Modern Principles of Economics

Preface
1. The Big Ideas in Economics
2. The Power of Trade and Comparative Advantage
 
Part 1: Supply and Demand
3. Supply and Demand
4. Equilibrium: How Supply and Demand Determine Prices
5. Elasticity and Its Applications
6. Taxes and Subsidies
 
Part 2: The Price System
7. The Price System: Signals, Speculation, and Prediction
8. Price Ceilings and Floors
9. International Trade
10. Externalities: When the Price Is Not Right
 
Part 3: Firms and Factor Markets
11. Costs and Profit Maximization under Competition
12. Competition and the Invisible Hand
13. Monopoly
14. Price Discrimination and Pricing Strategy
15. Oligopoly and Game Theory
16. Networks, Platforms, and the Economics of “Free Goods”
17. Monopolistic Competition and Advertising
18. Labor Markets
 
Part 4: Government
19. Public Goods and the Tragedy of the Commons
20. Political Economy and Public Choice
21. Economics, Ethics, and Public Policy
 
Part 5: Decision Making for Businesses, Investors, and Consumers
22. Managing Incentives
23. Stock Markets and Personal Finance
24. Asymmetric Information: Moral Hazard and Adverse Selection
25 Consumer Choice
 
Part 6: Economic Growth
26. GDP and the Measurement of Progress
27. The Wealth of Nations and Economic Growth
28. Growth, Capital Accumulation, and the Economics of Ideas: Catching Up vs. the Cutting Edge
29. Saving, Investment, and the Financial System
 
Part 7: Business Fluctuations
30. Unemployment and Labor Force Participation
31. Inflation and the Quantity Theory of Money
32. Business Fluctuations: Aggregate Demand and Supply
33. Transmission and Amplification Mechanisms
 
Part 8: Macroeconomic Policy and Institutions
34. The Federal Reserve System and Open Market Operations
35. Monetary Policy
36. The Federal Budget: Taxes and Spending
37. Fiscal Policy
 
Part 9: International Economics
38. International Finance
 
APPENDIX A Reading Graphs and Making Graphs
APPENDIX B Solutions to Check Yourself
Glossary G-1
References R-1
Index I-1