Principles of Economics

[...]... does not For someone studying macroeconomics, we are in the middle of an enormously exciting time The Foundation The themes of Principles of Economics, 10th edition, are the same themes of the first nine editions The purposes of this book are to introduce the discipline of economics and to provide a basic understanding of how economies function This requires a blend of economic theory, institutional... endowed by nature with fertile land, water, sunshine, CHAPTER OUTLINE Why Study Economics? p 2 To Learn a Way of Thinking To Understand Society To Understand Global Affairs To Be an Informed Citizen The Scope of Economics p 6 Microeconomics and Macroeconomics The Diverse Fields of Economics The Method of Economics p 9 Descriptive Economics and Economic Theory Theories and Models Economic Policy An Invitation... fascination with both the functioning of the economy and the power and breadth of economics The first line of every edition of our book has been “The study of economics should begin with a sense of wonder.” We hope that readers come away from our book with a basic understanding of how market economies function, an appreciation for the things they do well, and a sense of the things they do poorly We also... Alternative Views in Macroeconomics 649 Keynesian Economics 649 Monetarism 650 The Velocity of Money 650 The Quantity Theory of Money 650 Inflation as a Purely Monetary Phenomenon 652 The Keynesian/Monetarist Debate 653 Supply-Side Economics 653 The Laffer Curve 654 Evaluating Supply-Side Economics 654 New Classical Macroeconomics 655 The Development of New Classical Macroeconomics 655 Rational Expectations... Tool Study Guides Two Study Guides, one for Principles of Microeconomics and one for Principles of Macroeconomics, were prepared by Thomas M Beveridge of Durham Technical Community College They provide students with additional applications and exercises Each chapter of the Study Guides contains the following elements: Ⴇ Point-by-Point Chapter Objectives A list of learning goals for the chapter Each objecႧ... background discussions of monetary policy, since the existence of excess reserves considerably complicates the usual workings of monetary policy In the microeconomics area, there has been a good deal of exciting new work in the areas of economic development, behavioral economics, and experimental economics This edition has added material in various places throughout the microeconomics chapters that... pieces of the economy “fit together.” We think this is a better approach to teaching economics than some of the more traditional approaches, which encourage students to think of economics as a series of disconnected alternative market models Learning perfect competition first also enables students to see the power of the market system It is impossible for students to discuss the efficiency of markets... Microeconomics Test Item File 1, by Randy Methenitis of Richland College: Test Item File 1 (TIF1) includes over 2,700 questions All questions are machine gradable and are either multiple-choice or true/false This Test Item File is for use with the 10th edition of Principles of Microeconomics in the first year of publication TIF1 is available in a computerized format using TestGen EQ test-generating software... multiple-choice or true/false This Test Item File is for use with the 10th edition of Principles of Macroeconomics in the first year of publication This Test Item File is available in a computerized format using TestGen EQ test-generating software and included in MyEconLab Macroeconomics Test Item File 2, by Randy Methenitis of Richland College: This additional Test Item File contains another 2,900 machine-gradable... Macroeconomics 20 Introduction to Macroeconomics Gross Domestic Product 423 Final Goods and Services 424 Exclusion of Used Goods and Paper Transactions 424 Exclusion of Output Produced Abroad by Domestically Owned Factors of Production 425 Calculating GDP 425 The Expenditure Approach 426 ECONOMICS IN PRACTICE Where Does eBay Get Counted? 427 The Income Approach 429 ECONOMICS IN PRACTICE GDP: One of the . TENTH EDITION Principles of Economics The Pearson Series in Economics Abel/Bernanke/Croushore Macroeconomics* Bade/Parkin Foundations of Economics* Berck/Helfand The Economics of the Environment Bierman/Fernandez Game. 510 The Federal Reserve System 511 Functions of the Federal Reserve 512 Expanded Fed Activities Beginning in 2008 513 The Federal Reserve Balance Sheet 513 How the Federal Reserve Controls the Money Supply. unusual nature of both the events leading up to it and some of the remedies employed by the govern- ment to deal with it. Ⴇ In June 2010, the balance sheet of the Federal Reserve had assets of $2.3