Chapter 1: The Economic Landscape
* Defines economics and explains its fundamental principles, such as scarcity, efficiency, and rational choice.
* Example: Individuals valuing time and money make rational choices, such as opting for a more convenient but more expensive service to save time.
Chapter 2: The Power of Markets
* Explores how markets coordinate economic decisions and allocate resources effectively.
* Example: The stock market allows companies to raise capital and investors to buy and sell shares, leading to optimal allocation of funds.
Chapter 3: Supply and Demand
* Analyzes the interactions between supply and demand to determine prices and quantities in markets.
* Example: The lower cost of oranges during peak harvest reduces supply, leading to lower prices and increased consumption.
Chapter 4: Elasticity and Its Applications
* Introduces elasticity as a measure of responsiveness to changes in price or quantity.
* Example: The high elasticity of demand for gasoline means that a small increase in price will lead to a significant decrease in consumption.
Chapter 5: Consumer Choice
* Examines how consumers allocate limited resources to maximize satisfaction.
* Example: A student choosing between different courses based on their grades and interests is making consumer choices.
Chapter 6: Production and Costs
* Explains the process of producing goods and services, including the different types of costs incurred.
* Example: A manufacturing company considering fixed costs (rent, equipment) and variable costs (raw materials, labor) to determine its production levels.
Chapter 7: Perfect Competition
* Analyzes perfectly competitive markets where numerous buyers and sellers trade identical products.
* Example: The agricultural market, where farmers compete to sell their indistinguishable crops.
Chapter 8: Monopoly and Monopolistic Competition
* Explores the characteristics of monopolies and monopolistic competition, where market power affects price and output.
* Example: A pharmaceutical company with exclusive rights to a certain drug has significant market power.
Chapter 9: Oligopoly and Game Theory
* Discusses markets dominated by a few large firms and the strategic interactions between them.
* Example: The telecommunications industry, where a few major providers compete for market share.
Chapter 10: Government in the Market
* Analyzes government interventions in markets to correct failures or promote social objectives.
* Example: Minimum wage laws to protect workers from exploitation.
Chapter 11: Taxes and Other Government Policies
* Examines the impact of taxation and other government policies on economic outcomes.
* Example: A sales tax on cars reducing the demand for automobiles.
