Macroeconomics (with InfoTrac)

by Arnold, Roger A.

• ISBN13: 9780324236675
• ISBN10: 0324236670
• Edition: 7th
• Format: Paperback
• Copyright: 2004-12-22
• Publisher: South-Western College Pub

Summary

Offering a unique blend of solid theoretical content and student accessibility, this text: 1) covers all the basics of macroeconomics, 2) gives students a clear idea of how economists think about the world, 3) stresses the key concepts in economics, and 4) is extremely rich in intriguing applications that convey the prevalence of economics in everyday life. Many principles instructors are constantly challenged with the goal of getting students excited about realization that economics is everywhere! Arnold has taken this to another level. He is so passionate about touching his students that he felt the need to write a Macroeconomics text that is dedicated to opening the science of economics through the pictures and applications of our lives. Arnold is considered the most innovative author in this market to meet the fast pace interests of both instructors and students. His five themes of Theory and Model building, Key Concepts, Primary and Secondary Consequences, Real-World Applications, and the idea that Economics is about gifts, exchanges, and transfers, set the tone for a teaching text that is extremely approachable by instructors and students.

Table of Contents

Preface	xiii
Student Learning Guide	xxii
An Introduction to Economics
Part 1: Economics: The Science of Scarcity
What Economics Is About	1	(24)
Definitions of Economics	2	(1)
Economic Categories	2	(2)
Positive and Normative Economics	3	(1)
Microeconomics and Macroeconomics	3	(1)
Key Concepts in Economics	4	(12)
Thinking in Terms of Scarcity and Its Effects	4	(2)
Thinking in Terms of Opportunity Cost	6	(2)
Thinking in Terms of Costs and Benefits	8	(1)
Thinking in Terms of Decisions Made at the Margin	9	(1)
Thinking in Terms of Efficiency	10	(2)
Thinking in Terms of Unintended Effects	12	(1)
Thinking in Terms of Equilibrium	13	(1)
Thinking in Terms of the Ceteris Paribus Assumption	14	(1)
Thinking in Terms of the Difference Between Association and Causation	15	(1)
Thinking in Terms of the Difference Between the Group and the Individual	15	(1)
Economists Build and Test Theories	16	(5)
What Is a Theory?	16	(1)
Building and Testing a Theory	17	(2)
How Do We Judge Theories?	19	(1)
What to Ask a Theorist	20	(1)
A Reader Asks	21	(1)
Chapter Summary	21	(2)
Key Terms and Concepts	23	(1)
Questions and Problems	23	(1)
Internet Activities	24	(1)
Appendix A: Working With Diagrams	25	(408)
Two-Variable Diagrams	25	(1)
Slope of a Line	26	(1)
Slope of a Line Is Constant	26	(2)
Slope of a Curve	28	(1)
The 45° Line	28	(1)
Pie Charts	29	(1)
Bar Graphs	29	(1)
Line Graphs	30	(2)
Appendix Summary	32	(1)
Questions and Problems	32	(1)
Economic Activities: Producing and Trading	33	(27)
The Production Possibilities Frontier	34	(7)
The Straight-Line PPF: Constant Opportunity Costs	34	(1)
The Bowed-Outward (Concave-Downward) PPF: Increasing Opportunity Costs	35	(1)
Law of Increasing Opportunity Costs	36	(1)
Economic Concepts Within a PPF Framework	37	(4)
Trade or Exchange	41	(4)
The Purpose of Trade	41	(1)
Periods Relevant to Trade	42	(1)
Trade and the Terms of Trade	42	(1)
Costs of Trades	43	(2)
Trades and Third-Party Effects	45	(1)
Production, Trade, and Specialization	45	(4)
Producing and Trading	46	(2)
Profit and a Lower Cost of Living	48	(1)
A Benevolent and All-Knowing Dictator Versus the Invisible Hand	49	(1)
Producing, Trading, and Economic Systems	49	(4)
Economic Systems	49	(2)
But First, a Warning	51	(1)
Economic Systems and the PPF	51	(1)
Three Economic Questions That Deal With Production	51	(1)
Trade	52	(1)
Prices	52	(1)
Property Rights	53	(3)
Economic Systems and Property Rights	53	(1)
Do Property Rights Matter?	54	(1)
Property Rights and Scarce Resources	54	(2)
A Reader Asks	56	(1)
Chapter Summary	56	(1)
Key Terms and Concepts	57	(1)
Questions and Problems	57	(1)
Working With Numbers and Graphs	58	(1)
Internet Activities	59	(1)
Supply and Demand: Theory	60	(33)
A Note About Theory	61	(1)
Demand	61	(11)
The Law of Demand	61	(1)
Four Ways to Represent the Law of Demand	62	(1)
Absolute and Relative Price	63	(1)
Why Quantity Demanded Goes Down as Price Goes Up	63	(1)
Individual Demand Curve and Market Demand Curve	64	(1)
A Change in Quantity Demanded Versus a Change in Demand	65	(3)
What Factors Cause the Demand Curve to Shift?	68	(4)
Supply	72	(4)
The Law of Supply	72	(1)
Why Most Supply Curves Are Upward-Sloping	72	(1)
The Market Supply Curve	72	(1)
Changes in Supply Mean Shifts in Supply Curves	73	(1)
What Factors Cause the Supply Curve to Shift?	74	(1)
A Change in Supply Versus a Change in Quantity Supplied	75	(1)
The Market: Putting Supply and Demand Together	76	(8)
Supply and Demand at Work at an Auction	77	(1)
The Language of Supply and Demand: A Few Important Terms	78	(1)
Moving to Equilibrium: What Happens to Price When There Is a Surplus or a Shortage?	78	(1)
Speed of Moving to Equilibrium	79	(1)
Moving to Equilibrium: Maximum ana Minimum Prices	80	(1)
Equilibrium in Terms of Consumers' and Producers' Surplus	80	(2)
What Can Change Equilibrium Price and Quantity?	82	(2)
Price Controls	84	(5)
Price Ceiling: Definition and Effects	84	(3)
Do Buyers Prefer Lower Prices to Higher Prices?	87	(1)
Price Floor: Definition and Effects	88	(1)
A Reader Asks	89	(1)
Chapter Summary	89	(1)
Key Terms and Concepts	90	(1)
Questions and Problems	90	(1)
Working With Numbers and Graphs	91	(1)
Internet Activities	92	(1)
Supply and Demand: Practice	93	(28)
Application 1: Why Do Colleges Use GPAs, ACTs, and SATs for Purposes of Admission?	94	(1)
Application 2: What Will Happen to the Price of Marijuana if the Purchase and Sale of Marijuana Are Legalized?	95	(1)
Application 3: Where Did You Get That Music?	96	(1)
Application 4: The Minimum Wage Law	97	(1)
Application 5: Price Ceiling in the Kidney Market	98	(2)
Application 6: Health Care and the Right to Sue Your HMO	100	(2)
Application 7: If Gold Prices Are the Same Everywhere, Then Why Aren't House Prices?	102	(1)
Application 8: Do You Pay for Good Weather?	103	(1)
Application 9: Paying All Professors the Same Salary	103	(2)
Application 10: Price Floors and Winners and Losers	105	(1)
Application 11: College Superathletes	106	(2)
Application 12: Supply and Demand on a Freeway	108	(1)
Application 13: What Does Price Have to Do With Getting to Class on Time?	109	(2)
Application 14: Aisle Seats on Commercial Airplanes	111	(1)
Application 15: 10 A.M. Classes in College	112	(1)
Application 16: What Is the Price of an A?	113	(1)
A Reader Asks	114	(1)
Chapter Summary	115	(1)
Key Terms and Concepts	116	(1)
Questions and Problems	116	(1)
Working With Numbers and Graphs	117	(1)
Internet Activities	117	(1)
Economics in Perspective: Musical Notes, Economic Notes	118	(3)
Macroeconomics
Part 2: Macroeconomic Fundamentals
Macroeconomic Measurements, Part I: Prices and Unemployment	121	(18)
Macroeconomic Measurements	122	(1)
Measuring Prices	122	(7)
Measuring Prices Using the CPI	122	(2)
Inflation and the CPI	124	(1)
How Is the CPI Used?	125	(1)
The Substitution Bias in Fixed-Weighted Measures	126	(1)
GDP Implicit Price Deflator	127	(1)
Converting Dollars from One Year to Another	128	(1)
Measuring Unemployment	129	(7)
Who Are the Unemployed?	129	(2)
The Unemployment and Employment Rates	131	(1)
Reasons for Unemployment	132	(1)
Discouraged Workers	132	(1)
Types of Unemployment	133	(1)
What Is Full Employment?	134	(1)
Cyclical Unemployment	134	(2)
A Reader Asks	136	(1)
Chapter Summary	136	(1)
Key Terms and Concepts	137	(1)
Questions and Problems	137	(1)
Working With Numbers and Graphs	137	(1)
Internet Activities	138	(1)
Macroeconomic Measurements, Part II: GDP and Real GDP	139	(26)
Gross Domestic Product	140	(4)
Three Ways to Compute GDP	140	(1)
What Is the Difference Between GDP and GNP?	141	(1)
What GDP Omits	142	(1)
GDP Is Not Adjusted for Bads Generated in the Production of Goods	143	(1)
Per Capita GDP	143	(1)
Is Either GDP or Per Capita GDP a Measure of Happiness or Well-Being?	143	(1)
The Expenditure Approach to Computing GDP for a Real-World Economy	144	(3)
Expenditures in a Real-World Economy	144	(1)
Computing GDP Using the Expenditure Approach	145	(1)
An Easy Way to See That GDP = C + I + G + (EX -- IM)	146	(1)
The Income Approach to Computing GDP for a Real-World Economy	147	(5)
Computing National Income	147	(3)
From National Income to GDP: Making Some Adjustments	150	(2)
Other National Income Accounting Measurements	152	(1)
Net Domestic Product	152	(1)
Personal Income	152	(1)
Disposable Income	153	(1)
Real GDP	153	(4)
Why We Need Real GDP	153	(1)
Computing Real GDP	154	(1)
The General Equation for Real GDP	155	(1)
What Does It Mean if Real GDP Is Higher in One Year Than in Another Year?	155	(1)
Real GDP, Economic Growth, and Business Cycles	156	(1)
What Lies Ahead	157	(1)
A Reader Asks	158	(1)
Chapter Summary	159	(1)
Key Terms and Concepts	160	(1)
Questions and Problems	160	(1)
Working With Numbers and Graphs	160	(1)
Internet Activities	161	(2)
Economics in Perspective: The Stories Behind the Numbers	163	(2)
Part 3: Macroeconomic Stability, Instability, and Fiscal Policy
Aggregate Demand and Aggregate Supply	165	(30)
The Two Sides to an Economy	166	(1)
Aggregate Demand	166	(12)
Why Does the Aggregate Demand Curve Slope Downward?	166	(3)
A Change in the Quantity Demanded of Real GDP Versus a Change in Aggregate Demand	169	(1)
Changes in Aggregate Demand---Shifts in the AD Curve	169	(1)
How Spending Components Affect Aggregate Demand	170	(1)
Factors That Can Change C, I, G, and NX (EX -- IM), and Therefore Can Change AD	171	(4)
The Interest Rate and the Loanable Funds Market	175	(3)
Can a Change in the Money Supply Change Aggregate Demand?	178	(1)
Short-Run Aggregate Supply	178	(6)
Short-Run Aggregate Supply Curve: What It Is and Why It Is Upward-Sloping	179	(2)
What Puts the ``Short Run'' in SRAS?	181	(1)
Changes in Short-Run Aggregate Supply---Shifts in the SRAS Curve	182	(2)
Putting AD and SRAS Together: Short-Run Equilibrium	184	(5)
How Short-Run Equilibrium in the Economy Is Achieved	184	(1)
The Unemployment Rate in the Short Run	185	(2)
Thinking in Terms of Short-Run Equilibrium Changes in the Economy	187	(2)
Long-Run Aggregate Supply	189	(2)
Going From the Short Run to the Long Run	189	(1)
Short-Run Equilibrium, Long-Run Equilibrium, and Disequilibrium	190	(1)
A Reader Asks	191	(1)
Chapter Summary	191	(1)
Key Terms and Concepts	192	(1)
Questions and Problems	193	(1)
Working with Numbers and Graphs	193	(1)
Internet Activities	194	(1)
The Self-Regulating Economy	195	(20)
The Classical View	196	(3)
Classical Economists and Say's Law	196	(1)
Classical Economists and Interest Rate Flexibility	197	(2)
Classical Economists on Prices and Wages	199	(1)
Three States of the Economy	199	(5)
Real GDP and Natural Real GDP: Three Possibilities	200	(1)
The Labor Market and the Three States of the Economy	201	(2)
One Nagging Question: How Can the Unemployment Rate Be Less Than the Natural Unemployment Rate?	203	(1)
The Self-Regulating Economy	204	(7)
What Happens if the Economy Is in a Recessionary Gap?	204	(1)
What Happens if the Economy Is in an Inflationary Gap?	205	(1)
The Self-Regulating Economy: A Recap	206	(1)
Policy Implication of Believing the Economy Is Self-Regulating	207	(1)
Changes in a Self-Regulating Economy: Short Run and Long Run	208	(3)
A Reader Asks	211	(1)
Chapter Summary	211	(1)
Key Terms and Concepts	212	(1)
Questions and Problems	212	(1)
Working With Numbers and Graphs	213	(1)
Internet Activities	213	(2)
Economic Instability: A Critique of the Self-Regulating Economy	215	(26)
Questioning the Classical Position	216	(5)
Keynes's Criticism of Say's Law in a Money Economy	216	(1)
Keynes on Wage Rates	217	(1)
New Keynesians and Wage Rates	218	(1)
Keynes on Prices	219	(1)
Is It a Question of the Time It Takes for Wages and Prices to Adjust?	220	(1)
The Simple Keynesian Model	221	(6)
Assumptions	221	(1)
The Consumption Function	222	(1)
Consumption and Saving	223	(1)
The Multiplier	224	(2)
The Multiplier and Reality	226	(1)
The Simple Keynesian Model in the AD-AS Framework	227	(4)
Shifts in the Aggregate Demand Curve	227	(1)
The Keynesian Aggregate Supply Curve	227	(2)
The Economy in a Recessionary Gap	229	(1)
Government's Role in the Economy	229	(1)
The Theme of the Simple Keynesian Model	230	(1)
The Simple Keynesian Model in the TE/TP Framework	231	(6)
Deriving a Total Expenditures (TE) Curve	231	(1)
What Will Shift the TE Curve?	231	(1)
Comparing Total Expenditures (TE) and Total Production (TP)	231	(2)
Moving From Disequilibrium to Equilibrium	233	(1)
The Graphical Representation of the Three States of the Economy in the TE/TP Framework	234	(1)
The Economy in a Recessionary Gap and the Role of Government	234	(1)
The Theme of the Simple Keynesian Model	235	(2)
A Reader Asks	237	(1)
Chapter Summary	237	(1)
Key Terms and Concepts	238	(1)
Questions and Problems	238	(1)
Working With Numbers and Graphs	239	(1)
Internet Activities	240	(1)
The Federal Budget and Fiscal Policy	241	(43)
The Federal Budget	242	(6)
Government Expenditures	242	(1)
Government Tax Revenues	243	(1)
Budget Deficit, Surplus, or Balance	244	(3)
Structural and Cyclical Deficits	247	(1)
How Much Can the Federal Government Spend?	247	(1)
The Public Debt	248	(1)
Fiscal Policy	248	(1)
Some Relevant Fiscal Policy Terms	248	(1)
Two Important Notes	249	(1)
Demand-Side Fiscal Policy	249	(9)
Shifting the Aggregate Demand Curve	249	(1)
Fiscal Policy: A Keynesian Perspective	249	(1)
Crowding Out: Questioning Expansionary Fiscal Policy	250	(3)
The New Classical View of Fiscal Policy	253	(3)
Lags and Fiscal Policy	256	(2)
Crowding Out, Lags, and the Effectiveness of Fiscal Policy	258	(1)
Supply-Side Fiscal Policy	258	(3)
Marginal Tax Rates and Aggregate Supply	258	(1)
The Laffer Curve: Tax Rates and Tax Revenues	258	(3)
A Reader Asks	261	(1)
Chapter Summary	262	(1)
Key Terms and Concepts	263	(1)
Questions and Problems	263	(1)
Working With Numbers and Graphs	263	(1)
Internet Activities	264	(1)
Part 4: Money, the Economy, and Monetary Policy
Money and Banking	265	(5)
Money: What Is It and How Did It Come to Be?	266	(1)
Money: A Definition	266	(1)
Three Functions of Money	266	(1)
From a Barter to a Money Economy: The Origins of Money	267	(1)
Money in a Prisoner of War Camp	267	(1)
Money, Leisure, and Output	268	(2)
What Gives Money Its Value?	270	(1)
Defining the Money Supply	270	(2)
M1	270	(1)
M2	271	(1)
Where Do Credit Cards Fit In?	272	(1)
How Banking Developed	272	(2)
The Early Bankers	272	(2)
The Federal Reserve System	274	(1)
The Money Creation Process	274	(7)
The Bank's Reserves and More	274	(1)
The Banking System and the Money Expansion Process	275	(3)
Why Maximum? Answer: No Cash Leakages and Zero Excess Reserves	278	(1)
Who Created What?	279	(1)
It Works in Reverse: The ``Money Destruction'' Process	279	(1)
We Change Our Example	280	(1)
A Reader Asks	281	(1)
Chapter Summary	282	(1)
Key Terms and Concepts	282	(1)
Questions and Problems	282	(1)
Working With Numbers and Graphs	283	(1)
Internet Activities	283	(1)
The Federal Reserve System	284	(13)
The Federal Reserve System	285	(3)
The Structure of the Fed	285	(2)
Functions of the Federal Reserve System	287	(1)
Fed Tools for Controlling the Money Supply	288	(6)
Open Market Operations	288	(2)
The Required Reserve Ratio	290	(1)
The Discount Rate	291	(2)
Which Tool Does the Fed Prefer to Use?	293	(1)
A Reader Asks	294	(1)
Chapter Summary	295	(1)
Key Terms and Concepts	295	(1)
Questions and Problems	295	(1)
Working With Numbers and Graphs	296	(1)
Internet Activities	296	(1)
Money and the Economy	297	(27)
Money and the Price Level	298	(5)
The Equation of Exchange	298	(1)
From the Equation of Exchange to the Simple Quantity Theory of Money	299	(1)
The Simple Quantity Theory of Money in an AD-AS Framework	300	(2)
Dropping the Assumptions That V and Q Are Constant	302	(1)
Monetarism	303	(4)
Monetarist Views	303	(1)
Monetarism and AD--AS	304	(2)
The Monetarist View of the Economy	306	(1)
Inflation	307	(7)
One-Shot Inflation	307	(3)
Continued Inflation	310	(4)
Money and Interest Rates	314	(6)
What Economic Variables Are Affected by a Change in the Money Supply?	314	(1)
The Money Supply, the Loanable Funds Market, and Interest Rates	315	(3)
So, What Happens to the Interest Rate as the Money Supply Changes?	318	(1)
The Nominal and Real Interest Rates	319	(1)
A Reader Asks	320	(1)
Chapter Summary	321	(1)
Key Terms and Concepts	322	(1)
Questions and Problems	322	(1)
Working With Numbers and Graphs	322	(1)
Internet Activities	323	(1)
Monetary Policy	324	(22)
The Money Market	325	(2)
The Demand for Money	325	(1)
The Supply of Money	325	(1)
Equilibrium in the Money Market	326	(1)
Transmission Mechanisms	327	(5)
The Keynesian Transmission Mechanism: Indirect	327	(1)
The Keynesian Mechanism May Get Blocked	328	(3)
The Monetarist Transmission Mechanism: Direct	331	(1)
Monetary Policy and the Problem of Inflationary and Recessionary Gaps	332	(3)
Monetary Policy and the Activist-Nonactivist Debate	335	(4)
The Case for Activist (or Discretionary) Monetary Policy	336	(1)
The Case for Nonactivist (or Rules-Based) Monetary Policy	336	(3)
Nonactivist Monetary Proposals	339	(3)
A Constant-Money-Growth-Rate Rule	339	(1)
A Predetermined-Money-Growth-Rate Rule	339	(1)
The Fed and the Taylor Rule	340	(2)
A Reader Asks	342	(1)
Chapter Summary	343	(1)
Key Terms and Concepts	343	(1)
Questions and Problems	343	(1)
Working With Numbers and Graphs	344	(1)
Internet Activities	345	(1)
Part 5: Expectations and Growth
Expectations Theory and the Economy	346	(19)
Phillips Curve Analysis	347	(1)
The Phillips Curve	347	(1)
Samuelson and Solow: The Phillips Curve Is Americanized	348	(1)
The Controversy Begins: Are There Really Two Phillips Curves?	348	(5)
Things Aren't Always as We Thought	348	(1)
Friedman and the Natural Rate Theory	348	(3)
How Do People Form Their Expectations?	351	(2)
Rational Expectations and New Classical Theory	353	(6)
Rational Expectations	353	(1)
Do People Anticipate Policy?	353	(1)
New Classical Theory: The Effects of Unanticipated and Anticipated Policy	354	(1)
Policy Ineffectiveness Proposition (PIP)	355	(1)
Rational Expectations and Incorrectly Anticipated Policy	355	(1)
How to Fall Into a Recession Without Really Trying	356	(3)
New Keynesians and Rational Expectations	359	(1)
Looking at Things From the Supply Side: Real Business Cycle Theorists	359	(3)
A Reader Asks	362	(1)
Chapter Summary	362	(1)
Key Terms and Concepts	363	(1)
Questions and Problems	363	(1)
Working With Numbers and Graphs	364	(1)
Internet Activities	364	(1)
Economic Growth: Resources, Technology, and Ideas	365	(20)
A Few Basics About Economic Growth	366	(3)
Do Economic Growth Rates Matter?	366	(1)
Growth Rates in Selected Countries	366	(1)
Two Types of Economic Growth	367	(1)
Economic Growth and the Price Level	368	(1)
What Causes Economic Growth?	369	(7)
Natural Resources	369	(1)
Labor	370	(1)
Capital	370	(1)
Technological Advances	371	(1)
Free Trade as Technology	371	(1)
Property Rights Structure	372	(1)
Economic Freedom	373	(1)
Policies to Promote Economic Growth	373	(1)
Economic Growth and Special Interest Groups	374	(2)
New Growth Theory	376	(3)
What Was Wrong With the Old Theory? Or, What's New With New Growth Theory?	376	(1)
Discovery, Ideas, and Institutions	377	(1)
Expanding Our Horizons	377	(2)
A Reader Asks	379	(1)
Chapter Summary	379	(1)
Key Terms and Concepts	380	(1)
Questions and Problems	380	(1)
Working With Numbers and Graphs	381	(1)
Internet Activities	381	(1)
Economics in Perspective: Debates in Macroeconomics	382	(3)
The World Economy
Part 6: International Economics: Theory and Policy
International Trade	385	(18)
International Trade Theory	386	(3)
How Do Countries Know What to Trade?	386	(3)
How Do Countries Know When They Have a Comparative Advantage?	389	(1)
Trade Restrictions	389	(10)
The Distributional Effects of International Trade	389	(2)
Consumers' and Producers' Surplus	391	(1)
The Benefits and Costs of Trade Restrictions	392	(3)
If Free Trade Results in Net Gain, Why Do Nations Sometimes Restrict Trade?	395	(3)
What Price Jobs?	398	(1)
The World Trade Organization (WTO)	399	(1)
A Reader Asks	399	(1)
Chapter Summary	400	(1)
Key Terms and Concepts	401	(1)
Questions and Problems	401	(1)
Working With Numbers and Graphs	401	(1)
Internet Activities	402	(1)
International Finance	403	(30)
The Balance of Payments	404	(6)
Current Account	404	(4)
Capital Account	408	(1)
Official Reserve Account	408	(1)
Statistical Discrepancy	408	(1)
What the Balance of Payments Equals	409	(1)
The Foreign Exchange Market	410	(2)
The Demand for Goods	410	(1)
The Demand for and Supply of Currencies	411	(1)
Flexible Exchange Rates	412	(4)
The Equilibrium Exchange Rate	412	(1)
Changes in the Equilibrium Exchange Rate	413	(1)
Factors That Affect the Equilibrium Exchange Rate	414	(2)
Fixed Exchange Rates	416	(7)
Fixed Exchange Rates and Overvalued/Undervalued Currency	416	(2)
What Is So Bad About an Overvalued Dollar?	418	(1)
Government Involvement in a Fixed Exchange Rate System	419	(1)
Options Under a Fixed Exchange Rate System	419	(2)
The Gold Standard	421	(2)
Fixed Exchange Rates Versus Flexible Exchange Rates	423	(3)
Promoting International Trade	423	(1)
Optimal Currency Areas	423	(3)
The Current International Monetary System	426	(2)
A Reader Asks	428	(1)
Chapter Summary	428	(1)
Key Terms and Concepts	429	(1)
Questions and Problems	430	(1)
Working With Numbers and Graphs	430	(1)
Internet Activities	431	(2)
Appendix B: Should You Major in Economics?	433	(6)
Five Myths About Economics and an Economics Major	434	(2)
What Awaits You as an Economics Major?	436	(1)
What Do Economists Do?	437	(1)
Places to Find More Information	438	(1)
Concluding Remarks	438	(1)
Self-Test Appendix	439	(14)
Glossary	453	(8)
Index	461