Page 13 - Krugmans Economics for AP Text Book_Neat

Contents

Section 1 Section 2
Basic Economic Concepts 1 Supply and Demand 47

Module 1 The Study of Economics 2 Module 5 Supply and Demand:
Individual Choice: The Core of Economics 2 Introduction and Demand 48
Resources Are Scarce 2 Supply and Demand: A Model of a Competitive Market 48
Opportunity Cost: The Real Cost of Something Is The Demand Curve 49
What You Must Give Up to Get It 3 The Demand Schedule and the Demand Curve 49
FYI: Got a Penny? 4 Shifts of the Demand Curve 50
Microeconomics Versus Macroeconomics 5 Understanding Shifts of the Demand Curve 52
Positive Versus Normative Economics 5 FYI: Beating the Traffic 57
When and Why Economists Disagree 7 Module 5 AP Review 57
FYI: When Economists Agree 8
Module 1 AP Review 8 Module 6 Supply and Demand:
Supply and Equilibrium 59
Module 2 Introduction to Macreconomics 10 The Supply Curve 59
The Business Cycle 10 The Supply Schedule and the Supply Curve 59
FYI: Defining Recessions and Expansions 11 Shifts of the Supply Curve 60
Employment, Unemployment, and the Business Cycle 12 Understanding Shifts of the Supply Curve 61
Aggregate Output and the Business Cycle 12 FYI: Only Creatures Small and Pampered 65
Inflation, Deflation, and Price Stability 12 Supply, Demand, and Equilibrium 66
Economic Growth 13 Finding the Equilibrium Price and Quantity 66
The Use of Models in Economics 14 Why Do All Sales and Purchases in a Market Take
Place at the Same Time? 67
Module 2 AP Review 15
Why Does the Market Price Fall If It Is Above the
Equilibrium Price? 67
Module 3 The Production Possibilities Curve Model 16
Why Does the Market Price Rise If It Is Below the
Trade-offs: The Production Possibilities Curve 16 Equilibrium Price? 68
Efficiency 17 Using Equilibrium to Describe Markets 69
Opportunity Cost 19 Module 6 AP Review 69
Economic Growth 20
Module 3 AP Review 21 Module 7 Supply and Demand:
Changes in Equilibrium 71
Module 4 Comparative Advantage and Trade 23 Changes in Supply and Demand 71
Gains from Trade 23 What Happens When the Demand Curve Shifts 71
Comparative Advantage and Gains from Trade 24 What Happens When the Supply Curve Shifts 72
FYI: Rich Nation, Poor Nation 27 Simultaneous Shifts of Supply and Demand Curves 73
Comparative Advantage and International Trade 28 FYI: The Great Tortilla Crisis 75
Module 4 AP Review 29 Module 7 AP Review 75
Section 1 Review 31
Appendix Graphs in Economics 34 Module 8 Supply and Demand:
Price Controls (Ceilings and Floors) 77
Why Governments Control Prices 77
Price Ceilings 78
Modeling a Price Ceiling 78

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