Principles of Economics 3e covers the scope and sequence of most introductory economics courses. The third edition takes a balanced approach to the theory and application of economics concepts. The text uses conversational language and ample illustrations to explore economic theories, and provides a wide array of examples using both fictional and real-world scenarios. The third edition has been carefully and thoroughly updated to reflect current data and understanding, as well as to provide a deeper background in diverse contributors and their impacts on economic thought and analysis. For example, the third edition highlights the research and views of a broader group of economists. Brief references and deeply explored socio-political examples have been updated to showcase the critical – and sometimes unnoticed – ties between economic developments and topics relevant to students.
Conditions of Use
This book is licensed under a Creative Commons License (CC BY). You can download the ebook Principles of Economics 3e for free.
- Title
- Principles of Economics 3e
- Publisher
- OpenStax
- Author(s)
- Daniel MacDonald, David Shapiro, Steven A. Greenlaw
- Published
- 2024-01-23
- Edition
- 3
- Format
- eBook (pdf, epub, mobi)
- Pages
- 989
- Language
- English
- ISBN-10
- 1711471453
- ISBN-13
- 9781711471457
- License
- CC BY
- Book Homepage
- Free eBook, Errata, Code, Solutions, etc.
Chapter 1 Welcome to Economics! Introduction 1.1 What Is Economics, and Why Is It Important? 1.2 Microeconomics and Macroeconomics 1.3 How Economists Use Theories and Models to Understand Economic Issues 1.4 How To Organize Economies: An Overview of Economic Systems Key Terms Key Concepts and Summary Self-Check Questions Review Questions Critical Thinking Questions Chapter 2 Choice in a World of Scarcity Introduction to Choice in a World of Scarcity 2.1 How Individuals Make Choices Based on Their Budget Constraint 2.2 The Production Possibilities Frontier and Social Choices 2.3 Confronting Objections to the Economic Approach Key Terms Key Concepts and Summary Self-Check Questions Review Questions Critical Thinking Questions Problems Chapter 3 Demand and Supply Introduction to Demand and Supply 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services 3.2 Shifts in Demand and Supply for Goods and Services 3.3 Changes in Equilibrium Price and Quantity: The Four-Step Process 3.4 Price Ceilings and Price Floors 3.5 Demand, Supply, and Efficiency Key Terms Key Concepts and Summary Self-Check Questions Review Questions Critical Thinking Questions Problems Chapter 4 Labor and Financial Markets Introduction to Labor and Financial Markets 4.1 Demand and Supply at Work in Labor Markets 4.2 Demand and Supply in Financial Markets 4.3 The Market System as an Efficient Mechanism for Information Key Terms Key Concepts and Summary Self-Check Questions Review Questions Critical Thinking Questions Problems Chapter 5 Elasticity Introduction to Elasticity 5.1 Price Elasticity of Demand and Price Elasticity of Supply 5.2 Polar Cases of Elasticity and Constant Elasticity 5.3 Elasticity and Pricing 5.4 Elasticity in Areas Other Than Price Key Terms Key Concepts and Summary Self-Check Questions Review Questions Critical Thinking Questions Problems Chapter 6 Consumer Choices Introduction to Consumer Choices 6.1 Consumption Choices 6.2 How Changes in Income and Prices Affect Consumption Choices 6.3 Behavioral Economics: An Alternative Framework for Consumer Choice Key Terms Key Concepts and Summary Self-Check Questions Review Questions Critical Thinking Questions Problems Chapter 7 Production, Costs, and Industry Structure Introduction to Production, Costs, and Industry Structure 7.1 Explicit and Implicit Costs, and Accounting and Economic Profit 7.2 Production in the Short Run 7.3 Costs in the Short Run 7.4 Production in the Long Run 7.5 Costs in the Long Run Key Terms Key Concepts and Summary Self-Check Questions Review Questions Critical Thinking Questions Problems Chapter 8 Perfect Competition Introduction to Perfect Competition 8.1 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 8.4 Efficiency in Perfectly Competitive Markets Key Terms Key Concepts and Summary Self-Check Questions Review Questions Critical Thinking Questions Problems Chapter 9 Monopoly Introduction to a Monopoly 9.1 How Monopolies Form: Barriers to Entry 9.2 How a Profit-Maximizing Monopoly Chooses Output and Price Key Terms Key Concepts and Summary Self-Check Questions Review Questions Critical Thinking Questions Problems Chapter 10 Monopolistic Competition and Oligopoly Introduction to Monopolistic Competition and Oligopoly 10.1 Monopolistic Competition 10.2 Oligopoly Key Terms Key Concepts and Summary Self-Check Questions Review Questions Critical Thinking Questions Problems Chapter 11 Monopoly and Antitrust Policy Introduction to Monopoly and Antitrust Policy 11.1 Corporate Mergers 11.2 Regulating Anticompetitive Behavior 11.3 Regulating Natural Monopolies 11.4 The Great Deregulation Experiment Key Terms Key Concepts and Summary Self-Check Questions Review Questions Critical Thinking Questions Problems Chapter 12 Environmental Protection and Negative Externalities Introduction to Environmental Protection and Negative Externalities 12.1 The Economics of Pollution 12.2 Command-and-Control Regulation 12.3 Market-Oriented Environmental Tools 12.4 The Benefits and Costs of U.S. Environmental Laws 12.5 International Environmental Issues 12.6 The Tradeoff between Economic Output and Environmental Protection Key Terms Key Concepts and Summary Self-Check Questions Review Questions Critical Thinking Questions Problems Chapter 13 Positive Externalities and Public Goods Introduction to Positive Externalities and Public Goods 13.1 Investments in Innovation 13.2 How Governments Can Encourage Innovation 13.3 Public Goods Key Terms Key Concepts and Summary Self-Check Questions Review Questions Critical Thinking Questions Problems Chapter 14 Labor Markets and Income Introduction to Labor Markets and Income 14.1 The Theory of Labor Markets 14.2 Wages and Employment in an Imperfectly Competitive Labor Market 14.3 Market Power on the Supply Side of Labor Markets: Unions 14.4 Bilateral Monopoly 14.5 Employment Discrimination 14.6 Immigration Key Terms Key Concepts and Summary Self-Check Questions Review Questions Critical Thinking Questions Chapter 15 Poverty and Economic Inequality Introduction to Poverty and Economic Inequality 15.1 Drawing the Poverty Line 15.2 The Poverty Trap 15.3 The Safety Net 15.4 Income Inequality: Measurement and Causes 15.5 Government Policies to Reduce Income Inequality Key Terms Key Concepts and Summary Self-Check Questions Review Questions Critical Thinking Questions Problems Chapter 16 Information, Risk, and Insurance Introduction to Information, Risk, and Insurance 16.1 The Problem of Imperfect Information and Asymmetric Information 16.2 Insurance and Imperfect Information Key Terms Key Concepts and Summary Self-Check Questions Review Questions Critical Thinking Questions Problems Chapter 17 Financial Markets Introduction to Financial Markets 17.1 How Businesses Raise Financial Capital 17.2 How Households Supply Financial Capital 17.3 How to Accumulate Personal Wealth Key Terms Key Concepts and Summary Self-Check Questions Review Questions Critical Thinking Questions Problems Chapter 18 Public Economy Introduction to Public Economy 18.1 Voter Participation and Costs of Elections 18.2 Special Interest Politics 18.3 Flaws in the Democratic System of Government Key Terms Key Concepts and Summary Self-Check Questions Review Questions Critical Thinking Questions Problems Chapter 19 The Macroeconomic Perspective Introduction to the Macroeconomic Perspective 19.1 Measuring the Size of the Economy: Gross Domestic Product 19.2 Adjusting Nominal Values to Real Values 19.3 Tracking Real GDP over Time 19.4 Comparing GDP among Countries 19.5 How Well GDP Measures the Well-Being of Society Key Terms Key Concepts and Summary Self-Check Questions Review Questions Critical Thinking Questions Problems Chapter 20 Economic Growth Introduction to Economic Growth 20.1 The Relatively Recent Arrival of Economic Growth 20.2 Labor Productivity and Economic Growth 20.3 Components of Economic Growth 20.4 Economic Convergence Key Terms Key Concepts and Summary Self-Check Questions Review Questions Critical Thinking Questions Problems Chapter 21 Unemployment Introduction to Unemployment 21.1 How Economists Define and Compute Unemployment Rate 21.2 Patterns of Unemployment 21.3 What Causes Changes in Unemployment over the Short Run 21.4 What Causes Changes in Unemployment over the Long Run Key Terms Key Concepts and Summary Self-Check Questions Review Questions Critical Thinking Questions Problems Chapter 22 Inflation Introduction to Inflation 22.1 Tracking Inflation 22.2 How to Measure Changes in the Cost of Living 22.3 How the U.S. and Other Countries Experience Inflation 22.4 The Confusion Over Inflation 22.5 Indexing and Its Limitations Key Terms Key Concepts and Summary Self-Check Questions Review Questions Critical Thinking Questions Problems Chapter 23 The International Trade and Capital Flows Introduction to the International Trade and Capital Flows 23.1 Measuring Trade Balances 23.2 Trade Balances in Historical and International Context 23.3 Trade Balances and Flows of Financial Capital 23.4 The National Saving and Investment Identity 23.5 The Pros and Cons of Trade Deficits and Surpluses 23.6 The Difference between Level of Trade and the Trade Balance Key Terms Key Concepts and Summary Self-Check Questions Review Questions Critical Thinking Questions Problems Chapter 24 The Aggregate Demand/Aggregate Supply Model Introduction to the Aggregate Supply–Aggregate Demand Model 24.1 Macroeconomic Perspectives on Demand and Supply 24.2 Building a Model of Aggregate Demand and Aggregate Supply 24.3 Shifts in Aggregate Supply 24.4 Shifts in Aggregate Demand 24.5 How the AD/AS Model Incorporates Growth, Unemployment, and Inflation 24.6 Keynes’ Law and Say’s Law in the AD/AS Model Key Terms Key Concepts and Summary Self-Check Questions Review Questions Critical Thinking Questions Problems Chapter 25 The Keynesian Perspective Introduction to the Keynesian Perspective 25.1 Aggregate Demand in Keynesian Analysis 25.2 The Building Blocks of Keynesian Analysis 25.3 The Phillips Curve 25.4 The Keynesian Perspective on Market Forces Key Terms Key Concepts and Summary Self-Check Questions Review Questions Critical Thinking Questions Chapter 26 The Neoclassical Perspective Introduction to the Neoclassical Perspective 26.1 The Building Blocks of Neoclassical Analysis 26.2 The Policy Implications of the Neoclassical Perspective 26.3 Balancing Keynesian and Neoclassical Models Key Terms Key Concepts and Summary Self-Check Questions Review Questions Critical Thinking Questions Problems Chapter 27 Money and Banking Introduction to Money and Banking 27.1 Defining Money by Its Functions 27.2 Measuring Money: Currency, M1, and M2 27.3 The Role of Banks 27.4 How Banks Create Money Key Terms Key Concepts and Summary Self-Check Questions Review Questions Critical Thinking Questions Problems Chapter 28 Monetary Policy and Bank Regulation Introduction to Monetary Policy and Bank Regulation 28.1 The Federal Reserve Banking System and Central Banks 28.2 Bank Regulation 28.3 How a Central Bank Executes Monetary Policy 28.4 Monetary Policy and Economic Outcomes 28.5 Pitfalls for Monetary Policy Key Terms Key Concepts and Summary Self-Check Questions Review Questions Critical Thinking Questions Problems Chapter 29 Exchange Rates and International Capital Flows Introduction to Exchange Rates and International Capital Flows 29.1 How the Foreign Exchange Market Works 29.2 Demand and Supply Shifts in Foreign Exchange Markets 29.3 Macroeconomic Effects of Exchange Rates 29.4 Exchange Rate Policies Key Terms Key Concepts and Summary Self-Check Questions Review Questions Critical Thinking Questions Problems Chapter 30 Government Budgets and Fiscal Policy Introduction to Government Budgets and Fiscal Policy 30.1 Government Spending 30.2 Taxation 30.3 Federal Deficits and the National Debt 30.4 Using Fiscal Policy to Fight Recession, Unemployment, and Inflation 30.5 Automatic Stabilizers 30.6 Practical Problems with Discretionary Fiscal Policy 30.7 The Question of a Balanced Budget Key Terms Key Concepts and Summary Self-Check Questions Review Questions Critical Thinking Questions Problems Chapter 31 The Impacts of Government Borrowing Introduction to the Impacts of Government Borrowing 31.1 How Government Borrowing Affects Investment and the Trade Balance 31.2 Fiscal Policy and the Trade Balance 31.3 How Government Borrowing Affects Private Saving 31.4 Fiscal Policy, Investment, and Economic Growth Key Terms Key Concepts and Summary Self-Check Questions Review Questions Critical Thinking Questions Problems Chapter 32 Macroeconomic Policy Around the World Introduction to Macroeconomic Policy around the World 32.1 The Diversity of Countries and Economies across the World 32.2 Improving Countries’ Standards of Living 32.3 Causes of Unemployment around the World 32.4 Causes of Inflation in Various Countries and Regions 32.5 Balance of Trade Concerns Key Terms Key Concepts and Summary Self-Check Questions Review Questions Critical Thinking Questions Problems Chapter 33 International Trade Introduction to International Trade 33.1 Absolute and Comparative Advantage 33.2 What Happens When a Country Has an Absolute Advantage in All Goods 33.3 Intra-Industry Trade between Similar Economies 33.4 The Benefits of Reducing Barriers to International Trade Key Terms Key Concepts and Summary Self-Check Questions Review Questions Critical Thinking Questions Problems Chapter 34 Globalization and Protectionism Introduction to Globalization and Protectionism 34.1 Protectionism: An Indirect Subsidy from Consumers to Producers 34.2 International Trade and Its Effects on Jobs, Wages, and Working Conditions 34.3 Arguments in Support of Restricting Imports 34.4 How Governments Enact Trade Policy: Globally, Regionally, and Nationally 34.5 The Tradeoffs of Trade Policy Key Terms Key Concepts and Summary Self-Check Questions Review Questions Critical Thinking Questions Problems Appendix A The Use of Mathematics in Principles of Economics Appendix B Indifference Curves Appendix C Present Discounted Value Appendix D The Expenditure-Output Model Appendix E How Open Market Operations Affect Balance Sheets in a Limited Reserves Environment Answer Key Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11 Chapter 12 Chapter 13 Chapter 14 Chapter 15 Chapter 16 Chapter 17 Chapter 18 Chapter 19 Chapter 20 Chapter 21 Chapter 22 Chapter 23 Chapter 24 Chapter 25 Chapter 26 Chapter 27 Chapter 28 Chapter 29 Chapter 30 Chapter 31 Chapter 32 Chapter 33 Chapter 34 References Index
Related Books
