Economics, 11th Canadian Edition, Answers to Even-Numbered Questions

I. WHAT IS ECONOMICS?

1. Economic Issues and Concepts.

The Complexity of the Modern Economy. Scarce Resources. Who Makes the Choices and How? Is There an Alternative to the Market Economy?
2. How Economists Work.

Positive and Normative Advice. Economic Theories. Testing Theories. Economic Data. Graphing Economic Theories.
II. AN INTRODUCTION TO DEMAND AND SUPPLY.

3. Demand, Supply, and Price.

Demand. Supply. The Determination of Price.
4. Elasticity.

Price Elasticity of Demand. Price Elasticity of Supply. An Important Example Where Elasticity Matters. Other Demand Elasticities.
Appendix to Chapter 4: More Details About Demand Elasticity.
5. Markets in Action.

The Interaction Among Markets. Government-Controlled Prices. Rent Controls: A Case Study of Price Ceilings. Agriculture and the Farm Problem.
III. CONSUMERS AND PRODUCERS.

6. Consumer Behaviour.

Marginal Utility and Consumer Choice. Income and Subsitution Effects of Price Changes. Consumer Surplus. Appendix to Chapter 6: Indifference Curves.
7. Producers in the Short Run.

What Are Firms? Production, Costs, and Profits. Production in the Short Run. Costs in the Short Run.
Appendix to Chapter 7: Do Firms Really Maximize Profits?
8. Producers in the Long Run.

The Long Run: No Fixed Factors. The Very Long Run: Changes in Technology.
Appendix to Chapter 8: Isoquant Analysis.
IV. MARKET STRUCTURE AND EFFICIENCY.

9. Competitive Markets.

Market Structure and Firm Behaviour. The Theory of Perfect Competition. Short-Run Decisions. Long-Run Decisions.
10. Monopoly.

A Single-Price Monopolist. Cartels as Monopolies. Price Discrimination.
11. Imperfect Competition and Strategic Behaviour.

The Structure of the Canadian Economy. Imperfectly Competitive Market Structures. Monopolistic Competition. The Theory of Oligopoly. Oligopoly in Practice.
12. Economic Efficiency and Public Policy.

Productive and Allocative Efficiency. Economic Regulation to Promote Efficiency. Canadian Competition Policy.
V. FACTOR MARKETS.

13. How Factor Markets Work.
    
      Income Distribution. The Demand for Factors. The Supply of Factors. The Operation of Factor Markets.
14. Labour Markets.

Wage Differentials. Unions. The “Good Jobs-Bad Jobs” Debate.
15. Capital and the Interest Rate.

A Brief Overview of the Capital Market. Present Value. The Demand for Capital. The Supply of Capital. Equilibrium in the Capital Market.
VI. GOVERNMENT IN THE MARKET ECONOMY.

16. Market Failures and Government Intervention.

Basic Functions of Government. The Case for Free Markets. Market Failures. Other Government Objectives. Government Intervention.
17. The Economics of Environmental Protection.

The Economics Rationale for Regulating Pollution. Pollution-Control Policies. The Politics of Pollution Control.
18. Taxation and Public Expenditure.

Taxation in Canada. Evaluating the Tax System. Public Expenditure in Canada. Evaluating the Role of Government.
VII. AN INTRODUCTION TO MACROECONOMICS.

19. What Macroeconomics Is All About.

Key Macroeconomic Variables. Growth Versus Fluctuations.
 
20. The Measurement of National Income.
National Output and Value Added. National Income Accounting: The Basics. National Income Accounting: Some Extra Issues.
VIII. THE ECONOMY IN THE SHORT RUN.

21. The Simplest Short-Run Macro Model.

Desired Aggregate Expenditure. Equilibrium National Income. Changes in Equilibrium National Income.
22. Adding Government and Trade to the Simple Macro Model.

Introducing Government. Introducing Foreign Trade. Equilibrium National Income. Changes in Equilibrium National Income. Demand-Determined Output.
Appendix to Chapter 22: An Algebraic Exposition of the Simple Macro Model
23. Output and Prices in the Short Run.

The Demand Side of the Economy. The Supply Side of the Economy. Short-Run Macroeconomic Equilibrium
IX. THE ECONOMY IN THE LONG RUN.

24. From the Short Run to the Long Run: The Adjustment of Factor Prices.

Output Gaps and Factor Prices. Demand and Supply Shocks. Fiscal Policy and the Business Cycle.
25. The Difference Between Short-Run and Long-Run Macroeconomics.

Two Examples. Accounting for Changes in GDP. Policy Implications.
26. Long-Run Economic Growth.

The Nature of Economic Growth. Established Theories of Economic Growth. New Growth Theories. Are There Limits to Growth?
X. MONEY, BANKING, AND MONETARY POLICY.

27. Money and Banking.
 
    The Nature of Money. The Canadian Banking System. Money Creation by the Banking System. The Money Supply.
28. Money, Interest Rates, and Economic Activity.

Understanding Bonds. The Demand for Money. Monetary Equilibrium and National Income. The Strength of Monetary Forces.
Appendix to Chapter 28: Interest Rates and the Slope of the AD Curve.
29. Monetary Policy in Canada.

The Bank of Canada and the Money Supply. Monetary Policy Targets. Lags in the Conduct of Monetary Policy. 25 Years of Canadian Monetary Policy.
XI. MACROECONOMIC PROBLEMS.

30. Inflation.
 
    Adding Inflation to the Model. Shocks and Policy Responses. Reducing Inflation.
31. Unemployment.

Employment and Unemployment. Cyclical Unemployment. The NAIRU. Reducing Unemployment.
32. Government Debt and Deficits.

Facts and Definitions Some Analytical Issues The Effects of Government Debt and Deficits Balanced Budgets
XII. CANADA IN THE GLOBAL ECONOMY.

33. The Gains from International Trade.

The Gains from Trade. The Determination of Trade Patterns.
34. Trade Policy.
 
    Free Trade or Protection? Methods of Protection. Current Trade Policy.
35. Exchange Rates and the Balance of Payments.

The Balance of Payments. The Foreign-Exchange Market. The Determination of Exchange Rates. Three Policy Issues.
36W. Challenges Facing the Developing Countries. (This chapter appears on the Companion Website.)

The Uneven Pattern of Development. Impediments to Economic Development. Development Policies.