Instructor Resources
Concept checks and labs with solutions
The concept checks are multiple-choice questions associated with each lecture summary. The labs are reproductions of economic concepts and models in Excel. Each section in the table of contents below has the solutions to the corresponding concept checks and labs.
PRINCIPLES OF MICROECONOMICS
PRINCIPLES OF MACROECONOMICS
1.1
1.2
1.3
1.4
1.5
1.6
1.6A
1.7
1.8
1.9L
2.1
2.2
2.3
2.4
2.5
2.6
2.7L
3.1
3.2
3.3
3.3L
3.4
3.4L
3.5
4.1
4.2
5.1
5.2
5.3
5.4
5.5
5.5A
5.6
5.7
6.1
6.2
6.3
6.4
6.5
6.6
6.7
6.7L
6.8
6.9
7.1
7.2
7.3
7.4
7.4L
7.5
7.6
7.6L
8.0
8.1
8.2
8.3
8.4
8.5
8.5L
8.6
8.7
8.8
8.9
9.1
9.2
9.3
9.4
9.4L
9.5
9.6
10.1
10.2
10.3
10.4
10.5
11.1
11.2
11.3
11.4
11.5
11.6
11.7
11.8
11.8L
PART I: ECONOMICS AND THE MARKET SYSTEM
Chapter 1: Thinking Like An Economist
Chapter 2: Demand, Supply and Market Equilibrium
PART II: PRICE CONTROLS, EXTERNALITIES AND ELASTICITY
Chapter 3: Prince Controls
Chapter 4: Externalities and Public Goods
Chapter 5: Elasticity
PART III: ECONOMIC UNITS
Chapter 6: The Model of Consumer Behavior
Chapter 7: The Theory of the Firm
PART IV: MARKET STRUCTURES
Chapter 8: Perfect Competition
Chapter 9: Monopoly
Chapter 10: Monopolistic Competition and Oligopoly
Chapter 11: Labor Markets
What Is Economics?
Micro and Macroeconomics
The Circular Flow
Economic Systems
Marginal Decisions
Opportunity Cost and Rational Decisions
Appendix: Computation of Opportunity Cost
Economic Models
The Production Possibilities Frontier
Lab: Understanding and Building Graphs
Market Demand
Determinants of Demand
Market Supply
Determinants of Supply
Market Equilibrium
Shifts of Supply and Demand
Lab: The Simple Model of Price Determination
Economic Surplus
Analysis of a Price Floor
Analysis of a Price Ceiling
Lab: Analysis of a Price Ceiling
Analysis of a Tax
Lab: Analysis of a Tax
Trade Restraints
Externalities
Private and Public Goods
Price elasticity of demand
Shape of Demand and Determinants of Elasticity
Polar cases of Elasticity
Income elasticity and Cross Elasticity
Elasticity and Total Revenue
Appendix: Elasticity and the Inverse Demand Function
Price Elasticity of Supply
Elasticity, Market Equilibrium and Taxation
Introduction to Consumer Behavior
Total Utility and Marginal Utility
The Concept of an Indifference Curve
The Optimal Market Basket: An Example
Individual and Market Demand Curves
Preliminaries
Production in the Short Run
Short Run Costs
Explicit Short Run Costs
Lab: Explicit Short Run Costs
Long Run Costs
Optimal Input Use
Lab: Optimal Input Use
Market Structures
Price-Taking Firms
Revenue Structure
Revenue and Cost
Profit Concepts
Profit Maximization
Lab: Profit Maximization by a Perfectly Competitive Firm
Entry and Exit
Shutdown and Market Supply
The Efficiency of Perfect Competition
The Long Run Industry Supply Curve
Monopoly and Price Making
Monopoly Revenue
Revenue and Elasticity
Monopoly: Profit Maximization
Lab: Profit Maximization by a Monopoly
Monopoly Efficiency and Regulation
Price Discrimination
Monopolistic Competition
Profit and Entry
The Efficiency of Monopolistic Competition
Oligopoly Concepts
Game Theory
Labor Markets
The Market Demand for Labor
The Market Supply of Labor
Labor Market Applications
Individual Labor Supply
The Firm's Demand for Labor
Market Power in the Labor Market
Labor Market Structures
Lab: Labor Market Structures
Inspect the
sample chapter solutions
1.1
1.2
1.3
1.4
2.1
2.2
2.2L
2.3
2.4
2.5
2.5L
3.1
3.2
3.3
3.4
3.5
3.5L
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.7L
4.8
5.1
5.2
5.3
5.4
5.4L
6.1
6.2
6.3
6.4
6.5
6.6
7.1
7.2
7.3
7.4
7.5
8.1
8.2
8.3
8.4
8.5
9.1
9.2
9.3
9.4
9.5
9.5L
9.6
9.6L
9.7
9.8
9.8L
10.1
10.2
10.2L
10.3
10.4
10.4A
10.5
PART I: GDP, THE BUSINESS CYCLE AND ECONOMIC GROWTH
Chapter 1: GDP and the Business Cycle
Chapter 2: Measuring GDP
Chapter 3: Economic Growth
PART II: UNEMPLOYMENT, INFLATION AND THE TWO-SECTOR ECONOMY
Chapter 4: Unemployment and Inflation
Chapter 5: The Two-Sector Economy
PART III: THE AD/AS MODEL, MONEY AND MONETARY POLICY
Chapter 6: The Model of Aggregate Demand and Aggregate Supply, AD/AS
Chapter 7: Money Creation and The Federal Reserve System
Chapter 8: Monetary Policy
PART IV: FISCAL POLICY AND THE FOREIGN SECTOR
Chapter 9: Fiscal Policy
Chapter 10: The Foreign Sector
Introduction to Macroeconomics
Definition of GDP
The Business Cycle
Output, Employment and Prices Over Time
Value Added
The Aggregate Expenditure Approach
Lab: Computation of GDP: The Aggregate Expenditure Approach
The Aggregate Income Approach
From GDP to Disposable Income
Nominal and Real GDP
Lab: Nominal GDP, Real GDP, the Price Deflator and the Rate of Inflation
Early Theories of Economic Growth
The Growth Accounting Formula
Real GDP per Capita and Productivity
The Catch-up Theory of Growth
The Neoclassical Model of Growth
Lab: Saving, Investment and the Steady State
The Adult Population and the Labor Force
The Rate of Unemployment
Unemployment Statistics
Cyclical, Frictional and Structural Unemployment
Explanations of Unemployment
The Concept and Effects of Inflation
Measuring Inflation: The Consumer Price Index
Lab: The CPI and Inflation
Inflation and Interest Rates
Aggregate Consumption and Saving
Investment
Inventories
The Multiplier
The Two-sector Economy
Lab: Aggregate Expenditure and the Two-sector Economy
Aggregate demand (AD)
Short-run Aggregate Supply
Long-run Aggregate Supply
Macroeconomic Equilibrium
The Self-correcting Mechanism
The Phillips curve
The Definition of Money
The Money Supply
Money Creation
The Federal Reserve System
Money and Inflation
The Demand for Money
Equilibrium in the Money Market
Fundamentals of Monetary Policy
Monetary Policy in the AD/AS Model
Monetary Policy and Expectations
Federal Government Purchases and Expenditures
Deficits and Debt
Fiscal Policy in the AD/AS Model
The Multiplier and Crowding Out Effects
Government Spending
Lab: Government Spending in the Aggregate Expenditure Model
The Lump-Sum Tax
Lab: The Lump-sum Tax
The Balanced Budget Multiplier
The Income Tax
Lab: The Income Tax
The Balance of Payments Account
Identity of Sector Balances
Lab: The Foreign Sector in the Aggregate Expenditure Model
The Foreign Exchange Market
Real Exchange Rates
Appendix: The Big Mac Exchange Rate
Economic Policy in an Open Economy