PART ONE THE BASIC ECONOMIC PROCESSES

CHAPTER 1．INTRODUCTION

Economic activities and human wants

Utility and consumption

Standards and planes of living

Wealth and economic goods

Objectives of economic activity

Organization of the means of production

Forms of economic organization

Organization of economic life under private-business enterprise

Private property and freedom of contract

Operation of business enterprise under private property and contract

The Sharing of the product：distribution

Exchange and price

Business enterprise and the price system

Simplified view of the operation of individualistic exchange economy

Economic institutions

Government in the individualistic economy

CHAPTER 2．PRODUCTION

The nature of production

The growing volume of production

The factors of production

Management

The measurement of production

Index of production

Size of the national income

Netvalue product

Major branches of production

Main types of economic fluctuation

Roundabout production

Division of labor

The technology of production

Standardization

The automatic machine and quantity production

Large-scale production

Coordination of the specialized machine processes

Science，research，and invention

Research agencies

Business research

Incentives to invention and discovery

Growth and results of research

Conservation

Summary

CHAPTER 3．THE ORGANIZATION AND DIRECTION OF PRODUCTION

The individual proprietorship

The partnership

The co-operative enterprise

The government enterprise

The corporation

Marketing of corporate securities

Separation of corporate ownership and control

Evolution of forms of combination

Big business and combination

Suppression of competition

The role of the promoter

Successes and failures in combinations and big business

Technology and large-scale production

Leadership in big business

Interlocking directorates

Financing big business

Legality of big business

CHAPTER 4．CONSUMPTION

The meaning of consumption

who are the consumers？

The measurement of consumption

Differences in consumption

Growth of consumption

Changes in consumption

Main types of fluctuation in consumption

Budgeting of income

Consumption a matter of making choices

Modifications of freedom of choice

Consumers＇ choices and the price system

Consumer Credit

Guidance of consumers＇ money choices

Savings

Current trends in consumption

Unfavorable aspects of consumption

Welfare and consumption

PART TWO THE MECHANISM OF EXCHANGE

CHAPTER 5．MONEY

Definition of money

Forms of money

Deposit currency versus money

Reasons for the general acceptability of money

Functions of money

Qualities of a good money

Types of money in the United States

Coinage

The printing of paper money

Legal tender

The monetary system

Functions of the monetary standard

Classification of monetary standards

Technical operation and characteristics of monetary standards

Advantages and disadvantages of the types of monetary standards

The controversy over standards

Criterion for choosing the monetary standard

Evolution of the monetary standard of the United States

CHAPTER 6．BANKING INSTITUTIONS AND PROCESSES

Classes of banks

Credit Instruments

Commercial-bank organization

Functions of commercial banks

Effects of commercial-bank operations on the balance sheet

Commercial banks＇ loans and investments

Commercial banks and the creation of purchasing power

Interbank relationships

Federal Deposit Insurance

Evolution of the banking system

CHAPTER 7．THE FEDERAL RESERVE SYSTEM

Functions of central banks

Background of the Federal Reserve system

Administrative mechanism of the Federal Reserve system

Operations and accomplishments of the Federal Reserve system

Supervision of bank operations

CHAPTER 8．PRICE-LEVEL MOVEMENTS

Factors in the construction of price index numbers

Types of price-level movements

Consequences of money-value changes

Supply of money

Demand for money

Determination of the value of money

An equation of exchange

Criticisms of the quantity theory of the value of money

Monetary proposals for regulation of price levels

Choice of a monetary standard

CHAPTER 9．FOREIGN EXCHANGE

The bill of exchange

Methods of financing foreign transactions

Bank operations in foreign echange

Demand and supply of foreign exchange

Rates of exchange between gold-standard countries

Triangular and multilateral exchange

Arbitrage

Correctives of disequilibrium in the balance of international payments between gold-standard countries

Rates of exchange between non-gold-standard countries

Exchange between gold-standard and paper-standard countries

Exchange between paper-standard countries

The role of gold movements between paper-standard countries

Fluctuations of exchange rates between paper-standard countries

Exchange controls

Correctives of disequilibrium in the balance of international payments between paper-standard countries

Policies for stabilization of exchange rates between paper-standard countries

Forward exchange

Organization of foreign-exchange markets

Relative importance of international exchange markets

The choice of a monetary standard

PART THREE VALUE AND PRICE

CHAPTER 10．THE PROBLEM OF VALUE AND PRICE

Scarcity

Wants

Relationship between scarcity and wants

Three characteristics of economic goods

Solution of the economic problem

The phenomenon of price

Price and value

The role of price

Some fundamental questions

The principle of maximization

Conclusion

CHAPTER 11．AN ANALYSIS OF DEMAND

Demand and consumption

Utility

Solution of the problem of consumer choice

Equilibrium

A general theory of consumer choice

Effects of income changes on consumer expenditures

Effects of price changes on consumer expenditures

Demand

Meaning of demand

Negative slope of the demand curve

Changes in demand

Elasticity of demand

CHAPTER 12．SUPPLY AND DEMAND

Market situations in economic analysis

Time periods in economic analysis

Market supply

Reservation price

Changes in supply

Elasticity of supply

Competitive market price

Market-equilibrium price

Effects of changes in demand and supply

Monopolistic market price

CHAPTER 13．THE PRICING PROCESS UNDER COMPETITIVE CONDITIONS

The sales curve

Short-run normal price

Long-run normal price

Differential costs

Fluctuating prices

The normal-supply curve

Increasing and constant costs

CHAPTER 14．MONOPOLISTIC COMPETITION AND MONOPOLY

The sales curve under monopolistic conditions

Marginal revenue under monopolistic conditions

Equilibrium under monopolistic competition

Long-run equilibrium under different conditions

Price policies under oligopoly

Decreasing costs

Prices under duopoly

Conditions giving rise to monopoly

Monopoly equilibrium

Monopoly price policies

Monopsony

The effect of monopoly upon price

CHAPTER 15．PROBLEMS AND PRACTICES IN VALUATION

Valuation of corporate securities for purposes of investment or speculation

Valuation of public utilities for purposes of rate making

Valuation of property for purposes of taxation

Valuation for miscellaneous purposes

Price fixing by government

Government price control after the First World War

Price control and the Second World War

Fair and unfair competition

Price maintenance

Discriminatory price practices

Abstract competitive price versus reasonable price

Continued trend toward monopoly

Monopoly influences on price policies

Limits to monopoly influence on prices

PART FOUR FUNCTIONAL DISTRIBUTION OF INCOME

CHAPTER 16．THE NATIONAL INCOME AND THE PROBLEM OF DISTRIBUTION

Difficulties in income measurement

The problem of income distribution

Methods of income distribution

Extension of governmental actvity

Approximate functional distribution of national income

Distribution of income during the Second World War

Introduction to the theory of distribution

The meaning of property rights

CHAPTER 17．THE THEORY OF WAGES

The Malthusian doctrine and its setting

Long-time factors affecting labour supply

Short-time factors affecting labor supply

Total labor-supply variations

The supply of labor to the individual firm or industry

Migration and economic opportunity

The supply of labor to the individual firm，and the time factor

The supply of labor：summary

The demand for labor and the determination of wage rates

Who wants labor and why？

Productiveness of labor in relation to number of workmen

Reason for decrease in average output per man and possible decrease in the total

Why the rate of growth in total output changes

Marginal productivity

Development of a marginal-productivity curve

Marginal productivity measured in money

The marginal value productivity curve in competitive industries

The marginal value productivity curve under monopolistic conditions

Conversion of the diminishing marginal value productivity into demand for labor

Significance of the quantity and order

The simplified model completed：a labor market

Allowance for individual differences among workers and working groups

Further significance of derived demand：Re-emphasis of marginal value productivity

Allowance for time in determining marginal productivity

Product price changes and the demand for labor

Elasticity of demand for labor

Other factors in marginal productivity and wages

A summary and a warning

CHAPTER 18．INSTITUTIONAL ASPECTS OF THE LABOR MARKETS

Factors affecting size of American labor markets

Factors affecting character of labor

Concentration of employment

Organic nature of human effort

Wage adjustment and mobility

Government control of the operation of labor markets

Industrial accidents and diseases

Government regulation of the employment contract

Government encouragement of collective bargaining

Collective bargaining and trade uinions in the labor markets

Industrial location of unionism

Structure of American unionism

Trade unionism and collective-wage agreements

Collective bargaining and the theory of wages

Government as a mediator

CHAPTER 19．INTEREST

Use of equipment in the production process

The savings and investment process

The nature of interest

The nature of the interest rate

Composition of the market interest rate

The demand for funds

Sources of the supply of investment funds

Determination of market rates of interest

Explicit and implicit interest

Interest rates and other business conditions

Interest and the capitalization process

CHAPTER 20．RENT

Comparisons of land and equipment

Merging of land and equipment in economic analysis

The problem of unearned increment

Distinction between economic rent and commercial rent

Differences between rent and interest

The demand for the uses of land

The supply of the uses of land

Differences in land utilization

The margin of substitution

The general theory of economic rent

The law of diminishing returns

Economic rent as a differential

Intensive and extensive margins

The scarcity aspect of the land factor

Rent and cost of production

The valuation of land

Value appreciation and unearned increment

Conclusion

CHAPTER 21．THE THEORY OF PROFITS

Composite nature of profit

The accountant＇s concept of profits

Profits and losses of corporations

Differences in profits among different concerns

Profits and dividends

Profits a residual share

Sources of pure profit

Strategic position of enterprisers

Monopoly profit

Pure profit as related to risk and ability

The concept of necessary profit

CHAPTER 22．THE ROLE OF PROFIT IN PRIVATE-ENTERPRISE CAPTALISM

Production versus profits

Effects of production on profits

Effects of profit expectations on production

Profit and property valuation

Cost of profit to the consumer

Profit during periods of inflation

Profit and government policy

The profit motive and social well-being

PART FIVE INTERNATIONAL ECONOMIC RELATIONS

CHAPTER 23．PRINCIPLES OF INTERNATIONAL TRADE

International trade in a free economy

Comparison of international and domestic trade

The United States in world trade

Importance of international trade to the United States

Geographical distribution of United States trade

Commodity distribution of United States trade

Prices and international trade

Effect of distribution of United States trade

Prices and international trade

Effect of distribution of resources on trade

Trade equilibrium and comparative differences in cost

Foreign investment and the flow of trade

The balance of international payments

CHAPTER 24．PROBLEMS AND POLICIES IN INTERNATIONAL TRADE

Purpose and nature of the tariff

Effects of the tariff

Method of making tariffs

The case for and against protection

Recent governmental trade controls

Current problems in international trade

Trade policy

The International Trade Organization

PART SIX GOVERNMENTAL FUNCTIONS AND FINANCE

CHAPTER 25．GOVERNMENTAL FUNCTIONS，EXPENDITURES，AND DEBTS

The role of government in economic affairs

The productive character of governmental activities

Increase of governmental expenditures

Expenditures by function

Grants-in-aid

Government economic enterprises

Public debts

The federal debt

Borrowing for war

The lend-lease program

Deficit spending and the depression

State and local debts

General conclusions regarding public debt

The federal budget

CHAPTER 26．THE PRINCIPLES OF TAXATION

Basic theories of taxation

The shifting and incidence of taxation

Shifting，evasion，and avoidance

Regulatory taxation

The need for centralized administration

Requisites of a good tax system

CHAPTER 27．FEDERAL，STATE，AND LOCAL TAXES

Importance of taxes for revenue

FEDERAL TAXES：Income taxes

Internal excise taxes

Customs duties

Estate taxes

Pay-roll taxes

War-profits and excess-profits taxes

STATE AND LOCAL TAXES：General property tax

State income taxes

Corporation and business taxes

Inheritance tax

Gasoline taxes

Sales taxes

Fees

Special assessments

PART SEVEN THE ECONOMICS OF RISK

CHAPTER 28．RISK IN ECONOMIC LIFE

The nature of economic risk

Meeting the problem of economic risk

CHAPTER 29．BUSINESS CYCLES

Variations and similarities of business cycles

Duration of business cycles

Phases of the business cycle

Some theories of business cycles

The business cycle an unsolved problem

Desirability of eliminating cyclical fluctuations

Stabilization of business

CHAPTER 30．INSURANCE

Insurance as a means of sharing economic risk

Conditions necessary for insurance

Comparison of private and social insurance

Life insurance

Property insurance

Workmen＇s compensation insurance

Unemployment insurance

Old-age and survivors＇ insurance

Conclusion

PART EIGHT MAJOR ECONOMIC PROBLEMS

CHAPTER 31．THE MAINTENANCE OF FULL EMPLOYMENT

The meaning of full employment

Unemployment in the United States

Significance of unemployment in labor markets

Unemployment and the marginal-productivity analysis

Methods of dealing with unemployment

The Employment Act of 1946

Economic problems of full-employment legislation

CHAPTER 32．PERSONAL DISTRIBUTION OF WEALTH AND INCOME

Inequality of wealth versus inequality of income

The problem of inequality

Some data on inequality

Effort versus ownership in distribution

Institutional basis of inequalities in fortune

The corporation as a property institution

Diffusion of ownership

Inequalities of fortune due to unequal privileges

Inequalities of fortune due to unequal abilities

Effects of extreme inequality

Proposed methods of dealing with inequality

CHAPTER 33．PUBLIC CONTROL

Major factors affecting public control

Changes in public control policies

Economic adaptation

Economics and government

Public control in times of national emergency

Government regulation

Regulation of banking

Labor control

General regulation of business

Appraisal of antitrust legislation

Further examples of control

State regulation

Local regulation

The T．V．A．

Taxation as a means of control

Public opinion and public control

Reform

Conclusion

INDEX