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Unit 1 Introduction to Economics
Unit 1 Introduction to Economics
Chapters in This Unit
What Is Economics?
Economic Systems
American Free Enterprise
End of
Page xvi
Table of Contents
Economics: Principles in Action
About the Authors
Program Reviewers
Contents
Special Features
Studying Economics: Principles in Action
Unit 1 Introduction to Economics
Chapter 1 What Is Economics?
Section 1 Scarcity and the Factors of Production
Section 2 Opportunity Cost
Section 3 Production Possibilities Curves
Real-life Case Study: Safety at Any Cost?
Chapter 1 Assessment
Chapter 2 Economic Systems
Section 1 Answering the Three Economic Questions
Section 2 The Free Market
Section 3 Centrally Planned Economies
Real-life Case Study: Russia in Crisis
Section 4 Modern Economies
Chapter 2 Assessment
Chapter 3 American Free Enterprise
Section 1 Benefits of Free Enterprise
Section 2 Promoting Growth and Stability
Section 3 Providing Public Goods
Section 4 Providing a Safety Net
Real-life Case Study: Government and the Interstate Highway System
Chapter 3 Assessment
The Wall Street Journal. Classroom Edition Debating Current Issues: Health-Care Costs
Unit 2 How Markets Work
Chapter 4 Demand
Section 1 Understanding Demand
Section 2 Shifts of the Demand Curve
Section 3 Elasticity of Demand
Real-life Case Study: What Makes a Person an Entrepreneur?
Chapter 4 Assessment
Chapter 5 Supply
Section 1 Understanding Supply
Section 2 Costs of Production
Section 3 Changes in Supply
Real-life Case Study: Are Baseball Players Paid Too Much?
Chapter 5 Assessment
Chapter 6 Prices
Section 1 Combining Supply and Demand
Section 2 Changes in Market Equilibrium
Section 3 The Role of Prices
Real-life Case Study: Government and the Market for Milk
Chapter 6 Assessment
Chapter 7 Market Structures
Section 1 Perfect Competition
Section 2 Monopoly
Section 3 Monopolistic Competition and Oligopoly
Section 4 Regulation and Deregulation
Real-life Case Study: Regulating Cable Television
Chapter 7 Assessment
The Wall Street Journal. Classroom Edition Debating Current Issues: Oil and Energy Dependence
Unit 3 Business and Labor
Chapter 8 Business Organizations
Section 1 Sole Proprietorships
Section 2 Partnerships
Section 3 Corporations, Mergers, and Multinationals
Section 4 Other Organizations
Real-life Case Study: Business and Ethics
Chapter 8 Assessment
Chapter 9 Labor
Section 1 Labor Market Trends
Section 2 Labor and Wages
Section 3 Organized Labor
Real-life Case Study: The Paterson Silk Strike of 1913
Chapter 9 Assessment
The Wall Street Journal. Classroom Edition Debating Current Issues: Minimum Wage
Unit 4 Money, Banking, and Finance
Chapter 10 Money and Banking
Section 1 Money
Section 2 The History of American Banking
Section 3 Banking Today
Real-life Case Study: Big Banks and Small
Chapter 10 Assessment
The Wall Street Journal. Classroom Edition Debating Current Issues: Regulating Financial Markets
Chapter 11 Financial Markets
Section 1 Saving and Investing
Section 2 Bonds and Other Financial Assets
Section 3 The Stock Market
Real-life Case Study: The Fate of the Dot-Coms
Chapter 11 Assessment
Unit 5 Measuring Economic Performance
Chapter 12 Gross Domestic Product and Growth
Section 1 Gross Domestic Product
Section 2 Business Cycles
Section 3 Economic Growth
Real-life Case Study: How Has Technology Affected Productivity?
Chapter 12 Assessment
Chapter 13 Economic Challenges
Section 1 Unemployment
Section 2 Inflation
Section 3 Poverty
Real-life Case Study: Unemployment in a Changing Economy
Chapter 13 Assessment
The Wall Street Journal. Classroom Edition: Debating Current Issues: Easy Credit
Unit 6 Government and the Economy
Chapter 14 Taxes and Government Spending
Section 1 What Are Taxes?
Section 2 Federal Taxes
Section 3 Federal Spending
Section 4 State and Local Taxes and Spending
Real-life Case Study: The Bush Tax Cuts
Chapter 14 Assessment
Chapter 15 Fiscal Policy
Section 1 Understanding Fiscal Policy
Section 2 Fiscal Policy Options
Section 3 Budget Deficits and the National Debt
Real-life Case Study: Will Social Security Survive?
Chapter 15 Assessment
The Wall Street Journal. Classroom Edition Debating Current Issues: Internet Taxation
Chapter 16 The Federal Reserve and Monetary Policy
Section 1 The Federal Reserve System
Section 2 Federal Reserve Functions
Section 3 Monetary Policy Tools
Section 4 Monetary Policy and Macroeconomic Stabilization
Real-life Case Study: Banking, Monetary Policy, and the Great Depression
Chapter 16 Assessment
Unit 7 The Global Economy
Chapter 17 International Trade
Section 1 Why Nations Trade
Section 2 Trade Barriers and Agreements
Section 3 Measuring Trade
Real-life Case Study: NAFTA: Is Free Trade a Good Idea?
Chapter 17 Assessment
Chapter 18 Economic Development and Transition
Section 1 Levels of Development
Section 2 Issues in Development
Section 3 Financing Development
Section 4 Transitions to Free Enterprise
Real-life Case Study: The World Bank and Economic Assistance
Chapter 18 Assessment
The Wall Street Journal. Classroom Edition Debating Current Issues: Tariffs and Trade
Reference Section
Personal Finance Handbook
Creating a Budget
Opening and Managing a Checking Account
Saving and Investing
Financial Institutions and Services
Credit and Debt
Paying for Education
Buying a Car
Renting an Apartment
Buying Insurance
Getting a Job
Paying Taxes
Economic Atlas and Databank
Natural Resources
Americans at Work
Economic Indicators
The American Consumer
The United States Government
Trade
The United States and the World
Glossary
Spanish Glossary
Index
Acknowledgments
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