PART I INTRODUCTION: THINKING LIKE AN ECONOMIST
1 Economics and Economic Reasoning 4
2 The Production Possibility Model, Trade, and Globalization 24
Appendix: Graphish: The Language of Graphs 42
3 Economic Institutions 51
Appendix: The History of Economic Systems 71
4 Supply and Demand 77
5 Using Supply and Demand 100
Appendix: Algebraic Representation of Supply, Demand, and Equilibrium 116
PART II MICROECONOMICS
I THE POWER OF TRADITIONAL ECONOMIC MODELS
6 Describing Supply and Demand: Elasticities 122
7 Taxation and Government Intervention 142
8 Market Failure versus Government Failure 162
8W Politics and Economics: The Case of Agricultural Markets 183
II INTERNATIONAL ECONOMIC POLICY ISSUES
9 Comparative Advantage, Exchange Rates, and Globalization 184
10 International Trade Policy 203
III PRODUCTION AND COST ANALYSIS
11 Production and Cost Analysis I 224
12 Production and Cost Analysis II 243
Appendix: Isocost/Isoquant Analysis 260
IV MARKET STRUCTURE
13 Perfect Competition 265
14 Monopoly and Monopolistic Competition 285
Appendix: The Algebra of Competitive and Monopolistic Firms 310
15 Oligopoly and Antitrust Policy 312
16 Real-World Competition and Technology 331
V FACTOR MARKETS
17 Work and the Labor Market 351
Appendix: Derived Demand 375
17W Nonwage and Asset Income: Rents, Profits, and Interest 381
18 Who Gets What? The Distribution of Income 382
VI CHOICE AND DECISION MAKING
19 The Logic of Individual Choice: The Foundation of Supply and Demand 407
Appendix: Indifference Curve Analysis 427
20 Game Theory, Strategic Decision Making, and Behavioral Economics 432
Appendix: Game Theory and Oligopoly 452
VII MODERN ECONOMIC THINKING
21 Thinking Like a Modern Economist 457
22 Behavioral Economics and Modern Economic Policy 483
23 Microeconomic Policy, Economic Reasoning, and Beyond 501
PART III MACROECONOMICS
I MACROECONOMIC BASICS
24 Economic Growth, Business Cycles, and Unemployment 522
25 Measuring and Describing the Aggregate Economy 543
II POLICY MODELS
26 The Keynesian Short-Run Policy Model: Demand-Side Policies 567
26W The Multiplier Model 593
27 The Classical Long-Run Policy Model: Growth and Supply-Side Policies 594
III FINANCE, MONEY, AND THE ECONOMY
28 The Financial Sector and the Economy 615
Appendix: A Closer Look at Financial Assets and Liabilities 636
29 Monetary Policy 642
30 Financial Crises, Panics, and Unconventional Monetary Policy 664
IV TAXES, BUDGETS, AND FISCAL POLICY
31 Deficits and Debt: The Austerity Debate 684
32 The Fiscal Policy Dilemma 700
V MACROECONOMIC PROBLEMS
33 Jobs and Unemployment 719
34 Inflation, Deflation, and Macro Policy 737
VI INTERNATIONAL MACROECONOMIC POLICY ISSUES
35 International Financial Policy 759
Appendix: History of Exchange Rate Systems 783
36 Macro Policy in a Global Setting 786
37 Structural Stagnation and Globalization 801
Appendix: Creating a Targeted Safety Net to Help Least Well Off 823
38 Macro Policy in Developing Countries 825
