Table of Contents

The Big Ideas PART I: SUPPLY AND DEMAND Supply and Demand Equilibrium: How Supply and Demand Determine Prices Elasticity and its Applications PART II: THE PRICE SYSTEM The Price System: Signals, Speculation and Prediction Price Ceilings Price Floors, Taxes and Subsidies International Trade and Globalization Externalities: When Prices Send the Wrong Signals PART III: FIRMS AND FACTOR MARKETS Profits, Prices and Costs under Competition Monopoly Price Discrimination Cartels, Games, and Network Goods Labor Markets Getting Incentives Right: Lessons for Business, Sports, Politics and Life Stock Markets and Personal Finance PART IV: GOVERNMENT Public Goods and the Tragedy of the Commons Economics, Ethics and Public Policy Political Economy PART V: ECONOMIC GROWTH GDP and the Measurement of Progress The Wealth of Nations and Economic Growth Growth, Capital Accumulation and the Economics of Ideas: Catching Up vs. the Cutting Edge Savings, Investment, and the Financial System PART VI: BUSINESS FLUCTUATIONS Unemployment and Labor Force Participation Inflation and the Quantity Theory of Money Business Fluctuations and the Dynamic Aggregate Demand-Aggregate Supply Model The Real Business Cycle Model: Shocks and Transmission Mechanisms PART VII: MACROECONOMIC POLICY AND INSTITUTIONS The Federal Reserve System and Open Market Operations Monetary Policy The Federal Budget: Taxes and Spending Fiscal Policy PART VIII: INTERNATIONAL ECONOMICS International Finance

About the Author

TYLER COWEN is Professor of Economics, George Mason University, USA. ALEX TABARROK is Associate Professor of Economics, George Mason University, USA.