Table of Contents

Part 1 Introduction 1.Thinking Like an Economist2.Comparative Advantage3.Supply and DemandPart 2 Competition and the Invisible Hand4. Elasticity5.Demand6.Perfectly Competitive Supply7.Efficiency, Exchange, and the Invisible Hand in ActionPart 3 Market Imperfections8.Monopoly, Oligopoly, and Monopolistic Competition9.Games and Strategic Behavior10.Externalities and Property Rights11.The Economics of InformationPart 4 Economics of Public Policy12.Labor Markets, Poverty, and Income Distribution13.The Environment, Health, and Safety14.Public Goods and Tax PolicyPart 5 Macroeconomics: Data and Issues15.Spending, Income, and GDP16.Inflation and the Price Level17.Wages and UnemploymentPart 6 The Economy in the Long Run18.Economic Growth19.Saving, Capital Formation, and Financial Markets20.Money, Prices, and the Financial SystemPart 7 The Economy in the Short Run21.Short-Term Economic Fluctuations22.Spending, Output, and Fiscal Policy23.Monetary Policy and the Federal Reserve24.Aggregate Demand, Aggregate Supply, and Business Cycles25.Macroeconomic PolicyPart 8 The International Economy26.Exchange Rates, International Trade, and Capital Flows

About the Author

Professor Antonovics received her B.A. from Brown University in 1993 and her Ph.D. in economics from the University of Wisconsin in 2000. Shortly thereafter, she joined the faculty in the Economics Department at the University of California, San Diego, where she has been ever since. Professor Antonovics is known for her superb teaching and her innovative use of technology in the classroom. Her highly popular introductory-level microeconomics course regularly enrolls over 450 students each fall. She also teaches labor economics at both the undergraduate and graduate level. In 2012, she received the UCSD Department of Economics award for best undergraduate teaching. Professor Antonovicss research has focused on racial discrimination, gender discrimination, affirmative action, intergenerational income mobility, learning, and wage dynamics. Her papers have appeared in the American Economic Review, the Review of Economics and Statistics, the Journal of Labor Economics, and the Journal of Human Resources. She is a member of both the American Economic Association and the Society of Labor Economists.



Professor Heffetz received his B.A. in physics and philosophy from Tel Aviv University in 1999 and his Ph.D. in economics from Princeton University in 2005. He is an Associate Professor of Economics at the Samuel Curtis Johnson Graduate School of Management at Cornell University, where he has taught since 2005. Bringing the real world into the classroom, Professor Heffetz has created a unique macroeconomics course that introduces basic concepts and tools from economic theory and applies them to current news and global events. His popular classes are taken by hundreds of students every year, on the Cornell Ithaca campus and, via live videoconferencing, in dozens of cities across the U.S., Canada, and beyond. Professor Heffetzs research studies the social and cultural aspects of economic behavior, focusing on the mechanisms that drive consumers choices and on the links between economic choices, individual well-being, and policymaking. He has published scholarly work on household consumption patterns, individual economic decision making, and survey methodology and measurement. He was a visiting researcher at the Bank of Israel during 2011, is currently a Faculty Research Fellow at the National Bureau of Economic Research (NBER), and serves on the editorial board of Social Choice and Welfare.