Principles of Economics

Introduction: A Brief History of U.S. Economic Growth 1. From Jamestown to the Present 2. Increases in Per Capita Output 3. Improvements in the Standard of Living 4. Thirty Largest National Economies 5. Questions for Introduction 6. Answers for Introduction Chapter 1: Scarcity and Choices 1. The Basic Economic Problem - Scarcity 2. Human Wants Are Unlimited 3. Resources Are Limited 4. Categories of Resources 5. Resource Owner Motivation 6. Opportunity Cost 7. Rationing 8. Marginal Benefits and Marginal Costs 9. Scientific Thinking 10. Macroeconomics versus Microeconomics 11. Appendix: Graphs 12. Direct Relationship 13. Inverse Relationship 14. Slope 15. Questions for Chapter 1 16. Answers for Chapter 1 Chapter 2: Trade and Economic Systems 1. Self-sufficiency or Trade 2. Consumer's Surplus and Producer's Surplus 3. Externalities 4. The Production Possibilities Frontier 5. Law of Increasing Opportunity Cost 6. Economic Efficiency 7. Economic Growth 8. Economic Systems 9. Capitalist Vision 10. Socialist Vision 11. Three Economic Questions 12. Appendix: A Movement Along a Curve versus a Shift in a Curve 13. Questions for Chapter 2 14. Answers for Chapter 2 Chapter 3: Demand, Supply, and Equilibrium 1. Demand 2. Law of Demand 3. Substitution Effect 4. Income Effect 5. Demand Schedule and Demand Curve 6. Determinants of Demand 7. Change in Demand versus Change in Quantity Demanded 8. Supply 9. Law of Supply 10. Determinant of Supply 11. Change in Supply versus Change in Quantity Supplied 12. Equilibrium: Putting Demand and Supply Together 13. Moving from Disequilibrium to Equilibrium 14. Free Markets and Economic Efficiency I 15. Free Markets and Economic Efficiency II 16. A Change in Equilibrium Price and Quantity 17. Price Controls 18. A Price Ceiling 19. A Price Floor 20. Price Controls and Economic Inefficiency 21. Questions for Chapter 3 22. Answers for Chapter 3 Chapter 4: Inflation and Unemployment 1. Three Macroeconomic Goals 2. Inflation 3. The Price Level, Money, and Production 4. Consumer Price Index 5. Computing the Rate of Inflation 6. Consumer Price Index Table 7. Adjusting Nominal Values to Real Values 8. Unemployment 9. Full Employment 10. Measuring Unemployment 11. Types of Unemployment 12. Frictional Unemployment 13. Structural Unemployment 14. Natural Unemployment Rate 15. Cyclical Unemployment 16. Appendix: Economic Growth and Job Destruction 17. Appendix: Female Labor Force Participation 18. Questions for Chapter 4 19. Answers for Chapter 4 Chapter 5: Measuring Total Output: GDP 1. Gross Domestic Product 2. Exclusions From GDP 3. Two Measures of Total Output 4. Per Capita Output 5. Per Capita Personal Income - 2004 6. Real GDP 7. Historical Data on Nominal and Real GDP 8. The Business Cycle 9. Appendix: The Three Economic Goals and the U.S. Economy 10. Appendix: Circular Flow Diagram 11. Questions for Chapter 5 12. Answers for Chapter 5 Chapter 6: The Aggregate Market 1. Aggregate Demand 2. Shifts in the Aggregate Demand Curve 3. Aggregate Supply 4. Shifts in the SRAS Curve 5. Short-Run Equilibrium: Putting AD and SRAS Together 6. Changes in AD and SRAS 7. Appendix: Why the Aggregate Demand Curve Slopes Downward 8. Appendix: Why the Short-Run Aggregate Supply Curve Slopes Upward 9. Questions for Chapter 6 10. Answers for Chapter 6 Chapter 7: Classical Economic Theory 1. Adam Smith 2. The Ideal Quantity of Total Output 3. The Self-Regulating Economy 4. Marx's Criticism of Classical Theory 5. Say's Law 6. Say's Law, Savings, and Flexible Interest Rates 7. Say's Law and Flexible Wages and Prices 8. Natural Real GDP 9. A Recessionary Gap 10. An Inflationary Gap 11. Long-Run Equilibrium 12. Automatically Closing a Recessionary Gap 13. Automatically Closing an Inflationary Gap 14. Long-Run Aggregate Supply 15. Laissez-faire 16. Questions for Chapter 7 17. Answers for Chapter 7 Chapter 8: Keynesian Economic Theory 1. John Maynard Keynes 2. Keynesian Theory and Say's Law 3. Keynesian Theory and Closing a Recessionary Gap 4. Consumption 5. Marginal Propensity to Consume 6. The 45 Angle Line 7. The Total Expenditures Curve 8. Equilibrium Real GDP 9. Equilibrium Real GDP and the 45 Angle Line 10. A Change in Total Expenditures 11. Formula for Change in Real GDP 12. The Multiplier 13. Questions for Chapter 8 14. Answers for Chapter 8 Chapter 9: Fiscal Policy 1. Keynesian Fiscal Policy 2. Keynesian Fiscal Policy Theory and a Recessionary Gap 3. Keynesian Fiscal Policy Theory and an Inflationary Gap 4. Automatic Stabilizers 5. Potential Problems with Fiscal Policy 6. Supply-side Fiscal Policy 7. The Laffer Curve 8. Supply-side Tax Cuts 9. Appendix: History of the Federal Government's Budget 10. Questions for Chapter 9 11. Answers for Chapter 9 Chapter 10: Money and Money Creation 1. Money 2. Barter 3. Functions of Money 4. Why Money is Valuable 5. Measuring the Money Supply 6. Checks and Credit Cards 7. Money Creation 8. Required Reserves 9. Reserves 10. Excess Reserves 11. A Simplified Balance Sheet 12. U.S. Government Securities 13. Potential Deposit Multiplier 14. Questions for Chapter 10 15. Answers for Chapter 10 Chapter 11: The Federal Reserve System and Inflation 1. The U.S. Central Bank 2. Functions of the Federal Reserve System 3. Monetary Base and the Money Supply 4. The Actual Money Multiplier 5. Tools for Controlling the Money Supply 6. Open Market Operations 7. Changing the Reserve Requirement 8. Changing the Discount Rate 9. Inflation 10. Effects of Inflation 11. Appendix: The Independence of the Federal Reserve System 12. Appendix: Recent Fed Monetary Policy 13. Questions for Chapter 11 14. Answers for Chapter 11 Chapter 12: Monetary Policy 1. Classical Monetary Theory 2. Velocity of Money 3. Monetarism 4. Keynesian Monetary Theory 5. Failure of the Keynesian Monetary Transmission Mechanism 6. Monetarist Transmission Mechanism 7. Monetary Policy and Closing Gaps 8. Keynesian Theory and the Proper Policies 9. Monetarist Theory and the Proper Policies 10. Appendix: The Great Depression 11. Keynesian Theory of the Great Depression 12. Classical Theory of the Great Depression 13. Questions for Chapter 12 14. Answers for Chapter 12 Chapter 13: Taxes, Deficits, and the National Debt 1. Classifications of Taxes 2. Major Federal Taxes 3. History of the Federal Personal Income Tax 4. Characteristics of a Good Tax 5. Excess Burden 6. Is the Federal Personal Income Tax a Good Tax? 7. What Would Make the Federal Personal Income Tax a Better Tax? 8. The Burden of the Federal Personal Income Tax 9. Major Federal Spending Programs 10. Deficits and the National Debt 11. The Burden of Deficit Spending 12. Questions for Chapter 13 13. Answers for Chapter 13 Chapter 14: Economic Growth 1. Absolute Economic Growth 2. Per Capita Economic Growth 3. Economic Growth in the U.S. 4. Determinants of Economic GrowHolt, Jeff is the author of 'Principles of Economics ' with ISBN 9780073542850 and ISBN 0073542857.