Efnisyfirlit

• Cover
• Endorsement Page
• Half Title
• Title Page
• Copyright Page
• Dedication
• Table of Contents
• Detailed Table of Contents
• List of figures
• List of tables
• About the author
• Preface
• Acknowledgements
• 1 Economics: A different way of looking at the world
• 1.1 Introduction
• Food for thought 1.1: Covid-19 and identified versus statistical lives
• 1.2 The world through the eyes of an economist
• 1.3 The economics of sex
• Food for thought 1.2: How differential birth rates are changing our world
• 1.4 Correlation versus causation
• 1.5 Base rates
• 1.6 Using models to study economics
• 1.7 Concluding remarks
• Part 1 Microeconomics
• 2 Buyers, sellers, and markets
• 2.1 Introduction
• 2.2 Where does demand come from?
• 2.3 Factors that affect demand such as substitutes and complements
• 2.4 Supply
• 2.5 Factors that affect supply
• 2.6 Arriving at the market “equilibrium”
• Food for thought 2.1: Petrol prices during the COVID-19 pandemic
• Food for thought 2.2: The market for salmon
• 2.7 Consumer and producer surplus
• 2.8 Concluding remarks
• Mathematical Appendix: Deriving demand and supply equations and solving for market equilibrium
• 3 Beyond demand and supply: Behavioural analyses of markets
• 3.1 Introduction
• 3.2 Total and marginal utility
• Food for thought 3.1: The difference between soda-vending and newspaper-vending machines
• 3.3 Failure to think at the margin and the sunk cost fallacy
• Food for thought 3.2: Do our brains really work like this?
• Food for thought 3.3: The futility of gift-giving
• 3.4 Do markets really work like this in real life?
• 3.5 When markets do not work so smoothly; market power on one side of the market
• 3.6 Concluding remarks
• 4 Elasticity of demand and applications
• 4.1 Introduction
• Food for thought 4.1: The price of coffee at Samir’s
• 4.2 The concept of elasticity
• 4.3 The relation between elasticity and a seller’s revenue
• 4.4 Price elasticity of supply
• 4.5 Cross-price elasticities
• 4.6 Two policy interventions in markets
• 4.6.1 Price ceiling
• 4.6.2 Price floor
• Food for thought 4.2: India’s attempt to reduce agricultural subsidies in 2020
• Food for thought 4.3: Raising the minimum wage
• 4.7 Elasticity and tax incidence
• 4.8 Concluding remarks
• Mathematical Appendix: Algebraic solution to the tax incidence problem
• Mathematical Appendix 2: The midpoint formula for elasticity
• 5 The pricing decision for a firm
• 5.1 Introduction
• 5.2 What does market power mean?
• 5.3 The decision-making problem for a firm with market power
• 5.4 Costs of doing business
• 5.5 The production relation
• 5.6 Costs of production
• Food for thought 5.1: The Mark-up pricing rule
• 5.7 Demand for Kiriana’s pizza and her sales revenue
• 5.8 Kiriana’s pricing decision
• 5.9 Concluding remarks
• 5.10 Mathematical Appendix: How do we get marginal revenue from total revenue
• 6 Monopoly and market power
• 6.1 Introduction
• 6.2 Monopolies
• 6.3 How do monopolies come about?
• 6.4 The monopolist’s decision-making problem
• 6.5 Maximize revenue or maximize profit?
• 6.5.1 A quick mathematical detour
• Food for thought 6.1: Why don’t businesses give away unsold goods or at least sell them very cheaply?
• 6.6 Relaxing the assumption of one price
• 6.7 Exploiting differential willingness to pay by charging different prices
• 6.8 Regulating a franchise monopoly
• Food for thought 6.2: Is New Zealand a rip-off?
• Food for thought 6.3: Why regulate Google or Facebook (or Big Tech in general)?
• Food for thought 6.4: Is the price right? Fairness and economics
• 6.9 Concluding remarks
• Mathematical Appendix: Solving the monopolist’s pricing decision problem
• 7 Competition and the limits of market power
• 7.1 Introduction
• 7.2 Oligopoly
• Food for thought 7.1: Examples of price fixing in oligopoly
• Food for thought 7.2: Matching your competitor’s price
• 7.3 Monopolistic competition
• Food for thought 7.3: Collusion in non-competitive markets
• 7.4 The limits of market power: Perfectly competitive markets
• Food for thought 7.4: Fisherman in Kerala use cell phones to find the market price for sardines (Jensen, 2007)
• 7.5 The decision problem for firms in perfectly competitive markets
• 7.6 Should you shut down your business if you are making a loss?
• 7.7 The costs of market monopolization
• 7.8 Concluding remarks
• 8 Thinking strategically
• 8.1 Introduction
• Food for thought 8.1: The Princess Bride
• 8.2 The prisoner’s dilemma
• 8.3 Sarah’s and Stephen’s choices in Golden Balls revisited
• 8.4 Prisoner’s Dilemma in the animal world
• 8.5 Collusion among oligopolists is a prisoner’s dilemma game
• 8.6 Getting people to cooperate in the prisoner’s dilemma game
• 8.7 A game where only one player has a dominant strategy
• 8.8 The importance of being unpredictable
• 8.9 Hunt a stag or a rabbit? The stag-hunt game and payoff-ranked equilibria
• Food for thought 8.2: A game theoretic analysis of “The Gift of the Magi” by O’Henry
• 8.10 Please, why don’t you go first? Games where players move in sequence
• Food for thought 8.3: To enter or not to enter; that is the question
• 8.11 Concluding remarks
• 9 Tackling climate change
• 9.1 Introduction
• 9.2 Music to some, noise to others: Positive and negative externalities
• 9.3 Market interventions to address externalities
• 9.4 Other approaches to minimizing pollution
• 9.4.1 A decentralized approach to the problem of negative externality; the Coase Theorem
• 9.4.2 Command-and-control approaches
• 9.5 Climate change as a global public good
• 9.6 Experimental studies of the provision of public goods on the basis of private cooperation
• 9.7 Dealing with climate change requires global effort
• 9.8 Concluding remarks
• Part 2 Macroeconomics
• 10 Measuring a country’s income and the cost of living
• 10.1 Introduction
• 10.2 Measuring a nation’s income: Gross domestic product (GDP)
• 10.3 Drawbacks to GDP: Unequal distribution of income and wealth
• Food for thought 10.1: Luck or merit: The source of inequality matters
• 10.4 Measuring GDP
• 10.4.1 Nominal versus real GDP
• 10.5 Calculating the cost of living
• 10.6 Why do we need to know about price changes?
• 10.6.1 Real and nominal interest rates
• Food for thought 10.2: Hyperinflation in Venezuela
• Food for thought 10.3: Some drawbacks of the CPI
• 10.6.2 Comparing incomes from different times
• Food for thought 10.4: The illusion of money
• 10.7 Concluding remarks
• Appendix: Determinants of long-run growth
• A10.1 Rate of GDP growth: The rule of 70
• A10.2 Determinants of GDP growth
• A10.3 What accounts for cross-country differences in growth rates?
• A10.4 The successes and the disappointments
• 11 Who saves, who borrows, and why?
• 11.1 Introduction
• 11.2 How are interest rates determined?
• 11.3 Responses to and impact of government policies
• 11.3.1 Lowering taxes on earnings from savings via interest income
• 11.3.2 Investment tax credits
• 11.3.3 Impact of government budget deficits or surpluses
• 11.4 Time and money: Calculating present value of future amounts
• 11.5 Concluding remarks
• Appendix: Financial Economics
• A11.1 Financial markets
• A11.2 Types of financial assets
• Food for thought 11.1: Digital currency bad news for consumer debt
• A11.3 Asset bubbles
• 12 The benefits of international trade (and its discontent)
• 12.1 Introduction
• 12.2 The benefits of international trade and the role of absolute advantage
• 12.3 The concept of comparative advantage
• 12.4 Restrictions on trade: Tariffs and quotas
• 12.4.1 Tariffs
• 12.4.2 Quotas
• Food for thought 12.1: Why is it so hard to find good coffee in Colombia?
• 12.5 Why is trade so controversial these days?
• Food for thought 12.2: Network externalities
• 12.6 Concluding remarks
• Food for thought 12.3: Is it globalization or automation that drives inequality?
• 13 Currencies and exchange rates
• 13.1 Introduction
• 13.2 The market for currencies and the nominal exchange rate
• 13.3 The determination of the nominal exchange rate
• 13.4 Expectations, arbitrage, and trading in foreign exchanges
• 13.5 Flexible versus fixed exchange rates
• Food for thought 13.1: The East Asian currency crisis of 1997
• 13.6 Flexible and fixed exchange rates revisited: Gold standards and the Bretton Woods System
• 13.7 How much does your dollar buy? The real exchange rate
• Food for thought 13.2: The Big Mac index
• 13.8 Concluding remarks
• 14 Living in a globalized world
• 14.1 Introduction
• 14.2 The intertwined nature of trade in goods and services and financial flows
• 14.2.1 From trade in goods and services to financial flows
• 14.2.2 From financial flows to trade in goods and services
• 14.3 Keeping track of trade flows and financial flows
• 14.4 The relationship between saving, investment, trade, and financial flows
• Food for thought 14.1: China’s one-child policy explains its high rates of domestic saving
• 14.5 The interlinkage between government policy, trade, and financial flows
• 14.5.1 The effect of government budget deficits
• Food for thought 14.2: Is the US trade deficit necessarily “bad”?
• 14.5.2 Incentives to stimulate domestic investment and implications for trade
• 14.6 Concluding remarks
• 15 Economic upheavals and government policy
• 15.1 Introduction
• Food for thought 15.1: What does unemployment mean?
• 15.2 Aggregate demand and aggregate supply
• Food for thought 15.2: Preferences over inflation and unemployment: Evidence from surveys of happiness
• 15.3 Aggregate demand
• 15.3.1 Why is the aggregate demand curve downward sloping when graphed against the price level?
• 15.3.2 What might make the aggregate demand curve shift to the left or right?
• 15.4 Aggregate supply
• 15.4.1 Why is the short-run aggregate supply upward sloping?
• 15.5 What happens in a recession?
• 15.6 How do governments deal with recessions?
• 15.7 Fiscal policy
• 15.7.1 Direct impact on aggregate demand via increasing government spending
• Food for thought 15.3: The Greek crisis following the global financial crisis
• 15.7.2 The consumption multiplier
• 15.7.3 Indirect impact on aggregate demand via tax cuts
• 15.8 Monetary policy
• 15.8.1 The fractional reserve banking system
• 15.8.2 Official cash rate
• Food for thought 15.4: Why cannot governments pay off debt by printing money?
• 15.9 Conclusion
• Appendix: Cryptocurrencies and Central Bank digital currencies
• A15.1 Cryptocurrencies
• A15.2 Central Bank digital currency
• Part 3 Answers
• 16 Answers to end of chapter discussion questions
• Index