Table of Contents
Introduction ix
Chapter 1 How Economists Think 1
Chapter 2 Division of Labor 7
Chapter 3 Supply and Demand 12
Chapter 4 Price Floors and Ceilings 22
Chapter 5 Elasticity 27
Chapter 6 The Labor Market and Wages 34
Chapter 7 Financial Markets and Rates of Return 42
Chapter 8 Personal Investing 49
Chapter 9 From Perfect Competition to Monopoly 58
Chapter 10 Antitrust and Competition Policy 64
Chapter 11 Regulation and Deregulation 71
Chapter 12 Negative Externalities and the Environment 76
Chapter 13 Positive Externalities and Technology 81
Chapter 14 Public Goods 87
Chapter 15 Poverty and Welfare Programs 90
Chapter 16 Inequality 98
Chapter 17 Imperfect Information and Insurance 103
Chapter 18 Corporate and Political Governance 110
Chapter 19 Macroeconomics and Gross Domestic Product 118
Chapter 20 Economic Growth 124
Chapter 21 Unemployment 13 0
Chapter 22 Inflation 136
Chapter 23 The Balance of Trade 144
Chapter 24 Aggregate Supply and Aggregate Demand 152
Chapter 25 The Unemployment-Inflation Trade-off 157
Chapter 26 Fiscal Policy and Budget Deficits 163
Chapter 27 Countercyclical Fiscal Policy 170
Chapter 28 Budget Deficits and National Saving 177
Chapter 29 Money and Banking 184
Chapter 30 The Federal Reserve and Its Powers 191
Chapter 31 The Conduct of Monetary Policy 201
Chapter 32 The Gains of International Trade 210
Chapter 33 The Debates over Protectionism 217
Chapter 34 Exchange Rates 225
Chapter 35 International Financial Crashes 234
Chapter 36 A Global Economic Perspective 242
References 251
Index 253