The Economic Way of Thinking
(1st Canadian Edition)
by Paul Heyne and John Palmer

Table of Contents

 

  1. -The Economic Way of Thinking- Page 1
    a. Recognizing Order - 1
    b.
    the Economic Way of Thinking, an Apparatus of the Mind 4
    c. Cooperation through Mutual Adjustment 6
    d. The Biases of Economic Theory 9
    e. Rules of the Game - Property Rights and Entitlements 10
    Questions for Discussion 14
  2. -Scarcity and Choices (original in this edition)- 19
    a. Who Gets the Output 20
    b. What Goods to Produce 23
    c. Other Choices 26
    Questions for Discussion 28
  3. -Substitutes Everywhere: The Concept of Demand - 31
    a. Costs and Substitutes 32
    b. Demand and Quantity Demanded 36
    c. Who Needs Water 42
    d. Price Elasticity of Demand 45
    Questions for Discussion 50
  4. -Behind the Demand Curve (original in this edition) 59
    a. Marginal Utility 59
    b. Deriving a Demand Curve 61
    c. A Different Approach - considering trade-offs 63
    d. Deriving a Demand Curve (again) 67
    Questions for Discussion 69
  5. -Opportunity Cost and the Supply of Goods - 73
    a. Producers’ Costs as Opportunity Costs 74
    b. The Supply Relationship 78
    c. Price Elasticity of Supply 81
    Questions for Discussion 85
  6. -Supply and Demand: a Process of Co-ordination - 91
    a. Market Systems 93
    b. The Basic Process 95
    c. Scarcity and Competition 101
    d. Is There a Better Way? 105
    e. Surpluses and Scarcity 108
    Questions for Discussion 113
  7. -Marginal Values and Economic Decisions - 123
    a. Decisions at the Margin 123
    b. The Irrelevance of "Sunk Costs" 125
    c. Marginal Does Not Mean Average 127
    d. Costs and Insurance 131
    e. Price, Cost, and Suppliers’ Responses 134
    Questions for Discussion 135
  8. - Price Setting and Price Taking - 149
    a. Who Qualifies as a Monopolist 149
    b. Price Takers and Price Searchers 153
    Questions for Discussion 157
  9. Costs Again: Behind the Supply Curve (original in this edition) 163
    a. Production with One Variable Input 163
    b. Short-Run Production Costs 168
    c. Maximizing Net Revenues 171
    d. Supply and Demand for Price Takers 173
    Questions for Discussion 176
  10. - Information, Intermediaries, and Speculators - 181
    a. Optimal Search Behaviour 183
    b. Markets Create Information 186
    c. Consequences of Speculation 188
    Questions for Discussion 199
  11. - Price Searching - 209
    a. The Marginal Way of Thinking (again) 210
    b. Maximizing Net Revenues (again) 213
    c. The Price Discriminator’s Dilemma 217
    Questions for Discussion 225
  12. -Interdependence, Game Theory, and Markets (original in this edition) 235
    (portions of this chapter are available on this website)
    a. The Prisoners’ Dilemma 236
    b. Interdependence and Business Decisions 240
    Questions for Discussion 244
  13. -Competition and Government Policies - 251
    a. The Pressures of Competition 251
    b. Controlling Competition 253
    c. "Predators" and Competitions 258
    d. Competition Policy 259
    e. Vertical Restraints 261
    Questions for Discussion 264
  14. -Profit - 253
  15. -The Distribution of Income - 295
  16. -Externalities and Conflicting Rights- 325
  17. -Markets and Government - 351
  18. -Inflation, Recession, Unemployment- 383
  19. -Production, Prices, and Aggregate Fluctuations - 409
  20. -The Supply of Money - 421
  21. -Demand-Side Economics - 443
  22. -Fiscal and Monetary Policy- 463
  23. -Supply-Side Perspectives- 489
  24. -Aggregate Demand and Supply: An Overview- 515
  25. -Efficiency, Exchange, and Comparative Advantage- 529
  26. -International Trade Policy: Canada in the Global Economy- 551
  27. -National Policies and International Exchange- 555
  28. -Inflation, Recession, and Political Economy - 579
  29. -The Limitations of Economics - 593

 

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