make Mistakes

  • Summary
  • Key Terms
  • Problems for Review

Chapter 8 Production Costs

  • Profit Maximization
    • Accounting Profit and Economic Profit

  • The Production Function
    • Fixed Inputs and Variable Inputs
    • Marginal Product
    • Diminishing Marginal Product

  • The Cost-Minimizing Combination of Inputs
  • Q&A If I get more utility out of my first poster than out of my second or third, shouldn
  • A Closer Look at Costs
    • Fixed Cost and Variable Cost
    • Average Total Cost
    • Marginal Cost
    • Summarizing Costs with Tables and Curves
    • The Irrelevance of Sunk Costs

  • Economies and Diseconomies of Scale
  • Summary
  • Key Terms
  • Problems for Review

Chapter 9 Perfect Competition

  • How Competition Affects Markets
    • Many Buyers and Seller
    • A Standardized Product
    • Full Information
    • Easy Entry and Exit for Firms

  • Prices and Profits in Perfectly Competitive Markets
    • Firms as Price Takers
    • Demand and Marginal Revenue

  • Profit Maximization
    • Choosing the Optimal Quantity of Output
    • Short-Run Profit or Loss
    • Long-Run Equilibrium

  • Q&A Why would firms remain in a market in which they earn no profit?
  • The Shutdown Decision
    • The Firm

  • The Efficiency of Perfect Competition
  • Summary
  • Key Terms
  • Problems for Review

Chapter 10 Market Power

  • Sources of Market Power
    • Legal Barriers to Entry
    • Control of Resources
    • Strategic Barriers
    • Economies of Scale

  • Monopolies
    • A Monpolist
    • Efficiency and Market Power
    • Price Discrimination

  • Q&A How exactly do perfect price discriminators determine the highest price customers are willing to pay? And how, as a customer, can I avoid paying too much?
  • Oligopolies
    • Games Oligopolists Play

  • Cartels
  • Monopolistic Competition
  • Summary
  • Key Terms
  • Problems for Review

Chapter 11 Factor Markets

  • The Derived Demand for Factors of Production
    • A Firm
    • A Market

  • The Supply of Labor
    • An individual
    • A Market

  • Equilibrium in the Labor Market
  • Why Wage Rates Differ
    • Compensating Wage Differentials
    • Employment Discrimination

  • Income Inequality and Ways to Reduce It
    • Minimum Wage Laws

  • Q&A Aside from minimum wages, what are some of the other programs designed to help poor workers and their families?
  • Markets for Other Factors
  • Summary
  • Key Terms
  • Problems for Review

Chapter 12 Market Failure and Government Failure

  • Market Failure: Sources and Remedies
    • Positive Externalities
    • Negative Externalities

  • Q&A How exactly does the government put limits on things such as pollution and fishing?
    • Imperfect Information
    • A Lack of Competition
    • Free Riders

  • Government Failure: Sources and Remedies
    • Imperfect Information
    • Different Goals and Perspectives
    • Bureaucratic Inefficiencies
    • Remedies for Government Failure

  • Summary
  • Key Terms
  • Problems for Review

Part III. Macroeconomics

Chapter 13 Measuring an Economy

  • Measures of Economic Progress
    • Gross Domestic Product

  • Q&A When a good is made this year and sold next year, when is it included in GDP?
    • GDP and the Quality of Life
    • Alternative Measures to GDP

  • Unemployment
    • The Unemployment Rate
    • Types of Unemployment
    • Full Employment and the Natural Rate of Unemployment

  • Inflation and Its Effects
  • Nominal Values versus Real Values
  • The Consumer Price Index
  • Summary
  • Key Terms
  • Problems for Review

Chapter 14 Aggregate Demand and Aggregate Supply

  • Aggregate Demand
    • Why the Aggregate Demand Curve Slopes Downward
    • Factors that Shift the Aggregate Demand Curve

  • Q&A Increases in consumption, investment, and net exports were discussed as reasons for movements along the aggregate demand curve. Now they
  • Multiplier Effects and Aggregate Demand
    • The Marginal Propensities to Consume and Save
    • The Spending Multiplier
    • The Balanced Budget Multiplier
    • Leakages

  • Short-Run Aggregate Supply
    • The Shape of the Short-Run Aggregate Supply Curve
    • Factors that Shift the Short-Run Aggregate Supply Curve

  • Macroeconomic Equilibrium
  • Long-Run Aggregate Supply and Economic Growth
  • Summary
  • Key Terms
  • Problems for Review

Chapter 15 Fiscal Policy

  • Government Expenditures, Revenues, and Taxes
    • Budget Surpluses, Deficits, and the Federal Debt

  • Schools of Economic Thought
    • Classical Theory
    • Keynesian Theory
    • Monetarist Theory

  • Areas of Consensus and Disagreement
  • Q&A What caused the Great Recession?
  • Types of Fiscal Policy and Their Effects
    • Expansionary Fiscal Policy
    • Contractionary Fiscal Policy
    • Automatic Stabilizers

  • Potential Problems with Fiscal Policy
    • Timing
    • Politics
    • Crowding Out

  • Supply-Side Fiscal Policy
  • Summary
  • Key Terms
  • Problems for Review

Chapter 16 Money and Banking

  • The Functions of Money
    • Medium of Exchange
    • Store of Value
    • Unit of Account

  • What Makes Something Money?
    • The Ideal Characteristics of Money

  • Types of Money
    • Commodity Money
    • Paper Money and the Gold Standard
    • Fiat Money
    • New Forms of Money
    • What Isn

  • Q&A Will digital alternatives replace cash entirely?
  • The Time Value of Money
  • Measures of the Money Supply
    • M1
    • M2

  • Banks and Thrifts
    • The Role of Commercial Banks in the Economy
    • Related Financial Institutions
    • Bank and Thrift Failures

  • How Banking Creates Money
  • Summary
  • Key Terms
  • Problems for Review

Chapter 17 Monetary Policy

  • The Federal Reserve System
  • Tools of Monetary Policy
    • Open Market Operations
    • The Discount Rate
    • Reserve Requirements
    • Strengths and Limitations
    • New Tools for Severe Problems

  • Q&A Who pays for the Fed
  • The Quantity Theory of Money
  • The Market for Money
    • Money Demand
    • Money Supply and Equilibrium
    • The Effects of Monetary Policy

  • Summary
  • Key Terms
  • Problems for Review

Part IV. Global Economic Issues

Chapter 18 Economic Growth and Development

  • Economic Growth and Development
    • Global Comparisons
    • Economic Growth and the Production Possibilities Frontier
    • Potential Output

  • Strategies for Achieving Economic Growth
    • More Physical Capital
    • More Human Capital
    • More Money
    • More Research and Development
    • More Foreign Involvement

  • Q&A What is a "banana republic"?
    • More Domestic Loans

  • Challenges for Developing Countries
    • Crime and Corruption
    • Geography
    • Weak Institutions
    • Unfit Leadership
    • Governance

  • Progress in Economic Development [LO needed]
  • Summary
  • Key Terms
  • Problems for Review

Chapter 19 International Trade and Finance

  • The Benefits of an Open Economy
    • Comparative Advantage
    • Absolute Advantage
    • Mutually Beneficial Trade

  • The Balance of Payments
  • Q&A How can I identify the terms of trade that would make both sides better off from trade?
    • The Balance of Trade
    • Trade Deficits

  • Barriers to Trade
    • Tariffs
    • Quotas

  • Foreign Exchange Markets
    • Equilibrium in a Foreign Exchange Market
    • Why Currencies Appreciate and Depreciate

  • Summary
  • Key Terms
  • Problems for Review