Economics, 10th Edition

ECONOMICS TENTH EDITION MICHAEL PARKIN University of Western Ontario Editor in Chief Donna Battista Senior - pdf free download
Uploaded by Michael Parkin

7K downloads 6K Views 23MB Size

Recommend Documents

No documents

Idea Transcript


ECONOMICS TENTH EDITION

MICHAEL PARKIN University of Western Ontario

Editor in Chief

Donna Battista

Senior Acquisitions Editor

Adrienne D’Ambrosio

Development Editor

Deepa Chungi

Managing Editor

Nancy Fenton

Assistant Editor

Jill Kolongowski

Photo Researcher

Angel Chavez

Production Coordinator

Alison Eusden

Director of Media

Susan Schoenberg

Senior Media Producer

Melissa Honig

Executive Marketing Manager

Lori DeShazo

Rights and Permissions Advisor

Jill Dougan

Senior Manufacturing Buyer

Carol Melville

Senior Media Buyer

Ginny Michaud

Copyeditor

Catherine Baum

Art Director and Cover Designer

Jonathan Boylan

Technical Illustrator

Richard Parkin

Text Design, Project Management and Page Make-up

Integra Software Services, Inc.

Cover Image: Medioimages/PhotoDisc/Getty Images Photo credits appear on page C-1, which constitutes a continuation of the copyright page. Copyright © 2012, 2010, 2008, 2005, 2003 Pearson Education, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. For information on obtaining permission for use of material in this work, please submit a written request to Pearson Education, Inc., Rights and Contracts Department, 501 Boylston Street, Suite 900, Boston, MA 02116, fax your request to 617-671-3447, or e-mail at http://www.pearsoned.com/legal/ permissions.htm. Library of Congress Cataloging-in-Publication Data Parkin, Michael, 1939– Economics/Michael Parkin. — 10th ed. p. cm. Includes index. ISBN 978-0-13-139465-0 (alk. paper) 1. Economics. I. Title. HB171.5.P313 2010 330—dc22

2010045760

1 2 3 4 5 6 7 8 10—CRK—14 13 12 11 10

ISBN 10: 0-13-139465-7 ISBN 13: 978-0-13-139465-0

TO ROBIN

ABOUT THE AUTHOR Michael Parkin is Professor Emeritus in the Department of Economics at the University of Western Ontario, Canada. Professor Parkin has held faculty appointments at Brown University, the University of Manchester, the University of Essex, and Bond University. He is a past president of the Canadian Economics Association and has served on the editorial boards of the American Economic

Review and the Journal of Monetary Economics and as managing editor of the Canadian Journal of Economics. Professor Parkin’s research on macroeconomics, monetary economics, and international economics has resulted in over 160 publications in journals and edited volumes, including the American Economic

Review, the Journal of Political Economy, the Review of Economic Studies, the Journal of Monetary Economics, and the Journal of Money, Credit and Banking. He became most visible to the public with his work on inflation that discredited the use of wage and price controls. Michael Parkin also spearheaded the movement toward European monetary union. Professor Parkin is an experienced and dedicated teacher of introductory economics.

iv

BRIEF CONTENTS PART ONE INTRODUCTION CHAPTER CHAPTER

1

1 What Is Economics? 1 2 The Economic Problem 29

PART TWO HOW MARKETS WORK CHAPTER CHAPTER CHAPTER CHAPTER CHAPTER

3 4 5 6 7

55

Demand and Supply 55 Elasticity 83 Efficiency and Equity 105 Government Actions in Markets 127 Global Markets in Action 151

PART THREE HOUSEHOLDS’ CHOICES CHAPTER CHAPTER

PART SEVEN MONITORING MACROECONOMIC PERFORMANCE 489

CHAPTER CHAPTER CHAPTER CHAPTER CHAPTER

10 11 12 13 14 15

CHAPTER

PART EIGHT MACROECONOMIC TRENDS

539

CHAPTER

23 Economic Growth 539 24 Finance, Saving, and Investment 565 25 Money, the Price Level, and Inflation

CHAPTER

26 The Exchange Rate and the Balance of

CHAPTER CHAPTER

589

PART NINE MACROECONOMIC FLUCTUATIONS

647

CHAPTER

27 Aggregate Supply and Aggregate

CHAPTER

28 Expenditure Multipliers: The Keynesian

CHAPTER

Model 671 29 U.S. Inflation, Unemployment, and Business Cycle 701

Demand 647 227

Organizing Production 227 Output and Costs 251 Perfect Competition 273 Monopoly 299 Monopolistic Competition 323 Oligopoly 341

PART FIVE MARKET FAILURE AND GOVERNMENT CHAPTER

CHAPTER

Growth 489 22 Monitoring Jobs and Inflation 513

Payments 617

203

CHAPTER

21 Measuring GDP and Economic

179

8 Utility and Demand 179 9 Possibilities, Preferences, and Choices

PART FOUR FIRMS AND MARKETS

CHAPTER

PART TEN MACROECONOMIC POLICY CHAPTER CHAPTER

727

30 Fiscal Policy 727 31 Monetary Policy 753

371

16 Public Choices and Public Goods 371 17 Economics of the Environment 393

PART SIX FACTOR MARKETS, INEQUALITY, AND UNCERTAINTY 417 CHAPTER CHAPTER CHAPTER

18 Markets for Factors of Production 417 19 Economic Inequality 441 20 Uncertainty and Information 465

v

ALTERNATIVE PATHWAYS THROUGH THE MICRO CHAPTERS Micro Flexibility

Chapter 1

Chapter 5

Chapter 6

Chapter 16

What is Economics

Efficiency and Equity

Government Actions in Markets

Public Choices and Public Goods

Chapter 2

Chapter 19

Chapter 7

Chapter 17

The Economic Problem

Economic Inequality

Global Markets in Action

Economics of the Environment

Chapter 3

Chapter 4

Chapter 12

Demand and Supply

Elasticity

Perfect Competition

Chapter 13 Chapter 10

Chapter 11

Organizing Production

Output and Costs

Chapter 8

Chapter 20

Utility and Demand

Uncertainty and Information

Monopoly

Chapter 14 Monopolistic Competition

Chapter 9

Chapter 15

Possibilities, Preferences, and Choices

Oligopoly

Chapter 18 Markets for Factors of Production

Start here ...

vi

… then jump to any of these …

… and jump to any of these after doing the pre-requisites indicated

ALTERNATIVE PATHWAYS THROUGH THE MACRO CHAPTERS Macro Flexibility

Chapter 23 Economic Growth

Chapter 24 Finance, Saving, and Investment

Chapter 27

Chapter 21

Chapter 22

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Chapter 30 Fiscal Policy

Chapter 29

Aggregate Supply and Aggregate Demand

U.S. Inflation, Unemployment, and Business Cycle

Chapter 25

Chapter 31

Money, the Price Level, and Inflation

Monetary Policy

Chapter 26 The Exchange Rate and the Balance of Payments

Chapter 28 Expenditure Multipliers: The Keynesian Model Start here ...

… then jump to any of these …

… and jump to any of these after doing the pre-requisites indicated

vii

TABLE OF CONTENTS PART ONE INTRODUCTION 1 CHAPTER 1 ◆ WHAT IS ECONOMICS? 1 Definition of Economics 2 Two Big Economic Questions 3 What, How, and For Whom? 3 Can the Pursuit of Self-Interest Promote the Social Interest? 5 The Economic Way of Thinking 8 A Choice Is a Tradeoff 8 Making a Rational Choice 8 Benefit: What You Gain 8 Cost: What You Must Give Up 8 How Much? Choosing at the Margin 9 Choices Respond to Incentives 9 Economics as Social Science and Policy Tool 10 Economist as Social Scientist 10 Economist as Policy Adviser 10 Summary (Key Points and Key Terms), Study Plan Problems and Applications, and Additional Problems and Applications appear at the end of each chapter.

viii

APPENDIX Graphs in Economics

13

Graphing Data 13 Scatter Diagrams 14 Graphs Used in Economic Models 16 Variables That Move in the Same Direction 16 Variables That Move in Opposite Directions 17 Variables That Have a Maximum or a Minimum 18 Variables That Are Unrelated 19 The Slope of a Relationship 20 The Slope of a Straight Line 20 The Slope of a Curved Line 21 Graphing Relationships Among More Than Two Variables 22 Ceteris Paribus 22 When Other Things Change 23 MATHEMATICAL NOTE

Equations of Straight Lines 24

Contents

CHAPTER 2 ◆ THE ECONOMIC PROBLEM 29 Production Possibilities and Opportunity Cost 30 Production Possibilities Frontier 30 Production Efficiency 31 Tradeoff Along the PPF 31 Opportunity Cost 31 Using Resources Efficiently 33 The PPF and Marginal Cost 33 Preferences and Marginal Benefit 34 Allocative Efficiency 35 Economic Growth 36 The Cost of Economic Growth 36 A Nation’s Economic Growth 37 Gains from Trade 38 Comparative Advantage and Absolute Advantage 38 Achieving the Gains from Trade 39 Economic Coordination 41 Firms 41 Markets 42 Property Rights 42 Money 42 Circular Flows Through Markets 42 Coordinating Decisions 42 READING BETWEEN THE LINES

The Rising Opportunity Cost of Food 44 PART ONE WRAP-UP ◆ Understanding the Scope of Economics Your Economic Revolution 51 Talking with Jagdish Bhagwati 52

PART TWO HOW MARKETS WORK 55 CHAPTER 3 ◆ DEMAND AND SUPPLY 55 Markets and Prices 56 Demand 57 The Law of Demand 57 Demand Curve and Demand Schedule 57 A Change in Demand 58 A Change in the Quantity Demanded Versus a Change in Demand 60 Supply 62 The Law of Supply 62 Supply Curve and Supply Schedule 62 A Change in Supply 63 A Change in the Quantity Supplied Versus a Change in Supply 64 Market Equilibrium 66 Price as a Regulator 66 Price Adjustments 67 Predicting Changes in Price and Quantity 68 An Increase in Demand 68 A Decrease in Demand 68 An Increase in Supply 70 A Decrease in Supply 70 All the Possible Changes in Demand and Supply 72 READING BETWEEN THE LINES

Demand and Supply: The Price of Coffee 74 MATHEMATICAL NOTE

Demand, Supply, and Equilibrium 76

ix

x

Contents

CHAPTER 4 ◆ ELASTICITY 83

CHAPTER 5 ◆ EFFICIENCY AND EQUITY 105

Price Elasticity of Demand 84 Calculating Price Elasticity of Demand 85 Inelastic and Elastic Demand 86 Elasticity Along a Linear Demand Curve 87 Total Revenue and Elasticity 88 Your Expenditure and Your Elasticity 89 The Factors That Influence the Elasticity of Demand 89

Resource Allocation Methods 106 Market Price 106 Command 106 Majority Rule 106 Contest 106 First-Come, First-Served 106 Lottery 107 Personal Characteristics 107 Force 107

More Elasticities of Demand 91 Cross Elasticity of Demand 91 Income Elasticity of Demand 92 Elasticity of Supply 94 Calculating the Elasticity of Supply 94 The Factors That Influence the Elasticity of Supply 95 READING BETWEEN THE LINES

The Elasticities of Demand and Supply for Tomatoes 98

Benefit, Cost, and Surplu...

Smile Life

When life gives you a hundred reasons to cry, show life that you have a thousand reasons to smile

Get in touch

© Copyright 2015 - 2020 ZDOC.TIPS - All rights reserved.