Economics: Private and Public Choice
Author: James D Gwartney
ECONOMICS: PRIVATE AND PUBLIC CHOICE includes many more engaging elements-such as scenes from popular movies and applications of economic theory to real-world issues-to help you see how these theories apply to the world around you. Each chapter has been updated to reflect today's market, including analysis and explanation of measures of current economic activity. You'll also find highlights of the lives of notable economists and how they contributed to the thinking that shapes our markets today. Common economic myths are dispelled, and the "invisible hand" metaphor is applied to economic theory, demonstrating how it's working even today to stimulate the economy. This 12th edition includes new technology features such as a robust set of online multimedia learning tools, including video clips and free quizzes designed to support your classroom work; a completely updated Aplia interactive learning system with practice problems, interactive tutorials, online experiences, and more.
Booknews
This book/CD-ROM text seeks to make economics understandable to freshman and sophomore undergraduates and to illustrate the relevance of economics in daily life. Core chapters cover material usually taught in economics principles courses, and include short units (designed for one class period) on topics such as the future of social security, and readings which highlight the organizational and institutional factors that underlie economic prosperity. The CD-ROM contains a graphing workshop and animated tutorials, interactive graphing exercises, video lectures on difficult topics, and video news segments. Gwartney teaches economics at Florida State University. Annotation c. Book News, Inc., Portland, OR (booknews.com)
New interesting book: Processing or Windows Group Policy Resource Kit
Macroeconomics: A Contemporary Introduction
Author: William A McEachern
Taking a "just-in-time" approach by introducing material just as it is needed to develop an argument, MACROECONOMICS: A CONTEMPORARY APPROACH, Eighth Edition, truly leads by example. In a decidedly non-condescending tone, McEachern assumes that students are already intuitively familiar with many economic concepts through their own life experiences. These life experiences are then explained to students as economic concepts with clear and interesting exposition, relevant case studies, and a clean focused design. The text's major applications take the form of case studies that are meant to be read and therefore are integrated into the flow of each chapter. With this eighth edition, the book's well-crafted approach is enhanced with resources--such as Aplia and CengageNOW--that will help your students improve their understanding and will help you streamline tasks and save valuable time.
Booknews
A text/CD-ROM package for a first course in macroeconomics. Early chapters cover macro- and microeconomics foundations, and later material uses the aggregate demand and aggregate supply models to underscore the difference between active and passive approaches to the economy. Pages are designed to be reader friendly, with color photos and graphics, plus margin terms and case studies. Pedagogical features include chapter summaries, review questions, problems, experiential exercises, and mathematical appendices with exercises, as well as notes on web sites, and a 12-page guide to reading the . Many exercises require students to consult the and the Internet. The CD-ROM contains study tools and graphing tutorials. This fifth edition contains expanded international material. Economic jargon has been reduced. The author is a professor of economics at the University of Connecticut. Annotation c. Book News, Inc., Portland, OR (booknews.com)
Table of Contents:
Introduction to EconomicsThe Art and Science of Economic Analysis 1
The Economic Problem: Scarce Resources, Unlimited Wants 2
Resources 2
Goods and Services 3
Economic Decision Makers 4
A Simple Circular-Flow Model 4
The Art of Economic Analysis 6
Rational Self-Interest 6
Choice Requires Time and Information 6
Economic Analysis Is Marginal Analysis 7
Microeconomics and Macroeconomics 7
The Science of Economic Analysis 8
The Role of Theory 8
The Scientific Method 8
Normative Versus Positive 10
Economists Tell Stories 10
Case Study: A Yen for Vending Machines 11
Predicting Average Behavior 12
Some Pitfalls of Faulty Economic Analysis 12
If Economists Are So Smart, Why Aren't They Rich? 13
Case Study: College Major and Career Earnings 13
Understanding Graphs 18
Drawing Graphs 19
The Slopes of Straight Lines 20
The Slope, Units of Measurement, and Marginal Analysis 20
The Slopes of Curved Lines 22
Line Shifts 23
Some Tools of Economic Analysis 24
Choice and Opportunity Cost 25
Opportunity Cost 25
Case Study: The Opportunity Cost of College 25
Opportunity Cost Is Subjective 26
Sunk Cost and Choice 27
Comparative Advantage, Specialization, and Exchange 28
The Law of Comparative Advantage 28
Absolute Advantage Versus Comparative Advantage 28
Specialization and Exchange 29
Division of Labor and Gains from Specialization 30
Case Study: Specialization Abound 30
The Economy's Production Possibilities 31
Efficiency and the Production Possibilities Frontier 31
Inefficient and Unattainable Production 32
The Shape of the Production Possibilities Frontier 32
What Can Shift the Production Possibilities Frontier? 33
What Can We Learn from the PPF? 34
Three Questions Every Economic System Must Answer 35
Economic Systems 36
Pure Capitalism 36
Pure Command System 37
Mixed and Transitional Economies 38
Economies Based on Custom or Religion 38
Economic Decision Makers 40
The Household 41
The Evolution of the Household 41
Households Maximize Utility 41
Households as Resource Suppliers 42
Households as Demanders of Goods and Services 43
The Firm 43
The Evolution of the Firm 43
Types of Firms 44
Nonprofit Institutions 46
Why Does Household Production Still Exist? 46
Case Study: The Electronic Cottage 41
The Government 47
The Role of Government 48
Government's Structure and Objectives 49
The Size and Growth of Government 50
Sources of Government Revenue 51
Tax Principles and Tax Incidence 51
The Rest of the World 52
International Trade 52
Exchange Rates 54
Trade Restrictions 54
Case Study: Wheels of Fortune 54
Demand and Supply Analysis 57
Demand 58
The Law of Demand 58
The Demand Schedule and Demand Curve 59
Shifts of the Demand Curve 61
Changes in Consumer Income 61
Changes in the Prices of Related Goods 61
Changes in Consumer Expectations 62
Changes in the Number or Composition of Consumers 63
Changes in Consumer Tastes 63
Supply 63
The Supply Schedule and Supply Curve 64
Shifts of the Supply Curve 65
Changes in Technology 65
Changes in the Prices of Relevant Resources 65
Changes in the Prices of Alternative Goods 65
Changes in Producer Expectations 66
Changes in the Number of Producers 66
Demand and Supply Create A Market 67
Markets 67
Market Equilibrium 67
Changes lin Equilibrium Price and Quantity 69
Shifts of the Demand Curve 69
Shifts of the Supply Curve 70
Simultaneous Shifts of Demand and Supply Curves 72
Case Study: The Market for Professional Basketball 73
Disequilibrium 74
Price Floors 74
Price Ceilings 74
Case Study: The Toy Business Is Not Child's Play 76
Fundamentals of Macroeconomics
Introduction to Macroeconornies 78
The National Economy 79
What's Special About the National Economy? 79
The Human Body and the U.S. Economy 80
Knowledge and Performance 80
Economic Fluctuations and Growth 81
U.S. Economic Fluctuations 81
Case Study: The Global Economy 83
Leading Economic Indicators 85
Aggregate Demand and Aggregate Supply 85
Aggregate Output and the Price Level 85
The Aggregate Demand Curve 86
The Aggregate Supply Curve 87
Equilibrium 87
A Short History of the U.S. Economy 88
The Great Depression and Before 88
The Age of Keynes: After the Great Depression to the Early 1970s 89
The Great Stagflation: 1973 to 1980 91
Experience Since 1980 92
Case Study: Over Seven Decades of Real GDP and Price Levels 93
Productivity and Growth 96
Theory of Productivity and Growth 97
Growth and the Production Possibilities Frontier 97
What Is Productivity? 99
Labor Productivity 99
The Per-Worker Production Function 100
Technological Change 101
Rules of the Game 102
Productivity and Growth in Practice 102
Education and Economic Development 103
U.S. Labor Productivity 104
Slowdown and Rebound in Productivity Growth 105
Case Study: Computers and Productivity Growth 106
Output per Capita 107
International Comparisons 107
Other Issues of Technology and Growth 109
Does Technological Change Lead to Unemployment? 110
Research and Development 110
Do Economies Converge 112
Industrial Policy 113
Case Study: Picking Technological Winners 113
Measuring the Economy and the Circular Flow 116
The Product of a Nation 117
National Income Accounts 117
GDP Based on the Expenditure Approach 118
GDP Based on the Income Approach 119
The Circular Flow of Income and Expenditure 120
The Income Half of the Circular Flow 120
The Expenditure Half of the Circular Flow 122
Leakages Equal Injections 123
Limitations of National Income Accounting 123
Some Production Is Not Included in GDP 123
Leisure, Quality, and Variety 124
Case Study Tracking a {dollar}12 Trillion Economy 124
What's Gross about Gross Domestic Product? 125
GDP Does Not Reflect All Costs 125
GDP and Economic Welfare 126
Accounting for Price Changes 126
Price Indexes 126
Consumer Price Index 126
Problems with the CPI 128
The GDP Price Index 129
Moving from Fixed Weights to Chain Weights 129
Case Study: Computer Prices and GDP Estimation 130
National Income Accounts 133
National Income 133
Personal and Disposable Income 133
Summary of National Income Accounts 133
Summary Income Statement of the Economy 134
Unemployment and Inflation 136
Unemployment 137
Measuring Unemployment 137
Labor Force Participation Rate 139
Unemployment over Time 139
Unemployment in Various Groups 139
Unemployment Varies Across Regions 140
Case Study: Poor King Coal 142
Sources of Unemployment 143
The Meaning of Full Employment 144
Unemployment Compensation 145
International Comparisons of Unemployment 145
Problems with Official Unemployment Figures 146
Inflation 146
Case Study: Hyperinflation in Brazil 147
Two Sources of Inflation 148
A Historical Look at Inflation and the Price Level 149
Anticipated Versus Unanticipated Inflation 150
The Transaction Costs of Variable Inflation 150
Inflation Obscures Relative Price Changes 151
Inflation Across Metropolitan Areas 151
Inflation Across Countries 151
Inflation and Interest Rates 152
Why Is Inflation Unpopular? 154
Aggregate Expenditure Components 157
Consumption 158
A First Look at Consumption and Income 158
The Consumption Function 160
Marginal Propensities to Consume and to Save 160
MPC, MPS, and the Slope of the Consumption and Saving Functions 161
Nonincome Determinants of Consumption 162
Case Study: The Life-Cycle Hypothesis 164
Investment 165
The Demand for Investment 165
From Micro to Macro 167
Planned Investment and the Economy's Income 168
Nonincome Determinants of Planned Investment 168
Case Study: Investment Varies Much More than Consumption 169
Government 170
Government Purchase Function 171
Net Taxes 171
Net Exports 171
Net Exports and Income 171
Nonincome Determinants of Net Exports 172
Composition of Aggregate Expenditure 172
Variable Net Exports 175
Net Exports and Income 175
Shifts of Net Exports 175
Aggregate Expenditure and Aggregate Demand 177
Aggregate Expenditure and Income 178
The Components of Aggregate Expenditure 178
Real GDP Demanded 180
What If Planned Spending Exceeds Real GDP? 181
What If Real GDP Exceeds Planned Spending? 181
The Simple Spending Multiplier 182
An Increase in Planned Spending 182
Using the Simple Spending Multiplier 184
Case Study: Fear of Flying 185
The Aggregate Demand Curve 186
A Higher Price Level 186
A Lower Price Level 188
The Multiplier and Shifts in Aggregate Demand 188
Case Study: Falling Consumption Triggers Japan's Recession 190
Variable Net Exports Revisited 192
Net Exports and the Spending Multiplier 193
A Change in Autonomous Spending 193
The Algebra of Income and Expenditure 195
The Aggregate Expenditure Line 195
A More General Form of Income and Expenditure 195
Varying Net Exports 196
Aggregate Supply 197
Aggregate Supply in the Short Run 198
Labor and Aggregate Supply 198
Potential Output and the Natural Rate of Unemployment 199
Actual Price Level Higher than Expected 199
Why Costs Rise When Output Exceeds Potential 200
An Actual Price Level Lower than Expected 201
The Short-Run Aggregate Supply Curve 201
From the Short Run to the Long Run 202
Closing an Expansionary Gap 202
Closing a Contractionary Gap 204
Tracing Potential Output 206
Wage Flexibility and Employment 206
Case Study: U.S. Output Gaps and Wage Flexibility 208
Changes in Aggregate Supply 209
Increases in Aggregate Supply 209
Decreases in Aggregate Supply 211
Case Study: Why Is Unemployment So High in Europe? 212
Fiscal and Monetary Policy
Fiscal Policy 215
Theory of Fiscal Policy 216
Fiscal Policy Tools 216
Changes in Government Purchases 216
Changes in Net Taxes 217
Including Aggregate Supply 219
Discretionary Fiscal Policy to Close a Contractionary Gap 219
Discretionary Fiscal Policy to Close an Expansionary Gap 221
The Multiplier and the Time Horizon 222
The Evolution of Fiscal Policy 222
The Great Depression and World War II 222
Automatic Stabilizers 223
From the Golden Age to Stagflation 224
Fiscal Policy and the Natural Rate of Unemployment 225
Lags in Fiscal Policy 225
Discretionary Fiscal Policy and Permanent Income 226
The Feedback Effects of Fiscal Policy on Aggregate Supply 226
U.S. Budget Deficits of the 1980s and 1990s 227
Case Study: The Supply-Side Experiment 227
Case Study: Discretionary Fiscal Policy and Presidential Elections 228
Balancing the Federal Budget-Temporarily 229
The Algebra of Demand-Side Equilibrium 231
Net Tax Multiplier 231
The Multiplier When Both G and NT Change 231
The Multiplier with a Proportional Income Tax 231
Including Variable Net Exports 232
Money and the Financial System 233
The Evolution of Money 234
Barter and the Double Coincidence of Wants 234
The Earliest Money and Its Functions 234
Desirable Qualities of Money 236
Coins 236
Money and Banking 237
Paper Money 238
The Value of Money 239
When Money Performs Poorly 239
Case Study: When Monetary Systems Break Down 240
Financial Institutions in the United States 241
Commercial Banks and Thrifts 241
The Birth of the Fed 241
Powers of the Federal Reserve System 242
Banking During the Great Depression 243
Roosevelt's Reforms 244
Banks Lost Deposits When Inflation Increased 246
Bank Deregulation 246
Savings Banks on the Ropes 247
Commercial Banks Were Also Failing 248
U.S. Banking Structure 249
Case Study: Banking Troubles in Japan 252
Banking and the Money Supply 255
Money Aggregates 256
The Narrow Definition of Money: M1 256
Case Study: Faking It 257
Broader Money Aggregates 258
Credit Cards and Debit Cards: What's the Difference? 259
How Banks Work 260
Banks Are Financial Intermediaries 260
Starting a Bank 261
Reserve Accounts 262
Liquidity Versus Profitability 262
How Banks Create Money 263
Creating Money Through Excess Reserves 263
A Summary of the Rounds 266
Reserve Requirements and Money Expansion 266
Limitations on Money Expansion 267
Multiple Contraction of the Money Supply 267
Case Study: Banking on the Net 268
The Fed's Tools of Monetary Control 269
Open-Market Operations and the Federal Funds Rate 270
The Discount Rate 270
Reserve Requirements 271
The Fed Is a Money Machine 271
Monetary Theory and Policy 273
The Demand and Supply of Money 274
The Demand for Money 274
Money Demand and Interest Rates 275
The Supply of Money and the Equilibrium Interest Rate 276
Money and Aggregate Demand in the Short Run 277
Interest Rates and Planned Investment 277
Adding Short-Run Aggregate Supply 278
Case Study: Targeting the Federal Funds Rate 280
Money and Aggregate Demand in the Long Run 282
The Equation of Exchange 282
The Quantity Theory of Money 283
What Determines the Velocity of Money? 284
How Stable Is Velocity? 284
Case Study: The Money Supply and Inflation Around the World 286
Targets for Monetary Policy 287
Contrasting Policies 287
Targets Before 1982 289
Targets After 1982 289
The Policy Debate: Active or Passive? 291
Active Policy Versus Passive Policy 292
Closing a Contractionary Gap 292
Closing an Expansionary Gap 294
Problems with Active Policy 294
The Problem of Lags 295
A Review of Policy Perspectives 297
Case Study: Active Versus Passive Presidential Candidates 297
The Role of Expectations 298
Monetary Policy and Expectations 299
Anticipating Monetary Policy 300
Policy Credibility 301
Case Study: Central Bank Independence and Price Stability 302
Policy Rules Versus Discretion 303
Limitations on Discretion 304
Rules and Rational Expectations 304
The Phillips Curve 305
The Short-Run Phillips Curve 307
The Long-Run Phillips Curve 307
The Natural Rate Hypothesis 309
Evidence of the Phillips Curve 309
Federal Budgets and Public Policy 312
The Federal Budget Process 313
The Presidential and Congressional Roles 314
Problems with the Federal Budget Process 314
Possible Budget Reforms 315
The Fiscal Impact of the Federal Budget 315
The Rationale for Deficits 316
Budget Philosophies and Deficits 316
Federal Deficits Since the Birth of the Nation 317
Why Have Deficits Persisted? 318
Deficits, Surpluses, Crowding Out, and Crowding In 318
The Twin Deficits 319
The Short-Lived Budget Surplus 319
Case Study: Reforming Social Security and Medicare 321
The Relative Size of the Public Sector in the United States 322
The National Debt 322
International Perspective on Public Debt 323
Interest on the National Debt 324
Who Bears the Burden of the Debt? 325
Crowding Out and Capital Formation 326
Case Study: An Intergenerational View of Deficits and Debt 327
International Macroeconomics
International Finance 329
Balance of Payments 330
International Economic Transactions 330
The Merchandise Trade Balance 330
The Balance on Goods and Services 332
Unilateral Transfers 332
The Capital Account 333
Deficits and Surpluses 333
Foreign Exchange Rates and Markets 335
Foreign Exchange 335
The Demand for Foreign Exchange 336
The Supply of Foreign Exchange 336
Determining the Exchange Rate 337
Arbitrageurs and Speculators 337
Purchasing Power Parity 339
Case Study:The Big Mac Price Index 339
Flexible Exchange Rates 341
Fixed Exchange Rates 341
Development of the International Monetary System 341
The Bretton Woods Agreement 342
The Demise of the Bretton Woods System 342
The Current System: Managed Float 343
Case Study: The Asian Contagion 343
Glossary 347
Index 355
1 comment:
Economics is probably an understudying subject in public
leadership.
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