{"product_id":"economics-9781118949733","title":"Economics","description":"\u003cb\u003eBook Synopsis\u003c\/b\u003e\u003cbr\u003e\u003cbr\u003e\u003cbr\u003e\u003cb\u003eTable of Contents\u003c\/b\u003e\u003cbr\u003e\u003cp\u003ePreface ix\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Introduction to Economics 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat Is Economics? 1\u003c\/p\u003e \u003cp\u003eEconomics and Scarcity 2\u003c\/p\u003e \u003cp\u003eScarcity and Choice 3\u003c\/p\u003e \u003cp\u003eEfficiency and Equity 5\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 1.1: To Work or Not to Work 6\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eFactors of Production 7\u003c\/p\u003e \u003cp\u003eFactors and Income 8\u003c\/p\u003e \u003cp\u003eScarce Resources 8\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 1.2: Does Money Buy Happiness? 9\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eEconomic Theory and Policy 9\u003c\/p\u003e \u003cp\u003eEconomic Theory 10\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 1.3: Ok, What Are They? 12\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eEconomic Policy 13\u003c\/p\u003e \u003cp\u003e\u003ci\u003eUp for Debate: Should St. Louis County, Missouri, Impose Mandatory Trash Pickup and Recycling? 14\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eTools of the Economist 15\u003c\/p\u003e \u003cp\u003eWords, Graphs, and Mathematical Equations 15\u003c\/p\u003e \u003cp\u003eScarcity, Model Building, and Graphs 16\u003c\/p\u003e \u003cp\u003eModeling Scarcity 16\u003c\/p\u003e \u003cp\u003eInterpreting the Model 17\u003c\/p\u003e \u003cp\u003e\u003ci\u003eTest Your Understanding: Production Possibilities 19\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eMacroeconomics and Microeconomics 19\u003c\/p\u003e \u003cp\u003eCritical Thinking Case 1: Difficult Choices in the Extreme 24\u003c\/p\u003e \u003cp\u003eChapter 1 Appendix 25\u003c\/p\u003e \u003cp\u003eGraphing 25\u003c\/p\u003e \u003cp\u003eConstructing a Graph 25\u003c\/p\u003e \u003cp\u003eDirect and Inverse Relationships 26\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Economic Decision Making and Economic Systems 29\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eScarcity, the Basic Economic Decisions, and Economic Systems 29\u003c\/p\u003e \u003cp\u003eEconomic Systems and the Basic Economic Decisions 30\u003c\/p\u003e \u003cp\u003eTraditional Economies 31\u003c\/p\u003e \u003cp\u003eMarket Economies 32\u003c\/p\u003e \u003cp\u003eThe Operation of a Market Economy 32\u003c\/p\u003e \u003cp\u003eEconomic Decisions in a Market Economy 33\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 2.1: Saying No! 34\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eEvaluating Market Economies 36\u003c\/p\u003e \u003cp\u003eGovernment Intervention in a Market Economy: A Mixed Economy 37\u003c\/p\u003e \u003cp\u003ePlanned Economies 37\u003c\/p\u003e \u003cp\u003eEconomic Decisions in a Planned Economy 38\u003c\/p\u003e \u003cp\u003eEvaluating Planned Economies 38\u003c\/p\u003e \u003cp\u003eMixed Economies 39\u003c\/p\u003e \u003cp\u003e\u003ci\u003eTest Your Understanding: Economic Decision Making and the Circular Flow 40\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eChanging Economic Systems 41\u003c\/p\u003e \u003cp\u003eThe U.S. Economic System 41\u003c\/p\u003e \u003cp\u003eThe British Foundations of the U.S. Economy 41\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 2.2: The People’s Republic of China 42\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 2.3: The Factory Girl’s Last Day 43\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eHistorical Highlights in the Development of the U.S. Economy 44\u003c\/p\u003e \u003cp\u003e\u003ci\u003eUp for Debate: Are U.S. and Western European Economic Institutions Appropriate for Other Nations? 46\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eCritical Thinking Case 2: Judging Economies 51\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Demand, Supply, and Price Determination 53\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDemand and Supply 54\u003c\/p\u003e \u003cp\u003eDemand: The Buyer’s Side 54\u003c\/p\u003e \u003cp\u003eSupply: The Seller’s Side 55\u003c\/p\u003e \u003cp\u003eMarket Demand, Market Supply, and Price Setting 58\u003c\/p\u003e \u003cp\u003eMarket Demand and Market Supply 58\u003c\/p\u003e \u003cp\u003eMarkets and Price Setting 58\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 3.1: The Laws of Demand and Supply 59\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eEquilibrium Price and Equilibrium Quantity 60\u003c\/p\u003e \u003cp\u003eChanges in Quantity Demanded and Quantity Supplied 62\u003c\/p\u003e \u003cp\u003eChanges in Demand and Supply 62\u003c\/p\u003e \u003cp\u003eChanges in Demand 63\u003c\/p\u003e \u003cp\u003eChanges in Supply 65\u003c\/p\u003e \u003cp\u003eChanges in Quantity Demanded or Supplied and Changes in Demand or Supply: A Crucial Distinction 67\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 3.2: Fads: Some In, Some Out 67\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eChanges in Equilibrium Price and Equilibrium Quantity 69\u003c\/p\u003e \u003cp\u003eEffect of Increases and Decreases in Demand 69\u003c\/p\u003e \u003cp\u003eEffect of Increases and Decreases in Supply 70\u003c\/p\u003e \u003cp\u003eEffect of Changes in Both Demand and Supply 71\u003c\/p\u003e \u003cp\u003e\u003ci\u003eTest Your Understanding: Changes in Demand and Supply 72\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eLimiting Price Movements 73\u003c\/p\u003e \u003cp\u003ePrice Ceilings 73\u003c\/p\u003e \u003cp\u003ePrice Floors 73\u003c\/p\u003e \u003cp\u003ePrice Elasticity of Demand and Supply 75\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 3.3: Is Rent Control a Good Thing or a Bad Thing? 76\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003ePrice Elasticity of Demand 76\u003c\/p\u003e \u003cp\u003e\u003ci\u003eUp for Debate: Is It a Mistake to Raise the Minimum Wage? 77\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 3.4: Peanut Butter: A Yummy Staple 79\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003ePrice Elasticity of Supply 79\u003c\/p\u003e \u003cp\u003eCritical Thinking Case 3: How Do Supply and Demand Work in Health Care? 84\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Goals and Problems of the Macroeconomy: Employment, Prices, and Production 85\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eUnemployment and Full Employment 86\u003c\/p\u003e \u003cp\u003eConsequences of Unemployment 86\u003c\/p\u003e \u003cp\u003eTypes of Unemployment 86\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 4.1: What’s at Stake When a Job is Lost? 87\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eEmployment and Unemployment Measures and Statistics 88\u003c\/p\u003e \u003cp\u003eInterpreting Unemployment Statistics 92\u003c\/p\u003e \u003cp\u003eThe Goal of Full Employment 93\u003c\/p\u003e \u003cp\u003eInflation and Stable Prices 94\u003c\/p\u003e \u003cp\u003eConsequences of Inflation 94\u003c\/p\u003e \u003cp\u003eCauses of Inflationary Pressure 96\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 4.2: The $4 Summer of 2008 98\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eMeasures of Inflation 99\u003c\/p\u003e \u003cp\u003eDeflation and Disinflation 103\u003c\/p\u003e \u003cp\u003eProduction 103\u003c\/p\u003e \u003cp\u003eFull Production and Economic Growth 103\u003c\/p\u003e \u003cp\u003e\u003ci\u003eUp for Debate: Will Policies to Protect the Environment Slow Economic Growth? 105\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eMeasures of Production 106\u003c\/p\u003e \u003cp\u003eDoes GDP Tell the Whole Story? 108\u003c\/p\u003e \u003cp\u003e\u003ci\u003eTest Your Understanding: Calculating Price Indexes and GDP 109\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 4.3: A Tale of Two Families 110\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eProductivity 110\u003c\/p\u003e \u003cp\u003eA Possible Policy Problem 111\u003c\/p\u003e \u003cp\u003eCritical Thinking Case 4: Statistics and Decision Making 117\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Foundations of the Macroeconomy 119\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eChanges in Macroeconomic Activity 119\u003c\/p\u003e \u003cp\u003eBusiness Cycles 121\u003c\/p\u003e \u003cp\u003eCauses of Economic Fluctuations 122\u003c\/p\u003e \u003cp\u003eTotal Spending and Macroeconomic Activity 123\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 5.1: What’s Causing the Economy to Change? 124\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eThe Household Sector 124\u003c\/p\u003e \u003cp\u003eThe Business Sector 127\u003c\/p\u003e \u003cp\u003e\u003ci\u003eUp for Debate: Is Saving a Healthy Habit? 128\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 5.2: Interest Rates and Investment Spending 130\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eThe Government Sector 132\u003c\/p\u003e \u003cp\u003eThe Foreign Sector 135\u003c\/p\u003e \u003cp\u003eSummary of Aggregate Spending, Leakages, and Injections 136\u003c\/p\u003e \u003cp\u003eThe Multiplier Effect 138\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 5.3: Ripples through the Economy 141\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eInflation, Expectations, and Macroeconomic Policies 141\u003c\/p\u003e \u003cp\u003eA Word about Inflation 141\u003c\/p\u003e \u003cp\u003eA Word about Expectations 142\u003c\/p\u003e \u003cp\u003eMacroeconomic Predictors and Policies 142\u003c\/p\u003e \u003cp\u003e\u003ci\u003eTest Your Understanding: Changes in Economic Activity 143\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 5.4: Unconventional Indicators of Economic Health 144\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eCritical Thinking Case 5: Getting Smarter 149\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 The Role of Government in the Macroeconomy 151\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eGovernment Expenditures and Revenues 152\u003c\/p\u003e \u003cp\u003eGovernment Expenditures 152\u003c\/p\u003e \u003cp\u003eGovernment Revenues 154\u003c\/p\u003e \u003cp\u003eTaxes: Types and Reform 156\u003c\/p\u003e \u003cp\u003eProgressive, Proportional, and Regressive Taxes 156\u003c\/p\u003e \u003cp\u003eTax Reform and Issues 156\u003c\/p\u003e \u003cp\u003e\u003ci\u003eUp for Debate: Should the Federal Income Tax Be Changed to a Flat Tax? 157\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 6.1: A Chronology of Federal Income Tax Policies 158\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eFiscal Policy 159\u003c\/p\u003e \u003cp\u003eThe Mechanics of Fiscal Policy 159\u003c\/p\u003e \u003cp\u003eDiscretionary and Automatic Fiscal Policy 160\u003c\/p\u003e \u003cp\u003eGovernment Budgets 161\u003c\/p\u003e \u003cp\u003eTypes of Budgets 162\u003c\/p\u003e \u003cp\u003eThe Budget and Fiscal Policy: Tying Them Together 164\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 6.2: How Much Do We Love Granny? 165\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003eTest Your Understanding: Government’s Impact on the Macroeconomy 166\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eThe Realities of Fiscal Policy and the Federal Budget 166\u003c\/p\u003e \u003cp\u003eThe National Debt 167\u003c\/p\u003e \u003cp\u003eFinancing and Assessing the National Debt 167\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 6.3: U.S. Treasury Securities 168\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eCrowding Out 171\u003c\/p\u003e \u003cp\u003eCritical Thinking Case 6: Nimby (Not in My Backyard) 175\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Money, Financial Institutions, and the Federal Reserve 177\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMoney 178\u003c\/p\u003e \u003cp\u003eThe Definition and Functions of Money 178\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 7.1: Fixed Assets, Or: Why a Loan in Yap is Hard to Roll Over 180\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eThe U.S. Money Supply 180\u003c\/p\u003e \u003cp\u003eMonetary Standards 183\u003c\/p\u003e \u003cp\u003eFinancial Depository Institutions 184\u003c\/p\u003e \u003cp\u003eCommercial Banks 185\u003c\/p\u003e \u003cp\u003eOther Financial Depository Institutions 186\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 7.2: What Do I Do? 187\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eThe Federal Reserve System 187\u003c\/p\u003e \u003cp\u003eOrganization of the Federal Reserve System 188\u003c\/p\u003e \u003cp\u003eFunctions of the Federal Reserve Banks 189\u003c\/p\u003e \u003cp\u003e\u003ci\u003eTest Your Understanding: Changes in a Bank’s Reserve Account 192\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eRecent Trends in Financial Institutions 192\u003c\/p\u003e \u003cp\u003eLegislative Changes 192\u003c\/p\u003e \u003cp\u003eStructural Changes 193\u003c\/p\u003e \u003cp\u003eThe Financial Crisis of 2007–2009 195\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 7.3: Ben Bernanke’s Reflections on the Financial Crisis \u003c\/i\u003e\u003ci\u003e196\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003eUp for Debate: Should Congress Enact More Stringent Regulations over the Banking System? 197\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eCritical Thinking Case 7: Cigarette Money 202\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Money Creation, Monetary Theory, and Monetary Policy 203\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Money Supply and the Level of Economic Activity 204\u003c\/p\u003e \u003cp\u003eThe Equation of Exchange 204\u003c\/p\u003e \u003cp\u003eMoney Creation 205\u003c\/p\u003e \u003cp\u003eThe Process of Money Creation 206\u003c\/p\u003e \u003cp\u003eThe Multiple Expansion of Money 207\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 8.1: Questions and Answers about Reserves and Loans 208\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eExcess Reserves, Interest Rates, and the Level of Spending 210\u003c\/p\u003e \u003cp\u003eDetermining Interest Rates on Loans 212\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 8.2: An Interest Rate Primer 215\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eThe Federal Reserve and Monetary Policy 215\u003c\/p\u003e \u003cp\u003eMonetary Policy Tools 216\u003c\/p\u003e \u003cp\u003e\u003ci\u003eTest Your Understanding: Financial Depository Institution Calculations 220\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 8.3: Who Really Is the Most Powerful Person in the United States? 221\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eAssessing Monetary Policy 221\u003c\/p\u003e \u003cp\u003eGovernment Deficits and Monetary Policy 221\u003c\/p\u003e \u003cp\u003eAdvantages and Disadvantages of Monetary Policy 223\u003c\/p\u003e \u003cp\u003e\u003ci\u003eUp for Debate: Should the Federal Reserve Be Placed Under the Direct Control of Congress? 225\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eCritical Thinking Case 8: The Fed and the Great Depression of the 1930s 230\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Macroeconomic Viewpoints and Models 233\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMacroeconomic Model Building 234\u003c\/p\u003e \u003cp\u003eA Warning 234\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 9.1: Paying Close Attention to Models: It’s Worth the Effort 235\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eClassical Economics 236\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 9.2: The Academic Scribblers 238\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eKeynesian Economics 239\u003c\/p\u003e \u003cp\u003eEquilibrium in the Macroeconomy 239\u003c\/p\u003e \u003cp\u003eKeynesian Policy Prescriptions 242\u003c\/p\u003e \u003cp\u003eNew Classical Economics 243\u003c\/p\u003e \u003cp\u003eThe New Classical Model 244\u003c\/p\u003e \u003cp\u003e\u003ci\u003eTest Your Understanding: Classical, Keynesian, and New Classical Models 247\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eAdditional Macroeconomic Models 248\u003c\/p\u003e \u003cp\u003eNew Keynesian Economics 248\u003c\/p\u003e \u003cp\u003eMonetarism 248\u003c\/p\u003e \u003cp\u003eSupply‐Side Economics 248\u003c\/p\u003e \u003cp\u003e\u003ci\u003eUp for Debate: Should Government’s Role in Influencing Economic Activity Be Reduced? 249\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eA Final Word on Macroeconomic Viewpoints 249\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 9.3: The World According to . . . 250\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eCritical Thinking Case 9: Does Anyone Care What Economists Think? 255\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 Households and Businesses: An Overview 257\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eOverview of Households 258\u003c\/p\u003e \u003cp\u003eHousehold Income and Expenditures 258\u003c\/p\u003e \u003cp\u003eGoals and Decision Making by Individuals 260\u003c\/p\u003e \u003cp\u003eMaximizing Economic Well‐Being 260\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 10.1: Family Gossip 262\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 10.2: You Decide 263\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eOverview of Business 264\u003c\/p\u003e \u003cp\u003eLegal Forms of Business 265\u003c\/p\u003e \u003cp\u003e\u003ci\u003eTest Your Understanding: The Price of Stock Shares 267\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eNumbers and Sizes of Businesses 267\u003c\/p\u003e \u003cp\u003eBusiness Ownership of Business 268\u003c\/p\u003e \u003cp\u003eGoals and Decisions of Business Firms 269\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 10.3: Two Profiles: Starbucks and Kraft Foods 270\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003eUp for Debate: Should Profitable Businesses Be Expected to Actively Participate in Improving Their Communities? 271\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eCritical Thinking Case 10: Time to Maximize 275\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 Benefits, Costs, and Maximization 277\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBalancing Benefits and Costs: the Individual 278\u003c\/p\u003e \u003cp\u003eDefining Benefits and Costs 278\u003c\/p\u003e \u003cp\u003eMeasuring Benefits and Costs 279\u003c\/p\u003e \u003cp\u003eMaximizing Satisfaction 282\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 11.1: Do It Yourself 285\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eGraphing Costs, Benefits, and Net Benefit 285\u003c\/p\u003e \u003cp\u003eBalancing Benefits and Costs: The Business 287\u003c\/p\u003e \u003cp\u003eDefining Benefits and Costs 287\u003c\/p\u003e \u003cp\u003eMeasuring Revenues and Costs 288\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 11.2: You Need an Economist 289\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eMaximizing Profit 290\u003c\/p\u003e \u003cp\u003eGraphing Costs, Revenues, and Profit 292\u003c\/p\u003e \u003cp\u003eSocial Benefits and Costs 292\u003c\/p\u003e \u003cp\u003e\u003ci\u003eTest Your Understanding: Maximizing Profit 294\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 11.3: The Real Cost of Smoking 295\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eMaximizing Society’s Net Benefit 295\u003c\/p\u003e \u003cp\u003ePublic Choice 297\u003c\/p\u003e \u003cp\u003e\u003ci\u003eUp for Debate: Should Drivers Be Banned from Using \u003c\/i\u003e\u003ci\u003eCell Phones While Operating a Vehicle? 298\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eMaximizing Behavior and the Voting Process 298\u003c\/p\u003e \u003cp\u003eCritical Thinking Case 11: A Spoonful of Sugar 304\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 Production and the Costs of Production 307\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eProduction Basics 308\u003c\/p\u003e \u003cp\u003eSectors and Industries 308\u003c\/p\u003e \u003cp\u003eMethods of Production 309\u003c\/p\u003e \u003cp\u003eEconomic Time, Production, and the Costs of Production 311\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 12.1: Do You Know a Modern‐Day Luddite? 312\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003eUp for Debate: Should the Same Cost Measures Used by Businesses Apply to Government and Nonprofits? 313\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eShort‐Run Costs 314\u003c\/p\u003e \u003cp\u003eTotal Costs 314\u003c\/p\u003e \u003cp\u003eUnit Costs 315\u003c\/p\u003e \u003cp\u003eThe Pattern of Short‐Run Costs 316\u003c\/p\u003e \u003cp\u003eThe Law of Diminishing Returns 319\u003c\/p\u003e \u003cp\u003e\u003ci\u003eTest Your Understanding: Calculating Costs and Averages 320\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 12.2: Are Wellness Programs Cost Effective? 322\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eLong‐Run Costs 322\u003c\/p\u003e \u003cp\u003eEconomies of Scale, Diseconomies of Scale, and Constant Returns to Scale 323\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 12.3: Too Big to Help 325\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eCritical Thinking Case 12: The Human Factor 330\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 13 Competition and Market Structures 331\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDefining a Market 332\u003c\/p\u003e \u003cp\u003eThe Market Structures 333\u003c\/p\u003e \u003cp\u003ePure Competition 334\u003c\/p\u003e \u003cp\u003eCharacteristics of Pure Competition 334\u003c\/p\u003e \u003cp\u003eBehavior of a Firm in Pure Competition 334\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 13.1: The Farmers’ Almanac: It’s a Necessity 338\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eIs There Pure Competition? 340\u003c\/p\u003e \u003cp\u003eMonopolistic Competition 342\u003c\/p\u003e \u003cp\u003eCharacteristics of Monopolistic Competition 342\u003c\/p\u003e \u003cp\u003eBehavior of a Firm in Monopolistic Competition 342\u003c\/p\u003e \u003cp\u003e\u003ci\u003eUp for Debate: Does Nonprice Competition Waste Resources? 346\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eOligopoly 347\u003c\/p\u003e \u003cp\u003eCharacteristics of Oligopoly 347\u003c\/p\u003e \u003cp\u003eBehavior of a Firm in an Oligopolistic Market 347\u003c\/p\u003e \u003cp\u003e\u003ci\u003eTest Your Understanding: Purely Competitive and Monopolistically Competitive Markets 348\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eMonopoly 350\u003c\/p\u003e \u003cp\u003eCharacteristics of Monopoly 350\u003c\/p\u003e \u003cp\u003eBehavior of a Monopolist 351\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 13.2: Take Me Out to the Ball Game 353\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 13.3: Patents Work—For a While 354\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eMarket Structures, The Consumer, and Efficiency 354\u003c\/p\u003e \u003cp\u003eCritical Thinking Case 13: The $800 Haircut 360\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 14 Government and the Markets 361\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAntitrust Enforcement 362\u003c\/p\u003e \u003cp\u003eThe Antitrust Laws 363\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 14.1: Cases Involving the Sherman Act 366\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 14.2: Cases Involving the Clayton Act and Its Amendments 369\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eGovernment Regulation 370\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 14.3: Antitrust Enforcement Up Close and Personal 371\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eThe Structure of Regulation 371\u003c\/p\u003e \u003cp\u003eIndustry Regulation 375\u003c\/p\u003e \u003cp\u003eSocial Regulation 377\u003c\/p\u003e \u003cp\u003e\u003ci\u003eTest Your Understanding: Government and Business 379\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eThe Performance of Regulation 379\u003c\/p\u003e \u003cp\u003e\u003ci\u003eUp for Debate: Is Government Intervention Reaching Too Far? 380\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eCritical Thinking Case 14: Eminent Domain: In the Public Interest or Not? 383\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 15 Labor Markets, Unions, and the Distribution of Income 385\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eLabor Markets: Demand 386\u003c\/p\u003e \u003cp\u003eThe Demand for Labor 387\u003c\/p\u003e \u003cp\u003eLabor Markets: Supply 390\u003c\/p\u003e \u003cp\u003e\u003ci\u003eTest Your Understanding: A Small Business Determines Its Demand for Employees 392\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eChanges and Modifications in Labor Markets 392\u003c\/p\u003e \u003cp\u003eChanges in Labor Demand and Supply 392\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 15.1: Go Green 395\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eModifications of the Labor Demand and Supply Model 396\u003c\/p\u003e \u003cp\u003eLabor Unions 399\u003c\/p\u003e \u003cp\u003eTypes of Unions and Union Membership 399\u003c\/p\u003e \u003cp\u003eCollective Bargaining 399\u003c\/p\u003e \u003cp\u003eCollective Bargaining and the Law 400\u003c\/p\u003e \u003cp\u003eThe Distribution of Income 401\u003c\/p\u003e \u003cp\u003eDifferences in Income 402\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 15.2: Making the Most of Intellectual Capital 404\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003ePoverty 404\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 15.3: Young and Homeless 407\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003eUp for Debate: Should There Be a Work Requirement for Those Seeking Public Assistance? 407\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eCritical Thinking Case 15: Income Distribution: Are the Shares of the Pie Fair? 412\u003c\/p\u003e \u003cp\u003eChapter 16 International Trade 413\u003c\/p\u003e \u003cp\u003eAn Overview of U.S. International Trade 414\u003c\/p\u003e \u003cp\u003eThe Size and Composition of U.S. Trade 414\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 16.1: A Sad Story 417\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eComparative Advantage and International Trade 418\u003c\/p\u003e \u003cp\u003eScarcity and Specialization 418\u003c\/p\u003e \u003cp\u003eThe Principle of Comparative Advantage 418\u003c\/p\u003e \u003cp\u003eFree Trade and Protectionism 420\u003c\/p\u003e \u003cp\u003e\u003ci\u003eTest Your Understanding: Comparative Advantage 421\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eTrade-Restricting Policies 421\u003c\/p\u003e \u003cp\u003eFree Trade Arguments 423\u003c\/p\u003e \u003cp\u003eProtectionist Arguments 423\u003c\/p\u003e \u003cp\u003eThe Real World of International Trade: Policies and Agreements 424\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 16.2: Gloria Flunks the Professor 425\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003eUp for Debate: Should Trade Be Restricted if It Results in Environmental Damage? 427\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eCritical Thinking Case 16: A Petition (by Frederic Bastiat, 1801–1850) 431\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 17 International Finance 433\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eExchanging Currencies 434\u003c\/p\u003e \u003cp\u003eExchange Rates 434\u003c\/p\u003e \u003cp\u003eThe Determination of Exchange Rates 434\u003c\/p\u003e \u003cp\u003eUnderstanding Foreign Exchange\u003c\/p\u003e \u003cp\u003eMarkets 437\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 17.1: Foreign Exchange Markets 438\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 17.2: Does a Lower‐Valued Dollar Help the Economy? 439\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003eTest Your Understanding: Changes in Exchange Rates 441\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eInternational Financial Transactions and Balances 442\u003c\/p\u003e \u003cp\u003eThe Current Account 442\u003c\/p\u003e \u003cp\u003e\u003ci\u003eApplication 17.3: A Prized Export 444\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eThe Financial Account 445\u003c\/p\u003e \u003cp\u003eChallenges to the International Financial System 445\u003c\/p\u003e \u003cp\u003eExternal Debt Issues 445\u003c\/p\u003e \u003cp\u003eMonetary Integration in Europe 446\u003c\/p\u003e \u003cp\u003e\u003ci\u003eUp for Debate: Euro‐Dreams 447\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eCritical Thinking Case 17: Helping Poor Countries 451\u003c\/p\u003e \u003cp\u003eGlossary 453\u003c\/p\u003e \u003cp\u003eAnswers to “Test Your Understanding” 461\u003c\/p\u003e \u003cp\u003eIndex 469\u003c\/p\u003e","brand":"John Wiley \u0026 Sons Inc","offers":[{"title":"Default Title","offer_id":49528842420567,"sku":"9781118949733","price":147.74,"currency_code":"GBP","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0817\/1739\/5799\/files\/9781118949733.jpg?v=1731873237","url":"https:\/\/bookcurl.com\/products\/economics-9781118949733","provider":"Book Curl","version":"1.0","type":"link"}