Economics

PART 1 Introduction and Key Principles 1 Introduction: What Is Economics? 2 2 The Key Principles of Economics 28 3 Exchange and Markets 48 4 Demand, Supply, and Market Equilibrium 66 PART 2 The Basic Concepts in Macroeconomics 5 Measuring a Nation's Production and Income 98 6 Unemployment and Inflation 122 PART 3 The Economy in the Long Run 7 The Economy at Full Employment 142 8 Why Do Economies Grow? 162 PART 4 Economic Fluctuations 9 Aggregate Demand and Aggregate Supply 190 10 Fiscal Policy 210 11 The Income-Expenditure Model 230 12 Investment and Financial Markets 262 PART 5 Money, Banking, and Monetary Policy 13 Money and the Banking System 280 14 The Federal Reserve and Monetary Policy 300 PART 6 Inflation, Unemployment, and Economic Policy 15 Modern Macroeconomics: From the Short Run to the Long Run 320 16 The Dynamics of Inflation and Unemployment 338 17 Macroeconomic Policy Debates 358 PART 7 The International Economy 18 International Trade and Public Policy 376 19 The World of International Finance 396 PART 8 A Closer Look at Demand and Supply 20 Elasticity: A Measure of Responsiveness 418 21 Market Efficiency and Government Intervention 448 22 Consumer Choice Using Utility Theory 472 PART 9 Market Structures and Pricing 23 Production Technology and Cost 504 24 Perfect Competition 526 25 Monopoly and Price Discrimination 552 26 Market Entry and Monopolistic Competition 574 27 Oligopoly and Strategic Behavior 590 28 Controlling Market Power: Antitrust and Regulation 618 PART 10 Externalities and Information 29 Imperfect Information: Adverse Selection and Moral Hazard 636 30 Public Goods and Public Choice 658 31 External Costs and Environmental Policy 674 PART 11 The Labor Market and Income Distribution 32 The Labor Market, Income, and Poverty 694 33 Unions, Monopsony, and Imperfect Information 720

Arthur O'Sullivan is a professor of economics at Lewis and Clark College in Portland, Oregon. After receiving his B.S. in economics at the University of Oregon, he spent two years in the Peace Corps, working with city planners in the Philippines. He received his Ph.D. in economics from Princeton University in 1981 and has taught at the University of California, Davis, and Oregon State University, winning several teaching awards at both schools. He recently accepted an endowed professorship at Lewis and Clark College, where he teaches microeconomics and urban economics. He is the author of the best-selling textbook, Urban Economics, currently in its sixth edition. Professor O'Sullivan's research explores economic issues concerning urban land use, environmental protection, and public policy. His articles have appeared in many economics journals, including theJournal of Urban Economics, Journal of Environmental Economics and Management, National Tax Journal, Journal of Public Economics, andJournal of Law and Economics. Professor O'Sullivan lives with his family in Lake Oswego, Oregon. For recreation, he enjoys hiking, boogie-boarding, paragliding, and squash. Steven M. Sheffrin is dean of the division of social sciences and professor of economics at the University of California, Davis. He has been a visiting professor at Princeton University, Oxford University, and the London School of Economics and has served as a financial economist with the Office of Tax Analysis of the United States Department of Treasury. He has been on the faculty of the University of California, Davis, since 1976 and has served as the chairman of the department of economics. He received his B.A. from Wesleyan University and his Ph.D. in economics from the Massachusetts Institute of Technology. Professor Sheffrin is the author of 10 other books and monographs and over 100 articles in the fields of macroeconomics, public finance, and international economics. His most recent books include