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Principles of Economics

Index

Principles of EconomicsIndex
  1. Preface
  2. 1 Welcome to Economics!
    1. Introduction
    2. 1.1 What Is Economics, and Why Is It Important?
    3. 1.2 Microeconomics and Macroeconomics
    4. 1.3 How Economists Use Theories and Models to Understand Economic Issues
    5. 1.4 How Economies Can Be Organized: An Overview of Economic Systems
    6. Key Terms
    7. Key Concepts and Summary
    8. Self-Check Questions
    9. Review Questions
    10. Critical Thinking Questions
  3. 2 Choice in a World of Scarcity
    1. Introduction to Choice in a World of Scarcity
    2. 2.1 How Individuals Make Choices Based on Their Budget Constraint
    3. 2.2 The Production Possibilities Frontier and Social Choices
    4. 2.3 Confronting Objections to the Economic Approach
    5. Key Terms
    6. Key Concepts and Summary
    7. Self-Check Questions
    8. Review Questions
    9. Critical Thinking Questions
    10. Problems
  4. 3 Demand and Supply
    1. Introduction to Demand and Supply
    2. 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
    3. 3.2 Shifts in Demand and Supply for Goods and Services
    4. 3.3 Changes in Equilibrium Price and Quantity: The Four-Step Process
    5. 3.4 Price Ceilings and Price Floors
    6. 3.5 Demand, Supply, and Efficiency
    7. Key Terms
    8. Key Concepts and Summary
    9. Self-Check Questions
    10. Review Questions
    11. Critical Thinking Questions
    12. Problems
  5. 4 Labor and Financial Markets
    1. Introduction to Labor and Financial Markets
    2. 4.1 Demand and Supply at Work in Labor Markets
    3. 4.2 Demand and Supply in Financial Markets
    4. 4.3 The Market System as an Efficient Mechanism for Information
    5. Key Terms
    6. Key Concepts and Summary
    7. Self-Check Questions
    8. Review Questions
    9. Critical Thinking Questions
    10. Problems
  6. 5 Elasticity
    1. Introduction to Elasticity
    2. 5.1 Price Elasticity of Demand and Price Elasticity of Supply
    3. 5.2 Polar Cases of Elasticity and Constant Elasticity
    4. 5.3 Elasticity and Pricing
    5. 5.4 Elasticity in Areas Other Than Price
    6. Key Terms
    7. Key Concepts and Summary
    8. Self-Check Questions
    9. Review Questions
    10. Critical Thinking Questions
    11. Problems
  7. 6 Consumer Choices
    1. Introduction to Consumer Choices
    2. 6.1 Consumption Choices
    3. 6.2 How Changes in Income and Prices Affect Consumption Choices
    4. 6.3 Labor-Leisure Choices
    5. 6.4 Intertemporal Choices in Financial Capital Markets
    6. Key Terms
    7. Key Concepts and Summary
    8. Self-Check Questions
    9. Review Questions
    10. Critical Thinking Questions
    11. Problems
  8. 7 Cost and Industry Structure
    1. Introduction to Cost and Industry Structure
    2. 7.1 Explicit and Implicit Costs, and Accounting and Economic Profit
    3. 7.2 The Structure of Costs in the Short Run
    4. 7.3 The Structure of Costs in the Long Run
    5. Key Terms
    6. Key Concepts and Summary
    7. Self-Check Questions
    8. Review Questions
    9. Critical Thinking Questions
    10. Problems
  9. 8 Perfect Competition
    1. Introduction to Perfect Competition
    2. 8.1 Perfect Competition and Why It Matters
    3. 8.2 How Perfectly Competitive Firms Make Output Decisions
    4. 8.3 Entry and Exit Decisions in the Long Run
    5. 8.4 Efficiency in Perfectly Competitive Markets
    6. Key Terms
    7. Key Concepts and Summary
    8. Self-Check Questions
    9. Review Questions
    10. Critical Thinking Questions
    11. Problems
  10. 9 Monopoly
    1. Introduction to a Monopoly
    2. 9.1 How Monopolies Form: Barriers to Entry
    3. 9.2 How a Profit-Maximizing Monopoly Chooses Output and Price
    4. Key Terms
    5. Key Concepts and Summary
    6. Self-Check Questions
    7. Review Questions
    8. Critical Thinking Questions
    9. Problems
  11. 10 Monopolistic Competition and Oligopoly
    1. Introduction to Monopolistic Competition and Oligopoly
    2. 10.1 Monopolistic Competition
    3. 10.2 Oligopoly
    4. Key Terms
    5. Key Concepts and Summary
    6. Self-Check Questions
    7. Review Questions
    8. Critical Thinking Questions
    9. Problems
  12. 11 Monopoly and Antitrust Policy
    1. Introduction to Monopoly and Antitrust Policy
    2. 11.1 Corporate Mergers
    3. 11.2 Regulating Anticompetitive Behavior
    4. 11.3 Regulating Natural Monopolies
    5. 11.4 The Great Deregulation Experiment
    6. Key Terms
    7. Key Concepts and Summary
    8. Self-Check Questions
    9. Review Questions
    10. Critical Thinking Questions
    11. Problems
  13. 12 Environmental Protection and Negative Externalities
    1. Introduction to Environmental Protection and Negative Externalities
    2. 12.1 The Economics of Pollution
    3. 12.2 Command-and-Control Regulation
    4. 12.3 Market-Oriented Environmental Tools
    5. 12.4 The Benefits and Costs of U.S. Environmental Laws
    6. 12.5 International Environmental Issues
    7. 12.6 The Tradeoff between Economic Output and Environmental Protection
    8. Key Terms
    9. Key Concepts and Summary
    10. Self-Check Questions
    11. Review Questions
    12. Critical Thinking Questions
    13. Problems
  14. 13 Positive Externalities and Public Goods
    1. Introduction to Positive Externalities and Public Goods
    2. 13.1 Why the Private Sector Under Invests in Innovation
    3. 13.2 How Governments Can Encourage Innovation
    4. 13.3 Public Goods
    5. Key Terms
    6. Key Concepts and Summary
    7. Self-Check Questions
    8. Review Questions
    9. Critical Thinking Questions
    10. Problems
  15. 14 Poverty and Economic Inequality
    1. Introduction to Poverty and Economic Inequality
    2. 14.1 Drawing the Poverty Line
    3. 14.2 The Poverty Trap
    4. 14.3 The Safety Net
    5. 14.4 Income Inequality: Measurement and Causes
    6. 14.5 Government Policies to Reduce Income Inequality
    7. Key Terms
    8. Key Concepts and Summary
    9. Self-Check Questions
    10. Review Questions
    11. Critical Thinking Questions
    12. Problems
  16. 15 Issues in Labor Markets: Unions, Discrimination, Immigration
    1. Introduction to Issues in Labor Markets: Unions, Discrimination, Immigration
    2. 15.1 Unions
    3. 15.2 Employment Discrimination
    4. 15.3 Immigration
    5. Key Terms
    6. Key Concepts and Summary
    7. Self-Check Questions
    8. Review Questions
    9. Critical Thinking Questions
  17. 16 Information, Risk, and Insurance
    1. Introduction to Information, Risk, and Insurance
    2. 16.1 The Problem of Imperfect Information and Asymmetric Information
    3. 16.2 Insurance and Imperfect Information
    4. Key Terms
    5. Key Concepts and Summary
    6. Self-Check Questions
    7. Review Questions
    8. Critical Thinking Questions
    9. Problems
  18. 17 Financial Markets
    1. Introduction to Financial Markets
    2. 17.1 How Businesses Raise Financial Capital
    3. 17.2 How Households Supply Financial Capital
    4. 17.3 How to Accumulate Personal Wealth
    5. Key Terms
    6. Key Concepts and Summary
    7. Self-Check Questions
    8. Review Questions
    9. Critical Thinking Questions
    10. Problems
  19. 18 Public Economy
    1. Introduction to Public Economy
    2. 18.1 Voter Participation and Costs of Elections
    3. 18.2 Special Interest Politics
    4. 18.3 Flaws in the Democratic System of Government
    5. Key Terms
    6. Key Concepts and Summary
    7. Self-Check Questions
    8. Review Questions
    9. Critical Thinking Questions
    10. Problems
  20. 19 The Macroeconomic Perspective
    1. Introduction to the Macroeconomic Perspective
    2. 19.1 Measuring the Size of the Economy: Gross Domestic Product
    3. 19.2 Adjusting Nominal Values to Real Values
    4. 19.3 Tracking Real GDP over Time
    5. 19.4 Comparing GDP among Countries
    6. 19.5 How Well GDP Measures the Well-Being of Society
    7. Key Terms
    8. Key Concepts and Summary
    9. Self-Check Questions
    10. Review Questions
    11. Critical Thinking Questions
    12. Problems
  21. 20 Economic Growth
    1. Introduction to Economic Growth
    2. 20.1 The Relatively Recent Arrival of Economic Growth
    3. 20.2 Labor Productivity and Economic Growth
    4. 20.3 Components of Economic Growth
    5. 20.4 Economic Convergence
    6. Key Terms
    7. Key Concepts and Summary
    8. Self-Check Questions
    9. Review Questions
    10. Critical Thinking Questions
    11. Problems
  22. 21 Unemployment
    1. Introduction to Unemployment
    2. 21.1 How the Unemployment Rate is Defined and Computed
    3. 21.2 Patterns of Unemployment
    4. 21.3 What Causes Changes in Unemployment over the Short Run
    5. 21.4 What Causes Changes in Unemployment over the Long Run
    6. Key Terms
    7. Key Concepts and Summary
    8. Self-Check Questions
    9. Review Questions
    10. Critical Thinking Questions
    11. Problems
  23. 22 Inflation
    1. Introduction to Inflation
    2. 22.1 Tracking Inflation
    3. 22.2 How Changes in the Cost of Living are Measured
    4. 22.3 How the U.S. and Other Countries Experience Inflation
    5. 22.4 The Confusion Over Inflation
    6. 22.5 Indexing and Its Limitations
    7. Key Terms
    8. Key Concepts and Summary
    9. Self-Check Questions
    10. Review Questions
    11. Critical Thinking Questions
    12. Problems
  24. 23 The International Trade and Capital Flows
    1. Introduction to the International Trade and Capital Flows
    2. 23.1 Measuring Trade Balances
    3. 23.2 Trade Balances in Historical and International Context
    4. 23.3 Trade Balances and Flows of Financial Capital
    5. 23.4 The National Saving and Investment Identity
    6. 23.5 The Pros and Cons of Trade Deficits and Surpluses
    7. 23.6 The Difference between Level of Trade and the Trade Balance
    8. Key Terms
    9. Key Concepts and Summary
    10. Self-Check Questions
    11. Review Questions
    12. Critical Thinking Questions
    13. Problems
  25. 24 The Aggregate Demand/Aggregate Supply Model
    1. Introduction to the Aggregate Demand/Aggregate Supply Model
    2. 24.1 Macroeconomic Perspectives on Demand and Supply
    3. 24.2 Building a Model of Aggregate Demand and Aggregate Supply
    4. 24.3 Shifts in Aggregate Supply
    5. 24.4 Shifts in Aggregate Demand
    6. 24.5 How the AD/AS Model Incorporates Growth, Unemployment, and Inflation
    7. 24.6 Keynes’ Law and Say’s Law in the AD/AS Model
    8. Key Terms
    9. Key Concepts and Summary
    10. Self-Check Questions
    11. Review Questions
    12. Critical Thinking Questions
    13. Problems
  26. 25 The Keynesian Perspective
    1. Introduction to the Keynesian Perspective
    2. 25.1 Aggregate Demand in Keynesian Analysis
    3. 25.2 The Building Blocks of Keynesian Analysis
    4. 25.3 The Phillips Curve
    5. 25.4 The Keynesian Perspective on Market Forces
    6. Key Terms
    7. Key Concepts and Summary
    8. Self-Check Questions
    9. Review Questions
    10. Critical Thinking Questions
  27. 26 The Neoclassical Perspective
    1. Introduction to the Neoclassical Perspective
    2. 26.1 The Building Blocks of Neoclassical Analysis
    3. 26.2 The Policy Implications of the Neoclassical Perspective
    4. 26.3 Balancing Keynesian and Neoclassical Models
    5. Key Terms
    6. Key Concepts and Summary
    7. Self-Check Questions
    8. Review Questions
    9. Critical Thinking Questions
    10. Problems
  28. 27 Money and Banking
    1. Introduction to Money and Banking
    2. 27.1 Defining Money by Its Functions
    3. 27.2 Measuring Money: Currency, M1, and M2
    4. 27.3 The Role of Banks
    5. 27.4 How Banks Create Money
    6. Key Terms
    7. Key Concepts and Summary
    8. Self-Check Questions
    9. Review Questions
    10. Critical Thinking Questions
    11. Problems
  29. 28 Monetary Policy and Bank Regulation
    1. Introduction to Monetary Policy and Bank Regulation
    2. 28.1 The Federal Reserve Banking System and Central Banks
    3. 28.2 Bank Regulation
    4. 28.3 How a Central Bank Executes Monetary Policy
    5. 28.4 Monetary Policy and Economic Outcomes
    6. 28.5 Pitfalls for Monetary Policy
    7. Key Terms
    8. Key Concepts and Summary
    9. Self-Check Questions
    10. Review Questions
    11. Critical Thinking Questions
    12. Problems
  30. 29 Exchange Rates and International Capital Flows
    1. Introduction to Exchange Rates and International Capital Flows
    2. 29.1 How the Foreign Exchange Market Works
    3. 29.2 Demand and Supply Shifts in Foreign Exchange Markets
    4. 29.3 Macroeconomic Effects of Exchange Rates
    5. 29.4 Exchange Rate Policies
    6. Key Terms
    7. Key Concepts and Summary
    8. Self-Check Questions
    9. Review Questions
    10. Critical Thinking Questions
    11. Problems
  31. 30 Government Budgets and Fiscal Policy
    1. Introduction to Government Budgets and Fiscal Policy
    2. 30.1 Government Spending
    3. 30.2 Taxation
    4. 30.3 Federal Deficits and the National Debt
    5. 30.4 Using Fiscal Policy to Fight Recession, Unemployment, and Inflation
    6. 30.5 Automatic Stabilizers
    7. 30.6 Practical Problems with Discretionary Fiscal Policy
    8. 30.7 The Question of a Balanced Budget
    9. Key Terms
    10. Key Concepts and Summary
    11. Self-Check Questions
    12. Review Questions
    13. Critical Thinking Questions
    14. Problems
  32. 31 The Impacts of Government Borrowing
    1. Introduction to the Impacts of Government Borrowing
    2. 31.1 How Government Borrowing Affects Investment and the Trade Balance
    3. 31.2 Fiscal Policy, Investment, and Economic Growth
    4. 31.3 How Government Borrowing Affects Private Saving
    5. 31.4 Fiscal Policy and the Trade Balance
    6. Key Terms
    7. Key Concepts and Summary
    8. Self-Check Questions
    9. Review Questions
    10. Critical Thinking Questions
    11. Problems
  33. 32 Macroeconomic Policy Around the World
    1. Introduction to Macroeconomic Policy around the World
    2. 32.1 The Diversity of Countries and Economies across the World
    3. 32.2 Improving Countries’ Standards of Living
    4. 32.3 Causes of Unemployment around the World
    5. 32.4 Causes of Inflation in Various Countries and Regions
    6. 32.5 Balance of Trade Concerns
    7. Key Terms
    8. Key Concepts and Summary
    9. Self-Check Questions
    10. Review Questions
    11. Critical Thinking Questions
    12. Problems
  34. 33 International Trade
    1. Introduction to International Trade
    2. 33.1 Absolute and Comparative Advantage
    3. 33.2 What Happens When a Country Has an Absolute Advantage in All Goods
    4. 33.3 Intra-industry Trade between Similar Economies
    5. 33.4 The Benefits of Reducing Barriers to International Trade
    6. Key Terms
    7. Key Concepts and Summary
    8. Self-Check Questions
    9. Review Questions
    10. Critical Thinking Questions
    11. Problems
  35. 34 Globalization and Protectionism
    1. Introduction to Globalization and Protectionism
    2. 34.1 Protectionism: An Indirect Subsidy from Consumers to Producers
    3. 34.2 International Trade and Its Effects on Jobs, Wages, and Working Conditions
    4. 34.3 Arguments in Support of Restricting Imports
    5. 34.4 How Trade Policy Is Enacted: Globally, Regionally, and Nationally
    6. 34.5 The Tradeoffs of Trade Policy
    7. Key Terms
    8. Key Concepts and Summary
    9. Self-Check Questions
    10. Review Questions
    11. Critical Thinking Questions
    12. Problems
  36. A | The Use of Mathematics in Principles of Economics
  37. B | Indifference Curves
  38. C | Present Discounted Value
  39. The Expenditure-Output Model
  40. Answer Key
    1. Chapter 1
    2. Chapter 2
    3. Chapter 3
    4. Chapter 4
    5. Chapter 5
    6. Chapter 6
    7. Chapter 7
    8. Chapter 8
    9. Chapter 9
    10. Chapter 10
    11. Chapter 11
    12. Chapter 12
    13. Chapter 13
    14. Chapter 14
    15. Chapter 15
    16. Chapter 16
    17. Chapter 17
    18. Chapter 18
    19. Chapter 19
    20. Chapter 20
    21. Chapter 21
    22. Chapter 22
    23. Chapter 23
    24. Chapter 24
    25. Chapter 25
    26. Chapter 26
    27. Chapter 27
    28. Chapter 28
    29. Chapter 29
    30. Chapter 30
    31. Chapter 31
    32. Chapter 32
    33. Chapter 33
    34. Chapter 34
  41. References
  42. Index
Symbols
401(k)6.4 Intertemporal Choices in Financial Capital Markets, 22.4 The Confusion Over Inflation
A
A.W. Phillips25.3 The Phillips Curve
AARP18.2 Special Interest Politics
Abhijit Bannerjee32.2 Improving Countries’ Standards of Living
Abraham García20.3 Components of Economic Growth
absolute advantage33.1 Absolute and Comparative Advantage
Accounting profit7.1 Explicit and Implicit Costs, and Accounting and Economic Profit, 10.1 Monopolistic Competition
acquisition11.1 Corporate Mergers
actual rate of return17.2 How Households Supply Financial Capital
Adam Smith1.1 What Is Economics, and Why Is It Important?, 2.3 Confronting Objections to the Economic Approach, 10.2 Oligopoly, 24.1 Macroeconomic Perspectives on Demand and Supply
adaptive expectations26.1 The Building Blocks of Neoclassical Analysis
additional external costs12.1 The Economics of Pollution
adjustable-rate mortgage (ARM)22.5 Indexing and Its Limitations
Adverse selection16.2 Insurance and Imperfect Information
adverse selection of wage cuts argument21.3 What Causes Changes in Unemployment over the Short Run
Affirmative action15.2 Employment Discrimination
Affordable Care Act (ACA)Introduction to Information, Risk, and Insurance, 16.2 Insurance and Imperfect Information, 18.2 Special Interest Politics
Age Discrimination in Employment Act15.2 Employment Discrimination
aggregate demandIntroduction to the Aggregate Demand/Aggregate Supply Model, 25.1 Aggregate Demand in Keynesian Analysis, 26.1 The Building Blocks of Neoclassical Analysis, 26.2 The Policy Implications of the Neoclassical Perspective, 26.2 The Policy Implications of the Neoclassical Perspective, 28.4 Monetary Policy and Economic Outcomes, 28.5 Pitfalls for Monetary Policy, 29.3 Macroeconomic Effects of Exchange Rates, 30.4 Using Fiscal Policy to Fight Recession, Unemployment, and Inflation, 32.3 Causes of Unemployment around the World, The Expenditure-Output Model
aggregate demand (AD)Introduction to the Macroeconomic Perspective, 24.2 Building a Model of Aggregate Demand and Aggregate Supply
aggregate demand (AD) curve24.2 Building a Model of Aggregate Demand and Aggregate Supply
aggregate demand/aggregate supply (AD/AS)Introduction to Money and Banking
aggregate demand/aggregate supply model24.2 Building a Model of Aggregate Demand and Aggregate Supply, 26.1 The Building Blocks of Neoclassical Analysis
aggregate expenditure functionThe Expenditure-Output Model
aggregate expenditure lineThe Expenditure-Output Model
aggregate expenditure scheduleThe Expenditure-Output Model
aggregate expendituresThe Expenditure-Output Model
aggregate production function20.2 Labor Productivity and Economic Growth, 20.3 Components of Economic Growth, 20.4 Economic Convergence
aggregate supplyIntroduction to the Aggregate Demand/Aggregate Supply Model, 26.1 The Building Blocks of Neoclassical Analysis, 30.4 Using Fiscal Policy to Fight Recession, Unemployment, and Inflation
aggregate supply (AS)Introduction to the Macroeconomic Perspective, 24.2 Building a Model of Aggregate Demand and Aggregate Supply
aggregate supply (AS) curve24.2 Building a Model of Aggregate Demand and Aggregate Supply
aggregate supply curve26.2 The Policy Implications of the Neoclassical Perspective
Agriculture and Food Research Initiative (AFRI)13.2 How Governments Can Encourage Innovation
Aid to Families with Dependent Children (AFDC)14.3 The Safety Net
Alexander Gerschenkron20.4 Economic Convergence
Alfred Marshall3.5 Demand, Supply, and Efficiency
Allocative efficiency2.2 The Production Possibilities Frontier and Social Choices, 8.4 Efficiency in Perfectly Competitive Markets, 9.2 How a Profit-Maximizing Monopoly Chooses Output and Price, 12.6 The Tradeoff between Economic Output and Environmental Protection
American Federation of State15.1 Unions
American Recovery and Reinvestment Act of 200925.2 The Building Blocks of Keynesian Analysis
Anthony Downs18.1 Voter Participation and Costs of Elections
Anti-dumping laws34.3 Arguments in Support of Restricting Imports
Antitrust Division of the Justice Department10.2 Oligopoly
antitrust laws11.1 Corporate Mergers
appreciating29.1 How the Foreign Exchange Market Works
arbitrage29.2 Demand and Supply Shifts in Foreign Exchange Markets
Asian Financial Crisis32.5 Balance of Trade Concerns
asset27.3 The Role of Banks
asset-liability time mismatch27.3 The Role of Banks
assets28.2 Bank Regulation
asymmetric information16.1 The Problem of Imperfect Information and Asymmetric Information
automatic stabilizers30.5 Automatic Stabilizers, 32.3 Causes of Unemployment around the World
average cost curve11.3 Regulating Natural Monopolies
average profit7.2 The Structure of Costs in the Short Run
Average total cost7.2 The Structure of Costs in the Short Run
Average variable cost7.2 The Structure of Costs in the Short Run
B
backward-bending supply curve for labor6.3 Labor-Leisure Choices
balance of payments23.3 Trade Balances and Flows of Financial Capital
balance of tradeIntroduction to the International Trade and Capital Flows, 23.6 The Difference between Level of Trade and the Trade Balance, 29.4 Exchange Rate Policies
balance sheet27.3 The Role of Banks
balanced budget30.1 Government Spending, 30.7 The Question of a Balanced Budget
bank capital27.3 The Role of Banks, 28.2 Bank Regulation
Bank regulation28.2 Bank Regulation
bank run28.2 Bank Regulation
banking system27.2 Measuring Money: Currency, M1, and M2
bankrupt29.3 Macroeconomic Effects of Exchange Rates
bar graphAppendix A The Use of Mathematics in Principles of Economics
Barriers to entry9.1 How Monopolies Form: Barriers to Entry
Barter27.1 Defining Money by Its Functions
base year22.1 Tracking Inflation
basic quantity equation of money28.5 Pitfalls for Monetary Policy
basket of goods and services22.1 Tracking Inflation
behavioral economics6.4 Intertemporal Choices in Financial Capital Markets
behavioral economists16.1 The Problem of Imperfect Information and Asymmetric Information
biodiversity12.5 International Environmental Issues
Bipartisan Campaign Reform Act (BCRA)18.1 Voter Participation and Costs of Elections
bond17.1 How Businesses Raise Financial Capital
bond yield17.2 How Households Supply Financial Capital
bondholder17.1 How Businesses Raise Financial Capital
bonds17.2 How Households Supply Financial Capital, 22.5 Indexing and Its Limitations, 27.3 The Role of Banks, 28.3 How a Central Bank Executes Monetary Policy, Appendix C Present Discounted Value
budget constraint2.1 How Individuals Make Choices Based on Their Budget Constraint, 6.1 Consumption Choices, 6.2 How Changes in Income and Prices Affect Consumption Choices, 6.4 Intertemporal Choices in Financial Capital Markets, Appendix B Indifference Curves
budget constraint line6.1 Consumption Choices, 14.2 The Poverty Trap
budget deficit30.1 Government Spending
budget lineAppendix B Indifference Curves
budget surplus30.1 Government Spending
bundling11.2 Regulating Anticompetitive Behavior
Bureau of Economic Analysis (BEA)23.1 Measuring Trade Balances
Bureau of Labor Statistics19.5 How Well GDP Measures the Well-Being of Society
business confidence24.4 Shifts in Aggregate Demand
business cycle19.3 Tracking Real GDP over Time
C
capital deepening20.3 Components of Economic Growth
capital gain17.1 How Businesses Raise Financial Capital
cartel10.2 Oligopoly
Celler-Kefauver Act11.1 Corporate Mergers
central bank28.1 The Federal Reserve Banking System and Central Banks, 28.5 Pitfalls for Monetary Policy, 29.3 Macroeconomic Effects of Exchange Rates, 29.4 Exchange Rate Policies
certificate of deposit (CD)17.2 How Households Supply Financial Capital
certificates of deposit (CDs)27.2 Measuring Money: Currency, M1, and M2
ceteris paribus3.2 Shifts in Demand and Supply for Goods and Services, 3.3 Changes in Equilibrium Price and Quantity: The Four-Step Process, 4.1 Demand and Supply at Work in Labor Markets
checking account17.2 How Households Supply Financial Capital
circular flow diagram1.3 How Economists Use Theories and Models to Understand Economic Issues
Civil Rights Act of 196415.2 Employment Discrimination
Civil Rights Act of 199115.2 Employment Discrimination
Clayton Antitrust Act11.1 Corporate Mergers
Clean Air Act12.2 Command-and-Control Regulation, 12.3 Market-Oriented Environmental Tools, 12.4 The Benefits and Costs of U.S. Environmental Laws
Clean Water Act12.2 Command-and-Control Regulation
coins and currency in circulation27.2 Measuring Money: Currency, M1, and M2
coinsurance16.2 Insurance and Imperfect Information
collateral16.1 The Problem of Imperfect Information and Asymmetric Information
collective bargaining15.1 Unions
collusion10.2 Oligopoly
command economy1.4 How Economies Can Be Organized: An Overview of Economic Systems
command-and-control regulation12.2 Command-and-Control Regulation
commodity money27.1 Defining Money by Its Functions
Commodity-backed currencies27.1 Defining Money by Its Functions
common markets34.4 How Trade Policy Is Enacted: Globally, Regionally, and Nationally
common resources13.3 Public Goods
comparative advantage1.1 What Is Economics, and Why Is It Important?, 2.2 The Production Possibilities Frontier and Social Choices, 23.3 Trade Balances and Flows of Financial Capital, 33.1 Absolute and Comparative Advantage, 34.2 International Trade and Its Effects on Jobs, Wages, and Working Conditions
competition13.1 Why the Private Sector Under Invests in Innovation
competitive market15.2 Employment Discrimination
complements3.2 Shifts in Demand and Supply for Goods and Services
compound growth rate20.2 Labor Productivity and Economic Growth
Compound interest17.3 How to Accumulate Personal Wealth
concentration ratio11.1 Corporate Mergers
constant cost industry8.3 Entry and Exit Decisions in the Long Run
constant returns to scale7.3 The Structure of Costs in the Long Run
Constant unitary elasticity5.2 Polar Cases of Elasticity and Constant Elasticity
consumer confidence24.4 Shifts in Aggregate Demand
consumer equilibrium6.1 Consumption Choices
Consumer Price Index (CPI)22.2 How Changes in the Cost of Living are Measured
consumer surplus3.5 Demand, Supply, and Efficiency, 34.1 Protectionism: An Indirect Subsidy from Consumers to Producers
consumption6.1 Consumption Choices
consumption budget constraint2.2 The Production Possibilities Frontier and Social Choices
consumption choice budget constraint6.3 Labor-Leisure Choices
consumption demand19.1 Measuring the Size of the Economy: Gross Domestic Product
consumption functionThe Expenditure-Output Model
contractionary fiscal policy25.3 The Phillips Curve, 30.4 Using Fiscal Policy to Fight Recession, Unemployment, and Inflation
contractionary monetary policy28.4 Monetary Policy and Economic Outcomes, 29.4 Exchange Rate Policies, 31.2 Fiscal Policy, Investment, and Economic Growth
contractual rights20.1 The Relatively Recent Arrival of Economic Growth
convergence20.4 Economic Convergence
converging economy32.4 Causes of Inflation in Various Countries and Regions
coordination argument25.2 The Building Blocks of Keynesian Analysis
copayment16.2 Insurance and Imperfect Information
copyright9.1 How Monopolies Form: Barriers to Entry
core competency1.1 What Is Economics, and Why Is It Important?
core inflation index22.2 How Changes in the Cost of Living are Measured
corporate bond17.1 How Businesses Raise Financial Capital
corporate governance17.1 How Businesses Raise Financial Capital
corporate income tax30.2 Taxation
corporation17.1 How Businesses Raise Financial Capital
cosigner16.1 The Problem of Imperfect Information and Asymmetric Information
cost2.2 The Production Possibilities Frontier and Social Choices
cost of living22.2 How Changes in the Cost of Living are Measured
cost-of-living adjustments (COLAs)22.5 Indexing and Its Limitations
cost-plus regulation11.3 Regulating Natural Monopolies
countercyclical28.4 Monetary Policy and Economic Outcomes
County and Municipal Employees (AFSCME)15.1 Unions
coupon rate17.2 How Households Supply Financial Capital
credit card27.2 Measuring Money: Currency, M1, and M2
credit union27.3 The Role of Banks
cross-price elasticity of demand5.4 Elasticity in Areas Other Than Price
crowding out30.6 Practical Problems with Discretionary Fiscal Policy, 31.2 Fiscal Policy, Investment, and Economic Growth
CTC14.3 The Safety Net
current account balance23.1 Measuring Trade Balances
cyclical unemployment21.3 What Causes Changes in Unemployment over the Short Run, 24.5 How the AD/AS Model Incorporates Growth, Unemployment, and Inflation, 26.2 The Policy Implications of the Neoclassical Perspective
D
David Ricardo33.1 Absolute and Comparative Advantage
deadweight loss3.5 Demand, Supply, and Efficiency
dealers29.1 How the Foreign Exchange Market Works
debit card17.2 How Households Supply Financial Capital, 27.2 Measuring Money: Currency, M1, and M2
decreasing cost industry8.3 Entry and Exit Decisions in the Long Run
deductibles16.2 Insurance and Imperfect Information
deficit31.1 How Government Borrowing Affects Investment and the Trade Balance
deflation22.3 How the U.S. and Other Countries Experience Inflation, 28.5 Pitfalls for Monetary Policy
demand3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 13.1 Why the Private Sector Under Invests in Innovation, 19.1 Measuring the Size of the Economy: Gross Domestic Product, 24.1 Macroeconomic Perspectives on Demand and Supply, Introduction to Exchange Rates and International Capital Flows
demand and supply diagram3.5 Demand, Supply, and Efficiency
demand and supply models4.3 The Market System as an Efficient Mechanism for Information
demand curve3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 3.2 Shifts in Demand and Supply for Goods and Services, 5.1 Price Elasticity of Demand and Price Elasticity of Supply, 5.2 Polar Cases of Elasticity and Constant Elasticity, 10.1 Monopolistic Competition, 10.1 Monopolistic Competition, 29.2 Demand and Supply Shifts in Foreign Exchange Markets, 31.2 Fiscal Policy, Investment, and Economic Growth, 34.1 Protectionism: An Indirect Subsidy from Consumers to Producers
demand curves11.1 Corporate Mergers
demand deposits27.2 Measuring Money: Currency, M1, and M2
demand schedule3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
Democracy18.3 Flaws in the Democratic System of Government
Deposit insurance16.2 Insurance and Imperfect Information, 28.2 Bank Regulation
depository institutions27.3 The Role of Banks
depreciating29.1 How the Foreign Exchange Market Works
depreciation19.1 Measuring the Size of the Economy: Gross Domestic Product
depression19.3 Tracking Real GDP over Time, 21.2 Patterns of Unemployment
deregulation9.1 How Monopolies Form: Barriers to Entry, 11.4 The Great Deregulation Experiment
differentiated products10.1 Monopolistic Competition, 10.1 Monopolistic Competition
diminishing marginal returns7.2 The Structure of Costs in the Short Run
diminishing marginal utility6.1 Consumption Choices, Appendix B Indifference Curves
direct investment29.4 Exchange Rate Policies
discount rate28.3 How a Central Bank Executes Monetary Policy
Discouraged workers21.1 How the Unemployment Rate is Defined and Computed
discretionary fiscal policy30.5 Automatic Stabilizers, 32.3 Causes of Unemployment around the World
Discrimination15.2 Employment Discrimination
diseconomies of scale7.3 The Structure of Costs in the Long Run
disposable income25.1 Aggregate Demand in Keynesian Analysis
disruptive market change34.5 The Tradeoffs of Trade Policy
diversification17.2 How Households Supply Financial Capital
diversify27.3 The Role of Banks
dividend17.1 How Businesses Raise Financial Capital
division of labor1.1 What Is Economics, and Why Is It Important?, 33.3 Intra-industry Trade between Similar Economies
Dodd-Frank Act11.4 The Great Deregulation Experiment
dollarize29.1 How the Foreign Exchange Market Works
double coincidence of wants27.1 Defining Money by Its Functions
double counting19.1 Measuring the Size of the Economy: Gross Domestic Product
Dow Jones28.5 Pitfalls for Monetary Policy
Dow Jones Index17.2 How Households Supply Financial Capital
dumping33.4 The Benefits of Reducing Barriers to International Trade, 34.3 Arguments in Support of Restricting Imports
duopoly10.2 Oligopoly
durable goods19.1 Measuring the Size of the Economy: Gross Domestic Product
E
earned income tax credit (EITC)14.3 The Safety Net
East Asian Tigers32.2 Improving Countries’ Standards of Living
economic efficiency2.3 Confronting Objections to the Economic Approach
economic growthIntroduction to Money and Banking
Economic profit7.1 Explicit and Implicit Costs, and Accounting and Economic Profit
economic surplus3.5 Demand, Supply, and Efficiency
economic unions34.4 How Trade Policy Is Enacted: Globally, Regionally, and Nationally
Economics1.1 What Is Economics, and Why Is It Important?
economies of scale1.1 What Is Economics, and Why Is It Important?, 7.3 The Structure of Costs in the Long Run, 9.1 How Monopolies Form: Barriers to Entry, 33.3 Intra-industry Trade between Similar Economies
ecotourism12.4 The Benefits and Costs of U.S. Environmental Laws
effective income tax14.5 Government Policies to Reduce Income Inequality
efficiency3.5 Demand, Supply, and Efficiency
Efficiency wage theory21.3 What Causes Changes in Unemployment over the Short Run
elastic demand5.1 Price Elasticity of Demand and Price Elasticity of Supply
elastic supply5.1 Price Elasticity of Demand and Price Elasticity of Supply
ElasticityIntroduction to Elasticity
elasticity of savings5.4 Elasticity in Areas Other Than Price
Employment Cost Index22.2 How Changes in the Cost of Living are Measured
entry8.3 Entry and Exit Decisions in the Long Run
Equal Employment Opportunity Commission (EEOC)15.2 Employment Discrimination
Equal Pay Act of 196315.2 Employment Discrimination
equilibrium3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 3.5 Demand, Supply, and Efficiency, 4.1 Demand and Supply at Work in Labor Markets, 10.1 Monopolistic Competition, 16.1 The Problem of Imperfect Information and Asymmetric Information, 34.1 Protectionism: An Indirect Subsidy from Consumers to Producers, The Expenditure-Output Model
equilibrium exchange rate29.2 Demand and Supply Shifts in Foreign Exchange Markets
equilibrium price3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 16.1 The Problem of Imperfect Information and Asymmetric Information
equilibrium quantity3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 3.3 Changes in Equilibrium Price and Quantity: The Four-Step Process
equity17.2 How Households Supply Financial Capital
estate and gift tax30.2 Taxation
estate tax14.5 Government Policies to Reduce Income Inequality
Esther Duflo32.2 Improving Countries’ Standards of Living
European Union34.4 How Trade Policy Is Enacted: Globally, Regionally, and Nationally
European Union (EU)3.4 Price Ceilings and Price Floors
excess demand3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
excess reserves28.5 Pitfalls for Monetary Policy
excess supply3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
exchange rate19.4 Comparing GDP among Countries, Introduction to Exchange Rates and International Capital Flows, 31.4 Fiscal Policy and the Trade Balance
exchange rates28.5 Pitfalls for Monetary Policy
excise tax30.2 Taxation
exclusive dealing11.2 Regulating Anticompetitive Behavior
exit8.3 Entry and Exit Decisions in the Long Run
expansionary fiscal policy25.3 The Phillips Curve, 30.4 Using Fiscal Policy to Fight Recession, Unemployment, and Inflation
expansionary monetary policy28.4 Monetary Policy and Economic Outcomes, 29.4 Exchange Rate Policies, 31.2 Fiscal Policy, Investment, and Economic Growth, 32.3 Causes of Unemployment around the World
expected inflation26.2 The Policy Implications of the Neoclassical Perspective
expected rate of return17.2 How Households Supply Financial Capital
expenditure multiplier25.2 The Building Blocks of Keynesian Analysis
expenditure-output modelThe Expenditure-Output Model
Explicit costs7.1 Explicit and Implicit Costs, and Accounting and Economic Profit
export33.2 What Happens When a Country Has an Absolute Advantage in All Goods
Exports1.4 How Economies Can Be Organized: An Overview of Economic Systems, 23.1 Measuring Trade Balances, 24.2 Building a Model of Aggregate Demand and Aggregate Supply, 25.1 Aggregate Demand in Keynesian Analysis, 29.3 Macroeconomic Effects of Exchange Rates
exports of goods and services as a percentage of GDP23.2 Trade Balances in Historical and International Context
external costs12.1 The Economics of Pollution
externality12.1 The Economics of Pollution
F
face value17.2 How Households Supply Financial Capital
factors of production3.2 Shifts in Demand and Supply for Goods and Services
Federal Deposit Insurance Corporation (FDIC)17.2 How Households Supply Financial Capital, 28.2 Bank Regulation
federal funds rate28.4 Monetary Policy and Economic Outcomes
Federal Open Market Committee (FOMC)28.3 How a Central Bank Executes Monetary Policy
Federal Reserve28.1 The Federal Reserve Banking System and Central Banks, 28.2 Bank Regulation, 28.5 Pitfalls for Monetary Policy, 31.2 Fiscal Policy, Investment, and Economic Growth, 32.5 Balance of Trade Concerns
Federal Reserve Bank27.2 Measuring Money: Currency, M1, and M2
Federal Reserve Economic Data (FRED)Introduction to Financial Markets, 21.2 Patterns of Unemployment, 29.1 How the Foreign Exchange Market Works, 29.4 Exchange Rate Policies
Federal Trade Commission10.2 Oligopoly
Federal Trade Commission (FTC)16.1 The Problem of Imperfect Information and Asymmetric Information
fee-for-service16.2 Insurance and Imperfect Information
fiat money27.1 Defining Money by Its Functions
final goods and services19.1 Measuring the Size of the Economy: Gross Domestic Product
financial capital4.2 Demand and Supply in Financial Markets, 23.3 Trade Balances and Flows of Financial Capital, 23.4 The National Saving and Investment Identity, 28.5 Pitfalls for Monetary Policy, 31.1 How Government Borrowing Affects Investment and the Trade Balance
financial capital market16.1 The Problem of Imperfect Information and Asymmetric Information, 23.4 The National Saving and Investment Identity
financial capital markets16.1 The Problem of Imperfect Information and Asymmetric Information, Introduction to Financial Markets, 30.6 Practical Problems with Discretionary Fiscal Policy, 31.1 How Government Borrowing Affects Investment and the Trade Balance
financial intermediary17.2 How Households Supply Financial Capital, 27.3 The Role of Banks
firm2.2 The Production Possibilities Frontier and Social Choices, 3.2 Shifts in Demand and Supply for Goods and Services, Introduction to Cost and Industry Structure, 10.1 Monopolistic Competition, 10.2 Oligopoly, 13.1 Why the Private Sector Under Invests in Innovation, 15.1 Unions, 17.1 How Businesses Raise Financial Capital, 18.3 Flaws in the Democratic System of Government
firms10.1 Monopolistic Competition, 29.1 How the Foreign Exchange Market Works
Fiscal policy1.2 Microeconomics and Macroeconomics, Introduction to Government Budgets and Fiscal Policy, 32.3 Causes of Unemployment around the World
Fixed costs7.2 The Structure of Costs in the Short Run
floating exchange rate29.4 Exchange Rate Policies
Foreign direct investment (FDI)29.1 How the Foreign Exchange Market Works
foreign exchange market29.1 How the Foreign Exchange Market Works, 29.2 Demand and Supply Shifts in Foreign Exchange Markets
foreign financial capital23.4 The National Saving and Investment Identity
foreign investment capital29.3 Macroeconomic Effects of Exchange Rates
fossil fuels12.5 International Environmental Issues
Francine Blau15.2 Employment Discrimination
free rider13.3 Public Goods
free trade34.3 Arguments in Support of Restricting Imports
free trade agreements34.4 How Trade Policy Is Enacted: Globally, Regionally, and Nationally
frictional unemployment21.4 What Causes Changes in Unemployment over the Long Run
full-employment GDP24.2 Building a Model of Aggregate Demand and Aggregate Supply
functionAppendix A The Use of Mathematics in Principles of Economics
fungible6.4 Intertemporal Choices in Financial Capital Markets
G
gain from trade33.1 Absolute and Comparative Advantage
game theory10.2 Oligopoly
Gary Becker15.2 Employment Discrimination
GDP29.1 How the Foreign Exchange Market Works, 29.2 Demand and Supply Shifts in Foreign Exchange Markets
GDP deflator19.2 Adjusting Nominal Values to Real Values, 22.2 How Changes in the Cost of Living are Measured
GDP per capita19.4 Comparing GDP among Countries, 19.5 How Well GDP Measures the Well-Being of Society, 20.3 Components of Economic Growth, 24.3 Shifts in Aggregate Supply, 32.1 The Diversity of Countries and Economies across the World
General Agreement on Tariffs and Trade (GATT)34.4 How Trade Policy Is Enacted: Globally, Regionally, and Nationally
George Psacharopoulos13.1 Why the Private Sector Under Invests in Innovation
globalization1.4 How Economies Can Be Organized: An Overview of Economic Systems, 11.1 Corporate Mergers, 14.4 Income Inequality: Measurement and Causes, Introduction to International Trade, 34.2 International Trade and Its Effects on Jobs, Wages, and Working Conditions
good3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
goods and services market1.3 How Economists Use Theories and Models to Understand Economic Issues
Great Depression19.3 Tracking Real GDP over Time, 24.1 Macroeconomic Perspectives on Demand and Supply, Introduction to the Neoclassical Perspective, 26.3 Balancing Keynesian and Neoclassical Models, Introduction to International Trade
Great Recession14.3 The Safety Net, 19.1 Measuring the Size of the Economy: Gross Domestic Product, 19.3 Tracking Real GDP over Time, 22.3 How the U.S. and Other Countries Experience Inflation, Introduction to the Neoclassical Perspective, 32.3 Causes of Unemployment around the World
gross domestic product (GDP)1.4 How Economies Can Be Organized: An Overview of Economic Systems, 12.6 The Tradeoff between Economic Output and Environmental Protection, 19.1 Measuring the Size of the Economy: Gross Domestic Product
gross national product (GNP)19.1 Measuring the Size of the Economy: Gross Domestic Product
growth consensus32.2 Improving Countries’ Standards of Living
growth rateAppendix A The Use of Mathematics in Principles of Economics
H
hard peg29.4 Exchange Rate Policies
Head Start program31.2 Fiscal Policy, Investment, and Economic Growth
Health Care for America Now (HCAN)18.2 Special Interest Politics
health maintenance organization (HMO)16.2 Insurance and Imperfect Information
hedge29.1 How the Foreign Exchange Market Works
Herfindahl-Hirschman Index (HHI)11.1 Corporate Mergers
hidden unemployment21.1 How the Unemployment Rate is Defined and Computed
high yield17.2 How Households Supply Financial Capital
High-income countries34.1 Protectionism: An Indirect Subsidy from Consumers to Producers, 34.3 Arguments in Support of Restricting Imports
Human capital20.2 Labor Productivity and Economic Growth, 26.1 The Building Blocks of Neoclassical Analysis, 30.7 The Question of a Balanced Budget, 31.2 Fiscal Policy, Investment, and Economic Growth, 32.2 Improving Countries’ Standards of Living
hyperinflation22.3 How the U.S. and Other Countries Experience Inflation
I
immigrants15.3 Immigration
imperfect information16.1 The Problem of Imperfect Information and Asymmetric Information
imperfectly competitiveIntroduction to Monopolistic Competition and Oligopoly
implementation lag30.6 Practical Problems with Discretionary Fiscal Policy
implicit contract21.3 What Causes Changes in Unemployment over the Short Run
Implicit costs7.1 Explicit and Implicit Costs, and Accounting and Economic Profit
import quotas34.1 Protectionism: An Indirect Subsidy from Consumers to Producers
Imports1.4 How Economies Can Be Organized: An Overview of Economic Systems, 23.1 Measuring Trade Balances, 24.2 Building a Model of Aggregate Demand and Aggregate Supply, 25.1 Aggregate Demand in Keynesian Analysis, 33.2 What Happens When a Country Has an Absolute Advantage in All Goods
Income14.1 Drawing the Poverty Line, 14.5 Government Policies to Reduce Income Inequality
income effect6.2 How Changes in Income and Prices Affect Consumption Choices, Appendix B Indifference Curves
income elasticity of demand5.4 Elasticity in Areas Other Than Price
income payments23.1 Measuring Trade Balances
increasing cost industry8.3 Entry and Exit Decisions in the Long Run
index fund17.2 How Households Supply Financial Capital
index number22.1 Tracking Inflation
indexed22.5 Indexing and Its Limitations
indifference curveAppendix B Indifference Curves
individual income tax30.2 Taxation
Individual Retirement Accounts (IRAs)6.4 Intertemporal Choices in Financial Capital Markets
Industrial Revolution20.1 The Relatively Recent Arrival of Economic Growth
inelastic demand5.1 Price Elasticity of Demand and Price Elasticity of Supply
inelastic supply5.1 Price Elasticity of Demand and Price Elasticity of Supply
inequality14.1 Drawing the Poverty Line
infant industry argument32.5 Balance of Trade Concerns, 34.3 Arguments in Support of Restricting Imports
inferior good3.2 Shifts in Demand and Supply for Goods and Services, 5.4 Elasticity in Areas Other Than Price, 6.2 How Changes in Income and Prices Affect Consumption Choices
Infinite elasticity5.2 Polar Cases of Elasticity and Constant Elasticity
InflationIntroduction to Inflation, Introduction to the Aggregate Demand/Aggregate Supply Model, 24.5 How the AD/AS Model Incorporates Growth, Unemployment, and Inflation, 25.3 The Phillips Curve, Introduction to Money and Banking, 28.1 The Federal Reserve Banking System and Central Banks, 32.4 Causes of Inflation in Various Countries and Regions
inflation rate28.4 Monetary Policy and Economic Outcomes
inflation targeting28.5 Pitfalls for Monetary Policy
inflationary gap25.1 Aggregate Demand in Keynesian Analysis, The Expenditure-Output Model
infrastructure20.3 Components of Economic Growth, 30.7 The Question of a Balanced Budget
initial public offering (IPO)17.1 How Businesses Raise Financial Capital
innovation20.2 Labor Productivity and Economic Growth
inputs3.2 Shifts in Demand and Supply for Goods and Services
insider-outsider model21.3 What Causes Changes in Unemployment over the Short Run
Insurance16.2 Insurance and Imperfect Information
intellectual property9.1 How Monopolies Form: Barriers to Entry, 13.2 How Governments Can Encourage Innovation
interbank market29.1 How the Foreign Exchange Market Works
interest rate4.2 Demand and Supply in Financial Markets, 25.1 Aggregate Demand in Keynesian Analysis, Appendix C Present Discounted Value
interest rates28.1 The Federal Reserve Banking System and Central Banks, 28.4 Monetary Policy and Economic Outcomes
Intermediate goods19.1 Measuring the Size of the Economy: Gross Domestic Product
intermediate zone24.6 Keynes’ Law and Say’s Law in the AD/AS Model
international capital flows29.4 Exchange Rate Policies
international externalities12.5 International Environmental Issues
international financial flows29.4 Exchange Rate Policies
International Price Index22.2 How Changes in the Cost of Living are Measured
international trade29.3 Macroeconomic Effects of Exchange Rates, 33.3 Intra-industry Trade between Similar Economies, 34.5 The Tradeoffs of Trade Policy
International Trade Commission (ITC)18.3 Flaws in the Democratic System of Government
intertemporal budget constraint6.4 Intertemporal Choices in Financial Capital Markets, 6.4 Intertemporal Choices in Financial Capital Markets
intertemporal choices2.3 Confronting Objections to the Economic Approach
intertemporal decision making4.2 Demand and Supply in Financial Markets
intra-industry trade33.3 Intra-industry Trade between Similar Economies
invention20.2 Labor Productivity and Economic Growth
inventories19.1 Measuring the Size of the Economy: Gross Domestic Product
Investment demand19.1 Measuring the Size of the Economy: Gross Domestic Product
Investment expenditure19.1 Measuring the Size of the Economy: Gross Domestic Product, 25.1 Aggregate Demand in Keynesian Analysis
investment functionThe Expenditure-Output Model
investment income23.3 Trade Balances and Flows of Financial Capital
invisible hand2.3 Confronting Objections to the Economic Approach
involuntary unemployment21.3 What Causes Changes in Unemployment over the Short Run
J
James Tobin29.4 Exchange Rate Policies
Jan Luiten van Zanden20.1 The Relatively Recent Arrival of Economic Growth
Janet L. Yellen28.1 The Federal Reserve Banking System and Central Banks
Jean-Baptiste Say24.1 Macroeconomic Perspectives on Demand and Supply
Joan Robinson18.3 Flaws in the Democratic System of Government
John Maynard Keynes1.3 How Economists Use Theories and Models to Understand Economic Issues, 24.1 Macroeconomic Perspectives on Demand and Supply, 26.1 The Building Blocks of Neoclassical Analysis, 30.6 Practical Problems with Discretionary Fiscal Policy
junk bonds17.2 How Households Supply Financial Capital
K
key input5.3 Elasticity and Pricing
Keynes’ law24.1 Macroeconomic Perspectives on Demand and Supply, 24.6 Keynes’ Law and Say’s Law in the AD/AS Model
Keynesian aggregate supply curve28.4 Monetary Policy and Economic Outcomes
Keynesian cross diagramThe Expenditure-Output Model
Keynesian economic model32.3 Causes of Unemployment around the World
Keynesian economics26.1 The Building Blocks of Neoclassical Analysis, 26.3 Balancing Keynesian and Neoclassical Models
Keynesian macroeconomic policy30.7 The Question of a Balanced Budget
Keynesian zone24.6 Keynes’ Law and Say’s Law in the AD/AS Model
kinked demand curve10.2 Oligopoly
L
labor7.2 The Structure of Costs in the Short Run
labor force participation rate21.1 How the Unemployment Rate is Defined and Computed
labor market1.3 How Economists Use Theories and Models to Understand Economic Issues, 4.1 Demand and Supply at Work in Labor Markets, 16.1 The Problem of Imperfect Information and Asymmetric Information, 21.3 What Causes Changes in Unemployment over the Short Run
labor markets14.4 Income Inequality: Measurement and Causes, 22.4 The Confusion Over Inflation
Labor productivity20.2 Labor Productivity and Economic Growth
labor union15.1 Unions
labor-leisure budget constraint6.3 Labor-Leisure Choices, 14.2 The Poverty Trap
labor-leisure diagramAppendix B Indifference Curves
Laurence Kahn15.2 Employment Discrimination
law of demand3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 4.2 Demand and Supply in Financial Markets
law of diminishing marginal utility2.1 How Individuals Make Choices Based on Their Budget Constraint
law of diminishing returns2.2 The Production Possibilities Frontier and Social Choices, 20.4 Economic Convergence
law of supply3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
legal monopoly9.1 How Monopolies Form: Barriers to Entry
legislative lag30.6 Practical Problems with Discretionary Fiscal Policy
lender of last resort28.2 Bank Regulation
level of trade23.6 The Difference between Level of Trade and the Trade Balance
leverage cycle28.5 Pitfalls for Monetary Policy
leviathan effect7.3 The Structure of Costs in the Long Run
liability27.3 The Role of Banks
line graphsAppendix A The Use of Mathematics in Principles of Economics
liquidity17.2 How Households Supply Financial Capital, 27.2 Measuring Money: Currency, M1, and M2
living wage4.1 Demand and Supply at Work in Labor Markets
loan market27.3 The Role of Banks
lobbyists18.2 Special Interest Politics
logrolling18.2 Special Interest Politics
long run aggregate supply (LRAS) curve24.2 Building a Model of Aggregate Demand and Aggregate Supply
long-run average cost (LRAC) curve7.3 The Structure of Costs in the Long Run
long-run equilibrium8.3 Entry and Exit Decisions in the Long Run
loose monetary policy28.4 Monetary Policy and Economic Outcomes
Lorenz curve14.4 Income Inequality: Measurement and Causes
loss aversion6.4 Intertemporal Choices in Financial Capital Markets
low-income countries21.2 Patterns of Unemployment, 34.1 Protectionism: An Indirect Subsidy from Consumers to Producers, 34.3 Arguments in Support of Restricting Imports
M
M128.5 Pitfalls for Monetary Policy
M1 money supply27.2 Measuring Money: Currency, M1, and M2
M228.5 Pitfalls for Monetary Policy
M2 money supply27.2 Measuring Money: Currency, M1, and M2
macro economy21.3 What Causes Changes in Unemployment over the Short Run
macroeconomic externality25.2 The Building Blocks of Keynesian Analysis
Macroeconomics1.2 Microeconomics and Macroeconomics
marginal analysis2.1 How Individuals Make Choices Based on Their Budget Constraint
marginal benefits12.4 The Benefits and Costs of U.S. Environmental Laws
Marginal cost7.2 The Structure of Costs in the Short Run, 8.2 How Perfectly Competitive Firms Make Output Decisions, 9.2 How a Profit-Maximizing Monopoly Chooses Output and Price, 11.3 Regulating Natural Monopolies
marginal cost curve12.4 The Benefits and Costs of U.S. Environmental Laws
marginal cost curves12.3 Market-Oriented Environmental Tools
Marginal profit9.2 How a Profit-Maximizing Monopoly Chooses Output and Price
marginal propensity to consume (MPC)The Expenditure-Output Model
marginal propensity to import (MPI)The Expenditure-Output Model
marginal propensity to save (MPS)The Expenditure-Output Model
marginal rate of substitutionAppendix B Indifference Curves
marginal revenue8.2 How Perfectly Competitive Firms Make Output Decisions, 9.2 How a Profit-Maximizing Monopoly Chooses Output and Price
marginal tax rates30.2 Taxation
marginal utility6.1 Consumption Choices, Appendix B Indifference Curves
Marginal utility per dollar6.1 Consumption Choices
market1.4 How Economies Can Be Organized: An Overview of Economic Systems, 11.1 Corporate Mergers, 16.2 Insurance and Imperfect Information
market economy1.4 How Economies Can Be Organized: An Overview of Economic Systems, 2.2 The Production Possibilities Frontier and Social Choices, 13.1 Why the Private Sector Under Invests in Innovation, 21.4 What Causes Changes in Unemployment over the Long Run, 22.4 The Confusion Over Inflation
market failure12.1 The Economics of Pollution
market price10.1 Monopolistic Competition
market share11.1 Corporate Mergers
market structureIntroduction to Perfect Competition
marketable permit program12.3 Market-Oriented Environmental Tools
maturity date17.2 How Households Supply Financial Capital
maximizing utility6.1 Consumption Choices
medianAppendix A The Use of Mathematics in Principles of Economics
median voter theory18.3 Flaws in the Democratic System of Government
Medicaid14.1 Drawing the Poverty Line, 14.3 The Safety Net
Medicare18.2 Special Interest Politics
medium of exchange27.1 Defining Money by Its Functions
menu costs25.2 The Building Blocks of Keynesian Analysis
merchandise trade balance23.1 Measuring Trade Balances
merged currency29.4 Exchange Rate Policies
merger11.1 Corporate Mergers
Michael S. Clune15.3 Immigration
Microeconomics1.2 Microeconomics and Macroeconomics
Midpoint Formula5.1 Price Elasticity of Demand and Price Elasticity of Supply
Midpoint Method5.1 Price Elasticity of Demand and Price Elasticity of Supply, 5.1 Price Elasticity of Demand and Price Elasticity of Supply
Milton Friedman26.2 The Policy Implications of the Neoclassical Perspective, 28.5 Pitfalls for Monetary Policy, 29.4 Exchange Rate Policies
minimum resale price maintenance agreement11.2 Regulating Anticompetitive Behavior
minimum wage4.1 Demand and Supply at Work in Labor Markets, 21.3 What Causes Changes in Unemployment over the Short Run, 22.4 The Confusion Over Inflation, 34.2 International Trade and Its Effects on Jobs, Wages, and Working Conditions
model1.3 How Economists Use Theories and Models to Understand Economic Issues
modern economic growth20.1 The Relatively Recent Arrival of Economic Growth
Mollie Orshansky14.1 Drawing the Poverty Line
Monetary policy1.2 Microeconomics and Macroeconomics, 28.1 The Federal Reserve Banking System and Central Banks, 28.3 How a Central Bank Executes Monetary Policy, 29.4 Exchange Rate Policies, Introduction to Government Budgets and Fiscal Policy
money27.1 Defining Money by Its Functions
money market funds27.2 Measuring Money: Currency, M1, and M2
money multiplier28.5 Pitfalls for Monetary Policy
money multiplier formula27.4 How Banks Create Money
money-back guarantee16.1 The Problem of Imperfect Information and Asymmetric Information
monopolistic competitionIntroduction to Monopolistic Competition and Oligopoly
monopolyIntroduction to a Monopoly, 11.2 Regulating Anticompetitive Behavior
monopoly firm15.1 Unions
Moody’s17.2 How Households Supply Financial Capital
Moral hazard16.2 Insurance and Imperfect Information
multiplier effectThe Expenditure-Output Model
municipal bond17.1 How Businesses Raise Financial Capital
mutual funds17.2 How Households Supply Financial Capital
N
Nasdaq28.5 Pitfalls for Monetary Policy
National Academy of Engineers13.2 How Governments Can Encourage Innovation
National Academy of Scientists13.2 How Governments Can Encourage Innovation
National Association of Insurance Commissioners16.2 Insurance and Imperfect Information
National Bureau of Economic Research32.5 Balance of Trade Concerns
National Bureau of Economic Research (NBER)19.3 Tracking Real GDP over Time
National Credit Union Administration (NCUA)28.2 Bank Regulation
national debt30.3 Federal Deficits and the National Debt
National Education Association15.1 Unions
national income19.1 Measuring the Size of the Economy: Gross Domestic Product, The Expenditure-Output Model
National Institutes of Health13.2 How Governments Can Encourage Innovation
national interest argument34.3 Arguments in Support of Restricting Imports
National Labor-Management Relations Act15.1 Unions
national saving and investment identity23.4 The National Saving and Investment Identity
National Venture Capital Association17.1 How Businesses Raise Financial Capital
natural monopoly9.1 How Monopolies Form: Barriers to Entry, 10.2 Oligopoly, 11.3 Regulating Natural Monopolies
natural rate of unemployment21.4 What Causes Changes in Unemployment over the Long Run, 24.5 How the AD/AS Model Incorporates Growth, Unemployment, and Inflation, 26.2 The Policy Implications of the Neoclassical Perspective
near-poor14.3 The Safety Net
negative externalities18.2 Special Interest Politics
negative externality12.1 The Economics of Pollution
negative slopeAppendix A The Use of Mathematics in Principles of Economics
neoclassical determinants of growth32.1 The Diversity of Countries and Economies across the World
neoclassical economists24.1 Macroeconomic Perspectives on Demand and Supply
neoclassical model28.5 Pitfalls for Monetary Policy
neoclassical perspective26.1 The Building Blocks of Neoclassical Analysis
neoclassical zone24.6 Keynes’ Law and Say’s Law in the AD/AS Model
Net national product (NNP)19.1 Measuring the Size of the Economy: Gross Domestic Product
net worth27.3 The Role of Banks, 28.2 Bank Regulation
nominal GDP19.2 Adjusting Nominal Values to Real Values, 28.5 Pitfalls for Monetary Policy
nominal interest rate22.4 The Confusion Over Inflation, 28.5 Pitfalls for Monetary Policy
nominal value19.2 Adjusting Nominal Values to Real Values
nondurable goods19.1 Measuring the Size of the Economy: Gross Domestic Product
nonexcludable13.3 Public Goods
nonrivalrous13.3 Public Goods
Nontariff barriers34.1 Protectionism: An Indirect Subsidy from Consumers to Producers
normal good3.2 Shifts in Demand and Supply for Goods and Services
normal goods5.4 Elasticity in Areas Other Than Price, 6.2 How Changes in Income and Prices Affect Consumption Choices
normative statements2.3 Confronting Objections to the Economic Approach
North American Free Trade Agreement (NAFTA)32.5 Balance of Trade Concerns, 34.2 International Trade and Its Effects on Jobs, Wages, and Working Conditions, 34.4 How Trade Policy Is Enacted: Globally, Regionally, and Nationally
O
Occupational licenses16.1 The Problem of Imperfect Information and Asymmetric Information
oligopolyIntroduction to Monopolistic Competition and Oligopoly, 10.2 Oligopoly
open market operations28.3 How a Central Bank Executes Monetary Policy
opportunity cost2.1 How Individuals Make Choices Based on Their Budget Constraint, Introduction to Unemployment, 29.4 Exchange Rate Policies, 33.1 Absolute and Comparative Advantage, 33.2 What Happens When a Country Has an Absolute Advantage in All Goods, 34.2 International Trade and Its Effects on Jobs, Wages, and Working Conditions
opportunity set2.1 How Individuals Make Choices Based on Their Budget Constraint, Appendix B Indifference Curves
Organization of Petroleum Exporting Countries (OPEC)10.2 Oligopoly
out of the labor force21.1 How the Unemployment Rate is Defined and Computed
output10.2 Oligopoly
Oxfam International34.1 Protectionism: An Indirect Subsidy from Consumers to Producers
P
partnership17.1 How Businesses Raise Financial Capital
patent9.1 How Monopolies Form: Barriers to Entry, 13.2 How Governments Can Encourage Innovation
Patient Protection and Affordable Care Act (PPACA)16.2 Insurance and Imperfect Information
Patient Protection and Affordable Care Act (PPACA)Introduction to Information, Risk, and Insurance
payment system27.3 The Role of Banks
payroll tax30.2 Taxation
peak19.3 Tracking Real GDP over Time
Pension insurance16.2 Insurance and Imperfect Information
pensions22.4 The Confusion Over Inflation
per capita GDP22.1 Tracking Inflation, 23.5 The Pros and Cons of Trade Deficits and Surpluses
percentage change22.1 Tracking Inflation
perfect competition8.1 Perfect Competition and Why It Matters
perfect elasticity5.2 Polar Cases of Elasticity and Constant Elasticity
perfect inelasticity5.2 Polar Cases of Elasticity and Constant Elasticity
perfectly competitive firm8.1 Perfect Competition and Why It Matters, 8.2 How Perfectly Competitive Firms Make Output Decisions, 8.3 Entry and Exit Decisions in the Long Run, 9.2 How a Profit-Maximizing Monopoly Chooses Output and Price
perfectly elastic10.1 Monopolistic Competition
Pew Research Center for People and the Press3.3 Changes in Equilibrium Price and Quantity: The Four-Step Process
Phillips curve25.3 The Phillips Curve, 26.2 The Policy Implications of the Neoclassical Perspective
physical capital7.2 The Structure of Costs in the Short Run, 20.3 Components of Economic Growth, 31.2 Fiscal Policy, Investment, and Economic Growth, 32.2 Improving Countries’ Standards of Living
Physical capital per person26.1 The Building Blocks of Neoclassical Analysis
pie chartAppendix A The Use of Mathematics in Principles of Economics
pie graphAppendix A The Use of Mathematics in Principles of Economics
Pierre Mohnen20.3 Components of Economic Growth
pollution charge12.3 Market-Oriented Environmental Tools
pork-barrel spending18.2 Special Interest Politics
portfolio investment29.1 How the Foreign Exchange Market Works, 29.4 Exchange Rate Policies
positive externalities13.1 Why the Private Sector Under Invests in Innovation
positive externality12.1 The Economics of Pollution
positive slopeAppendix A The Use of Mathematics in Principles of Economics
positive statements2.3 Confronting Objections to the Economic Approach
potential GDP24.2 Building a Model of Aggregate Demand and Aggregate Supply, 25.1 Aggregate Demand in Keynesian Analysis, 25.3 The Phillips Curve, 26.1 The Building Blocks of Neoclassical Analysis, 28.4 Monetary Policy and Economic Outcomes, 28.5 Pitfalls for Monetary Policy, The Expenditure-Output Model
poverty14.1 Drawing the Poverty Line
poverty line14.1 Drawing the Poverty Line
poverty rate14.1 Drawing the Poverty Line
poverty trap14.2 The Poverty Trap
predatory pricing9.1 How Monopolies Form: Barriers to Entry, 11.2 Regulating Anticompetitive Behavior
premiums16.2 Insurance and Imperfect Information
present discounted value (PDV)Appendix C Present Discounted Value
present value17.2 How Households Supply Financial Capital
price2.1 How Individuals Make Choices Based on Their Budget Constraint, 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 3.2 Shifts in Demand and Supply for Goods and Services, 10.2 Oligopoly
price cap regulation11.3 Regulating Natural Monopolies
price ceiling3.4 Price Ceilings and Price Floors, 3.5 Demand, Supply, and Efficiency
price control3.5 Demand, Supply, and Efficiency
Price controls3.4 Price Ceilings and Price Floors, 4.3 The Market System as an Efficient Mechanism for Information, 18.2 Special Interest Politics
Price elasticity5.1 Price Elasticity of Demand and Price Elasticity of Supply
price elasticity of demand5.1 Price Elasticity of Demand and Price Elasticity of Supply
price elasticity of supply5.1 Price Elasticity of Demand and Price Elasticity of Supply
price floor3.4 Price Ceilings and Price Floors, 3.5 Demand, Supply, and Efficiency
price level22.1 Tracking Inflation
price taker8.1 Perfect Competition and Why It Matters
price takersIntroduction to Monopolistic Competition and Oligopoly
prisoner’s dilemma10.2 Oligopoly
private benefits13.1 Why the Private Sector Under Invests in Innovation
private company17.1 How Businesses Raise Financial Capital
private enterprise1.4 How Economies Can Be Organized: An Overview of Economic Systems, 7.1 Explicit and Implicit Costs, and Accounting and Economic Profit
private insurance16.2 Insurance and Imperfect Information
Private markets12.1 The Economics of Pollution, 22.5 Indexing and Its Limitations
private rates of return13.1 Why the Private Sector Under Invests in Innovation
Producer Price Index (PPI)22.2 How Changes in the Cost of Living are Measured
producer surplus3.5 Demand, Supply, and Efficiency, 34.1 Protectionism: An Indirect Subsidy from Consumers to Producers
product differentiation10.1 Monopolistic Competition
productionIntroduction to Cost and Industry Structure
production function20.2 Labor Productivity and Economic Growth
production possibilities frontier (PPF)2.2 The Production Possibilities Frontier and Social Choices
production possibility frontier (PPF)12.6 The Tradeoff between Economic Output and Environmental Protection, 33.1 Absolute and Comparative Advantage
production technologies7.3 The Structure of Costs in the Long Run
Productive efficiency2.2 The Production Possibilities Frontier and Social Choices, 8.4 Efficiency in Perfectly Competitive Markets, 10.1 Monopolistic Competition, 12.6 The Tradeoff between Economic Output and Environmental Protection
productivity33.2 What Happens When a Country Has an Absolute Advantage in All Goods
Productivity growth20.2 Labor Productivity and Economic Growth, 24.3 Shifts in Aggregate Supply
profit8.2 How Perfectly Competitive Firms Make Output Decisions
profit margin7.2 The Structure of Costs in the Short Run
profit-maximizing10.1 Monopolistic Competition
profits10.2 Oligopoly
progressive tax30.2 Taxation
progressive tax system14.5 Government Policies to Reduce Income Inequality
property rights12.3 Market-Oriented Environmental Tools, 20.1 The Relatively Recent Arrival of Economic Growth
proportional tax30.2 Taxation
protectionism34.1 Protectionism: An Indirect Subsidy from Consumers to Producers, 34.1 Protectionism: An Indirect Subsidy from Consumers to Producers, 34.2 International Trade and Its Effects on Jobs, Wages, and Working Conditions
public company17.1 How Businesses Raise Financial Capital
public good13.3 Public Goods
Public policy14.5 Government Policies to Reduce Income Inequality
purchasing power parity32.1 The Diversity of Countries and Economies across the World
purchasing power parity (PPP)19.4 Comparing GDP among Countries, 29.2 Demand and Supply Shifts in Foreign Exchange Markets
Q
quality/new goods bias22.2 How Changes in the Cost of Living are Measured
quantitative easing (QE)28.4 Monetary Policy and Economic Outcomes
quantity demanded3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 10.2 Oligopoly, 29.4 Exchange Rate Policies
quantity supplied3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 29.4 Exchange Rate Policies
quintiles14.4 Income Inequality: Measurement and Causes
quotas18.3 Flaws in the Democratic System of Government
R
race to the bottom34.3 Arguments in Support of Restricting Imports
rational expectations26.1 The Building Blocks of Neoclassical Analysis
rational ignorance18.1 Voter Participation and Costs of Elections
real GDP19.2 Adjusting Nominal Values to Real Values, Introduction to the International Trade and Capital Flows, 23.5 The Pros and Cons of Trade Deficits and Surpluses, 25.1 Aggregate Demand in Keynesian Analysis, 26.1 The Building Blocks of Neoclassical Analysis, 28.5 Pitfalls for Monetary Policy, 28.5 Pitfalls for Monetary Policy, The Expenditure-Output Model
real interest rate22.4 The Confusion Over Inflation
real value19.2 Adjusting Nominal Values to Real Values
recession19.3 Tracking Real GDP over Time, 21.2 Patterns of Unemployment, 24.1 Macroeconomic Perspectives on Demand and Supply, 24.4 Shifts in Aggregate Demand, 25.2 The Building Blocks of Keynesian Analysis, 28.5 Pitfalls for Monetary Policy, 31.4 Fiscal Policy and the Trade Balance, 32.3 Causes of Unemployment around the World
recessionary gap25.1 Aggregate Demand in Keynesian Analysis, The Expenditure-Output Model
recognition lag30.6 Practical Problems with Discretionary Fiscal Policy
Redistribution14.5 Government Policies to Reduce Income Inequality
redistributions22.4 The Confusion Over Inflation, 22.4 The Confusion Over Inflation
regressive tax30.2 Taxation
regulatory capture11.4 The Great Deregulation Experiment, 18.2 Special Interest Politics
relative wage coordination argument21.3 What Causes Changes in Unemployment over the Short Run
reserve requirement28.3 How a Central Bank Executes Monetary Policy
reserves27.3 The Role of Banks, 28.2 Bank Regulation, 28.3 How a Central Bank Executes Monetary Policy, 29.4 Exchange Rate Policies
restrictive practices11.2 Regulating Anticompetitive Behavior
Retirement insurance16.2 Insurance and Imperfect Information
revenue7.1 Explicit and Implicit Costs, and Accounting and Economic Profit, 30.3 Federal Deficits and the National Debt
Ricardian equivalence31.3 How Government Borrowing Affects Private Saving
Richard Easterlin20.1 The Relatively Recent Arrival of Economic Growth
Risk17.2 How Households Supply Financial Capital
risk group16.2 Insurance and Imperfect Information
Robert Shiller22.4 The Confusion Over Inflation
Robert Solow26.3 Balancing Keynesian and Neoclassical Models
rule of law20.1 The Relatively Recent Arrival of Economic Growth
S
safety net14.3 The Safety Net
salary4.1 Demand and Supply at Work in Labor Markets
Sarbanes-Oxley Act11.4 The Great Deregulation Experiment
savings account17.2 How Households Supply Financial Capital
savings deposits27.2 Measuring Money: Currency, M1, and M2
Say’s law24.1 Macroeconomic Perspectives on Demand and Supply, 24.6 Keynes’ Law and Say’s Law in the AD/AS Model
Scarcity1.1 What Is Economics, and Why Is It Important?, 2.3 Confronting Objections to the Economic Approach
Sebastian Edwards32.5 Balance of Trade Concerns
Securitization27.3 The Role of Banks
service3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
service contract16.1 The Problem of Imperfect Information and Asymmetric Information
Service Employees International Union15.1 Unions
services19.1 Measuring the Size of the Economy: Gross Domestic Product, 25.1 Aggregate Demand in Keynesian Analysis
shareholders17.1 How Businesses Raise Financial Capital
shares17.1 How Businesses Raise Financial Capital
Sherman Antitrust Act11.1 Corporate Mergers
shift in demand3.2 Shifts in Demand and Supply for Goods and Services
shift in supply3.2 Shifts in Demand and Supply for Goods and Services
short run aggregate supply (SRAS) curve24.2 Building a Model of Aggregate Demand and Aggregate Supply
short-run average cost (SRAC) curves7.3 The Structure of Costs in the Long Run
shortage3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
shortages22.4 The Confusion Over Inflation
Simple interest17.3 How to Accumulate Personal Wealth
slope2.2 The Production Possibilities Frontier and Social Choices, Appendix A The Use of Mathematics in Principles of Economics
smart card27.2 Measuring Money: Currency, M1, and M2
social benefits13.1 Why the Private Sector Under Invests in Innovation
social costs12.1 The Economics of Pollution
social rate of return13.1 Why the Private Sector Under Invests in Innovation
Social Security Indexing Act of 197222.5 Indexing and Its Limitations
social surplus3.5 Demand, Supply, and Efficiency
soft peg29.4 Exchange Rate Policies
sole proprietorship17.1 How Businesses Raise Financial Capital
special economic zones (SEZ)20.3 Components of Economic Growth
Special interest groups18.2 Special Interest Politics
Special Supplemental Food Program for Women, Infants and Children (WIC)14.3 The Safety Net
specialization1.1 What Is Economics, and Why Is It Important?, 33.1 Absolute and Comparative Advantage
spillovers12.1 The Economics of Pollution
splitting up the value chain33.3 Intra-industry Trade between Similar Economies
stagflation24.3 Shifts in Aggregate Supply, 25.3 The Phillips Curve
Standard & Poor’s 500 index17.2 How Households Supply Financial Capital
standard of deferred payment27.1 Defining Money by Its Functions
standard of living19.5 How Well GDP Measures the Well-Being of Society
standardized employment budget30.5 Automatic Stabilizers
standards of living32.1 The Diversity of Countries and Economies across the World
sticky21.3 What Causes Changes in Unemployment over the Short Run
sticky wages and prices25.2 The Building Blocks of Keynesian Analysis
Stock17.1 How Businesses Raise Financial Capital, 17.3 How to Accumulate Personal Wealth
stocksAppendix C Present Discounted Value
store of value27.1 Defining Money by Its Functions
straight-line demand curve5.1 Price Elasticity of Demand and Price Elasticity of Supply
structural unemployment21.4 What Causes Changes in Unemployment over the Long Run
structures19.1 Measuring the Size of the Economy: Gross Domestic Product
subprime loans27.3 The Role of Banks
subsidies34.1 Protectionism: An Indirect Subsidy from Consumers to Producers
substitute3.2 Shifts in Demand and Supply for Goods and Services
substitution bias22.2 How Changes in the Cost of Living are Measured
substitution effect6.2 How Changes in Income and Prices Affect Consumption Choices, Appendix B Indifference Curves
sunk costs2.1 How Individuals Make Choices Based on Their Budget Constraint, 7.2 The Structure of Costs in the Short Run
Supplemental Nutrition Assistance Program (SNAP)14.3 The Safety Net
supply3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 24.1 Macroeconomic Perspectives on Demand and Supply, Introduction to Exchange Rates and International Capital Flows
supply curve3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 3.2 Shifts in Demand and Supply for Goods and Services, 29.2 Demand and Supply Shifts in Foreign Exchange Markets, 31.2 Fiscal Policy, Investment, and Economic Growth, 34.1 Protectionism: An Indirect Subsidy from Consumers to Producers
supply curves11.1 Corporate Mergers
supply schedule3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
surplus3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 23.1 Measuring Trade Balances, 31.1 How Government Borrowing Affects Investment and the Trade Balance
surpluses22.4 The Confusion Over Inflation
T
T-account27.3 The Role of Banks
Taft-Hartley Act15.1 Unions
tariff18.2 Special Interest Politics
Tariffs33.4 The Benefits of Reducing Barriers to International Trade, 34.1 Protectionism: An Indirect Subsidy from Consumers to Producers
tax24.4 Shifts in Aggregate Demand
tax incidence5.3 Elasticity and Pricing
Technological change20.2 Labor Productivity and Economic Growth
technology13.1 Why the Private Sector Under Invests in Innovation, 20.3 Components of Economic Growth, 32.2 Improving Countries’ Standards of Living
Temporary Assistance for Needy Families (TANF)14.3 The Safety Net
The Land of Funny Money22.4 The Confusion Over Inflation
theory1.3 How Economists Use Theories and Models to Understand Economic Issues
thick market16.1 The Problem of Imperfect Information and Asymmetric Information
thin market16.1 The Problem of Imperfect Information and Asymmetric Information
tight monetary policy28.4 Monetary Policy and Economic Outcomes
time deposits27.2 Measuring Money: Currency, M1, and M2
time seriesAppendix A The Use of Mathematics in Principles of Economics
Tobin taxes29.4 Exchange Rate Policies
total costs7.2 The Structure of Costs in the Short Run, 8.2 How Perfectly Competitive Firms Make Output Decisions
Total revenue8.2 How Perfectly Competitive Firms Make Output Decisions, 9.2 How a Profit-Maximizing Monopoly Chooses Output and Price
total surplus3.5 Demand, Supply, and Efficiency
total utility6.1 Consumption Choices
trade balance19.1 Measuring the Size of the Economy: Gross Domestic Product
trade deficit19.1 Measuring the Size of the Economy: Gross Domestic Product, Introduction to the International Trade and Capital Flows, 32.5 Balance of Trade Concerns
trade secrets9.1 How Monopolies Form: Barriers to Entry
trade surplus19.1 Measuring the Size of the Economy: Gross Domestic Product, Introduction to the International Trade and Capital Flows, 32.5 Balance of Trade Concerns
trademark9.1 How Monopolies Form: Barriers to Entry
tradeoffs2.3 Confronting Objections to the Economic Approach
traditional economy1.4 How Economies Can Be Organized: An Overview of Economic Systems
Transaction costs27.3 The Role of Banks
Treasury bills28.4 Monetary Policy and Economic Outcomes
Treasury bond17.1 How Businesses Raise Financial Capital
Treasury bonds28.4 Monetary Policy and Economic Outcomes
trough19.3 Tracking Real GDP over Time
twin deficits31.3 How Government Borrowing Affects Private Saving
Tying sales11.2 Regulating Anticompetitive Behavior
Tyler Cowen13.3 Public Goods
U
U.S. Census Bureau3.2 Shifts in Demand and Supply for Goods and Services
U.S. Department of Commerce23.1 Measuring Trade Balances
U.S. Department of the Treasury17.1 How Businesses Raise Financial Capital
U.S. Patent and Trademark Office20.3 Components of Economic Growth
underemployed21.1 How the Unemployment Rate is Defined and Computed
underground economies1.4 How Economies Can Be Organized: An Overview of Economic Systems
unemploymentIntroduction to the Aggregate Demand/Aggregate Supply Model, 24.5 How the AD/AS Model Incorporates Growth, Unemployment, and Inflation, 25.3 The Phillips Curve, Introduction to Money and Banking, 28.1 The Federal Reserve Banking System and Central Banks, 32.3 Causes of Unemployment around the World
Unemployment insurance16.2 Insurance and Imperfect Information
unemployment rate21.1 How the Unemployment Rate is Defined and Computed, 28.4 Monetary Policy and Economic Outcomes
unilateral transfers23.1 Measuring Trade Balances
unit of account27.1 Defining Money by Its Functions
Unitary elasticities5.1 Price Elasticity of Demand and Price Elasticity of Supply
United Mineworkers union15.1 Unions
usury laws4.2 Demand and Supply in Financial Markets
utility2.1 How Individuals Make Choices Based on Their Budget Constraint, 6.1 Consumption Choices, Appendix B Indifference Curves
utility maximizing16.1 The Problem of Imperfect Information and Asymmetric Information
utility-maximizing18.1 Voter Participation and Costs of Elections
utility-maximizing choice6.2 How Changes in Income and Prices Affect Consumption Choices
V
value chain33.3 Intra-industry Trade between Similar Economies
variableAppendix A The Use of Mathematics in Principles of Economics
Variable costs7.2 The Structure of Costs in the Short Run
velocity28.5 Pitfalls for Monetary Policy
Venture capital17.1 How Businesses Raise Financial Capital
voting cycle18.3 Flaws in the Democratic System of Government
W
wage4.1 Demand and Supply at Work in Labor Markets
wage elasticity of labor supply5.4 Elasticity in Areas Other Than Price
Wages21.4 What Causes Changes in Unemployment over the Long Run, 22.1 Tracking Inflation, 22.4 The Confusion Over Inflation
Walter McMahon13.1 Why the Private Sector Under Invests in Innovation
warranty16.1 The Problem of Imperfect Information and Asymmetric Information
wealth14.5 Government Policies to Reduce Income Inequality
Workman’s compensation insurance16.2 Insurance and Imperfect Information
World Trade Organization (WTO)33.4 The Benefits of Reducing Barriers to International Trade, 34.1 Protectionism: An Indirect Subsidy from Consumers to Producers, 34.3 Arguments in Support of Restricting Imports, 34.4 How Trade Policy Is Enacted: Globally, Regionally, and Nationally
Z
Zero elasticity5.2 Polar Cases of Elasticity and Constant Elasticity
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