Part I. Introduction to Economics Chapter 1 Foundations of Economics Scarcity: Its why you cant always get what you want. Specialization: It Brings You More of What You Want Opportunity Costs and the Production Possibilities Frontier The Shape of the Production Possibilities Frontier Economic Growth the Production Possibilities Frontier Q&A How do I know whether to make the PPF curved or straight? The Three Fundamental Economic Questions What to Produce How to Produce It For Whom to Produce Categories of Economics Positive and Normative Economics Microeconomics and Macroeconomics Summary Key Terms Problems for Review Chapter 1A Understanding Graphs Coordinate Graphs Slopes Areas Other Types of Graphs Bar Charts Pie Charts Scatter Diagrams Summary Key Terms Problems for Review Chapter 2 Markets and the Economy Factors of Production Land Labor Capital Entrepreneurship The Participants in an Economy Households Firms Q&A What is a nonprofit organization? Government The Circular Flow Government and the Circular Flow The Goal of Efficiency What Should Be Produced? For Whom Should It Be Produced? How Should It Be Produced? Economic Systems Traditional Economies Market Economies Command Economies Mixed Economies Summary Key Terms Problems for Review Chapter 3 Demand The Demand Schedule Diminishing Marginal Utility The Demand Graph Smooth Demand Curves Q&A I buy more $60 Polo brand polo shirts than $15 Walmart brand polo shirts. Doesn Changes in Demand versus Movements along the Demand Curve Demand Shifters Tastes Expectations Income The Prices of Related Goods The Number of Consumers Consumer Surplus Steps to Solving Demand Problems Summary Key Terms Problems for Review Chapter 4 Supply The Supply Schedule The Supply Graph The Rising Cost of Supplying One More Marginal Cost and Supply Changes in Supply versus Movements along the Supply Curve Q&A Stores sometimes offer lower prices when consumers buy a larger quantity. Does that contradict the law of supply? Supply Shifters Input costs Expectations Natural Disasters and Weather Prices of Related Goods and Services The Number of Firms Producer Surplus Steps to Solving Supply Problems Summary Key Terms Problems for Review Chapter 5 Market Equilibrium Market Equilibrium Price Controls Price Ceilings Q&A Why are some things that we can Price Floors Shifts in Supply and Demand An Increase in Demand A Decrease in Demand An Increase in Supply A Decrease in Supply Double Shifts Key Terms Problems for Review Chapter 6 Elasticity The Price Elasticity of Demand Elastic, Inelastic, and Unit-Elastic Demand Total Revenue and the Price Elasticity of Demand Perfectly Inelastic Demand Perfectly Elastic Demand The Price Elasticity of Supply Q&A Is the price elasticity of demand equal to the slope of a demand curve? The Cross-Price Elasticity of Demand Apply What You Summary Key Terms Problems for Review Part II. Microeconomics Chapter 7 Consumer Behavior Marginal Utility and Total Utility Budget Constraints Q&A If I get more utility out of my first poster than out of my second or third, shouldn The Optimal Consumption Rule The Substitution Effect and the Income Effect Lessons from Behavioral Economics Consumers Want Balance Consumers Want Options, But Not Too Many Consumers Want Fairness Consumers Make Mistakes Summary Key Terms Problems for Review Chapter 8 Production Costs Profit Maximization Accounting Profit and Economic Profit The Production Function Fixed Inputs and Variable Inputs Marginal Product Diminishing Marginal Product The Cost-Minimizing Combination of Inputs Q&A If I get more utility out of my first poster than out of my second or third, shouldn A Closer Look at Costs Fixed Cost and Variable Cost Average Total Cost Marginal Cost Summarizing Costs with Tables and Curves The Irrelevance of Sunk Costs Economies and Diseconomies of Scale Summary Key Terms Problems for Review Chapter 9 Perfect Competition How Competition Affects Markets Many Buyers and Seller A Standardized Product Full Information Easy Entry and Exit for Firms Prices and Profits in Perfectly Competitive Markets Firms as Price Takers Demand and Marginal Revenue Profit Maximization Choosing the Optimal Quantity of Output Short-Run Profit or Loss Long-Run Equilibrium Q&A Why would firms remain in a market in which they earn no profit? The Shutdown Decision The Firm The Efficiency of Perfect Competition Summary Key Terms Problems for Review Chapter 10 Market Power Sources of Market Power Legal Barriers to Entry Control of Resources Strategic Barriers Economies of Scale Monopolies A Monpolist Efficiency and Market Power Price Discrimination Q&A How exactly do perfect price discriminators determine the highest price customers are willing to pay? And how, as a customer, can I avoid paying too much? Oligopolies Games Oligopolists Play Cartels Monopolistic Competition Summary Key Terms Problems for Review Chapter 11 Factor Markets The Derived Demand for Factors of Production A Firm A Market The Supply of Labor An individual A Market Equilibrium in the Labor Market Why Wage Rates Differ Compensating Wage Differentials Employment Discrimination.