Microeconomics: Theory Through Applications
v. 1.0
Table of Contents
Licensing Information
Preface
Chapter 1: What Is Economics?
Microeconomics in a Fast-Food Restaurant
Macroeconomics in a Fast-Food Restaurant
What Is Economics, Really?
End-of-Chapter Material
Chapter 2: Microeconomics in Action
Four Examples of Microeconomics
The Microeconomic Approach
End-of-Chapter Material
Chapter 3: Everyday Decisions
Chapter Introduction
Individual Decision Making: How You Spend Your Income
Individual Demand
Individual Decision Making: How You Spend Your Time
End-of-Chapter Material
Chapter 4: Life Decisions
Chapter Introduction
Consumption and Saving
Using Discounted Present Values
Avoiding Risk
Embracing Risk
End-of-Chapter Material
Chapter 5: eBay and craigslist
Chapter Introduction
craigslist and the Gains from Trade
eBay
Supply and Demand
Production Possibilities
End-of-Chapter Material
Chapter 6: Where Do Prices Come From?
Chapter Introduction
The Goal of a Firm
The Revenues of a Firm
The Costs of a Firm
Markup Pricing: Combining Marginal Revenue and Marginal Cost
The Supply Curve of a Competitive Firm
End-of-Chapter Material
Chapter 7: Why Do Prices Change?
Chapter Introduction
Market Supply and Market Demand
Using the Supply-and-Demand Framework
Another Perspective on Changing Prices
Three Important Markets
Beyond Perfect Competition
End-of-Chapter Material
Appendix: Algebraic Presentation of Supply and Demand
Chapter 8: Growing Jobs
Chapter Introduction
How Do Firms Decide How Many Hours of Labor to Hire?
Entry and Exit
Search
Government Policies
End-of-Chapter Material
Chapter 9: Making and Losing Money on Wall Street
Chapter Introduction
A Walk Down Wall Street
The Value of an Asset
Asset Markets and Asset Prices
Efficient Markets
End-of-Chapter Material
Appendix: A General Formulation of Discounted Present Value
Chapter 10: Raising the Wage Floor
Chapter Introduction
Nominal Wages and Real Wages
The Effects of a Minimum Wage
Minimum Wage Changes
The Minimum Wage and the Distribution of Income
Empirical Evidence on Minimum Wages
End-of-Chapter Material
Chapter 11: Barriers to Trade and the Underground Economy
Chapter Introduction
How the Government Controls What You Buy and Sell
Limits on Trade across Borders
Government and the Labor Market
End-of-Chapter Material
Chapter 12: Superstars
Chapter Introduction
Facts about Inequality
The Sources of Inequality
Distributive Justice
Government Policy
End-of-Chapter Material
Chapter 13: Cleaning Up the Air and Using Up the Oil
Chapter Introduction
The Economics of Clean Air
Externalities
Renewable, Nonrenewable, and Accumulable Resources
End-of-Chapter Material
Appendix: An Example of the Hotelling Rule in Operation
Chapter 14: Busting Up Monopolies
Chapter Introduction
Market Power and Monopoly
Patents and Copyright
Markets with a Small Number of Sellers
End-of-Chapter Material
Chapter 15: A Healthy Economy
Chapter Introduction
Supply and Demand in Health-Care Markets
Health Insurance
Government Policy
End-of-Chapter Material
Chapter 16: Cars
Chapter Introduction
The Demand for Automobiles
Supply of Cars
Market Outcomes in the Automobile Industry
Policy Issues
End-of-Chapter Material
Chapter 17: Microeconomics Toolkit
Chapter Introduction
Individual Demand
Elasticity
The Labor Market
Choices over Time
Discounted Present Value
The Credit Market
Expected Value
Correcting for Inflation
Supply and Demand
Buyer Surplus and Seller Surplus
Efficiency and Deadweight Loss
Production Possibilities Frontier
Comparative Advantage
Costs of Production
Pricing with Market Power
Comparative Statics
Production Function
Nash Equilibrium
Externalities and Public Goods
Foreign Exchange Market
Percentage Changes and Growth Rates
Mean and Variance
Correlation and Causality