2. The Nature and Method of Economics 1 C H A P T E R

3. The Economics Perspective Consider... MARGINAL ANALYSIS Marginal Benefits & Marginal Costs SCARCITY & CHOICE RATIONAL BEHAVIOR UTILITY

4. WHY STUDY ECONOMICS plus many modern contributors... Adam Smith David Ricardo John Stuart Mill Karl Marx John Maynard Keynes Economics for Citizenship Professional & Personal Applications

5. Theories Facts Policy Economics Theoretical Economics ECONOMIC METHODOLOGY

6. Analytical Economics Terminology Generalizations Other-Things-Equal ceteris paribus ECONOMIC METHODOLOGY

7. Analytical Economics Terminology Generalizations Other-Things-Equal ceteris paribus Abstractions ECONOMIC METHODOLOGY

8. Analytical Economics Terminology Generalizations Other-Things-Equal ceteris paribus Abstractions Graphical Expression ECONOMIC METHODOLOGY

9. ECONOMIC POLICY STATE THE GOAL POLICY OPTIONS IMPLEMENT & EVALUATE

10. TRADEOFFSTRADEOFFS Economic Growth Full Employment Economic Efficiency Price-Level Stability Economic Freedom Equitable Distribution Economic Security Balance of Trade ECONOMIC GOALS

11. MACROECONOMICS... Emphasis upon aggregates: consumers, business, government, foreigners

12. MICROECONOMICS... Emphasis: upon individual decision making such as what motivates consumer behavior and investment behavior

13. Positive Economics Absolute Facts Normative Economics What Ought to be

14. Biases Loaded Terminology Definitions Fallacy of Composition Causation Fallacies Post Hoc Fallacy Correlation vs. Causation PITFALLS TO SOUND REASONING