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Principles of
Macroeconomics 3e
SENIOR CONTRIBUTING AUTHORS
DAVID SHAPIRO, PENNSYLVANIA STATE UNIVERSITY
DANIEL MACDONALD, CALIFORNIA STATE UNIVERSITY, SAN BERNADINO
STEVEN A. GREENLAW, UNIVERSITY OF MARY WASHINGTON
OpenStax
Rice University
6100 Main Street MS-375
Houston, Texas 77005
To learn more about OpenStax, visit https://openstax.org.
Individual print copies and bulk orders can be purchased through our website.
©2022 Rice University. Textbook content produced by OpenStax is licensed under a Creative Commons
Attribution 4.0 International License (CC BY 4.0). Under this license, any user of this textbook or the textbook
contents herein must provide proper attribution as follows:
-
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-
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|
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For questions regarding this licensing, please contact [email protected].
Trademarks
The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, OpenStax CNX logo,
OpenStax Tutor name, Openstax Tutor logo, Connexions name, Connexions logo, Rice University name, and
Rice University logo are not subject to the license and may not be reproduced without the prior and express
written consent of Rice University.
Original version based on the 2nd edition of Principles of Economics, Economics and the Economy, 2e by Timothy
Taylor, published in 2011.
Portions of the Demand and Supply chapter were derived from "Why It Matters: Government in Action by
Steve Greenlaw and Lumen Learning." Located at:
https://courses.lumenlearning.com/waymakermacroxmasterfall2016/chapter/why-it-matters-government-
action/. License: CC BY 4.0.
HARDCOVER BOOK ISBN-13
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DIGITAL VERSION ISBN-13
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2 3 4 5 6 7 8 9 10 OF 24 22
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HARDCOVER BOOK ISBN-13
B&W PAPERBACK BOOK ISBN-13
DIGITAL VERSION ISBN-13
ORIGINAL PUBLICATION YEAR
2 3 4 5 6 7 8 9 10 OF 24 22
978-1-711471-47-1
978-1-711471-48-8
978-1-951693-64-0
2022
OPENSTAX
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|
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Charles Koch Foundation
Schmidt Futures
Leon Lowenstein Foundation, Inc.
William Marsh Rice University
The Maxfield Foundation
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CHAPTER 1
CHAPTER 2
CHAPTER 3
CHAPTER 4
CHAPTER 5
CHAPTER 6
CHAPTER 7
CHAPTER 8
CHAPTER 9
CHAPTER 10
CHAPTER 11
CHAPTER 12
CHAPTER 13
CHAPTER 14
CHAPTER 15
CHAPTER 16
CHAPTER 17
CHAPTER 18
CHAPTER 19
CHAPTER 20
|
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CHAPTER 4
CHAPTER 5
CHAPTER 6
CHAPTER 7
CHAPTER 8
CHAPTER 9
CHAPTER 10
CHAPTER 11
CHAPTER 12
CHAPTER 13
CHAPTER 14
CHAPTER 15
CHAPTER 16
CHAPTER 17
CHAPTER 18
CHAPTER 19
CHAPTER 20
CHAPTER 21
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Principles of
Microeconomics 3e
SENIOR CONTRIBUTING AUTHORS
DAVID SHAPIRO, PENNSYLVANIA STATE UNIVERSITY
DANIEL MACDONALD, CALIFORNIA STATE UNIVERSITY, SAN BERNADINO
STEVEN A. GREENLAW, UNIVERSITY OF MARY WASHINGTON
OpenStax
Rice University
6100 Main Street MS-375
Houston, Texas 77005
To learn more about OpenStax, visit https://openstax.org.
Individual print copies and bulk orders can be purchased through our website.
© 2022 Rice University. Textbook content produced by OpenStax is licensed under a Creative Commons
Attribution 4.0 International License (CC BY 4.0). Under this license, any user of this textbook or the textbook
contents herein must provide proper attribution as follows:
-
-
-
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|
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For questions regarding this licensing, please contact [email protected].
Trademarks
The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, OpenStax CNX logo,
OpenStax Tutor name, Openstax Tutor logo, Connexions name, Connexions logo, Rice University name, and
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Original version based on the 2nd edition of Principles of Economics, Economics and the Economy, 2e by Timothy
Taylor, published in 2011.
Portions of the Demand and Supply chapter were derived from "Why It Matters: Government in Action by
Steve Greenlaw and Lumen Learning." Located at:
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action/. License: CC BY 4.0.
HARDCOVER BOOK ISBN-13
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DIGITAL VERSION ISBN-13
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|
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HARDCOVER BOOK ISBN-13
B&W PAPERBACK BOOK ISBN-13
DIGITAL VERSION ISBN-13
ORIGINAL PUBLICATION YEAR
1 2 3 4 5 6 7 8 9 10 JAY 22
978-1-711471-49-5
978-1-711471-50-1
978-1-951693-65-7
2022
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The Calvin K. Kazanjian Economics Foundation
White Star Education Foundation
Charles Koch Foundation
Schmidt Futures
Leon Lowenstein Foundation, Inc.
William Marsh Rice University
The Maxfield Foundation
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CONTENTS
Preface
1
CHAPTER 1
Welcome to Economics!
Introduction
9
9
1.1 What Is Economics, and Why Is It Important?
10
1.2 Microeconomics and Macroeconomics
15
1.3 How Economists Use Theories and Models to Understand Economic Issues
16
1.4 How To Organize Economies: An Overview of Economic Systems
18
Key Terms
24
Key Concepts and Summary
24
Self-Check Questions
25
Review Questions
25
|
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] |
16
1.4 How To Organize Economies: An Overview of Economic Systems
18
Key Terms
24
Key Concepts and Summary
24
Self-Check Questions
25
Review Questions
25
Critical Thinking Questions
26
CHAPTER 2
Choice in a World of Scarcity
Introduction to Choice in a World of Scarcity
27
27
2.1 How Individuals Make Choices Based on Their Budget Constraint
28
2.2 The Production Possibilities Frontier and Social Choices
33
2.3 Confronting Objections to the Economic Approach
38
Key Terms
43
Key Concepts and Summary
43
Self-Check Questions
44
Review Questions
44
Critical Thinking Questions
45
Problems
45
CHAPTER 3
Demand and Supply
Introduction to Demand and Supply
47
47
3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
48
3.2 Shifts in Demand and Supply for Goods and Services
54
3.3 Changes in Equilibrium Price and Quantity: The Four-Step Process
64
3.4 Price Ceilings and Price Floors
3.5 Demand, Supply, and Efficiency
70
74
Key Terms
|
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|
Vectorstore Dataset: Economics
Overview
This dataset contains pre-computed vector embeddings for the economics domain, ready for use in Retrieval-Augmented Generation (RAG) applications, semantic search, and knowledge base systems. The embeddings are generated from high-quality source documents using state-of-the-art sentence transformers, making it easy to build production-ready RAG applications without the computational overhead of embedding generation.
What This Knowledge Base Covers
This knowledge base covers economics concepts, theories, and applications. It includes topics such as microeconomics, macroeconomics, market structures, supply and demand, monetary and fiscal policy, trade, and economic indicators. Use it to answer questions about economic principles, policy analysis, market behavior, and real-world economic phenomena.
Key Features
- ✅ Pre-computed embeddings: Ready-to-use vector embeddings, saving computation time
- ✅ Production-ready: Optimized for real-world RAG applications
- ✅ Comprehensive metadata: Includes source file information, page numbers, and document hashes
- ✅ LangChain compatible: Works seamlessly with LangChain and ChromaDB
- ✅ Search-optimized: Designed for fast semantic similarity search
What's Included
This dataset contains 4,228 text chunks from 3 source documents, each pre-embedded using the sentence-transformers/all-MiniLM-L6-v2 model. Each chunk includes:
- Text content: The original document text
- Embedding vector: 384-dimensional float32 vector
- Rich metadata: Source file, page numbers, document hash, and more
Dataset Details
Dataset Summary
- Domain:
economics - Total Chunks: 4,228
- Total Documents: 3
- Database Size: 56.08 MB (8 files)
- Embedding Model:
sentence-transformers/all-MiniLM-L6-v2 - Chunk Size: 1000
- Chunk Overlap: 200
Dataset Structure
The dataset contains the following columns:
- id: Unique identifier for each chunk
- embedding: Vector embedding (numpy array, dtype=float32)
- document: Original text content of the chunk
- metadata: JSON string containing metadata (file_name, file_hash, page_number, etc.)
Embedding Model
This dataset uses embeddings from: sentence-transformers/all-MiniLM-L6-v2
Usage
Loading the Dataset
from datasets import load_dataset
# Load the dataset
dataset = load_dataset("meetara-lab/vectorstore-economics")
# Access the data
print(dataset["train"][0])
# Output:
# {
# 'id': '...',
# 'embedding': array([...], dtype=float32),
# 'document': '...',
# 'metadata': '{"file_name": "...", "page": 1, ...}'
# }
Loading Back into ChromaDB
from langchain_chroma import Chroma
from langchain_huggingface import HuggingFaceEmbeddings
from datasets import load_dataset
import json
# Load dataset
dataset = load_dataset("meetara-lab/vectorstore-economics")["train"]
# Initialize ChromaDB
embeddings = HuggingFaceEmbeddings(model_name="sentence-transformers/all-MiniLM-L6-v2")
vectorstore = Chroma(
persist_directory="./chroma_economics",
embedding_function=embeddings
)
# Add documents to ChromaDB
documents = []
metadatas = []
ids = []
embeddings_list = []
for item in dataset:
ids.append(item["id"])
embeddings_list.append(item["embedding"].tolist())
documents.append(item["document"])
metadatas.append(json.loads(item["metadata"]))
# Note: You'll need to use ChromaDB's Python client directly for custom embeddings
import chromadb
client = chromadb.PersistentClient(path="./chroma_economics")
collection = client.create_collection(name="economics")
collection.add(
ids=ids,
embeddings=embeddings_list,
documents=documents,
metadatas=metadatas
)
Using with LangChain
from langchain_chroma import Chroma
from langchain_huggingface import HuggingFaceEmbeddings
# Initialize retriever
embeddings = HuggingFaceEmbeddings(model_name="sentence-transformers/all-MiniLM-L6-v2")
vectorstore = Chroma(
persist_directory="./chroma_economics",
embedding_function=embeddings
)
# Load from HF Hub first (see above), then use with LangChain
retriever = vectorstore.as_retriever()
results = retriever.invoke("your query here")
Domain-Specific Usage Examples
This vectorstore is optimized for Economics domain queries. Here are practical examples:
Example Queries
from langchain_chroma import Chroma
from langchain_huggingface import HuggingFaceEmbeddings
# Load vectorstore (see "Loading Back into ChromaDB" above)
embeddings = HuggingFaceEmbeddings(model_name="sentence-transformers/all-MiniLM-L6-v2")
vectorstore = Chroma(
persist_directory="./chroma_economics",
embedding_function=embeddings
)
retriever = vectorstore.as_retriever(search_kwargs={"k": 3})
# Example queries for economics domain:
example_queries = [
"What is the law of supply and demand?",
"Explain inflation and its causes",
"What are the effects of interest rate changes?",
"How do markets reach equilibrium?",
"What is GDP and how is it measured?"
]
# Run a query
query = "What is the law of supply and demand?"
results = retriever.invoke(query)
# Display results
for i, doc in enumerate(results, 1):
print(f"\nResult {i}:")
print(f" Source: {doc.metadata.get('file_name', 'Unknown')}")
print(f" Page: {doc.metadata.get('page', 'N/A')}")
print(f" Content: {doc.page_content[:200]}...")
Common Use Cases
This dataset is useful for:
- Economics concept explanation and lookup
- Policy analysis and evaluation
- Market behavior and theory reference
- Economic indicators interpretation
- Trade and international economics
Real-World Example
# Complete example: Query and use results
from langchain_chroma import Chroma
from langchain_huggingface import HuggingFaceEmbeddings
# 1. Initialize (after loading from HF Hub)
embeddings = HuggingFaceEmbeddings(model_name="sentence-transformers/all-MiniLM-L6-v2")
vectorstore = Chroma(
persist_directory="./chroma_economics",
embedding_function=embeddings
)
# 2. Create retriever with relevance filtering
retriever = vectorstore.as_retriever(
search_type="similarity",
search_kwargs={
"k": 5, # Get top 5 most relevant results
"score_threshold": 0.7 # Minimum similarity score
}
)
# 3. Query the vectorstore
query = "Explain inflation and its causes"
docs = retriever.invoke(query)
# 4. Process results
for doc in docs:
metadata = doc.metadata
print(f"📄 File: {metadata.get('file_name', 'Unknown')}")
print(f"📃 Page: {metadata.get('page', 'N/A')}")
print(f"📝 Content: {doc.page_content[:300]}...\n")
Dataset Statistics
Content Statistics
- Total Chunks: 4,228
- Total Documents: 3
- Average Chunks per Document: 1409.3
- Database Size: 56.08 MB (8 files)
Technical Specifications
- Embedding Model:
sentence-transformers/all-MiniLM-L6-v2(384 dimensions) - Chunk Size: 1000 characters
- Chunk Overlap: 200 characters
- Format: Parquet/Arrow (optimized for fast loading)
Performance Considerations
Loading Time
- Full dataset loads in ~5-15 seconds on average hardware
- Memory usage: ~6.2 MB for embeddings alone
- Recommended RAM: 2GB+ for full dataset operations
Search Performance
- Typical query time: <100ms for similarity search
- Optimized for retrieval of top-k results (k=5-10)
- Works best with vector databases like ChromaDB, Pinecone, or Weaviate
Citation
If you use this dataset, please cite:
@dataset{meetara_vectorstore_economics,
title={meeTARA Vectorstore: Economics},
author={meeTARA Lab},
year={2024},
url={https://huggingface.co/datasets/meetara-lab/vectorstore-economics}
}
Limitations and Considerations
- Language: This dataset is monolingual (English only)
- Domain specificity: Optimized for economics domain queries
- Embedding model: Uses
sentence-transformers/all-MiniLM-L6-v2- ensure compatibility if switching models - Update frequency: Dataset reflects state at time of publication; source documents may have been updated
Alternatives and Related Datasets
Looking for other domains? Check out the complete meeTARA Vectorstore collection:
Healthcare Domain
- 🏥
meetara-lab/vectorstore-general_health- General Health (35,556 chunks) - 💊
meetara-lab/vectorstore-healthcare- Healthcare (Available) - 🧠
meetara-lab/vectorstore-mental_health- Mental Health (407 chunks) - 💊
meetara-lab/vectorstore-nutrition- Nutrition (1,165 chunks) - 💊
meetara-lab/vectorstore-senior_health- Senior Health (410 chunks) - 👩
meetara-lab/vectorstore-women_health- Women Health (318 chunks)
Education Domain
- 📚
meetara-lab/vectorstore-academic_tutoring- Academic Tutoring (64,845 chunks) - 📚
meetara-lab/vectorstore-education- Education (Available)
Other Domains
- 📁
meetara-lab/vectorstore-accounting- Accounting (4,838 chunks) - 📁
meetara-lab/vectorstore-ai_ml- Ai Ml (131 chunks) - 📁
meetara-lab/vectorstore-bipolar_disorder- Bipolar Disorder (65 chunks) - 📁
meetara-lab/vectorstore-chronic_conditions- Chronic Conditions (1,882 chunks) - 📁
meetara-lab/vectorstore-emergency_care- Emergency Care (52 chunks) - 📁
meetara-lab/vectorstore-legal_business- Legal Business (4,498 chunks) - 📁
meetara-lab/vectorstore-medication_management- Medication Management (161 chunks) - 📁
meetara-lab/vectorstore-parenting- Parenting (460 chunks) - 📁
meetara-lab/vectorstore-preventive_care- Preventive Care (253 chunks) - 📁
meetara-lab/vectorstore-programming- Programming (171 chunks) - 📁
meetara-lab/vectorstore-publish- Publish (Available) - 📁
meetara-lab/vectorstore-software_development- Software Development (82 chunks) - 📁
meetara-lab/vectorstore-space_technology- Space Technology (15 chunks) - 📁
meetara-lab/vectorstore-sports_recreation- Sports Recreation (Available) - 📁
meetara-lab/vectorstore-stress_management- Stress Management (26 chunks) - 📁
meetara-lab/vectorstore-tech_support- Tech Support (2,920 chunks)
🔗 View all meeTARA datasets: https://huggingface.co/meetara-lab
💡 Tip: Combine multiple domain datasets for comprehensive multi-domain RAG applications!
Maintenance and Updates
This dataset is maintained by the meeTARA Lab team.
- Last Updated: 2026-02-07
- Version: 1.0
- Update Policy: Datasets are updated periodically as source documents are added or improved
- Notifications: Follow the repository to receive updates when new versions are published
For updates, bug reports, or feature requests, please visit our GitHub repository.
License
This dataset is released under the Apache 2.0 License. This means you are free to:
- Use the dataset commercially and non-commercially
- Modify and create derivative works
- Distribute the dataset and modifications
Please see the full license text for complete terms.
Citation
If you use this dataset in your research or applications, please cite it as:
@dataset{meetara_vectorstore_economics,
title={meeTARA Vectorstore: Economics},
author={meeTARA Lab},
year={2024},
url={https://huggingface.co/datasets/meetara-lab/vectorstore-economics},
license={apache-2.0},
task={feature-extraction, text-retrieval, rag}
}
Contact and Support
- GitHub: meetara-lab/meetara-core
- Hugging Face Profile: @meetara-lab
- Issues: Report bugs or request features on GitHub Issues
- Documentation: Visit our repository for detailed documentation
- Dataset Requests: Want a new domain? Open an issue to request it!
Contributing
We welcome contributions! If you'd like to:
- 🐛 Report bugs
- 💡 Suggest new domains
- 📝 Improve documentation
- 🔧 Contribute code
Please visit our GitHub repository.
Made with ❤️ by the meeTARA Lab team
Part of the meeTARA Vectorstore Collection - Empowering RAG applications with high-quality domain-specific embeddings.
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