Principles of Macroeconomics, Case/Fair/Oster, 10e

The Diverse Fields of Economics

• The Diverse Fields of Economics

• The Scope of Economics

TABLE 1.2 The Fields of Economics (continued)
International economics	studies trade flows among countries and international financial institutions. What are the advantages and disadvantages for a country that allows its citizens to buy and sell freely in world markets? Why is the dollar strong or weak?
Labor economics	deals with the factors that determine wage rates, employment, and unemployment. How do people decide whether to work, how much to work, and at what kind of job? How have the roles of unions and management changed in recent years?
Law and economics	analyzes the economic function of legal rules and institutions. How does the law change the behavior of individuals and businesses? Do different liability rules make accidents and injuries more or less likely? What are the economic costs of crime?
Public economics	examines the role of government in the economy. What are the economic functions of government, and what should they be? How should the government finance the services that it provides? What kinds of government programs should confront the problems of poverty, unemployment, and pollution? What problems does government involvement create?
Urban and regional economics	studies the spatial arrangement of economic activity. Why do we have cities? Why are manufacturing firms locating farther and farther from the center of urban areas?

• E C O N O M I C S I N P R A C T I C E

• Trust and Gender

• While many transactions happen in anonymous markets in which buyers and sellers don’t know one another, there are many other occasions in which markets operate more effectively if individuals develop some trust in one another.
• In experiments run at the University of Wisconsin and the University of Miami, researchers conclude, “We find that men trust more than women, and women are more trustworthy than men.”

• How to Read and Understand Graphs

• Time Series Graphs

TABLE 1A.1 Total Disposable Personal Income in the United States, 1975–2009 (in billions of dollars)
Year	Total Disposable Personal Income	Year	Total Disposable Personal Income
1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992	1,187.3 1,302.3 1,435.0 1,607.3 1,790.8 2,002.7 2,237.1 2,412.7 2,599.8 2,891.5 3,079.3 3,258.8 3,435.3 3,726.3 3,991.4 4,254.0 4,444.9 4,736.7	1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009	4,921.6 5,184.3 5,457.0 5,759.6 6,074.6 6,498.9 6,803.3 7,327.2 7,648.5 8,009.7 8,377.8 8,889.4 9,277.3 9,915.7 10,403.1 10,806.4 10,923.6

•  FIGURE 1A.1 Total Disposable Personal Income in the United States: 1975–2009 (in billions of dollars)

• CHAPTER 1 APPENDIX

A P P E N D I X R E V I E W T E R M S A N D C O N C E P T S

• Cartesian coordinate system
• graph
• negative relationship
• origin
• positive relationship
• slope

• time series graph
• X-axis
• X-intercept
• Y-axis
• Y-intercept