Principles of Microeconomics 3e

Preface

Welcome to Economics!

• Introduction
• What Is Economics, and Why Is It Important?
• Microeconomics and Macroeconomics
• How Economists Use Theories and Models to Understand Economic Issues
• How To Organize Economies: An Overview of Economic Systems
• Key Concepts and Summary
• Self-Check Questions 
• Review Questions
• Critical Thinking Questions

Choice in a World of Scarcity

• Introduction to Choice in a World of Scarcity
• How Individuals Make Choices Based on Their Budget Constraint
• The Production Possibilities Frontier and Social Choices
• Confronting Objections to the Economic Approach
• Key Concepts and Summary
• Self-Check Questions 
• Review
• Critical Thinking Questions
• Problems

Demand and Supply

• Introduction to Demand and Supply
• Demand, Supply, and Equilibrium in Markets for Goods and Services
• Shifts in Demand and Supply for Goods and Services
• Changes in Equilibrium Price and Quantity: The Four-Step Process
• Price Ceilings and Price Floors
• Demand, Supply, and Efficiency
• Key Concepts and Summary
• Self-Check Questions
• Review Questions
• Critical Thinking Questions
• Problems

Labor and Financial Markets 

• Introduction to Labor and Financial Markets
• Demand and Supply at Work in Labor Markets
• Demand and Supply in Financial Markets
• The Market System as an Efficient Mechanism for Information
• Key Concepts and Summary
• Self-Check Questions
• Review Questions
• Critical Thinking Questions
• Problems

Elasticity

• Introduction to Elasticity
• Price Elasticity of Demand and Price Elasticity of Supply
• Polar Cases of Elasticity and Constant Elasticity
• Elasticity and Pricing
• Elasticity in Areas Other Than Price
• Key Concepts and Summary
• Self-Check Questions
• Review Questions
• Critical Thinking Questions
• Problems

Consumer Choices

• Introduction to Consumer Choices
• Consumption Choices
• How Changes in Income and Prices Affect Consumption Choices
• Behavioral Economics: An Alternative Framework for Consumer Choice
• Key Concepts and Summary
• Self-Check Questions
• Review Question
• Critical Thinking Question
• Problems

Production, Costs, and Industry Structure

• Introduction to Production, Costs, and Industry Structure
• Explicit and Implicit Costs, and Accounting and Economic Profit
• Production in the Short Run
• Costs in the Short Run
• Production in the Long Run
• Costs in the Long Run
• Key Concepts and Summary
• Self-Check Questions
• Review Questions
• Critical Thinking Questions
• Problems

Perfect Competition

• Introduction to Perfect Competition
• Perfect Competition and Why It Matters
• How Perfectly Competitive Firms Make Output Decisions
• Entry and Exit Decisions in the Long Run
• Efficiency in Perfectly Competitive Markets
• Key Concepts and Summary
• Self-Check Questions
• Review Questions
• Critical Thinking Questions
• Problems

Monopoly

• Introduction to a Monopoly
• How Monopolies Form: Barriers to Entry
• How a Profit-Maximizing Monopoly Chooses Output and Price
• Key Concepts and Summary
• Self-Check Questions
• Review Questions
• Critical Thinking Questions
• Problems

Monopolistic Competition and Oligopoly

• Introduction to Monopolistic Competition and Oligopoly
• Monopolistic Competition
• Oligopoly
• Key Concepts and Summary
• Self-Check Questions
• Review Questions
• Critical Thinking Questions
• Problems

Monopoly and Antitrust Policy

• Introduction to Monopoly and Antitrust Policy
• Corporate Mergers
• Regulating Anticompetitive Behavior
• Regulating Natural Monopolies
• The Great Deregulation Experiment
• Key Concepts and Summary
• Self-Check Questions
• Review Questions
• Critical Thinking Questions
• Problems

Environmental Protection and Negative Externalities

• Introduction to Environmental Protection and Negative Externalities
• The Economics of Pollution
• Command-and-Control Regulation
• Market-Oriented Environmental Tools
• The Benefits and Costs of U.S. Environmental Laws
• International Environmental Issues
• The Tradeoff between Economic Output and Environmental Protection
• Key Concepts and Summary
• Self-Check Questions
• Review Questions
• Critical Thinking Questions
• Problems

Positive Externalities and Public Goods

• Introduction to Positive Externalities and Public Goods
• Investments in Innovation
• How Governments Can Encourage Innovation
• Public Goods
• Key Concepts and Summary
• Self-Check Questions
• Review Questions
• Critical Thinking Questions
• Problems

Labor Markets and Income

• Introduction to Labor Markets and Income
• The Theory of Labor Markets
• Wages and Employment in an Imperfectly Competitive Labor Market
• Market Power on the Supply Side of Labor Markets: Unions
• Bilateral Monopoly
• Employment Discrimination
• Immigration
• Key Concepts and Summary
• Self-Check Questions
• Review Questions
• Critical Thinking Questions

Poverty and Economic Inequality

• Introduction to Poverty and Economic Inequality
• Drawing the Poverty Line
• The Poverty Trap
• The Safety Net
• Income Inequality: Measurement and Causes
• Government Policies to Reduce Income Inequality
• Key Concepts and Summary
• Self-Check Question
• Review Questions
• Critical Thinking Questions
• Problems

Information, Risk, and Insurance

• Introduction to Information, Risk, and Insurance
• The Problem of Imperfect Information and Asymmetric Information
• Insurance and Imperfect Information
• Key Concepts and Summary
• Self-Check Questions
• Review Questions
• Critical Thinking Questions
• Problems

Financial Markets

• Introduction to Financial Markets
• How Businesses Raise Financial Capital
• How Households Supply Financial Capital
• How to Accumulate Personal Wealth
• Key Concepts and Summary
• Self-Check Questions
• Review Questions
• Critical Thinking Questions
• Problems

Public Economy

• Introduction to Public Economy
• Voter Participation and Costs of Elections
• Special Interest Politics
• Flaws in the Democratic System of Government
• Key Concepts and Summary
• Self-Check Questions
• Review Questions
• Critical Thinking Questions
• Problems

International Trade

• Introduction to International Trade
• Absolute and Comparative Advantage
• What Happens When a Country Has an Absolute Advantage in All Goods
• Intra-industry Trade between Similar Economies
• The Benefits of Reducing Barriers to International Trade
• Key Concepts and Summary
• Self-Check Questions
• Review Questions
• Critical Thinking Questions
• Problems

Globalization and Protectionism

• Introduction to Globalization and Protectionism
• Protectionism: An Indirect Subsidy from Consumers to Producers
• International Trade and Its Effects on Jobs, Wages, and Working Conditions
• Arguments in Support of Restricting Imports
• How Governments Enact Trade Policy: Globally, Regionally, and Nationally
• The Tradeoffs of Trade Policy
• Key Concepts and Summary
• Self-Check Questions
• Review Questions
• Critical Thinking Questions
• Problems

Appendix A: The Use of Mathematics in Principles of Economics

• Algebraic Models
• Growth Rates
• Displaying Data Graphically and Interpreting the Graph
• Key Concepts and Summary
• Review Questions

Appendix B: Indifference Curves

• What Is an Indifference Curve?
• Utility-Maximizing with Indifference Curves
• Changes in Income
• Responses to Price Changes: Substitution and Income Effects
• Indifference Curves with Labor-Leisure and Intertemporal Choices
• Sketching Substitution and Income Effects
• Key Concepts and Summary
• Review Questions

Appendix C Present Discounted Value

• Applying Present Discounted Value to a Stock
• Applying Present Discounted Value to a Bond
• Other Applications