Chapter 1: Limits, Alternatives and Choices
- What is Economics?
Definition:
- Scarcity and Choice
- Rational Behavior (purposeful)
- Marginalism
- Why Study Economics?
1.
2.
3.
- Macro vs. Micro
-Positive vs. Normative
D. The Economizing problem; the individual
E. The Economizing problem; society
- Employment and efficiency.
- Full emp
- Full prod
- Production possibilities
- Unemployment, Growth and the Future.
- Discard Unemp
- Growth
Chapter 2: The Market System and the Circular Flow
- Economic systems
- Spectrum of systems
- Characteristics of a market system
- Private Prop
- Freedom of ent and choice
- Self-interest
- Competition of interests
- Markets and prices
- Reliance on capt and tech
- Specialization
- Division of labor
- Geographic Specialization
- Money
- Active but limited gov.
- Four Questions.
- What to produce
- How to produce
- Who gets what is produced
- How to accommodate change. (book labels it how to promote progress)
- Circular flow
Chapter 3: Demand, Supply and Market Equilibrium
Individual Markets
Def:
- Demand
Def:
1. Individual demand
Schedule
Law of demand:
Justifications
1
2
3
Graph
2. Market demand
-Determinates of demand
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- changes of demand.
- Supply.
Def:
- Individual Supply
Schedule
Law of supply:
Justifications
1
2.
Graph
- Supply curve.
-Determinates of Supply
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- Changes in supply
- S+D market equilibrium
- Schedule
- Graph
- Movement of curves and results
E. Price floors and ceilings. Theory and reality.
Chapter 6: Elasticities of Supply and Demand
- Price elasticities of demand.
-General measure
- Interpretations of Elasticity
- Elastic
- Unitary
- Inelastic
- Perfectly…
- Midpoint formula
- Elasticities over a straight line demand.
-Total Revenue test and total revenue curve
- What determines elasticities?
- Applications
- Price elasticity of supply.
- Market period
- Short run
- Long run
- Income elasticity
- Cross price elasticity
F. Consumer and Producer Surpluses
Chapter 20: Income Inequality and Poverty
A. Facts about income inequality
-Distribution to land labor and capital
-Distribution by income quintiles.
-The Lorenz curve and Gini ratio
A. continued
-Income mobility and the time dimension
-Effect of government on redistribution
B. Causes of income inequality
-Ability
-Education and training
-Discrimination
-Preferences and risk
B. continued
-Unequal wealth distribution
-Market power
-Luck connections and misfortune
D. Income inequality over time
-Rising income inequality since the 1970’s
-Causes of growing inequality
E. Equality vs. efficiency
-Case for equality
E. continued
-Case for inequality
-Equality efficiency trade off
F. The economics of poverty
-definition of poverty
-Incidence of poverty
-Poverty trends
F. continued
-Measurement issues
G. US income maintenance system
-Social insurance programs
-Public assistance programs