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Index
Cover page Economics Demystified® Copyright Page Dedication Page About the Authors Contents Introduction Chapter 1 Introduction to Economics
Scarcity Four Economic Resources Opportunity Cost Rational Decision Making Marginal Analysis Economic Models Appendix: Math and Graph Review
Chapter 2 Utility and Consumer Choice
Utility Functions and Preferences Principle of Diminishing Marginal Utility Budget Constraints Constrained Utility Maximization Spending the Marginal Dollar
Chapter 3 Demand
The Law of Demand Demand Curves Determinants of Demand Price Elasticity of Demand Cross-Price and Income Elasticities of Demand
Chapter 4 Production and Cost
The Inputs Used in Production—Fixed and Variable The Short Run and the Long Run Short-Run Production Diminishing Marginal Product Costs in the Short Run Increasing Marginal Cost
Chapter 5 Supply
The Marginal Cost Curve The Law of Supply Supply Curves Determinants of Supply The Price Elasticity of Supply
Chapter 6 Market Equilibrium
Competitive Markets Equilibrium Changes to Equilibrium Efficiency in Competitive Markets Price Controls Excise Taxes
Chapter 7 Perfect Competition
Key Assumptions of Perfect Competition Revenue and Costs Profit Maximization, Mathematically Accounting Profit and Economic Profit Profit Maximization, Graphically Economic Profit and Loss in the Short Run Long-Run Adjustments Efficiency
Chapter 8 Monopoly
Key Assumptions Demand, Marginal Revenue, and Elasticity Profit Maximization Deadweight Loss Government Regulation Price Discrimination Appendix
Chapter 9 Imperfect Competition: Monopolistic Competition and Oligopoly
Key Assumptions of Monopolistic Competition Short-Run Equilibrium in Monopolistic Competition Long-Run Equilibrium in Monopolistic Competition Oligopoly Key Assumptions of Oligopoly Game Theory
Chapter 10 Factor Markets
The Choice Between Labor and Leisure An Individual’s Labor Supply Labor Demand How Wages Are Determined Least-Cost Hiring of Two Inputs
Chapter 11 Introduction to Macroeconomics
A Model of the Economy as a Whole: The Circular Flow Diagram Measuring the State of the Economy Counting GDP: The Expenditures Approach Counting GDP: The Income Approach GNP Versus GDP—What’s the Difference?
Chapter 12 Unemployment
What Is Unemployment? The Labor Force Measuring Unemployment Two Types of Unemployment The Idea of Full Employment Underemployment and Discouraged Workers Theories of Unemployment
Chapter 13 Inflation
Introduction to Inflation The Consumer Price Index Real and Nominal Dollars The Consequences of Inflation Deflation Versus Disinflation Employment and Inflation
Chapter 14 The Model of Aggregate Demand and Aggregate Supply
Real GDP and Nominal GDP Understanding the Model of Aggregate Demand and Aggregate Supply Aggregate Demand (AD) Aggregate Supply (SRAS and LRAS) Equilibrium in the Macroeconomy Economic Growth
Chapter 15 Money and the Money Market
The Functions and Types of Money The Money Supply Fractional Reserves The Role of a Central Bank The Money Market
Chapter 16 Fiscal Policy and Monetary Policy
The Interest Rate The Classical Theory of Economics Keynesian Theory Fiscal Policy Difficulties with Fiscal Policy Monetary Policy Problems with Fiscal and Monetary Policy Applying Policy Actions to Economic Fluctuations
Chapter 17 The Global Economy
Production Possibilities Comparative Advantage and Gains from Trade Foreign Exchange Markets Currency Appreciation and Depreciation How Do Exchange Rates Affect Aggregate Demand? Balance of Payments Foreign Currency and Economic Policy Trade Barriers
Chapter 18 Public Goods and the Environment
Private and Public Goods Providing Public Goods Positive Externalities Negative Externalities Government Remedies for Externalities How Can Economics Reduce Pollution?
Chapter 19 Health Economics and the Market for Health Insurance
Introduction to Health Economics Healthcare Markets The Market for Insurance Healthcare Policy Reform
Chapter 20 Economic Research
Introduction to Research in Economics The Research Process
Final Exam Answers to Quizzes and Final Exam Index
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