Summary
Summary core book the economist GSS
- Course
- Institution
Summary of the core book, mandatory chapters for the mid-term exam
[Show more]
Seller
Follow
samenvattingendoormij
Reviews received
Content preview
Core book Principles of Economics summaryInhoudsopgave
Unit 1. The capitalist revolu4on ...................................................................................................................... 4
1.1. Income inequality ................................................................................................................................. 4
1.2. Measuring income and living standards .............................................................................................. 4
1.3. History’s hockey s>ck: growth in income .............................................................................................. 4
1.4. The permanent technological revolu>on.............................................................................................. 4
1.5. The economy and the environment ...................................................................................................... 4
1.6. Capitalism defined: private property, markets, and firms. ................................................................... 5
1.7. Capitalism as an economic system ....................................................................................................... 5
1.8. The gains from specializa>on ............................................................................................................... 5
1.9. Capitalism causa>on and history’s hockey s>ck ................................................................................... 6
1.10. Varie>es of capitalism: ins>tu>ons, government, and the economy.................................................... 6
Unit 3. Scarcity, work, and choice .................................................................................................................... 6
3.1 Labor and produc>on ........................................................................................................................... 6
3.2 Preferences ........................................................................................................................................... 6
3.3 Opportunity costs ................................................................................................................................. 7
3.4 The feasible set ..................................................................................................................................... 7
3.5 Decision making and scarcity. .............................................................................................................. 7
3.6 Hours of work and economic growth ................................................................................................... 7
3.7 Income and subs>tu>on effects on hours of work and free >me ......................................................... 7
3.8 Is this a good model? ........................................................................................................................... 8
3.9 Explaining our working hours: changes over >me................................................................................ 8
3.10 Explaining our working hours: differences between countries ............................................................. 8
Unit 4. Social interac4ons ............................................................................................................................... 8
4.1 Social interac>ons......................................................................................................................................... 8
4.2 Equilibrium in the invisible hand game ......................................................................................................... 8
4.3 Social preferences: altruism .......................................................................................................................... 9
4.5 Altruis>c preferences in the prisoners’ dilemma........................................................................................... 9
4.6 Public goods, free riding, and repeated interac>on...................................................................................... 9
4.7 Public good contribu>ons and peer punishment .......................................................................................... 9
4.8 Behavioral experiments in the lab and in the field ....................................................................................... 9
4.9 Explaining our working hours: Changes over >me. ...................................................................................... 9
4.10 Dividing a pie (or leaving it on the table).................................................................................................... 9
4.11 ................................................................................................................................................................... 10
, 4.12 ................................................................................................................................................................... 10
4.13 ................................................................................................................................................................... 10
Unit 6. The firm: Owners, managers, and employees .................................................................................... 10
6.1 Firm, markets, and the division of labor. .................................................................................................... 10
6.2 Other people’s money: The separa>on of ownership and control .............................................................. 11
6.3 Other people’s labor ................................................................................................................................... 11
6.4 Employment rents ....................................................................................................................................... 11
6.9 Another kind of business organiza>on ....................................................................................................... 12
6.10 Principles and agents: Interac>ons under incomplete contracts .............................................................. 12
Unit 7. The firm and its customers................................................................................................................. 12
7.1 Breakfast cereal: Choosing a price.............................................................................................................. 12
7.2 Economies of scale and the cost advantages of large-scale produc>on ..................................................... 13
7.3 Produc>on: the cost func>on for beau>ful cars.......................................................................................... 14
7.4 Demand and isoprofit curves: Beau>ful Cars. ............................................................................................ 15
7.5 Se_ng price and quan>ty to maximize profit............................................................................................. 15
7.6 Looking at profit maximiza>on as marginal revenue and marginal cost. .................................................. 15
7.7 Gains from trade......................................................................................................................................... 15
7.8 The elas>city of demand............................................................................................................................. 16
7.9 Using demand elas>ci>es in government policy. ........................................................................................ 16
7.10 Price-se_ng, compe>>on, and market power. ......................................................................................... 16
7.11 Product selec>on, innova>on, and adver>sing......................................................................................... 17
7.12 Prices, costs, and market failure ............................................................................................................... 17
Unit 8. Supply and demand: price-taking and compe44ve markets ............................................................... 17
8.1 buying and selling: demand and supply. ..................................................................................................... 17
8.2 The market and the equilibrium price. ........................................................................................................ 17
8.3 Price-taking firms ........................................................................................................................................ 18
8.4 Market supply and equilibrium ................................................................................................................... 18
8.5 Compe>>ve equilibrium: gains from trade, alloca>on, and distribu>on. ................................................... 18
8.6 Changes in supply and demand .................................................................................................................. 18
8.7 The effects of taxes ..................................................................................................................................... 19
8.8 The model of perfect compe>>on............................................................................................................... 19
8.9 Looking for compe>>ve equilibria. ............................................................................................................. 19
8.10 Price-se_ng and price-taking firms. ......................................................................................................... 19
Unit 11. Rent-seeking, price-seIng, and market dynamics. .......................................................................... 20
11.1 How people changing prices to gain rents can lead to a market equilibrium. .......................................... 20
11.2 How market organiza>on can influence prices. ........................................................................................ 20
11.3 Short-run and long-run equilibria ............................................................................................................. 20
, 11.4 Prices, rent seeking, and market dynamics at work: oil prices. ................................................................ 21
11.9 non-clearing markets: Ra>oning, queuing, and secondary markets. ....................................................... 22
11.10 Markets with controlled prices ............................................................................................................... 22
11.11 The role of economic rents ..................................................................................................................... 22
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller samenvattingendoormij. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.56. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67096 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now