Complete Contents

PART ONE: An Introduction to Economic Theory

CHAPTER 1: The Discourse of Economics

  • Goals and Objectives
  • What is Economics?
  • A Brief History of the Discipline of Economics
  • The Dominance of Neoclassical Economics
  • The Entry Point and Logic of Neoclassical Economics
  • The Positive/Normative Distinction in Neoclassical Economics
  • The Ceteris Paribus Assumption in Neoclassical Economic Models
  • The Centrality of Graphical Analysis in Neoclassical Economics
  • A Neoclassical Model of Production Cost
  • A Review of Basic Mathematical Concepts
  • Following the Economic News
  • Summary of Key Points
  • List of Key Terms
  • Problems for Review

CHAPTER 2: What is a Good Society?

  • Goals and Objectives
  • Competing Perspectives of What Constitutes a Good Society
  • The Economic Problem and the Scarcity of Resources
  • The Neoclassical Ideal: Economic Efficiency
  • The Production Possibilities Model
  • The Role of Societal Preferences in the Production Possibilities Model
  • Relaxing the Assumptions of the Model
  • Applications of the Production Possibilities Model
  • The Neoclassical Classification Scheme for Economic Systems
  • A Marxian Classification Scheme for Social Formations
  • Following the Economic News
  • Summary of Key Points
  • List of Key Terms
  • Problems for Review

CHAPTER 3: The Neoclassical Theory of Supply and Demand

  • Goals and Objectives
  • The Neoclassical Circular Flow Model
  • The Buyers’ Side of the Market
  • The Sellers’ Side of the Market
  • Equilibrium
  • Comparative Statics Analysis
  • Simultaneous Shifts in Supply and Demand
  • The Measurement of Social Welfare
  • The Economic Efficiency of Competitive Markets
  • The Possibility of Market Failure
  • Following the Economic News
  • Summary of Key Points
  • List of Key Terms
  • Problems for Review

CHAPTER 4: The Marxian Theory of Class Exploitation

  • Goals and Objectives
  • The Early History of Marxian Economics
  • A Marxian Circular Flow Model
  • Commodities and Money
  • The Circulation of Commodities and the Meaning of Capital
  • The Commodity Labor-Power and the Determination of its Value
  • The Length of the Working Day and the Production of Surplus Value
  • The Rate of Surplus Value and the Rate of Profit
  • The Production of Absolute Surplus Value and Relative Surplus Value
  • Following the Economic News
  • Summary of Key Points
  • List of Key Terms
  • Problems for Review

PART TWO: Principles of Microeconomic Theory

CHAPTER 5: The Neoclassical Concept of Elasticity

  • Goals and Objectives
  • The Need for a Measure of Consumer Responsiveness
  • Calculating and Interpreting the Price Elasticity of Demand
  • The Arc Elasticity and Point Elasticity Formulas
  • Cases of Extreme Elasticity
  • Key Determinants of the Price Elasticity of Demand
  • The Relationship between Price Elasticity of Demand and Sales Revenue
  • Other Measures of Elasticity: Supply, Cross-Price, and Income
  • Do Marxian Economists Use Elasticity Measures?
  • Following the Economic News
  • Summary of Key Points
  • List of Key Terms
  • Problems for Review

CHAPTER 6: Theories of Utility Maximization

  • Goals and Objectives
  • The Utilitarian Roots of the Theories
  • The Concept of Utility in the Traditional Neoclassical Theory of Utility Maximization
  • The Law of Diminishing Marginal Utility
  • The Traditional Theory of Utility Maximization
  • The Traditional Derivation of the Individual Demand Curve
  • The Paradox of Value
  • Criticisms of the Neoclassical Measure of Welfare
  • The Modern Theory of Utility Maximization
  • The Implicit Ideological Significance of the Ordinal Utility Assumption
  • The Assumptions of the Modern Theory of Utility Maximization
  • Budgets, Preferences, and Utility Maximization
  • The Modern Derivation of the Individual Demand Curve
  • Theories of Endogenous Preferences
  • Following the Economic News
  • Summary of Key Points
  • List of Key Terms
  • Problems for Review

CHAPTER 7: Theories of Production Technology and the Cost of Production

  • Goals and Objectives
  • Short Run Production Technology in the Neoclassical Tradition
  • Short Run Production Cost in the Neoclassical Tradition
  • A Short Run Technology and Cost Example Using Microsoft Excel
  • Long Run Production Technology in the Neoclassical Tradition
  • Long Run Production Cost in the Neoclassical Tradition
  • The Relationship between Short Run and Long Run Average Total Cost
  • Minimum Efficient Scale
  • The Schumpeterian Approach to Technological Change
  • A Marxian Approach to Technological Change
  • Following the Economic News
  • Summary of Key Points
  • List of Key Terms
  • Problems for Review

CHAPTER 8: Theories of Intensely Competitive Markets

  • Goals and Objectives
  • Neoclassical Revenue and Profit Concepts
  • The Concept of Market Structure and the Meaning of Perfect Competition
  • The Revenue Structure of a Perfectly Competitive Firm
  • Methods of Profit Maximization in the Short Run
  • Five Possible Cases of Short Run Profit Maximization
  • The Derivation of the Short Run Supply Curve
  • Long Run Profit Maximization
  • The Derivation of the Long Run Industry Supply Curve
  • Implications and Criticisms of the Neoclassical Model of Perfect Competition
  • The Marxian Theory of Competitive Profit Rate Equalization
  • Following the Economic News
  • Summary of Key Points
  • List of Key Terms
  • Problems for Review

CHAPTER 9: Theories of Monopolistic Markets

  • Goals and Objectives
  • Neoclassical Monopoly Theory: Defining Characteristics and Types of Entry Barriers
  • The Nature of Demand and Marginal Revenue in Neoclassical Monopoly Theory
  • Short Run Profit Maximization: Rules and Cases
  • Implications for Efficiency and the Long Run
  • Natural Monopoly and Price Discriminating Monopoly
  • Political Responses to Monopoly
  • The Austrian and Randian Critiques of Neoclassical Monopoly Theory
  • The Marxian Theory of Monopoly Capital
  • Following the Economic News
  • Summary of Key Points
  • List of Key Terms
  • Problems for Review

CHAPTER 10: Theories of Imperfectly Competitive Markets

  • Goals and Objectives
  • Two Measures of Industry Concentration
  • Characteristics of Monopolistic Competition
  • Characteristics of Oligopoly
  • A Simple Duopoly Model
  • The Kinked Demand Model of Non-Collusive Oligopoly
  • Two Additional Models: Collusive Oligopoly and Price Leadership
  • A Detour into Game Theory
  • A Post-Keynesian Markup Pricing Model
  • Following the Economic News
  • Summary of Key Points
  • List of Key Terms
  • Problems for Review

CHAPTER 11: Theories of the Labor Market

  • Goals and Objectives
  • The Neoclassical Theory of the Demand for Labor
  • The Neoclassical Theory of the Supply of Labor
  • The Neoclassical Theory of Labor Market Equilibrium
  • A Neoclassical Theory of Exploitation?
  • The Economic Consequences of Labor Union Activity
  • The Marxian Theory of the Market for Labor-Power
  • Changes in the Productivity of Labor
  • Changes in the Length of the Working Day
  • Changes in the Intensity of Labor
  • Simple Labor versus Complex Labor
  • Following the Economic News
  • Summary of Key Points
  • List of Key Terms
  • Problems for Review

PART THREE: Principles of Macroeconomic Theory

CHAPTER 12: Macroeconomic Measurement

  • Goals and Objectives
  • The Measurement of Poverty
  • The Measurement of Income Inequality and Wealth Inequality
  • The Measurement of Aggregate Output
  • Heterodox Critiques of National Income Accounting
  • The Measurement of the Labor Force and the Unemployment Rate
  • The Measurement of the Aggregate Price Level and the Inflation Rate
  • Following the Economic News
  • Summary of Key Points
  • List of Key Terms
  • Problems for Review

CHAPTER 13: The Theory of Effective Demand and the Neoclassical Synthesis Model

  • Goals and Objectives
  • Say’s Law and the Classical Theory
  • John Maynard Keynes’s General Theory of Employment, Interest, and Money
  • The Consumption Function and the Saving Function
  • The Keynesian Cross Model for a Private, Closed Economy
  • The Paradox of Thrift
  • The Multiplier Effect
  • The Keynesian Cross Model of an Open, Mixed Economy
  • The Lump Sum Tax Multiplier
  • Aggregate Demand
  • Aggregate Supply
  • Macroeconomic Equilibrium and Historical Applications of the Model
  • The Neoclassical Synthesis Model and the Post-Keynesian Critique
  • Following the Economic News
  • Summary of Key Points
  • List of Key Terms
  • Problems for Review

CHAPTER 14: Unorthodox Theories of Macroeconomic Crisis

  • Goals and Objectives
  • Incorporating Turnover Time into Marx’s Theory of Competitive Profit Rate Formation
  • The Marxian Theory of the Long-Term Tendency of the General Rate of Profit to Fall
  • The Marxian Theory of the Business Cycle and the Industrial Reserve Army
  • The Marxian Theory of Discoordination across Macroeconomic Sectors
  • A Marxian Analysis of the 2007-2009 Economic Crisis
  • U.S. Economic History through the Lens of Social Structure of Accumulation (SSA) Theory
  • The Austrian Theory of the Business Cycle
  • Post-Keynesian Effective Demand Theory versus the Neoclassical Synthesis Model
  • Following the Economic News
  • Summary of Key Points
  • List of Key Terms
  • Problems for Review

CHAPTER 15: Theories of Financial Markets

  • Goals and Objectives
  • The Definition and Measurement of the Rate of Interest
  • The Relationship between the Bond Market and the Loanable Funds Market
  • The Market for Money
  • A Neoclassical General Equilibrium Model of Interest Rate Determination
  • Incorporating the Stock Market into the Analysis
  • Real Interest Rates versus Nominal Interest Rates
  • An Austrian Theory of Interest Rate Determination
  • A Marxian Theory of Interest Rate Determination
  • Following the Economic News
  • Summary of Key Points
  • List of Key Terms
  • Problems for Review

CHAPTER 16: Money Supply Measures and Theories of Commercial Bank Behavior

  • Goals and Objectives
  • The Traditional Functions of Money
  • Different Types of Money: From Mollusk Shells to Bitcoins
  • The Neoclassical Approach to Money Supply Measurement
  • The Austrian Approach to Money Supply Measurement
  • The Origin of Fractional Reserve Banking
  • The Balance Sheet of a Commercial Bank
  • A Neoclassical Theory of Commercial Banks and its Theory of Financial Markets
  • A Marxist Theory of Commercial Banks and its Theory of Financial Markets
  • Following the Economic News
  • Summary of Key Points
  • List of Key Terms
  • Problems for Review

CHAPTER 17: Monetary Theories and the Role of the Central Bank

  • Goals and Objectives
  • The Organizational Structure and Functions of the Federal Reserve
  • The Primary Central Bank Tools of Monetary Policy
  • The Neoclassical Approach to Monetary Policy Using an Exogenous Money Supply
  • The Quantity Theory of Money and the AD/AS Model
  • The Post-Keynesian Approach to Monetary Policy Using an Endogenous Money Supply
  • A Marxian Theory of Fiat Money and its Relationship to U.S. Economic History
  • Monetary Policy Tools within the Context of the Marxian Theory of Financial Markets
  • Following the Economic News
  • Summary of Key Points
  • List of Key Terms
  • Problems for Review

CHAPTER 18: Theories of Government Budget Deficits and Debt

  • Goals and Objectives
  • The Federal Budget and the Federal Debt
  • Expansionary Fiscal Policy versus Contractionary Fiscal Policy
  • The Macroeconomic Impacts of Government Budget Deficits and Surpluses
  • Marginal Tax Rates and Average Tax Rates
  • Introducing a Flat Tax into the Consumption Function and the Keynesian Cross Model
  • The Implications of Different Taxation Systems for Macroeconomic Stability
  • The Full Employment Budget
  • Balanced Budget Amendments
  • A Comparison of Keynesian Full-Employment Policies and Austerity Policies
  • A Marxian Analysis of Government Borrowing and the Accumulation of Debt
  • Following the Economic News
  • Summary of Key Points
  • List of Key Terms
  • Problems for Review

PART FOUR: Principles of International Economic Theory

CHAPTER 19: Theories of International Trade

  • Goals and Objectives
  • The Ricardian Theory of Comparative Advantage
  • The Modern Theory of Comparative Advantage: The Case of Constant Opportunity Cost
  • The Modern Theory of Comparative Advantage: The Case of Increasing Opportunity Cost
  • Criticisms of the Neoclassical Theory of Comparative Advantage
  • Developments in New Trade Theory: The Potential Impact of Economies of Scale
  • The Neoclassical Critique of Protectionist Policies: Import Tariffs and Quotas
  • The Challenge of Dependency Theory
  • The Theory of Unequal Exchange
  • Following the Economic News
  • Summary of Key Points
  • List of Key Terms
  • Problems for Review

CHAPTER 20: Balance of Payments Accounting and Theories of Currency Markets

  • Goals and Objectives
  • Balance of Payments Accounting
  • The Net International Investment Position
  • Working with Foreign Exchange Rates
  • Explaining Foreign Exchange Rate Fluctuations
  • Building the Supply and Demand Model of Foreign Exchange Markets
  • Floating versus Fixed Exchange Rate Regimes
  • Currency Crises
  • The Theory of Purchasing Power Parity
  • Marxist Approaches to Imperialist Finance
  • A Marxian Approach to Exchange Rate Determination
  • Following the Economic News
  • Summary of Key Points
  • List of Key Terms
  • Problems for Review

License

Share This Book