Table of Contents

We invite you to explore the Principles of Economics Table of Contents below.


If you are interested in the Table of Contents for Principles of Microeconomics click here. For Principles of Macroeconomics click here. To view the chapter-level details for each part, click the plus sign to the left of the part title.

* Chapters marked with an asterisk do not appear in the Macroeconomics version
† Chapters marked with a dagger do not appear in the Microeconomics version
    • Chapter Objective: To learn the four core principles that provide the foundation of all economic analysis, and use them to analyze choices and make better decisions.

      1.1 A Principled Approach to Economics
      1.2 The Cost-Benefit Principle
      1.3 The Opportunity Cost Principle
      1.4 The Marginal Principle
      1.5 The Interdependence Principle

    • Chapter Objective: To understand people's buying, or demand, decisions.

      2.1 Individual Demand: What You Want, at Each Price
      2.2 Your Decisions and Your Demand Curve
      2.3 Market Demand: What the Market Wants
      2.4 What Shifts Demand Curves?
      2.5 Shifts versus Movements Along Demand Curves

    • Chapter Objective: To understand how businesses make selling or supply decisions.

      3.1 Individual Supply: What You Sell, at Each Price
      3.2 Your Decisions and Your Individual Supply Curve
      3.3 Market Supply: What the Market Sells
      3.4 What Shifts Supply Curves?
      3.5 Shifts versus Movements Along Supply Curves

    • Chapter Objective: Analyze how supply and demand determine the equilibrium price and quantity.

      4.1 Understanding Markets
      4.2 Equilibrium
      4.3 Predicting Market Changes

    • Chapter Objective: To measure by how much quantities of demand and supply respond to changing market conditions.

      5.1 Price Elasticity of Demand
      5.2 How Businesses Use Demand Elasticity
      5.3 Other Demand Elasticities
      5.4 Price Elasticity of Supply

    • Chapter Objective: To forecast the consequences of government policies.

      6.1 How Taxes and Subsidies Change Market Outcomes
      6.2 Price Regulations
      6.3 Quantity Regulations

    • Chapter Objective: To analyze how markets affect economic welfare.

      7.1 Evaluating Public Policies
      7.2 Measuring Economic Surplus
      7.3 Market Efficiency
      7.4 Market Failure and Deadweight Loss
      7.5 Beyond Economic Efficiency

    • Chapter Objective: To analyze how markets generate gains from trade.

      8.1 Gains from Trade
      8.2 Comparative Advantage
      8.3 Prices are Signals, Incentives, and Information
      8.4 How Managers Can Harness Market Forces

    • Chapter Objective: To understand the consequences of global trade.

      9.1 Comparative Advantage Is the Foundation of International Trade
      9.2 How International Trade Shapes the Economy
      9.3 The Debate About International Trade
      9.4 International Trade Policy
      9.5 Effects of Globalization

    • Chapter Objective: Explore what happens when your choices have side effects on others.

      10.1 Identifying Externalities
      10.2 The Externality Problem
      10.3 Solving Externality Problems
      10.4 Public Goods and the Tragedy of the Commons

    • Chapter Objective: To learn to make good decisions, both as an employer and as a worker, and understand how wages are determined.

      11.1 The Labor Market: Supply and Demand at Work
      11.2 Labor Demand: Thinking Like an Employer
      11.3 Labor Supply: How to Balance Work and Leisure
      11.4 Changing Economic Conditions and Labor Market Equilibrium

    • Chapter Objective: To understand why wages vary.

      12.1 Labor Demand: What Employers Want
      12.2 Labor Supply: What Workers Want
      12.3 Institutional Factors that Explain Why Wages Vary
      12.4 How Discrimination Affects Wages
      12.5 Personnel Economics

    • Chapter Objective: Understand inequality, poverty, the tools government uses to address them and the trade-off between efficiency and equity.

      13.1 Measuring Inequality
      13.2 Poverty
      13.3 Social Insurance, the Social Safety Net, and Redistributive Taxation
      13.4 The Debate About Income Redistribution

    • Chapter Objective: Learn how to set prices when you have market power.

      14.1 Monopoly, Oligopoly, and Monopolistic Competition
      14.2 Setting Prices When You Have Market Power
      14.3 The Problem with Market Power
      14.4 Public Policy to Restrain Market Power

    • Chapter Objective: Learn how to remain profitable in the long run.

      15.1 Revenues, Costs, and Economic Profits
      15.2 Free Entry and Exit in the Long Run
      15.3 Barriers to Entry

    • Chapter Objective: To guide the strategic decisions that you will make as a manager.

      16.1 The Five Forces That Determine Profitability
      16.2 Non-Price Competition: Product Positioning
      16.3 Bargaining Power of Buyers and Sellers

    • Chapter Objective: Implement sophisticated pricing strategies.

      17.1 Price Discrimination
      17.2 Group Pricing
      17.3 The Hurdle Method

    • Chapter Objective: To guide the strategic decisions that you'll make throughout your career and everyday life.

      18.1 How to Think Strategically
      18.2 The Prisoner's Dilemma and the Challenge of Cooperation
      18.3 Multiple Equilibria and the Problem of Coordination
      18.4 Advanced Strategy: First and Second Mover Advantages
      18.5 Advanced Strategy: Repeated Games and Punishments

    • Chapter Objective: To make good decisions when you don't know what will happen.

      19.1 Risk Aversion
      19.2 Reducing Risk
      19.3 Behavioral Economics: How People Make Mistakes Around Uncertainty

    • Chapter Objective: Learn how to make decisions when you don't have all the facts.

      20.1 Adverse Selection When Sellers Know More Than Buyers
      20.2 Adverse Selection When Buyers Know More than Sellers
      20.3 Moral Hazard: The Problem of Hidden Actions

    • Chapter Objective: To measure and analyze total economic activity.

      21.1 What is GDP?
      21.2 GDP and the Macroeconomy
      21.3 What GDP Captures and What it Misses
      21.4 Real and Nominal GDP
      21.5 Millions, Billions, and Trillions

    • Chapter Objective: Understand what determines the rate of economic growth.

      22.1 Economic Growth Facts
      22.2 The Ingredients of Economic Growth
      22.3 The Analytics of Economic Growth
      22.4 Public Policy: Why Institutions Matter for Growth

    • Chapter Objective: Assess the causes and costs of unemployment.

      23.1 Employment and Unemployment
      23.2 The Dynamics of the Labor Market
      23.3 Understanding Unemployment
      23.4 The Costs of Unemployment

    • Chapter Objective: Evaluate the rate of inflation and its consequences.

      24.1 Measuring Inflation
      24.2 Using Various Measures of Inflation
      24.3 Adjusting for the Effects of Inflation
      24.4 The Role of Money and the Costs of Inflation

    • Chapter Objective: To make smart spending and saving decisions.

      25.1 Consumption, Saving, and Income
      25.2 The Microfoundations of Consumption
      25.3 The Macroeconomics of Consumptions
      25.4 What Shifts Consumption?
      25.5 Saving

    • Chapter Objective: To analyze how managers can make good investment decisions.

      26.1 Macroeconomic Investment
      26.2 Tools to Analyze Investments
      26.3 Making Investment Decisions
      26.4 The Macroeconomics of Investment
      26.5 The Market for Loanable Funds

    • Chapter Objective: Understand the role played by the financial sector.

      27.1 Banks
      27.2 Chapter Objective: Understand the role played by the financial sector.The Bond Market
      27.3 The Stock Market
      27.4 What Drives Financial Prices?
      27.5 Personal Finance

    • Chapter Objective: Understand the linkages between the exchange rate, imports, and exports.

      28.1 International Trade and Global Financial Flows
      28.2 Exchange Rates
      28.3 Supply and Demand of Currencies
      28.4 The Real Exchange Rate and Net Exports
      28.5 The Balance of Payments

    • Chapter Objective: To learn how to track the ups and downs of the economy.

      29.1 Macroeconomic Trends and Cycles
      29.2 Common Characteristics of Business Cycles
      29.3 Analyzing Macroeconomic Data

    • Chapter Objective: To understand how interest rates shape economic outcomes.

      30.1 Aggregate Expenditure
      30.2 The IS Curve: Output and the Real Interest Rate
      30.3 The MP Curve: What Determines the Interest Rate
      30.4 The IS-MP Framework
      30.5 Macroeconomic Shocks

      Appendix 30A: Aggregate Expenditure and the Multiplier
      Chapter Objective: To understand how aggregate expenditure shapes the economy.

      30a.1 Macroeconomic Equilibrium
      30a.2 Aggregate Expenditure and Income
      30a.3 The Multiplier
      30a.4 From Aggregate Expenditure to the IS Curve

    • Chapter Objective: To assess the causes of inflation.

      31.1 Three Inflationary Forces
      31.2 Inflation Expectations
      31.3 The Phillips Curve
      31.4 Supply Shocks Shift the Phillips Curve

    • Chapter Objective: To put the pieces together into a complete model of business cycles.

      32.1 The Fed Model
      32.2 Analyzing Macroeconomic Shocks
      32.3 Diagnosing the Causes of Macroeconomic Changes

    • 33.1 The AD-AS Framework
      33.2 Aggregate Demand
      33.3 Aggregate Supply
      33.4 Macroeconomic Shocks and Countercyclical Policy
      33.5 Aggregate Supply in the Short Run and the Long Run

    • Chapter Objective: To understand how the Federal Reserve makes and implements monetary policy.

      34.1 The Federal Reserve
      34.2 The Fed's Policy Goals and Decision Making Frameworks
      34.3 How the Federal Reserve Sets Interest Rates
      34.4 Unconventional Monetary Policy

    • Chapter objective: Learn about the government spending, revenue, and debt.

      35.1 The Government Sector
      35.2 Fiscal Policy
      35.3 Government Deficits and Debt