Macroeconomics
by: Arnold, Roger A.
Macroeconomics
by: Arnold, Roger A.
- ISBN 13:
9780324538038
- ISBN 10:
0324538030
- Edition: 8th
- Format: Paperback
- Copyright: 01/19/2007
- Publisher: South-Western College Pub
- Newer Edition
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Summary
What do John Elway, Mick Jagger, Arnold Schwarzenegger, Sandra Day O'Connor and Young MC all have in common? They all studied economics! In beginning your study of economics with this text, you have a unique opportunity to learn the basics through a clear presentation of concepts and exciting real-world applications that demonstrate how economics affects you, every day, in ways you may not even expect. Why do airlines overbook? How did Hurricane Katrina affect the economy? Do drug busts make a difference in crime? Will a higher minimum wage lead to fewer jobs? Are you more likely to be late to some classes than others? Economic analysis seeks answers to questions like these and so much more. Your journey down Economics Road begins with Chapter 1 - Enjoy!
Table of Contents
Read morePreface | p. xix |
An Introduction to Economics | |
Economics: The Science of Scarcity | |
What Economics Is About | p. 1 |
A Definition of Economics | p. 2 |
Goods and Bads | p. 2 |
Resources | p. 2 |
Scarcity and a Definition of Economics | p. 2 |
Key Concepts in Economics | p. 5 |
Opportunity Cost | p. 5 |
Benefits and Costs | p. 6 |
Decisions Made at the Margin | p. 8 |
Efficiency | p. 8 |
Unintended Effects | p. 10 |
Exchange | p. 11 |
Economic Categories | p. 12 |
Positive and Normative Economics | p. 12 |
Microeconomics and Macroeconomics | p. 13 |
A Reader Asks | p. 13 |
Analyzing the Scene | p. 14 |
Chapter Summary | p. 15 |
Key Terms and Concepts | p. 16 |
Questions and Problems | p. 16 |
Working with Diagrams | p. 17 |
Two-Variable Diagrams | p. 17 |
Slope of a Line | p. 18 |
Slope of a Line Is Constant | p. 18 |
Slope of a Curve | p. 20 |
The 45[Degree] Line | p. 20 |
Pie Charts | p. 21 |
Bar Graphs | p. 21 |
Line Graphs | p. 21 |
Appendix Summary | p. 24 |
Questions and Problems | p. 24 |
Should You Major in Economics? | p. 25 |
Five Myths about Economics and an Economics Major | p. 26 |
What Awaits You as an Economics Major? | p. 28 |
What Do Economists Do? | p. 29 |
Places to Find More Information | p. 30 |
Concluding Remarks | p. 30 |
Economic Activities: Producing and Trading | p. 31 |
The Production Possibilities Frontier | p. 32 |
The Straight-Line PPF: Constant Opportunity Costs | p. 32 |
The Bowed-Outward (Concave-Downward) PPF: Increasing Opportunity Costs | p. 33 |
Law of Increasing Opportunity Costs | p. 34 |
Economic Concepts within a PPF Framework | p. 35 |
Exchange or Trade | p. 38 |
Periods Relevant to Trade | p. 39 |
Trade and the Terms of Trade | p. 40 |
Costs of Trades | p. 40 |
Trades and Third-Party Effects | p. 42 |
Production, Trade, and Specialization | p. 42 |
Producing and Trading | p. 42 |
Profit and a Lower Cost of Living | p. 45 |
A Benevolent and All-Knowing Dictator Versus the Invisible Hand | p. 45 |
A Reader Asks | p. 46 |
Analyzing the Scene | p. 47 |
Chapter Summary | p. 47 |
Key Terms and Concepts | p. 48 |
Questions and Problems | p. 48 |
Working with Numbers and Graphs | p. 49 |
Supply and Demand: Theory | p. 50 |
A Note about Theories | p. 51 |
What Is Demand? | p. 51 |
The Law of Demand | p. 52 |
What Does Ceteris Paribus Mean? | p. 52 |
Four Ways to Represent the Law of Demand | p. 52 |
Two Prices: Absolute and Relative | p. 53 |
Why Does Quantity Demanded Go Down as Price Goes Up? | p. 53 |
Individual Demand Curve and Market Demand Curve | p. 54 |
A Change in Quantity Demanded Versus a Change in Demand | p. 55 |
What Factors Cause the Demand Curve to Shift? | p. 57 |
Movement Factors and Shift Factors | p. 59 |
Supply | p. 60 |
The Law of Supply | p. 61 |
Why Most Supply Curves Are Upward Sloping | p. 61 |
Changes in Supply Mean Shifts in Supply Curves | p. 62 |
What Factors Cause the Supply Curve to Shift? | p. 63 |
A Change in Supply Versus a Change in Quantity Supplied | p. 64 |
The Market: Putting Supply and Demand Together | p. 65 |
Supply and Demand at Work at an Auction | p. 65 |
The Language of Supply and Demand: A Few Important Terms | p. 66 |
Moving to Equilibrium: What Happens to Price When There Is a Surplus or a Shortage? | p. 67 |
Speed of Moving to Equilibrium | p. 68 |
Moving to Equilibrium: Maximum and Minimum Prices | p. 68 |
Equilibrium in Terms of Consumers' and Producers' Surplus | p. 70 |
What Can Change Equilibrium Price and Quantity? | p. 71 |
Price Controls | p. 73 |
Price Ceiling: Definition and Effects | p. 73 |
Do Buyers Prefer Lower Prices to Higher Prices? | p. 76 |
Price Floor: Definition and Effects | p. 76 |
A Reader Asks | p. 77 |
Analyzing the Scene | p. 78 |
Chapter Summary | p. 78 |
Key Terms and Concepts | p. 79 |
Questions and Problems | p. 80 |
Working with Numbers and Graphs | p. 80 |
Supply and Demand: Practice | p. 82 |
Why Do Colleges Use GPAs, ACTs, and SATs for Purposes of Admission? | p. 83 |
What Will Happen to the Price of Marijuana If the Purchase and Sale of Marijuana Are Legalized? | p. 84 |
Where Did You Get That Music? | p. 85 |
Television Shows During the Olympics | p. 86 |
Who Feeds Cleveland? | p. 86 |
The Minimum Wage Law | p. 87 |
Loud Talking at a Restaurant | p. 88 |
Price Ceiling in the Kidney Market | p. 89 |
Healthcare and the Right to Sue Your HMO | p. 91 |
Being Late to Class | p. 92 |
If Gold Prices Are the Same Everywhere, Then Why Aren't House Prices? | p. 93 |
Do You Pay for Good Weather? | p. 94 |
Paying Ail Professors the Same Salary | p. 94 |
Price Floors and Winners and Losers | p. 96 |
College Superathletes | p. 97 |
Supply and Demand on a Freeway | p. 99 |
What Does Price Have to Do with Getting to Class on Time? | p. 101 |
The Space Within Space | p. 102 |
10 A.M. Classes in College | p. 102 |
Who Pays the Tax? | p. 103 |
A Reader Asks | p. 105 |
Analyzing the Scene | p. 105 |
Chapter Summary | p. 106 |
Key Terms and Concepts | p. 107 |
Questions and Problems | p. 108 |
Working with Numbers and Graphs | p. 109 |
Macroeconomics | |
Macroeconomic Fundamentals | |
Macroeconomic Measurements, Part I: Prices and Unemployment | p. 111 |
How to Approach the Study of Macroeconomics | p. 112 |
Macroeconomic Problems | p. 112 |
Macroeconomic Theories | p. 112 |
Macroeconomic Policies | p. 113 |
Different Views of How the Economy Works | p. 113 |
Three Macroeconomic Organizational Categories | p. 113 |
Macroeconomic Measures | p. 115 |
Measuring Prices Using the CPI | p. 115 |
Inflation and the CPI | p. 117 |
The Substitution Bias in Fixed-Weighted Measures | p. 118 |
GDP Implicit Price Deflator | p. 119 |
Converting Dollars from One Year to Another | p. 119 |
Measuring Unemployment | p. 120 |
Who Are the Unemployed? | p. 121 |
The Unemployment and Employment Rates | p. 122 |
Reasons for Unemployment | p. 123 |
Discouraged Workers | p. 123 |
Types of Unemployment | p. 123 |
What Is Full Employment? | p. 125 |
Cyclical Unemployment | p. 125 |
A Reader Asks | p. 127 |
Analyzing the Scene | p. 127 |
Chapter Summary | p. 128 |
Key Terms and Concepts | p. 129 |
Questions and Problems | p. 129 |
Working with Numbers and Graphs | p. 129 |
Macroeconomic Measurements, Part II: GDP and Real GDP | p. 131 |
Gross Domestic Product | p. 132 |
Three Ways to Compute GDP | p. 132 |
What GDP Omits | p. 133 |
GDP Is Not Adjusted for Bads Generated in the Production of Goods | p. 134 |
Per Capita GDP | p. 134 |
Is Either GDP or Per Capita GDP a Measure of Happiness or Well-Being? | p. 134 |
The Expenditure Approach to Computing GDP for a Real-World Economy | p. 136 |
Expenditures in a Real-World Economy | p. 136 |
Computing GDP Using the Expenditure Approach | p. 137 |
The Income Approach to Computing GDP for a Real-World Economy | p. 138 |
Computing National Income | p. 141 |
From National Income to GDP: Making Some Adjustments | p. 141 |
Other National Income Accounting Measurements | p. 143 |
Net Domestic Product | p. 143 |
Personal Income | p. 143 |
Disposable Income | p. 144 |
Real GDP | p. 144 |
Why We Need Real GDP | p. 144 |
Computing Real GDP | p. 145 |
The General Equation for Real GDP | p. 145 |
What Does It Mean If Real GDP Is Higher in One Year Than in Another Year? | p. 145 |
Real GDP, Economic Growth, and Business Cycles | p. 146 |
A Reader Asks | p. 148 |
Analyzing the Scene | p. 148 |
Chapter Summary | p. 149 |
Key Terms and Concepts | p. 150 |
Questions and Problems | p. 150 |
Working with Numbers and Graphs | p. 151 |
Macroeconomic Stability, Instability, and Fiscal Policy | |
Aggregate Demand and Aggregate Supply | p. 152 |
The Two Sides to an Economy | p. 153 |
Aggregate Demand | p. 153 |
Why Does the Aggregate Demand Curve Slope Downward? | p. 153 |
A Change in the Quantity Demanded of Real GDP Versus a Change in Aggregate Demand | p. 156 |
Changes in Aggregate Demand: Shifts in the AD Curve | p. 156 |
How Spending Components Affect Aggregate Demand | p. 157 |
Factors That Can Change C, I, G, and NX (EX - IM) and Therefore Can Change AD | p. 158 |
Can a Change in the Money Supply Change Aggregate Demand? | p. 161 |
Short-Run Aggregate Supply | p. 162 |
Short-Run Aggregate Supply Curve: What It Is and Why It Is Upward Sloping | p. 162 |
What Puts the "Short Run" in SRAS? | p. 163 |
Changes in Short-Run Aggregate Supply: Shifts in the SRAS Curve | p. 163 |
Putting AD and SRAS Together: Short-Run Equilibrium | p. 165 |
How Short-Run Equilibrium in the Economy Is Achieved | p. 166 |
Thinking in Terms of Short-Run Equilibrium Changes in the Economy | p. 167 |
An Important Exhibit | p. 169 |
Long-Run Aggregate Supply | p. 170 |
Going from the Short Run to the Long Run | p. 170 |
Short-Run Equilibrium, Long-Run Equilibrium, and Disequilibrium | p. 172 |
A Reader Asks | p. 173 |
Analyzing the Scene | p. 173 |
Chapter Summary | p. 174 |
Key Terms and Concepts | p. 175 |
Questions and Problems | p. 175 |
Working with Numbers and Graphs | p. 176 |
The Self-Regulating Economy | p. 177 |
The Classical View | p. 178 |
Classical Economists and Say's Law | p. 178 |
Classical Economists and Interest Rate Flexibility | p. 178 |
Classical Economists on Prices and Wages | p. 180 |
Three States of the Economy | p. 181 |
Real GDP and Natural Real GDP: Three Possibilities | p. 181 |
The Labor Market and the Three States of the Economy | p. 182 |
One Nagging Question: How Can the Unemployment Rate Be Less Than the Natural Unemployment Rate? | p. 184 |
The Self-Regulating Economy | p. 185 |
What Happens If the Economy Is in a Recessionary Gap? | p. 185 |
What Happens If the Economy Is in an Inflationary Gap? | p. 186 |
The Self-Regulating Economy: A Recap | p. 188 |
Policy Implication of Believing the Economy Is Self-Regulating | p. 189 |
Changes in a Self-Regulating Economy: Short Run and Long Run | p. 189 |
A Reader Asks | p. 191 |
Analyzing the Scene | p. 191 |
Chapter Summary | p. 192 |
Key Terms and Concepts | p. 193 |
Questions and Problems | p. 193 |
Working with Numbers and Graphs | p. 194 |
Economic Instability: A Critique of the Self-Regulating Economy | p. 195 |
Questioning the Classical Position | p. 196 |
Keynes's Criticism of Say's Law in a Money Economy | p. 196 |
Keynes on Wage Rates | p. 198 |
New Keynesians and Wage Rates | p. 198 |
Keynes on Prices | p. 199 |
Is It a Question of the Time It Takes for Wages and Prices to Adjust? | p. 200 |
The Simple Keynesian Model | p. 201 |
Assumptions | p. 201 |
The Consumption Function | p. 201 |
Consumption and Saving | p. 203 |
The Multiplier | p. 203 |
The Multiplier and Reality | p. 205 |
The Simple Keynesian Model in the AD-AS Framework | p. 206 |
Shifts in the Aggregate Demand Curve | p. 206 |
The Keynesian Aggregate Supply Curve | p. 206 |
The Economy in a Recessionary Gap | p. 208 |
Government's Role in the Economy | p. 209 |
The Theme of the Simple Keynesian Model | p. 209 |
The Simple Keynesian Model in the TE-TP Framework | p. 210 |
Deriving a Total Expenditures (TE) Curve | p. 210 |
What Will Shift the TE Curve? | p. 211 |
Comparing Total Expenditures (TE) and Total Production (TP) | p. 212 |
Moving from Disequilibrium to Equilibrium | p. 212 |
The Graphical Representation of the Three States of the Economy in the TE-TP Framework | p. 213 |
The Economy in a Recessionary Gap and the Role of Government | p. 214 |
The Theme of the Simple Keynesian Model | p. 216 |
A Reader Asks | p. 216 |
Analyzing the Scene | p. 217 |
Chapter Summary | p. 218 |
Key Terms and Concepts | p. 219 |
Questions and Problems | p. 219 |
Working with Numbers and Graphs | p. 220 |
The Federal Budget and Fiscal Policy | p. 221 |
The Federal Budget | p. 222 |
Government Expenditures | p. 222 |
Government Tax Revenues | p. 223 |
Budget Deficit, Surplus, or Balance | p. 225 |
Structural and Cyclical Deficits | p. 226 |
The Public Debt | p. 226 |
Fiscal Policy | p. 226 |
Some Relevant Fiscal Policy Terms | p. 227 |
Two Important Notes | p. 227 |
Demand-Side Fiscal Policy | p. 227 |
Shifting the Aggregate Demand Curve | p. 227 |
Fiscal Policy: A Keynesian Perspective | p. 228 |
Crowding Out: Questioning Expansionary Fiscal Policy | p. 229 |
Lags and Fiscal Policy | p. 232 |
Crowding Out, Lags, and the Effectiveness of Fiscal Policy | p. 233 |
Supply-Side Fiscal Policy | p. 233 |
Marginal Tax Rates and Aggregate Supply | p. 233 |
The Laffer Curve: Tax Rates and Tax Revenues | p. 234 |
A Reader Asks | p. 237 |
Analyzing the Scene | p. 238 |
Chapter Summary | p. 238 |
Key Terms and Concepts | p. 239 |
Questions and Problems | p. 240 |
Working with Numbers and Graphs | p. 240 |
Money, the Economy, and Monetary Policy | |
Money and Banking | p. 241 |
Money: What Is It and How Did It Come to Be? | p. 242 |
Money: A Definition | p. 242 |
Three Functions of Money | p. 242 |
From a Barter to a Money Economy: The Origins of Money | p. 243 |
Money in a Prisoner of War Camp | p. 244 |
Money, Leisure, and Output | p. 244 |
What Gives Money Its Value? | p. 245 |
Defining the Money Supply | p. 246 |
M1 | p. 246 |
M2 | p. 246 |
Where Do Credit Cards Fit In? | p. 247 |
How Banking Developed | p. 249 |
The Early Bankers | p. 249 |
The Federal Reserve System | p. 249 |
The Money Creation Process | p. 249 |
The Bank's Reserves and More | p. 250 |
The Banking System and the Money Expansion Process | p. 251 |
Why Maximum? Answer: No Cash Leakages and Zero Excess Reserves | p. 254 |
Who Created What? | p. 254 |
It Works in Reverse: The "Money Destruction" Process | p. 255 |
We Change Our Example | p. 256 |
A Reader Asks | p. 257 |
Analyzing the Scene | p. 257 |
Chapter Summary | p. 258 |
Key Terms and Concepts | p. 258 |
Questions and Problems | p. 259 |
Working with Numbers and Graphs | p. 259 |
The Federal Reserve System | p. 260 |
The Structure and Functions of the Fed | p. 261 |
The Structure of the Fed | p. 261 |
The Functions of the Fed | p. 262 |
Fed Tools for Controlling the Money Supply | p. 264 |
Open Market Operations | p. 264 |
The Required Reserve Ratio | p. 267 |
The Discount Rate | p. 267 |
A Reader Asks | p. 269 |
Analyzing the Scene | p. 270 |
Chapter Summary | p. 270 |
Key Terms and Concepts | p. 270 |
Questions and Problems | p. 271 |
Working with Numbers and Graphs | p. 271 |
Money and the Economy | p. 272 |
Money and the Price Level | p. 273 |
The Equation of Exchange | p. 273 |
From the Equation of Exchange to the Simple Quantity Theory of Money | p. 274 |
The Simple Quantity Theory of Money in an AD-AS Framework | p. 275 |
Dropping the Assumptions That V and Q Are Constant | p. 277 |
Monetarism | p. 278 |
Monetarist Views | p. 278 |
Monetarism and AD-AS | p. 279 |
The Monetarist View of the Economy | p. 281 |
Inflation | p. 281 |
One-Shot Inflation | p. 282 |
Continued Inflation | p. 284 |
Money and Interest Rates | p. 287 |
What Economic Variables Are Affected by a Change in the Money Supply? | p. 287 |
The Money Supply, the Loanable Funds Market, and Interest Rates | p. 288 |
So What Happens to the Interest Rate as the Money Supply Changes? | p. 292 |
The Nominal and Real Interest Rates | p. 292 |
A Reader Asks | p. 293 |
Analyzing the Scene | p. 294 |
Chapter Summary | p. 295 |
Key Terms and Concepts | p. 296 |
Questions and Problems | p. 296 |
Working with Numbers and Graphs | p. 297 |
Monetary Policy | p. 298 |
The Money Market | p. 299 |
The Demand for Money | p. 299 |
The Supply of Money | p. 300 |
Equilibrium in the Money Market | p. 300 |
Transmission Mechanisms | p. 300 |
The Keynesian Transmission Mechanism: Indirect | p. 301 |
The Keynesian Mechanism May Get Blocked | p. 301 |
The Monetarist Transmission Mechanism: Direct | p. 305 |
Monetary Policy and the Problem of Inflationary and Recessionary Gaps | p. 306 |
Monetary Policy and the Activist-Nonactivist Debate | p. 308 |
The Case for Activist (or Discretionary) Monetary Policy | p. 309 |
The Case for Nonactivist (or Rules-Based) Monetary Policy | p. 309 |
Nonactivist Monetary Proposals | p. 312 |
A Constant-Money-Growth-Rate Rule | p. 312 |
A Predetermined-Money-Growth-Rate Rule | p. 312 |
The Fed and the Taylor Rule | p. 313 |
Inflation Targeting | p. 314 |
A Reader Asks | p. 315 |
Analyzing the Scene | p. 316 |
Chapter Summary | p. 316 |
Key Terms and Concepts | p. 317 |
Questions and Problems | p. 317 |
Working with Numbers and Graphs | p. 318 |
Expectations and Growth | |
Expectations Theory and the Economy | p. 319 |
Phillips Curve Analysis | p. 320 |
The Phillips Curve | p. 320 |
Samuelson and Solow: The Phillips Curve Is Americanized | p. 320 |
The Controversy Begins: Are There Really Two Phillips Curves? | p. 321 |
Things Aren't Always as We Thought | p. 321 |
Friedman and the Natural Rate Theory | p. 321 |
How Do People Form Their Expectations? | p. 324 |
Rational Expectations and New Classical Theory | p. 326 |
Rational Expectations | p. 326 |
Do People Anticipate Policy? | p. 326 |
New Classical Theory: The Effects of Unanticipated and Anticipated Policy | p. 327 |
Policy Ineffectiveness Proposition (PIP) | p. 328 |
Rational Expectations and Incorrectly Anticipated Policy | p. 329 |
How to Fall into a Recession Without Really Trying | p. 330 |
New Keynesians and Rational Expectations | p. 332 |
Looking at Things from the Supply Side: Real Business Cycle Theorists | p. 333 |
A Reader Asks | p. 335 |
Analyzing the Scene | p. 335 |
Chapter Summary | p. 336 |
Key Terms and Concepts | p. 337 |
Questions and Problems | p. 337 |
Working with Numbers and Graphs | p. 338 |
Economic Growth | p. 339 |
A Few Basics About Economic Growth | p. 340 |
Do Economic Growth Rates Matter? | p. 340 |
Growth Rates in Selected Countries | p. 341 |
Two Types of Economic Growth | p. 342 |
Economic Growth and the Price Level | p. 343 |
What Causes Economic Growth? | p. 345 |
Natural Resources | p. 345 |
Labor | p. 345 |
Capital | p. 346 |
Technological Advances | p. 347 |
Free Trade as Technology | p. 347 |
Property Rights Structure | p. 347 |
Economic Freedom | p. 347 |
Policies to Promote Economic Growth | p. 349 |
Economic Growth and Special Interest Groups | p. 350 |
New Growth Theory | p. 351 |
What Was Wrong with the Old Theory? Or What's New with New Growth Theory? | p. 351 |
Discovery, Ideas, and Institutions | p. 353 |
Expanding Our Horizons | p. 353 |
A Reader Asks | p. 354 |
Analyzing the Scene | p. 355 |
Chapter Summary | p. 355 |
Key Terms and Concepts | p. 356 |
Questions and Problems | p. 357 |
Working with Numbers and Graphs | p. 357 |
The Global Economy | |
International Economics and Globalization | |
International Trade | p. 359 |
International Trade Theory | p. 360 |
How Do Countries Know What to Trade? | p. 360 |
How Do Countries Know When They Have a Comparative Advantage? | p. 363 |
Trade Restrictions | p. 365 |
The Distributional Effects of International Trade | p. 365 |
Consumers' and Producers' Surplus | p. 365 |
The Benefits and Costs of Trade Restrictions | p. 366 |
If Free Trade Results in Net Gain, Why Do Nations Sometimes Restrict Trade? | p. 369 |
The World Trade Organization (WTO) | p. 373 |
A Reader Asks | p. 374 |
Analyzing the Scene | p. 374 |
Chapter Summary | p. 375 |
Key Terms and Concepts | p. 376 |
Questions and Problems | p. 376 |
Working with Numbers and Graphs | p. 377 |
International Finance | p. 378 |
The Balance of Payments | p. 379 |
Current Account | p. 380 |
Capital Account | p. 383 |
Official Reserve Account | p. 383 |
Statistical Discrepancy | p. 383 |
What the Balance of Payments Equals | p. 384 |
The Foreign Exchange Market | p. 384 |
The Demand for Goods | p. 385 |
The Demand for and Supply of Currencies | p. 385 |
Flexible Exchange Rates | p. 387 |
The Equilibrium Exchange Rate | p. 387 |
Changes in the Equilibrium Exchange Rate | p. 388 |
Factors That Affect the Equilibrium Exchange Rate | p. 388 |
Fixed Exchange Rates | p. 391 |
Fixed Exchange Rates and Overvalued/Undervalued Currency | p. 392 |
What Is So Bad About an Overvalued Dollar? | p. 393 |
Government Involvement in a Fixed Exchange Rate System | p. 394 |
Options Under a Fixed Exchange Rate System | p. 394 |
The Gold Standard | p. 396 |
Fixed Exchange Rates Versus Flexible Exchange Rates | p. 398 |
Promoting International Trade | p. 398 |
Optimal Currency Areas | p. 399 |
The Current International Monetary System | p. 400 |
A Reader Asks | p. 402 |
Analyzing the Scene | p. 403 |
Chapter Summary | p. 403 |
Key Terms and Concepts | p. 404 |
Questions and Problems | p. 405 |
Working with Numbers and Graphs | p. 405 |
Globalization | p. 406 |
What Is Globalization? | p. 407 |
A Smaller World | p. 407 |
A World Economy | p. 407 |
Two Ways to "See" Globalization | p. 408 |
No Barriers | p. 408 |
A Union of States | p. 408 |
Globalization Facts | p. 408 |
International Trade | p. 409 |
Foreign Exchange Trading | p. 409 |
Foreign Direct Investment | p. 409 |
Personal Investments | p. 411 |
The World Trade Organization | p. 411 |
Business Practices | p. 411 |
Movement Toward Globalization | p. 411 |
The End of the Cold War | p. 411 |
Advancing Technology | p. 412 |
Policy Changes | p. 412 |
Benefits and Costs of Globalization | p. 414 |
The Benefits | p. 414 |
The Costs | p. 416 |
The Continuing Globalization Debate | p. 417 |
More or Less Globalization: A Tug of War? | p. 418 |
Less Globalization | p. 418 |
More Globalization | p. 419 |
A Reader Asks | p. 420 |
Analyzing the Scene | p. 420 |
Chapter Summary | p. 421 |
Key Terms and Concepts | p. 421 |
Questions and Problems | p. 422 |
Practical Economics | |
Financial Matters | |
Stocks, Bonds, Futures, and Options | p. 423 |
Financial Markets | p. 24 |
Stocks | p. 424 |
Where Are Stocks Bought and Sold? | p. 424 |
The Dow Jones Industrial Average (DJIA) | p. 426 |
How the Stock Market Works | p. 427 |
Why Do People Buy Stock? | p. 429 |
How to Buy and Sell Stock | p. 430 |
Buying Stocks or Buying the Market | p. 430 |
How to Read the Stock Market Page | p. 432 |
Bonds | p. 434 |
The Components of a Bond | p. 434 |
Bond Ratings | p. 434 |
Bond Prices and Yields (or Interest Rates) | p. 435 |
Types of Bonds | p. 435 |
How to Read the Bond Market Page | p. 436 |
Risk and Return | p. 437 |
Futures and Options | p. 438 |
Futures | p. 438 |
Options | p. 440 |
A Reader Asks | p. 441 |
Analyzing the Scene | p. 442 |
Chapter Summary | p. 443 |
Key Terms and Concepts | p. 443 |
Questions and Problems | p. 443 |
Working with Numbers and Graphs | p. 444 |
Web Chapters | |
Web Chapters | |
Agriculture: Farmers' Problems, Government Policies, and Unintended Effects | p. 741 |
Agriculture: The Issues | p. 742 |
A Few Facts | p. 742 |
Agriculture and Income Inelasticity | p. 743 |
Agriculture and Price Inelasticity | p. 743 |
Price Variability and Futures Contracts | p. 744 |
Can Bad Weather Be Good for Farmers? | p. 745 |
Agricultural Policies | p. 746 |
Price Supports | p. 746 |
Restricting Supply | p. 746 |
Target Prices and Deficiency Payments | p. 748 |
Production Flexibility Contract Payments, (Fixed) Direct Payments, and Countercyclical Payments | p. 749 |
Nonrecourse Commodity Loans | p. 749 |
A Reader Asks | p. 750 |
Analyzing the Scene | p. 751 |
Chapter Summary | p. 751 |
Key Terms and Concepts | p. 751 |
Questions and Problems | p. 752 |
Working with Numbers and Graphs | p. 753 |
International Impacts on the Economy | p. 753 |
International Factors and Aggregate Demand | p. 754 |
Net Exports | p. 754 |
The J-Curve | p. 755 |
International Factors and Aggregate Supply | p. 756 |
Foreign Input Prices | p. 756 |
Why Do Foreign Input Prices Change? | p. 757 |
Factors That Affect Both Aggregate Demand and Aggregate Supply | p. 757 |
The Exchange Rate | p. 757 |
What Role Do Interest Rates Play? | p. 758 |
Deficits: International Effects and Domestic Feedback | p. 759 |
The Budget Deficit and Expansionary Fiscal Policy | p. 759 |
The Budget Deficit and Contractionary Fiscal Policy | p. 760 |
The Effects of Monetary Policy | p. 761 |
A Reader Asks | p. 763 |
Analyzing the Scene | p. 764 |
Chapter Summary | p. 764 |
Key Terms and Concepts | p. 765 |
Questions and Problems | p. 765 |
Working with Numbers and Graphs | p. 766 |
Self-Test Appendix | p. 445 |
Glossary | p. 459 |
Index | p. 467 |
Table of Contents provided by Ingram. All Rights Reserved. |
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