Instructor’s Resource Manual for Economics Edward Scahill and Eva Dziadula
Economics Eighth Edition Updated Edition
R. Glenn Hubbard Anthony Patrick O’Brien
Copyright © 2023 Pearson Education, Inc.
Contents Part 1: Introduction Chapter 1 Economics: Foundations and Models
1
Appendix: Using Graphs and Formulas
15
Chapter 2 Trade-offs, Comparative Advantage, and the Market System
28
Chapter 3 Where Prices Come From: The Interaction of Demand and Supply
49
Chapter 4 Economic Efficiency, Government Price Setting, and Taxes
80
Appendix: Quantitative Demand and Supply Analysis
88
Part 2: Markets in Action: Policy and Applications Chapter 5 Externalities, Environmental Policy, and Public Goods
113
Chapter 6 Elasticity: The Responsiveness of Demand and Supply
138
Chapter 7 The Economics of Health Care
170
Part 3: Firms in the Domestic and International Economies Chapter 8 Firms, the Stock Market, and Corporate Governance
191
Appendix: Using Present Value
199
Appendix: Income Statements and Balance Sheets
201
Chapter 9 Comparative Advantage and the Gains from International Trade
214
Part 4: Microeconomic Foundations: Consumers and Firms Chapter 10 Consumer Choice and Behavioral Economics Appendix: Using Indifference Curves and Budget Lines to Understand Consumer Behavior Chapter 11 Technology, Production, and Costs Appendix: Using Isoquants and Isocost Lines to Understand Production and Cost
236 249 266 282
Part 5: Market Structure and Firm Strategy Chapter 12 Firms in Perfectly Competitive Markets
308
Chapter 13 Monopolistic Competition: The Competitive Model in a More Realistic Setting
341
Chapter 14 Oligopoly: Firms in Less Competitive Markets
363
Chapter 15 Monopoly and Antitrust Policy
393
Part 6: Labor Markets, Public Choice, and the Distribution of Income Chapter 16 The Markets for Labor and Other Factors of Production
427
Chapter 17 Public Choice, Taxes, and the Distribution of Income
456
Part 7: Macroeconomic Foundations and Long-Run Growth Chapter 18 GDP: Measuring Total Production and Income
480
Chapter 19 Unemployment and Inflation
503
Chapter 20 Economic Growth, the Financial System, and Business Cycles
535
Chapter 21 Long-Run Economic Growth: Sources and Policies
558
Part 8: Short-Run Fluctuations Chapter 22 Aggregate Expenditure and Output in the Short Run
582
Appendix: The Algebra of Macroeconomic Equilibrium
595
Chapter 23 Aggregate Demand and Aggregate Supply Analysis
611
Appendix: Macroeconomic Schools of Thought
622
Part 9: Monetary and Fiscal Policy Chapter 24 Money, Banks, and the Federal Reserve System
639
Chapter 25 Monetary Policy
667
Chapter 26 Fiscal Policy
699
Appendix: A Closer Look at the Multiplier Chapter 27 Inflation, Unemployment, and Federal Reserve Policy
731 735
Part 10: The International Economy Chapter 28 Macroeconomics in an Open Economy Appendix: The Gold Standard and the Bretton Woods System
763
780
CHAPTER 1 | Economics: Foundations and Models Brief Chapter Summary and Learning Objectives 1.1
Three Key Economic Ideas Explain these three key economic ideas: People are rational, people respond to economic incentives, and optimal decisions are made at the margin. ▪
1.2
Because resources are scarce, people must make choices to attain their goals.
The Economic Problem That Every Society Must Solve Discuss how an economy answers these questions: What goods and services will be produced? How will the goods and services be produced? Who will receive the goods and services produced? ▪
1.3
Because of scarcity, producing more of one good or service means that less of some other good or service will be produced.
Economic Models Explain how economists use models to analyze economic events and government policies. ▪
1.4
Economists use models—simplified versions of reality—to analyze real-world issues.
Microeconomics and Macroeconomics Distinguish between microeconomics and macroeconomics. ▪
1.5
Microeconomics is the study of how households and firms make choices, while macroeconomics is the study of the economy as a whole
Economic Skills and Economics as a Career Describe economics as a career and the key skills you can gain from studying economics. ▪
1.6
Individuals, managers, and government policymakers can all benefit from applying economic concepts when they make decisions.
A Preview of Important economic Terms Define important economic terms.
Appendix: Using Graphs and Formulas Use graphs and formulas to analyze economic situations.
Copyright © 2023 Pearson Education, Inc.