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E-grāmata: Krugman's Economics for the AP* Course (High School)

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  • Formāts: 928 pages
  • Izdošanas datums: 15-Apr-2020
  • Izdevniecība: Worth Publishers Inc.,U.S.
  • Valoda: eng
  • ISBN-13: 9781319370169
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Krugman's Economics for the AP* Course (High School)Palielināt
  • Formāts: 928 pages
  • Izdošanas datums: 15-Apr-2020
  • Izdevniecība: Worth Publishers Inc.,U.S.
  • Valoda: eng
  • ISBN-13: 9781319370169
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AP® Economics courses are hard. Krugmans Economics for the AP® Course, third edition was created to help you solve the economics puzzle. Assembled by AP® experts and divided into short modules, the organization, language, and emphasis perfectly mirrors College Boards curriculum framework. This dedication to the AP® courses keeps teachers and students on track to realize success on the AP® exams.   New_to_this_edition

SaplingPlus is a new digital solution that combines LearningCurve adaptive quizzing with an integrated e-book, robust online homework, and access to all student and teacher resources in one accessible place. 
Section 1: Basic Economic Concepts 1(48)
Common Ground
1(1)
Module 1 The Study of Economics
2(7)
Individual Choice: The Core of Economics
2(1)
Resources Are Scarce
3(1)
Opportunity Cost: The Real Cost of Something Is What You Must Give Up to Get It
4(1)
Microeconomics Versus Macroeconomics
5(1)
Positive Versus Normative Economics
5(2)
When and Why Economists Disagree
7(1)
Module 1 Review
8(1)
Tackle the AP® Test
8(1)
Module 2 Introduction to Macroeconomics
9(6)
The Business Cycle
10(1)
Employment, Unemployment, and the Business Cycle
11(1)
Aggregate Output and the Business Cycle
11(1)
Inflation, Deflation, and Price Stability
11(1)
Economic Growth
12(1)
The Use of Models in Economics
13(1)
Module 2 Review
14(1)
Tackle the AP® Test
14(1)
Module 3 The Production Possibilities Curve Model
15(7)
Trade-offs: The Production Possibilities Curve
15(1)
Efficiency
16(1)
Opportunity Cost
17(2)
Economic Growth
19(1)
Module 3 Review
20(1)
Tackle the AP® Test
20(2)
Module 4 Comparative Advantage and Trade
22(27)
Gains from Trade
22(1)
Comparative Advantage and Gains from Trade
23(2)
Mutually Beneficial Terms of Trade
25(1)
Comparative Advantage and International Trade
26(1)
Module 4 Review
27(1)
Tackle the AP® Test
27(2)
Section 1 Review
29(1)
AP® Exam Practice Questions
30(3)
Section 1 Appendix Graphs in Economics
33(12)
economics by example: What's to Love About Economics?
45(4)
Section 2: Supply And Demand 49(54)
Blue Jean Blues
49(1)
Module 5 Supply and Demand: Introduction and Demand
50(10)
Introduction and Demand
50(1)
The Demand Curve
50(1)
The Demand Schedule and the Demand Curve
51(1)
Shifts of the Demand Curve
52(6)
Module 5 Review
58(1)
Tackle the AP® Test
58(2)
Module 6 Supply and Demand: Supply
60(8)
The Supply Curve
60(1)
The Supply Schedule and the Supply Curve
60(1)
Shifts of the Supply Curve
60(6)
Module 6 Review
66(1)
Tackle the AP® Test
66(2)
Module 7 Supply and Demand: Equilibrium
68(9)
Supply, Demand, and Equilibrium
68(1)
Finding the Equilibrium Price and Quantity
69(2)
Using Equilibrium to Describe Markets
71(1)
Changes in Supply and Demand
72(1)
What Happens When the Demand Curve Shifts
72(1)
What Happens When the Supply Curve Shifts
73(1)
Simultaneous Shifts of Supply and Demand Curves
74(1)
Module 7 Review
75(1)
Tackle the AP® Test
75(2)
Module 8 Supply and Demand: Price Controls (Ceilings and Floors)
77(11)
Why Governments Control Prices
77(1)
Price Ceilings
77(5)
Price Floors
82(3)
Module 8 Review
85(1)
Tackle the AP® Test
86(2)
Module 9 Supply and Demand: Quantity Controls
88(15)
Controlling Quantities
88(1)
The Anatomy of Quantity Controls
88(3)
The Costs of Quantity Controls
91(1)
Module 9 Review
92(1)
Tackle the AP® Test
92(2)
Section 2 Review
94(1)
AP® Exam Practice Questions
95(4)
economics by example: The Coffee Market's Hot; Why Are Bean Prices Not?
99(4)
Section 3: Economic Indicators And The Business Cycle 103(53)
The New #2
103(1)
Module 10 The Circular Flow and Gross Domestic Product
104(9)
The National Accounts
104(1)
The Circular-Flow Diagram
104(3)
Gross Domestic Product
107(4)
Module 10 Review
111(1)
Tackle the AP® Test
111(2)
Module 11 Interpreting Real Gross Domestic Product
113(5)
Creating the National Accounts
113(1)
What GDP Tells Us
113(1)
Real GDP: A Measure of Aggregate Output
114(1)
Calculating Real GDP
114(2)
What Real GDP Doesn't Measure
116(1)
Module 11 Review
116(1)
Tackle the AP® Test
117(1)
Module 12 The Meaning and Calculation of Unemployment
118(6)
The Unemployment Rate
118(1)
Defining and Measuring Unemployment
119(1)
The Significance of the Unemployment Rate
119(3)
Growth and Unemployment
122(1)
Module 12 Review
122(1)
Tackle the AP® Test
123(1)
Module 13 The Causes and Categories of Unemployment
124(8)
Unemployment in the Economy
124(1)
Job Creation and Job Destruction
124(1)
Frictional Unemployment
125(1)
Structural Unemployment
126(2)
Cyclical Unemployment and the Natural Rate of Unemployment
128(1)
Changes in the Natural Rate of Unemployment
129(2)
Module 13 Review
131(1)
Tackle the AP® Test
131(1)
Module 14 Inflation: An Overview
132(8)
Inflation and Deflation
132(1)
The Level of Prices Doesn't Matter...
133(1)
...But the Rate of Change of Prices Does
134(2)
Winners and Losers from Inflation
136(1)
Inflation Is Easy; Disinflation Is Hard
137(1)
Module 14 Review
138(1)
Tackle the AP® Test
138(2)
Module 15 The Measurement and Calculation of Inflation
140(16)
Price Indexes and the Aggregate Price Level
140(1)
Market Baskets and Price Indexes
140(1)
The Consumer Price Index
141(3)
Other Price Measures
144(1)
Module 15 Review
145(1)
Tackle the AP® Test
145(2)
Section 3 Review
147(2)
AP® Exam Practice Questions
149(3)
economics by example: How Can GDP Be Up When We're Feeling Down?
152(4)
Section 4: National Income And Price Determination 156(59)
From Boom to Bust
156(1)
Module 16 Income and Expenditure
157(9)
Consumer Spending
157(1)
Current Disposable Income and Consumer Spending
157(1)
Shifts of the Aggregate Consumption Function
158(1)
Investment Spending
159(1)
The Interest Rate and Investment Spending
160(1)
Expected Future Real GDP, Production Capacity, and Investment Spending
161(1)
Inventories and Unplanned Investment Spending
161(1)
The Spending Multiplier: An Informal Introduction
162(3)
Module 16 Review
165(1)
Tackle the AP® Test
165(1)
Module 17 Aggregate Demand: Introduction and Determinants
166(8)
Aggregate Demand
166(1)
Why Is the Aggregate Demand Curve Downward-Sloping?
167(2)
Shifts of the Aggregate Demand Curve
169(3)
Module 17 Review
172(1)
Tackle the AP® Test
172(2)
Module 18 Aggregate Supply: Introduction and Determinants
174(10)
Aggregate Supply
174(1)
The Short-Run Aggregate Supply Curve
174(2)
Shifts of the Short-Run Aggregate Supply Curve
176(2)
The Long-Run Aggregate Supply Curve
178(3)
From the Short Run to the Long Run
181(1)
Module 18 Review
182(1)
Tackle the AP® Test
182(2)
Module 19 Equilibrium in the Aggregate Demand-Aggregate Supply Model
184(7)
The AD-AS Model
184(1)
Short-Run Macroeconomic Equilibrium
184(3)
Long-Run Macroeconomic Equilibrium
187(3)
Module 19 Review
190(1)
Tackle the AP® Test
190(1)
Module 20 Economic Policy and the Aggregate Demand-Aggregate Supply Model
191(9)
Macroeconomic Policy
191(1)
Policy in the Face of Demand Shocks
192(1)
Responding to Supply Shocks
192(1)
Is Stabilization Policy Stabilizing?
193(1)
Fiscal Policy: The Basics
194(1)
Taxes and Government Spending
194(2)
The Government Budget and Total Spending
196(1)
Expansionary and Contractionary Fiscal Policy
196(2)
A Cautionary Note: Lags in Fiscal Policy
198(1)
Module 20 Review
199(1)
Tackle the AP® Test
199(1)
Module 21 Fiscal Policy and Multiplier Effects
200(15)
The Spending Multiplier and Estimates of the Influence of Government Policy
200(1)
Multiplier Effects of Changes in Government Purchases
200(1)
Multiplier Effects of Changes in Government Transfers and Taxes
201(2)
How Taxes Affect the Multiplier
203(1)
Module 21 Review
204(1)
Tackle the AP® Test
204(2)
Section 4 Review
206(2)
AP® Exam Practice Questions
208(3)
economics by example: How Much Debt Is Too Much?
211(4)
Section 5: The Financial Sector 215(69)
Funny Money
215(1)
Module 22 Saving, Investment, and the Financial System
216(8)
Matching Up Savings and Investment Spending
216(1)
The Savings-Investment Spending Identity
216(2)
The Financial System
218(1)
Three Tasks of a Financial System
218(2)
Types of Financial Assets
220(1)
Financial Intermediaries
221(2)
Module 22 Review
223(1)
Tackle the AP® Test
223(1)
Module 23 The Definition and Measurement of Money
224(5)
The Meaning of Money
224(1)
What Is Money?
224(1)
Roles of Money
225(1)
Types of Money
226(1)
Measuring the Money Supply
227(1)
Module 23 Review
228(1)
Tackle the AP® Test
228(1)
Module 24 The Time Value of Money
229(6)
The Concept of Present Value
229(1)
Borrowing, Lending, and Interest
229(1)
Defining Present Value
230(1)
Present Value in the Long Run
231(1)
Using Present Value
232(2)
Module 24 Review
234(1)
Tackle the AP® Test
234(1)
Module 25 Banking and Money Creation
235(8)
The Monetary Role of Banks
235(1)
What Banks Do
235(1)
The Problem of Bank Runs
236(1)
Bank Regulation
237(1)
Determining the Money Supply
238(1)
How Banks Create Money
238(2)
Reserves, Bank Deposits, and the Money Multiplier
240(1)
The Money Multiplier in Reality
241(1)
Module 25 Review
242(1)
Tackle the AP® Test
242(1)
Module 26 The Federal Reserve System: The U.S. Central Bank
243(7)
The Federal Reserve System
243(1)
An Overview of the Twenty-First Century American Banking System
244(1)
Crisis in American Banking at the Turn of the Twentieth Century
244(1)
Responding to Banking Crises: The Creation of the Federal Reserve
245(1)
The Structure of the Fed
245(1)
The Effectiveness of the Federal Reserve System
246(1)
The Savings and Loan Crisis of the 1980s
247(1)
Back to the Future: The Financial Crisis of 2008
248(1)
Module 26 Review
248(1)
Tackle the AP® Test
249(1)
Module 27 Central Banks and Monetary Policy
250(5)
The Federal Reserve System
250(1)
The Functions of the Federal Reserve System
250(1)
What the Fed Does
251(1)
The Reserve Requirement
251(1)
The Discount Rate
251(1)
Open Market Operations
252(1)
The European Central Bank
253(1)
Module 27 Review
254(1)
Tackle the AP® Test
254(1)
Module 28 The Money Market
255(9)
The Demand for Money
255(1)
The Opportunity Cost of Holding Money
255(1)
Short-Term and Long-Term Interest Rates
256(1)
The Money Demand Curve
257(1)
Shifts of the Money Demand Curve
258(2)
The Supply of Money
260(1)
The Equilibrium Interest Rate
260(1)
Two Models of the Interest Rate
261(1)
Module 28 Review
262(1)
Tackle the AP® Test
262(2)
Module 29 The Market for Loanable Funds
264(20)
The Market for Loanable Funds
264(1)
The Equilibrium Interest Rate
264(6)
Reconciling the Two Interest Rate Models
270(1)
The Interest Rate in the Short Run
270(2)
The Interest Rate in the Long Run
272(1)
Module 29 Review
273(1)
Tackle the AP® Test
273(2)
Section 5 Review
275(2)
AP® Exam Practice Questions
277(3)
economics by example: How Should We Wield the Tool of Monetary Policy?
280(4)
Section 6: Long-Run Consequences Of Stabilization Policies 284(63)
The Fed as First Responder
284(1)
Module 30 Long-Run Implications of Fiscal Policy: Deficits and the Public Debt
285(9)
The Budget Balance
285(1)
The Budget Balance as a Measure of Fiscal Policy
285(1)
The Business Cycle and the Cyclically Adjusted Budget Balance
286(1)
Should the Budget Be Balanced?
287(1)
Long-Run Implications of Fiscal Policy
288(1)
Deficits, Surpluses, and Debt
288(1)
Problems Posed by Rising Government Debt
289(1)
Deficits and Debt in Practice
290(1)
Implicit Liabilities
291(1)
Module 30 Review
292(1)
Tackle the AP® Test
293(1)
Module 31 Monetary Policy and the Interest Rate
294(6)
Monetary Policy and the Interest Rate
294(1)
Monetary Policy and Aggregate Demand
295(1)
Expansionary and Contractionary Monetary Policy
296(1)
Monetary Policy in Practice
296(2)
Inflation Targeting
298(1)
Module 31 Review
299(1)
Tackle the AP® Test
299(1)
Module 32 Money, Output, and Prices in the Long Run
300(5)
Money, Output, and Prices
300(1)
Short-Run and Long-Run Effects of an Increase in the Money Supply
301(1)
Monetary Neutrality
302(1)
Changes in the Money Supply and the Interest Rate in the Long Run
302(1)
Module 32 Review
303(1)
Tackle the AP® Test
304(1)
Module 33 Types of Inflation, Disinflation, and Deflation
305(6)
Money and Inflation
305(1)
The Classical Model of Money and Prices
305(2)
The Inflation Tax
307(1)
The Logic of Hyperinflation
308(1)
Moderate Inflation and Disinflation
309(1)
Module 33 Review
310(1)
Tackle the AP® Test
310(1)
Module 34 Inflation and Unemployment: The Phillips Curve
311(11)
The Output Gap and the Unemployment Rate
311(1)
The Short-Run Phillips Curve
312(3)
Inflation Expectations and the Short-Run Phillips Curve
315(1)
Inflation and Unemployment in the Long Run
316(1)
The Long-Run Phillips Curve
317(1)
The Natural Rate of Unemployment, Revisited
318(1)
The Costs of Disinflation
318(1)
Deflation
319(1)
Debt Deflation
319(1)
Effects of Expected Deflation
319(1)
Module 34 Review
320(1)
Tackle the AP® Test
320(2)
Module 35 History and Alternative Views of Macroeconomics
322(11)
Classical Macroeconomics
322(1)
Money and the Price Level
322(1)
The Business Cycle
322(1)
The Great Depression and the Keynesian Revolution
323(1)
Keynes's Theory
323(1)
Policy to Fight Recessions
324(1)
Challenges to Keynesian Economics
325(1)
The Revival of the Monetary Policy
326(1)
Monetarism
326(3)
Inflation and the Natural Rate of Unemployment
329(1)
The Political Business Cycle
329(1)
Rational Expectations, Real Business Cycles, and New Classical Macroeconomics
330(1)
Rational Expectations
330(1)
Real Business Cycles
331(1)
Module 35 Review
331(1)
Tackle the AP® Test
332(1)
Module 36 Consensus and Conflict in Modern Macroeconomics
333(14)
The Modern Consensus
333(1)
Five Key Questions About Macroeconomic Policy
333(2)
Crisis and Aftermath
335(1)
Module 36 Review
336(1)
Tackle the AP® Test
337(1)
Section 6 Review
338(2)
AP® Exam Practice Questions
340(3)
economics by example: Will Technology Put Everyone Out of Work?
343(4)
Section 7: Consequences Of Public Policy For Economic Growth 347(42)
Grown in China
347(1)
Module 37 Long-Run Economic Growth
348(7)
Comparing Economies Across Time and Space
348(1)
Real GDP per Capita
348(2)
When Did Long-Run Growth Begin?
350(1)
Growth Rates
351(1)
The Sources of Long-Run Growth
352(1)
The Crucial Importance of Productivity
352(1)
Explaining Growth in Productivity
352(1)
Module 37 Review
353(1)
Tackle the AP® Test
353(2)
Module 38 Productivity and Growth
355(9)
Economic Growth and the Aggregate Production Function
355(1)
The Law of Diminishing Returns
355(2)
Growth Accounting and Total Factor Productivity
357(2)
What About Natural Resources?
359(1)
Success, Disappointment, and Failure
360(1)
East Asia's Miracle
360(1)
Latin America's Disappointment
361(1)
Africa's Troubles
361(1)
Module 38 Review
362(1)
Tackle the AP® Test
362(2)
Module 39 Growth Policy: Why Economic Growth Rates Differ
364(9)
Why Growth Rates Differ
364(1)
Explaining Differences in Growth Rates
364(2)
The Role of Government in Promoting Economic Growth
366(1)
Is World Growth Sustainable?
367(1)
Natural Resources and Growth, Revisited
368(2)
Economic Growth and the Environment
370(2)
Module 39 Review
372(1)
Tackle the AP® Test
372(1)
Module 40 Economic Growth in Macroeconomic Models
373(16)
Long-Run Economic Growth and the Production Possibilities Curve
374(2)
Long-Run Economic Growth and the Aggregate Demand-Aggregate Supply Model
376(1)
Distinguishing Between Long-Run Growth and Short-Run Fluctuations
376(2)
Supply-Side Fiscal Policies and Economic Growth
378(1)
Module 40 Review
379(1)
Tackle the AP® Test
379(2)
Section 7 Review
381(1)
AP® Exam Practice Questions
382(3)
economics by example: Why Are Some Countries Rich and Others Poor?
385(4)
Section 8: International Trade And Finance 389(50)
A Roller Coaster Ride for the Exchange Rate
389(1)
Module 41 Capital Flows and the Balance of Payments
390(9)
Capital Flows and the Balance of Payments
390(1)
Balance of Payments Accounts
390(3)
Modeling the Financial Account
393(3)
Underlying Determinants of International Capital Flows
396(1)
Two-Way Capital Flows
396(1)
Module 41 Review
397(1)
Tackle the AP® Test
397(2)
Module 42 The Foreign Exchange Market
399(8)
The Role of the Exchange Rate
399(1)
Understanding Exchange Rates
399(1)
The Equilibrium Exchange Rate
400(3)
Inflation and Real Exchange Rates
403(2)
Purchasing Power Parity
405(1)
Module 42 Review
406(1)
Tackle the AP® Test
406(1)
Module 43 Exchange Rate Policy and Macroeconomic Policy
407(9)
Exchange Rate Policy
407(1)
Exchange Rate Regimes
408(1)
How Can an Exchange Rate Be Held Fixed?
408(2)
The Exchange Rate Regime Dilemma
410(1)
Exchange Rates and Macroeconomic Policy
411(1)
Devaluation and Revaluation of Fixed Exchange Rates
411(1)
Monetary Policy Under a Floating Exchange Rate Regime
412(1)
International Business Cycles
413(1)
Module 43 Review
414(1)
Tackle the AP® Test
414(2)
Module 44 Barriers to Trade
416(6)
Trade Restrictions
416(1)
Tariffs
417(1)
Import Quotas
418(2)
Module 44 Review
420(1)
Tackle the AP® Test
420(2)
Module 45 Putting It All Together
422(17)
A Structure for Macroeconomic Analysis
422(1)
The Starting Point
423(1)
The Pivotal Event
423(2)
The Initial Effect of the Event
425(1)
Secondary and Long-Run Effects of the Event
425(1)
Analyzing Our Scenario
426(2)
Module 45 Review
428(1)
Tackle the AP® Test
428(2)
Section 8 Review
430(2)
AP® Exam Practice Questions
432(3)
economics by example: Is Globalization a Bad Word?
435(4)
Section 9: Behind The Demand Curve: Consumer Choice 439(70)
Paying Whatever It Takes for Health
439(1)
Module 46 Income Effects, Substitution Effects, and Elasticity
440(7)
Explaining the Law of Demand
440(1)
The Substitution Effect
440(1)
The Income Effect
440(1)
Defining and Measuring Elasticity
441(1)
Calculating the Price Elasticity of Demand
442(1)
An Alternative Way to Calculate Elasticities: The Midpoint Method
443(2)
Elasticity Estimates
445(1)
Module 46 Review
445(1)
Tackle the AP® Test
445(2)
Module 47 Interpreting Price Elasticity of Demand
447(8)
What the Price Elasticity of Demand Tells Us
447(1)
How Elastic Is Elastic?
447(4)
Price Elasticity Along the Demand Curve
451(2)
What Factors Determine the Price Elasticity of Demand?
453(1)
Module 47 Review
453(1)
Tackle the AP® Test
454(1)
Module 48 Other Important Elasticities
455(6)
Measuring Responses to Other Changes
455(1)
The Cross-Price Elasticity of Demand
455(1)
The Income Elasticity of Demand
456(1)
The Price Elasticity of Supply
456(1)
Measuring the Price Elasticity of Supply
457(1)
What Factors Determine the Price Elasticity of Supply?
458(1)
An Elasticity Menagerie
459(1)
Module 48 Review
460(1)
Tackle the AP® Test
460(1)
Module 49 Consumer and Producer Surplus
461(11)
Consumer Surplus and the Demand Curve
462(1)
Willingness to Pay and the Demand Curve
462(1)
Willingness to Pay and Consumer Surplus
463(2)
How Changing Prices Affect Consumer Surplus
465(1)
Producer Surplus and the Supply Curve
466(1)
Cost
466(1)
Producer Surplus
467(2)
How Changing Prices Affect Producer Surplus
469(1)
Module 49 Review
470(1)
Tackle the AP® Test
471(1)
Module 50 Efficiency and Deadweight Loss
472(16)
Consumer Surplus, Producer Surplus, and Efficiency
472(1)
The Gains from Trade
472(1)
The Efficiency of Markets
473(4)
Equity and Efficiency
477(1)
The Effects of Taxes on Total Surplus
477(1)
The Effect of an Excise Tax on Quantities and Prices
477(3)
Price Elasticities and Tax Incidence
480(2)
The Benefits and Costs of Taxation
482(1)
The Revenue from an Excise Tax
482(1)
The Costs of Taxation
483(3)
Module 50 Review
486(1)
Tackle the AP® Test
486(2)
Module 51 Utility Maximization
488(21)
Utility: It's All About Getting Satisfaction
488(1)
Utility and Consumption
488(1)
The Principle of Diminishing Marginal Utility
489(1)
The Occasional Ups and Downs of Marginal Utility
490(1)
Budgets and Optimal Consumption
491(1)
Budget Constraints and Budget Lines
491(1)
The Optimal Consumption Bundle
492(1)
Spending the Marginal Dollar
493(1)
Marginal Utility per Dollar
494(2)
Optimal Consumption
496(1)
Module 51 Review
497(1)
Tackle the AP® Test
497(2)
Section 9 Review
499(2)
AP® Exam Practice Questions
501(4)
economics by example: Why Is a Newspaper Heist So Easy?
505(4)
Section 10: Behind The Supply Curve: Profit, Production, And Costs 509(56)
The Cost of Power
509(1)
Module 52 Defining Profit
510(5)
Understanding Profit
510(1)
Explicit Versus Implicit Costs
510(1)
Accounting Profit Versus Economic Profit
511(1)
Normal Profit
512(1)
Module 52 Review
513(1)
Tackle the AP® Test
513(2)
Module 53 Profit Maximization
515(5)
Maximizing Profit
515(1)
Using Marginal Analysis to Choose the Profit-Maximizing Quantity of Output
516(2)
When Is Production Profitable?
518(1)
Module 53 Review
518(1)
Tackle the AP® Test
519(1)
Module 54 The Production Function
520(6)
Inputs and Output
520(1)
Production with Fixed and Variable Inputs
520(3)
Production When All Inputs Are Variable
523(1)
Module 54 Review
524(1)
Tackle the AP® Test
524(2)
Module 55 Firm Costs
526(11)
From the Production Function to Cost Curves
526(2)
Two Key Concepts: Marginal Cost and Average Cost
528(1)
Marginal Cost
528(2)
Average Cost
530(3)
Minimum Average Total Cost
533(1)
Does the Marginal Cost Curve Always Slope Upward?
534(2)
Module 55 Review
536(1)
Tackle the AP® Test
536(1)
Module 56 Long-Run Costs and Economies of Scale
537(7)
Short-Run Costs
538(1)
Long-Run Costs
539(2)
Returns to Scale
541(1)
Sunk Costs
541(1)
Summing Up Costs: The Short and Long of It
542(1)
Module 56 Review
543(1)
Tackle the AP® Test
543(1)
Module 57 Introduction to Market Structure
544(21)
Types of Market Structure
544(1)
Perfect Competition
545(1)
Defining Perfect Competition
546(1)
Two Necessary Conditions for Perfect Competition
546(1)
Free Entry and Exit
547(1)
Monopoly
547(1)
Defining Monopoly
547(1)
Why Do Monopolies Exist?
548(1)
Oligopoly
549(1)
Is It an Oligopoly or Not?
550(1)
Monopolistic Competition
551(1)
Defining Monopolistic Competition
552(1)
Module 57 Review
553(1)
Tackle the AP® Test
553(2)
Section 10 Review
555(2)
AP® Exam Practice Questions
557(3)
economics by example: Could the Future Cost of Energy Change Life as We Know It?
560(5)
Section 11: Market Structures: Perfect Competition And Monopoly 565(54)
Some Carrots Are More Expensive Than Others
565(1)
Module 58 Introduction to Perfect Competition
566(5)
Production and Profit
566(2)
When Is Production Profitable?
568(2)
Module 58 Review
570(1)
Tackle the AP® Test
570(1)
Module 59 Graphing Perfect Competition
571(9)
Interpreting Perfect Competition Graphs
571(3)
The Short-Run Production Decision
574(1)
The Shut-Down Price
575(1)
Changing Fixed Cost
576(1)
Summing Up: The Perfectly Competitive Firm's Profitability and Production Conditions
577(1)
Module 59 Review
578(1)
Tackle the AP® Test
578(2)
Module 60 Long-Run Outcomes in Perfect Competition
580(10)
The Industry Supply Curve
580(1)
The Short-Run Industry Supply Curve
580(1)
The Long-Run Industry Supply Curve
581(6)
Efficiency in Long-Run Equilibrium
587(1)
Module 60 Review
588(1)
Tackle the AP® Test
588(2)
Module 61 Introduction to Monopoly
590(8)
The Monopolist's Demand Curve and Marginal Revenue
590(4)
The Monopolist's Profit-Maximizing Output and Price
594(1)
Monopoly Versus Perfect Competition
594(1)
Monopoly: The General Picture
595(1)
Module 61 Review
596(1)
Tackle the AP® Test
597(1)
Module 62 Monopoly and Public Policy
598(5)
Welfare Effects of Monopoly
598(1)
Preventing Monopoly Power
599(1)
Dealing with a Natural Monopoly
600(1)
Public Ownership
600(1)
Regulation
600(2)
Module 62 Review
602(1)
Tackle the AP® Test
602(1)
Module 63 Price Discrimination
603(16)
Price Discrimination Defined
603(1)
The Logic of Price Discrimination
604(1)
Price Discrimination and Elasticity
605(1)
Perfect Price Discrimination
606(2)
Module 63 Review
608(1)
Tackle the AP® Test
609(1)
Section 11 Review
610(1)
AP® Exam Practice Questions
611(3)
economics by example: Is Adam Smith Rolling Over in His Grave?
614(5)
Section 12: Market Structures: Imperfect Competition 619(45)
Corporate Misdeeds and the Differentiation Dance
619(1)
Module 64 Introduction to Oligopoly
620(5)
Understanding Oligopoly
620(1)
A Duopoly Example
620(1)
Collusion and Competition
621(2)
Module 64 Review
623(1)
Tackle the AP® Test
623(2)
Module 65 Game Theory
625(9)
Games Oligopolists Play
625(1)
The Prisoners' Dilemma
625(2)
More Games
627(5)
Module 65 Review
632(1)
Tackle the AP® Test
632(2)
Module 66 Oligopoly in Practice
634(8)
The Legal Framework
634(1)
Tacit Collusion
635(1)
Overcoming the Prisoners' Dilemma: Repeated Interaction and Tacit Collusion
635(2)
Constraints on Collusion
637(1)
Large Numbers
637(1)
Complex Products and Pricing Schemes
638(1)
Differences in Interests
638(1)
Bargaining Power of Buyers
638(1)
Product Differentiation and Price Leadership
638(1)
How Important Is Oligopoly?
639(1)
Module 66 Review
640(1)
Tackle the AP® Test
640(2)
Module 67 Introduction to Monopolistic Competition
642(7)
Understanding Monopolistic Competition
642(1)
Monopolistic Competition in the Short Run
642(2)
Monopolistic Competition in the Long Run
644(2)
Monopolistic Competition Versus Perfect Competition
646(1)
Price, Marginal Cost, and Average Total Cost
646(1)
Is Monopolistic Competition Inefficient?
647(1)
Module 67 Review
648(1)
Tackle the AP® Test
648(1)
Module 68 Product Differentiation and Advertising
649(15)
How Firms Differentiate Their Products
650(1)
Differentiation by Style or Type
650(1)
Differentiation by Location
650(1)
Differentiation by Quality
650(1)
Controversies About Product Differentiation
651(1)
The Role of Advertising
651(1)
Brand Names
652(1)
Module 68 Review
653(1)
Tackle the AP® Test
653(2)
Section 12 Review
655(1)
AP® Exam Practice Questions
656(4)
economics by example: What's Behind the Music Industry's Woes?
660(4)
Section 13: Factor Markets 664(47)
From Whence Wages Arise
664(1)
Module 69 Introduction and Factor Demand
665(10)
The Economy's Factors of Production
665(1)
The Factors of Production
665(1)
Why Factor Prices Matter: The Allocation of Resources
665(1)
Factor Incomes and the Distribution of Income
666(1)
Marginal Productivity and Factor Demand
667(1)
Marginal Product of Labor
667(1)
Marginal Revenue Product and Factor Demand
668(3)
Shifts of the Factor Demand Curve
671(2)
Module 69 Review
673(1)
Tackle the AP® Test
673(2)
Module 70 The Markets for Land and Capital
675(5)
Land and Capital
675(1)
Demand in the Markets for Land and Capital
675(1)
Supply in the Markets for Land and Capital
676(1)
Equilibrium in Land and Capital Markets
676(1)
Economic Rent
677(1)
Marginal Productivity Theory
678(1)
Module 70 Review
679(1)
Tackle the AP® Test
679(1)
Module 71 The Market for Labor
680(10)
The Supply of Labor
680(1)
Work Versus Leisure
680(1)
Wages and Labor Supply
681(2)
Shifts of the Labor Supply Curve
683(1)
Equilibrium in the Labor Market
684(1)
When the Labor Market Is Not Perfectly Competitive
685(2)
Equilibrium in the Imperfectly Competitive Labor Market
687(2)
Module 71 Review
689(1)
Tackle the AP® Test
689(1)
Module 72 The Cost-Minimizing Input Combination
690(5)
Alternative Input Combinations
691(1)
Substitutes and Complements in Factor Markets
691(1)
Determining the Optimal Input Mix
691(1)
Cost Minimization
692(1)
The Cost-Minimization Rule
692(2)
Module 72 Review
694(1)
Tackle the AP® Test
694(1)
Module 73 Theories of Income Distribution
695(16)
The Marginal Productivity Theory of Income Distribution
696(1)
Marginal Productivity and Wage Inequality
696(1)
Market Power
697(1)
Efficiency Wages
698(1)
Discrimination
699(1)
Wage Disparities in Practice
699(1)
Is the Marginal Productivity Theory of Income Distribution Really True?
700(1)
So Does Marginal Productivity Theory Hold?
700(1)
Module 73 Review
701(1)
Tackle the AP® Test
701(1)
Section 13 Review
702(1)
AP® Exam Practice Questions
703(4)
economics by example: Immigration: How Welcoming Should Lady Liberty Be?
707(4)
Section 14: Market Failure And The Role Of Government 711
Incentives Matter, for Better or Worse
711(1)
Module 74 Introduction to Externalities
712(7)
Externalities
712(1)
The Economics of Pollution
712(1)
Costs and Benefits of Pollution
713(1)
Private Solutions to Externality Problems
714(2)
Policies Toward Pollution
716(1)
Environmental Standards
716(1)
Emissions Taxes
716(1)
Tradable Emissions Permits
717(1)
Module 14 Review
718(1)
Tackle the AP® Test
718(1)
Module 75 Externalities in Markets for Goods and Services
719(7)
Production, Consumption, and Externalities
719(1)
Private Versus Social Benefits
720(2)
Private Versus Social Costs
722(2)
Network Externalities
724(1)
Module 75 Review
724(1)
Tackle the AP® Test
724(2)
Module 76 Public Goods
726(10)
Private Goods-and Others
726(1)
Characteristics of Goods
726(1)
Why Markets Can Supply Only Private Goods Efficiently
727(1)
Public Goods
728(1)
Providing Public Goods
729(1)
How Much of a Public Good Should Be Provided?
729(1)
Voting as a Public Good
730(2)
Common Resources
732(1)
The Problem of Overuse
732(1)
The Efficient Use and Maintenance of a Common Resource
733(1)
Artificially Scarce Goods
734(1)
Module 76 Review
734(1)
Tackle the AP® Test
735(1)
Module 77 Public Policy to Promote Competition
736(6)
Promoting Competition
736(1)
Antitrust Policy
737(1)
The Sherman Antitrust Act of 1890
737(1)
The Clayton Antitrust Act of 1914
738(1)
The Federal Trade Commission Act of 1914
738(1)
Dealing with Natural Monopoly
739(1)
Module 77 Review
740(1)
Tackle the AP® Test
741(1)
Module 78 Income Inequality and Income Distribution
742
The Problem of Poverty
742(1)
Trends in Poverty
743(1)
Who Are the Poor?
743(1)
What Causes Poverty?
744(1)
Consequences of Poverty
744(1)
Economic Inequality
745(3)
Economic Insecurity
748(1)
U.S. Antipoverty Programs
748(1)
Means-Tested Programs
749(1)
Social Security and Unemployment Insurance
750(1)
The Debate over Income Redistribution
750(1)
Problems with Income Redistribution
750(1)
The Politics of Income Redistribution
751(1)
Module 78 Review
752(1)
Tackle the AP® Test
752(2)
Section 14 Review
754(2)
AP® Exam Practice Questions
756(3)
economics by example: Why Not Split the Check?
759
AP® Practice Exams
AP® Macroeconomics Practice Exam
PE-1
AP® Microeconomics Practice Exam
PE-7
Enrichment Modules
Module A Financial Markets and Crises
EM-2
Module B Behavioral Economics
EM-11
Module C The Economics of Information
EM-19
Module D Indifference Curves and Consumer Choice
EM-24
Financial Literacy Handbook FLH-1
Glossary/Glosario G-1
Index I-1
Margaret Ray is Professor of Economics and Director of the Center for Economic Education at the University of Mary Washington, where she specializes in teaching introductory economics. She received her BS in Economics from Oklahoma State University and her PhD in Economics from the University of Tennessee. She has been involved in the AP® Economics program since 1992, serving as a reader and question leader, writing test items, overseeing the AP course audit, writing College Board Special Focus articles, and editing the Council on Economic Educations AP Macroeconomics resource. She has been a College Board® Endorsed Consultant for economics since 2001, and she conducts several professional development workshops and institutes each year. David Anderson is the Paul G. Blazer Professor of Economics at Centre College. He received his BA in economics from the University of Michigan and his MA and PhD in economics from Duke University. Anderson has been involved in the AP® Economics programs for more than two decades. For five years he led the grading of one or both of the AP Economics exams, and he speaks regularly at AP conferences and workshops. He has authored dozens of scholarly articles and 15 books. His research is primarily on economic education, environmental economics, law and economics, and labor economics.
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