| Preface |
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xiii | |
| Student Learning Guide |
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xxii | |
| An Introduction to Economics |
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Part 1: Economics: The Science of Scarcity |
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1 | (32) |
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2 | (1) |
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2 | (2) |
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Positive and Normative Economics |
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3 | (1) |
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Microeconomics and Macroeconomics |
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3 | (1) |
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Key Concepts in Economics |
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4 | (12) |
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Thinking in Terms of Scarcity and Its Effects |
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4 | (2) |
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Thinking in Terms of Opportunity Cost |
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6 | (2) |
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Thinking in Terms of Costs and Benefits |
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8 | (1) |
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Thinking in Terms of Decisions Made at the Margin |
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9 | (1) |
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Thinking in Terms of Efficiency |
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10 | (2) |
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Thinking in Terms of Unintended Effects |
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12 | (1) |
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Thinking in Terms of Equilibrium |
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13 | (1) |
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Thinking in Terms of the Ceteris Paribus Assumption |
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14 | (1) |
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Thinking in Terms of the Difference Between Association and Causation |
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15 | (1) |
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Thinking in Terms of the Difference Between the Group and the Individual |
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15 | (1) |
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Economists Build and Test Theories |
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16 | (5) |
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16 | (1) |
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Building and Testing a Theory |
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17 | (2) |
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How Do We Judge Theories? |
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19 | (1) |
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20 | (1) |
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21 | (1) |
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21 | (2) |
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23 | (1) |
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23 | (1) |
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24 | (1) |
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Appendix A: Working With Diagrams |
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25 | (1) |
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25 | (1) |
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26 | (1) |
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Slope of a Line Is Constant |
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26 | (2) |
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28 | (1) |
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28 | (1) |
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29 | (1) |
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29 | (1) |
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30 | (2) |
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32 | (1) |
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32 | (1) |
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Economic Activities: Producing and Trading |
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33 | (27) |
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The Production Possibilities Frontier |
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34 | (7) |
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The Straight-Line PPF: Constant Opportunity Costs |
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34 | (1) |
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The Bowed-Outward (Concave-Downward) PPF: Increasing Opportunity Costs |
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35 | (1) |
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Law of Increasing Opportunity Costs |
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36 | (1) |
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Economic Concepts Within a PPF Framework |
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37 | (4) |
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41 | (4) |
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41 | (1) |
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Periods Relevant to Trade |
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42 | (1) |
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Trade and the Terms of Trade |
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42 | (1) |
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43 | (2) |
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Trades and Third-Party Effects |
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45 | (1) |
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Production, Trade, and Specialization |
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45 | (4) |
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46 | (2) |
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Profit and a Lower Cost of Living |
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48 | (1) |
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A Benevolent and All-Knowing Dictator Versus the Invisible Hand |
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49 | (1) |
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Producing, Trading, and Economic Systems |
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49 | (4) |
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49 | (2) |
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51 | (1) |
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Economic Systems and the PPF |
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51 | (1) |
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Three Economic Questions That Deal With Production |
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51 | (1) |
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52 | (1) |
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52 | (1) |
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53 | (3) |
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Economic Systems and Property Rights |
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53 | (1) |
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Do Property Rights Matter? |
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54 | (1) |
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Property Rights and Scarce Resources |
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54 | (2) |
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56 | (1) |
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56 | (1) |
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57 | (1) |
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57 | (1) |
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Working With Numbers and Graphs |
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58 | (1) |
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59 | (1) |
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Supply and Demand: Theory |
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60 | (33) |
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61 | (1) |
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61 | (11) |
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61 | (1) |
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Four Ways to Represent the Law of Demand |
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62 | (1) |
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Absolute and Relative Price |
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63 | (1) |
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Why Quantity Demanded Goes Down as Price Goes Up |
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63 | (1) |
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Individual Demand Curve and Market Demand Curve |
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64 | (1) |
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A Change in Quantity Demanded Versus a Change in Demand |
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65 | (3) |
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What Factors Cause the Demand Curve to Shift? |
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68 | (4) |
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72 | (4) |
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72 | (1) |
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Why Most Supply Curves Are Upward-Sloping |
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72 | (1) |
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72 | (1) |
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Changes in Supply Mean Shifts in Supply Curves |
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73 | (1) |
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What Factors Cause the Supply Curve to Shift? |
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74 | (1) |
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A Change in Supply Versus a Change in Quantity Supplied |
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75 | (1) |
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The Market: Putting Supply and Demand Together |
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76 | (8) |
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Supply and Demand at Work at an Auction |
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77 | (1) |
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The Language of Supply and Demand: A Few Important Terms |
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78 | (1) |
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Moving to Equilibrium: What Happens to Price When There Is a Surplus or a Shortage? |
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78 | (1) |
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Speed of Moving to Equilibrium |
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79 | (1) |
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Moving to Equilibrium: Maximum and Minimum Prices |
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80 | (1) |
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Equilibrium in Terms of Consumers' and Producers' Surplus |
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80 | (2) |
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What Can Change Equilibrium Price and Quantity? |
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82 | (2) |
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84 | (5) |
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Price Ceiling: Definition and Effects |
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84 | (3) |
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Do Buyers Prefer Lower Prices to Higher Prices? |
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87 | (1) |
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Price Floor: Definition and Effects |
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88 | (1) |
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89 | (1) |
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89 | (1) |
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90 | (1) |
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90 | (1) |
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Working With Numbers and Graphs |
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91 | (1) |
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92 | (1) |
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Supply and Demand: Practice |
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93 | (28) |
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Application 1: Why Do Colleges Use GPAs, ACTs, and SATs for Purposes of Admission? |
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94 | (1) |
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Application 2: What Will Happen to the Price of Marijuana if the Purchase and Sale of Marijuana Are Legalized? |
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95 | (1) |
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Application 3: Where Did You Get That Music? |
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96 | (1) |
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Application 4: The Minimum Wage Law |
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97 | (1) |
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Application 5: Price Ceiling in the Kidney Market |
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98 | (2) |
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Application 6: Health Care and the Right to Sue Your HMO |
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100 | (2) |
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Application 7: If Gold Prices Are the Same Everywhere, Then Why Aren't House Prices? |
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102 | (1) |
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Application 8: Do You Pay for Good Weather? |
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103 | (1) |
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Application 9: Paying All Professors the Same Salary |
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103 | (2) |
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Application 10: Price Floors and Winners and Losers |
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105 | (1) |
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Application 11: College Superathletes |
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106 | (2) |
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Application 12: Supply and Demand on a Freeway |
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108 | (1) |
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Application 13: What Does Price Have to Do With Getting to Class on Time? |
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109 | (2) |
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Application 14: Aisle Seats on Commercial Airplanes |
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111 | (1) |
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Application 15: 10 A.M. Classes in College |
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112 | (1) |
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Application 16: What Is the Price of an A? |
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113 | (1) |
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114 | (1) |
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115 | (1) |
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116 | (1) |
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116 | (1) |
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Working With Numbers and Graphs |
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117 | (1) |
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117 | (1) |
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Economics in Perspective: Musical Notes, Economic Notes |
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118 | (3) |
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Part 2: Microeconomic Fundamentals |
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121 | (27) |
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122 | (9) |
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Price Elasticity of Demand |
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122 | (1) |
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123 | (1) |
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From Perfectly Elastic to Perfectly Inelastic Demand |
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124 | (2) |
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Price Elasticity of Demand and Total Revenue (Total Expenditure) |
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126 | (3) |
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Agriculture: An Application of Price Elasticity of Demand |
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129 | (2) |
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131 | (4) |
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Price Elasticity of Demand Along a Straight-Line Demand Curve |
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131 | (2) |
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Determinants of Price Elasticity of Demand |
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133 | (2) |
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Other Elasticity Concepts |
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135 | (9) |
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Cross Elasticity of Demand |
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135 | (1) |
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Income Elasticity of Demand |
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136 | (2) |
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Traffic Jams in Bangkok, Sao Paulo, and Cairo |
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138 | (1) |
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Price Elasticity of Supply |
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138 | (2) |
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Price Elasticity of Supply and Time |
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140 | (1) |
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The Relationship Between Taxes and Elasticity |
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140 | (4) |
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144 | (1) |
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145 | (1) |
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146 | (1) |
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146 | (1) |
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Working With Numbers and Graphs |
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146 | (1) |
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147 | (1) |
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Consumer Choice: Maximizing Utility and Behavioral Economics |
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148 | (27) |
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149 | (5) |
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Utility, Total and Marginal |
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149 | (1) |
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Law of Diminishing Marginal Utility |
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149 | (3) |
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The Millionaire and the Pauper: What the Law Says and Doesn't Say |
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152 | (1) |
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The Solution to the Diamond-Water Paradox |
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153 | (1) |
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Is Gambling Worth the Effort? |
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153 | (1) |
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Consumer Equilibrium and Demand |
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154 | (6) |
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Equating Marginal Utilities per Dollar |
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154 | (1) |
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Consumer Equilibrium and the Law of Demand |
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155 | (1) |
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Income and Substitution Effects |
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156 | (2) |
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Should the Government Provide the Necessities of Life for Free? |
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158 | (2) |
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160 | (4) |
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Are People Willing to Reduce Others' Incomes? |
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160 | (1) |
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161 | (1) |
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Coffee Mugs and the Endowment Effect |
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162 | (1) |
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Does the Endowment Effect Hold Only for New Traders? |
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163 | (1) |
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164 | (1) |
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164 | (1) |
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165 | (1) |
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165 | (1) |
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Working With Numbers and Graphs |
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166 | (1) |
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166 | (1) |
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Appendix B: Budget Constraint and Indifference Curve Analysis |
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167 | (1) |
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167 | (1) |
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Slope of the Budget Constraint |
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167 | (1) |
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What Will Change the Budget Constraint? |
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168 | (1) |
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168 | (4) |
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Constructing an Indifference Curve |
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169 | (1) |
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Characteristics of Indifference Curves |
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169 | (3) |
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The Indifference Map and the Budget Constraint Come Together |
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172 | (1) |
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From Indifference Curves to a Demand Curve |
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173 | (1) |
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174 | (1) |
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174 | (1) |
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175 | (19) |
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176 | (4) |
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The Market and the Firm: Invisible Hand Versus Visible Hand |
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176 | (1) |
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The Alchian and Demsetz Answer |
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176 | (1) |
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176 | (1) |
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Ronald Coase on Why Firms Exist |
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177 | (2) |
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Markets: Outside and Inside the Firm |
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179 | (1) |
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The Questions the Firm Must Answer |
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180 | (1) |
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The Objective of the Firm |
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180 | (2) |
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182 | (3) |
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182 | (1) |
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183 | (1) |
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184 | (1) |
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Some Financial Aspects of Firms |
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185 | (4) |
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The Balance Sheet of a Firm |
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185 | (1) |
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Financing Corporate Activity |
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186 | (3) |
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189 | (1) |
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190 | (1) |
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191 | (1) |
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192 | (1) |
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192 | (1) |
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Working With Numbers and Graphs |
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193 | (1) |
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193 | (1) |
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194 | (26) |
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The Firm's Objective: Maximizing Profit |
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195 | (2) |
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Accounting Profit Versus Economic Profit |
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195 | (1) |
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Zero Economic Profit Is Not so Bad as It Sounds |
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196 | (1) |
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197 | (5) |
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Production in the Short Run |
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198 | (1) |
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Marginal Physical Product and Marginal Cost |
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199 | (3) |
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202 | (1) |
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Costs of Production: Total, Average, Marginal |
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202 | (10) |
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The AVC and ATC Curves in Relation to the MC Curve |
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205 | (2) |
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Tying Short-Run Production to Costs |
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207 | (1) |
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One More Cost Concept: Sunk Cost |
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207 | (5) |
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Production and Costs in the Long Run |
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212 | (4) |
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Long-Run Average Total Cost Curve |
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212 | (2) |
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Economies of Scale, Diseconomies of Scale, and Constant Returns to Scale |
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214 | (1) |
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215 | (1) |
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Why Diseconomies of Scale? |
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215 | (1) |
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Minimum Efficient Scale and Number of Firms in an Industry |
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216 | (1) |
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216 | (1) |
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216 | (1) |
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216 | (1) |
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216 | (1) |
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217 | (1) |
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217 | (1) |
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218 | (1) |
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218 | (1) |
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Working With Numbers and Graphs |
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219 | (1) |
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219 | (1) |
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Part 3: Product Markets and Policies Perfect Competition |
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220 | (291) |
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221 | (26) |
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The Theory of Perfect Competition |
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221 | (1) |
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A Perfectly Competitive Firm Is a Price Taker |
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221 | (4) |
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The Demand Curve for a Perfectly Competitive Firm Is Horizontal |
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222 | (1) |
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The Marginal Revenue Curve of a Perfectly Competitive Firm Is the Same as Its Demand Curve |
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223 | (1) |
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Theory and Real-World Markets |
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224 | (1) |
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Perfect Competition in the Short Run |
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225 | (6) |
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What Level of Output Does the Profit-Maximizing Firm Produce? |
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225 | (1) |
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The Perfectly Competitive Firm and Resource Allocative Efficiency |
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226 | (1) |
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To Produce or Not to Produce: That Is the Question |
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227 | (2) |
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The Perfectly Competitive Firm's Short-Run Supply Curve |
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229 | (1) |
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From Firm to Market (Industry) Supply Curve |
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229 | (1) |
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Why Is the Market Supply Curve Upward-Sloping? |
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230 | (1) |
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Perfect Competition in the Long Run |
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231 | (10) |
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The Conditions of Long-Run Competitive Equilibrium |
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231 | (3) |
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The Perfectly Competitive Firm and Productive Efficiency |
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234 | (1) |
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Industry Adjustment to an Increase in Demand |
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234 | (4) |
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What Happens as Firms Enter an Industry in Search of Profits? |
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238 | (1) |
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Industry Adjustment to a Decrease in Demand |
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239 | (1) |
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Differences in Costs, Differences in Profits: Now You See It, Now You Don't |
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239 | (1) |
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Profit and Discrimination |
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240 | (1) |
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Topics for Analysis Within the Theory of Perfect Competition |
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241 | (1) |
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Do Higher Costs Mean Higher Prices? |
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241 | (1) |
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Will the Perfectly Competitive Firm Advertise? |
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242 | (1) |
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Supplier-Set Price Versus Market-Determined Price: Collusion or Competition? |
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242 | (1) |
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242 | (1) |
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243 | (1) |
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244 | (1) |
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244 | (1) |
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Working With Numbers and Graphs |
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245 | (1) |
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245 | (2) |
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247 | (21) |
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248 | (2) |
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Barriers to Entry: A Key to Understanding Monopoly |
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248 | (1) |
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What Is the Difference Between a Government Monopoly and a Market Monopoly? |
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249 | (1) |
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Monopoly Pricing and Output Decisions |
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250 | (5) |
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The Monopolist's Demand and Marginal Revenue |
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250 | (2) |
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The Monopolist's Demand and Marginal Revenue Curves Are Not the Same: Why Not? |
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252 | (1) |
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Price and Output for a Profit-Maximizing Monopolist |
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252 | (1) |
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If a Firm Maximizes Revenue, Does It Automatically Maximize Profit Too? |
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253 | (2) |
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Perfect Competition and Monopoly |
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255 | (2) |
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Price, Marginal Revenue, and Marginal Cost |
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255 | (1) |
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Monopoly, Perfect Competition, and Consumers' Surplus |
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255 | (1) |
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256 | (1) |
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The Case Against Monopoly |
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257 | (3) |
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The Deadweight Loss of Monopoly |
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257 | (1) |
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258 | (2) |
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260 | (1) |
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260 | (5) |
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Types of Price Discrimination |
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260 | (1) |
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Why a Monopolist Wants to Price Discriminate |
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260 | (1) |
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Conditions of Price Discrimination |
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261 | (1) |
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Moving to P = MC Through Price Discrimination |
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261 | (2) |
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You Can Have the Comics, Just Give Me the Coupons |
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263 | (2) |
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265 | (1) |
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265 | (1) |
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266 | (1) |
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266 | (1) |
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Working With Numbers and Graphs |
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266 | (1) |
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267 | (1) |
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Monopolistic Competition, Oligopoly, and Game Theory |
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268 | (27) |
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The Theory of Monopolistic Competition |
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269 | (4) |
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The Monopolistic Competitor's Demand Curve |
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269 | (1) |
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The Relationship Between Price and Marginal Revenue for a Monopolistic Competitor |
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269 | (1) |
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Output, Price, and Marginal Cost for the Monopolistic Competitor |
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269 | (1) |
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Will There Be Profits in the Long Run? |
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270 | (1) |
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Excess Capacity: What Is It, and Is It ``Good'' or ``Bad''? |
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271 | (1) |
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The Monopolist Competitor and Two Types of Efficiency |
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272 | (1) |
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Advertising and Designer Labels |
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272 | (1) |
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Oligopoly: Assumptions and Real-World Behavior |
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273 | (1) |
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Price and Output Under Three Oligopoly Theories |
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274 | (6) |
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274 | (2) |
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The Kinked Demand Curve Theory |
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276 | (2) |
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The Price Leadership Theory |
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278 | (2) |
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Game Theory, Oligopoly, and Contestable Markets |
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280 | (6) |
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280 | (2) |
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Oligopoly Firms Cartels, and Prisoner's Dilemma |
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282 | (1) |
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283 | (3) |
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A Review of Market Structures |
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286 | (1) |
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Applications of Game Theory |
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287 | (4) |
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287 | (1) |
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288 | (1) |
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289 | (1) |
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The Fear of Guilt as an Enforcement Mechanism |
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290 | (1) |
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291 | (1) |
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292 | (1) |
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292 | (1) |
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293 | (1) |
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Working With Numbers and Graphs |
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293 | (1) |
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294 | (1) |
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Government and Product Markets: Antitrust and Regulation |
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295 | (27) |
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296 | (11) |
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296 | (1) |
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Unsettled Points in Antitrust Policy |
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297 | (3) |
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300 | (1) |
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Eight Antitrust Cases and Actions |
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300 | (3) |
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303 | (2) |
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305 | (2) |
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307 | (9) |
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The Case of Natural Monopoly |
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307 | (1) |
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Regulating the Natural Monopoly |
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308 | (2) |
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Regulating Industries That Are Not Natural Monopolies |
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310 | (1) |
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310 | (2) |
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The Costs and Benefits of Regulation |
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312 | (1) |
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Some Effects of Regulation Are Unintended |
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313 | (1) |
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314 | (1) |
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315 | (1) |
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316 | (1) |
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317 | (1) |
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317 | (1) |
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317 | (1) |
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Working With Numbers and Graphs |
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318 | (1) |
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319 | (1) |
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Economics in Perspective: Intuition and Counterintuition |
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320 | (2) |
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Part 4: Factor Markets and Related Issues |
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Factor Markets: With Emphasis on the Labor Market |
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322 | (23) |
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323 | (6) |
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323 | (1) |
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Marginal Revenue Product: Two Ways to Calculate It |
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323 | (1) |
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The MRP Curve Is the Firm's Factor Demand Curve |
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324 | (1) |
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325 | (1) |
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An Important Question: Is MRP = VMP? |
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325 | (1) |
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Marginal Factor Cost---The Firm's Factor Supply Curve |
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325 | (1) |
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How Many Units of a Factor Should a Firm Buy? |
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326 | (1) |
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When There Is More Than One Factor, How Much of Each Factor Should the Firm Buy? |
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327 | (2) |
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329 | (9) |
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Shifts in a Firm's MRP, or Factor Demand, Curve |
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329 | (1) |
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329 | (3) |
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The Elasticity of Demand for Labor |
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332 | (1) |
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333 | (1) |
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An Individual's Supply of Labor |
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334 | (1) |
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Shifts in the Labor Supply Curve |
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334 | (1) |
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Putting Supply and Demand Together |
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335 | (1) |
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Why Do Wage Rates Differ? |
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335 | (1) |
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Why Demand and Supply Differ in Different Labor Markets |
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336 | (2) |
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Why Did You Choose the Major That You Chose? |
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338 | (1) |
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Marginal Productivity Theory |
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338 | (2) |
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Labor Markets and Information |
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340 | (2) |
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Screening Potential Employees |
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340 | (1) |
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341 | (1) |
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Is It Discrimination or Is It an Information Problem? |
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341 | (1) |
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342 | (1) |
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342 | (1) |
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343 | (1) |
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343 | (1) |
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Working With Numbers and Graphs |
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343 | (1) |
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344 | (1) |
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345 | (18) |
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The Facts and Figures of Labor Unions |
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346 | (1) |
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346 | (1) |
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346 | (1) |
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Objectives of Labor Unions |
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347 | (1) |
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Employment for All Members |
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347 | (1) |
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Maximizing the Total Wage Bill |
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347 | (1) |
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Maximizing Income for a Limited Number of Union Members |
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347 | (1) |
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348 | (1) |
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Practices of Labor Unions |
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348 | (4) |
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Affecting Elasticity of Demand for Union Labor |
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349 | (1) |
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Affecting the Demand for Union Labor |
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349 | (1) |
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Affecting the Supply of Union Labor |
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350 | (1) |
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Affecting Wages Directly: Collective Bargaining |
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351 | (1) |
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351 | (1) |
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352 | (8) |
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352 | (3) |
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355 | (2) |
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Unions' Effects on Prices |
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357 | (1) |
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Unions' Effects on Productivity and Efficiency: Two Views |
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357 | (3) |
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360 | (1) |
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360 | (1) |
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361 | (1) |
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361 | (1) |
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Working With Numbers and Graphs |
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361 | (1) |
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362 | (1) |
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The Distribution of Income and Poverty |
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363 | (22) |
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Some Facts About Income Distribution |
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364 | (5) |
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Who Are the Rich and How Rich Are They? |
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364 | (1) |
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Adjusting the Income Distribution |
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364 | (3) |
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The Effect of Age on the Income Distribution |
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367 | (1) |
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368 | (1) |
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Measuring Income Equality |
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369 | (3) |
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369 | (1) |
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370 | (1) |
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A Limitation of the Gini Coefficient |
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371 | (1) |
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Why Income Inequality Exists |
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372 | (4) |
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Factors Contributing to Income Inequality |
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372 | (2) |
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Income Differences: Some Are Voluntary, Some Are Not |
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374 | (2) |
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Normative Standards of Income Distribution |
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376 | (3) |
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The Marginal Productivity Normative Standard |
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376 | (2) |
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The Absolute Income Equality Normative Standard |
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378 | (1) |
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The Rawlsian Normative Standard |
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378 | (1) |
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379 | (1) |
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379 | (3) |
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379 | (1) |
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Limitations of the Official Poverty Income Statistics |
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380 | (1) |
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380 | (1) |
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What Is the Justification for Government Redistributing Income? |
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380 | (2) |
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382 | (1) |
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383 | (1) |
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384 | (1) |
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384 | (1) |
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Working With Numbers and Graphs |
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384 | (1) |
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384 | (1) |
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Interest, Rent, and Profit |
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385 | (18) |
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386 | (6) |
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Loanable Funds: Demand and Supply |
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386 | (2) |
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The Price for Loanable Funds and the Return on Capital Goods Tend to Equality |
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388 | (1) |
|
Why Do Interest Rates Differ? |
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388 | (1) |
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Nominal and Real Interest Rates |
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389 | (1) |
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Present Value: What Is Something Tomorrow Worth Today? |
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390 | (1) |
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Deciding Whether or Not to Purchase a Capital Good |
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391 | (1) |
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392 | (5) |
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David Ricardo, the Price of Grain, and Land Rent |
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393 | (1) |
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The Supply Curve of Land Can Be Upward-Sloping |
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394 | (1) |
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Economic Rent and Other Factors of Production |
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395 | (1) |
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Economic Rent and Baseball Players: The Perspective From Which the Factor Is Viewed Matters |
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395 | (1) |
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Competing for Artificial and Real Rents |
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396 | (1) |
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Do People Overestimate Their Worth to Others, or Are They Simply Seeking Economic Rent? |
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396 | (1) |
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397 | (3) |
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397 | (1) |
|
What Is Entrepreneurship? |
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398 | (1) |
|
What Do a Microwave Oven and an Errand Runner Have in Common? |
|
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398 | (1) |
|
Profit and Loss as Signals |
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399 | (1) |
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400 | (1) |
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400 | (1) |
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401 | (1) |
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401 | (1) |
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Working With Numbers and Graphs |
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401 | (1) |
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402 | (1) |
|
Part 5: Market Failure and Public Choice |
|
|
|
Market Failure: Externalities, Public Goods, and Asymmetric Information |
|
|
403 | (27) |
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404 | (1) |
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404 | (6) |
|
Costs and Benefits of Activities |
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|
404 | (1) |
|
Marginal Costs and Benefits of Activities |
|
|
405 | (1) |
|
Social Optimality or Efficiency Conditions |
|
|
405 | (1) |
|
Three Categories of Activities |
|
|
405 | (1) |
|
Externalities in Consumption and in Production |
|
|
406 | (1) |
|
Diagram of a Negative Externality |
|
|
406 | (2) |
|
Diagram of a Positive Externality |
|
|
408 | (2) |
|
Internalizing Externalities |
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|
410 | (5) |
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410 | (1) |
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410 | (1) |
|
Assigning Property Rights |
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411 | (1) |
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412 | (1) |
|
Combining Property Rights Assignments and Voluntary Agreements |
|
|
412 | (2) |
|
Beyond Internalizing: Setting Regulations |
|
|
414 | (1) |
|
Dealing With a Negative Externality in the Environment |
|
|
415 | (3) |
|
Is No Pollution Worse Than Some Pollution? |
|
|
415 | (1) |
|
Two Methods to Reduce Air Pollution |
|
|
416 | (2) |
|
Public Goods: Excludable and Nonexcludable |
|
|
418 | (3) |
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418 | (1) |
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419 | (1) |
|
Nonexcludable Versus Nonrivalrous |
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420 | (1) |
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421 | (5) |
|
Asymmetric Information in a Product Market |
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421 | (1) |
|
Asymmetric Information in a Factor Market |
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422 | (1) |
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422 | (1) |
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423 | (1) |
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424 | (2) |
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426 | (1) |
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427 | (1) |
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428 | (1) |
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428 | (1) |
|
Working With Numbers and Graphs |
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428 | (1) |
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429 | (1) |
|
Public Choice: Economic Theory Applied to Politics |
|
|
430 | (27) |
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431 | (1) |
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431 | (3) |
|
Moving Toward the Middle: The Median Voter Model |
|
|
431 | (1) |
|
What Does the Theory Predict? |
|
|
432 | (2) |
|
Voters and Rational Ignorance |
|
|
434 | (2) |
|
The Costs and Benefits of Voting |
|
|
434 | (1) |
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435 | (1) |
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|
436 | (3) |
|
Example 1: Voting for a Nonexcludable Public Good |
|
|
436 | (2) |
|
Example 2: Voting and Efficiency |
|
|
438 | (1) |
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439 | (8) |
|
Information and Lobbying Efforts |
|
|
439 | (2) |
|
Congressional Districts as Special Interest Groups |
|
|
441 | (1) |
|
Public Interest Talk, Special Interest Legislation |
|
|
441 | (1) |
|
Special Interest Groups and Rent Seeking |
|
|
442 | (5) |
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447 | (1) |
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448 | (1) |
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448 | (1) |
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449 | (1) |
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450 | (1) |
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450 | (1) |
|
Working With Numbers and Graphs |
|
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450 | (1) |
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451 | (1) |
|
Appendix C: The Economics of Transfers |
|
|
452 | (1) |
|
The Marginal Return of Transferring |
|
|
452 | (1) |
|
Ability to Effect Transfers |
|
|
452 | (1) |
|
The Transaction Costs of Transfers and ``Money for Nothing'' |
|
|
453 | (1) |
|
Political Extortion and Transfers |
|
|
453 | (1) |
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|
|
454 | (3) |
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|
|
Part 6: International Economics: Theory and Policy |
|
|
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|
|
457 | (18) |
|
International Trade Theory |
|
|
458 | (3) |
|
How Do Countries Know What to Trade? |
|
|
458 | (3) |
|
How Do Countries Know When They Have a Comparative Advantage? |
|
|
461 | (1) |
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|
461 | (10) |
|
The Distributional Effects of International Trade |
|
|
461 | (2) |
|
Consumers' and Producers' Surplus |
|
|
463 | (1) |
|
The Benefits and Costs of Trade Restrictions |
|
|
464 | (3) |
|
If Free Trade Results in Net Gain, Why Do Nations Sometimes Restrict Trade? |
|
|
467 | (3) |
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|
|
470 | (1) |
|
The World Trade Organization (WTO) |
|
|
471 | (1) |
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471 | (1) |
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472 | (1) |
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|
472 | (1) |
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473 | (1) |
|
Working With Numbers and Graphs |
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473 | (1) |
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474 | (1) |
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475 | (36) |
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476 | (6) |
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476 | (4) |
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480 | (1) |
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480 | (1) |
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|
480 | (1) |
|
What the Balance of Payments Equals |
|
|
481 | (1) |
|
The Foreign Exchange Market |
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|
482 | (2) |
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|
|
482 | (1) |
|
The Demand for and Supply of Currencies |
|
|
483 | (1) |
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|
484 | (4) |
|
The Equilibrium Exchange Rate |
|
|
484 | (1) |
|
Changes in the Equilibrium Exchange Rate |
|
|
485 | (1) |
|
Factors That Affect the Equilibrium Exchange Rate |
|
|
486 | (2) |
|
|
|
488 | (7) |
|
Fixed Exchange Rates and Overvalued/Undervalued Currency |
|
|
488 | (2) |
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What Is So Bad About an Overvalued Dollar? |
|
|
490 | (1) |
|
Government Involvement in a Fixed Exchange Rate System |
|
|
491 | (1) |
|
Options Under a Fixed Exchange Rate System |
|
|
491 | (2) |
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|
|
493 | (2) |
|
Fixed Exchange Rates Versus Flexible Exchange Rates |
|
|
495 | (3) |
|
Promoting International Trade |
|
|
495 | (1) |
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|
495 | (3) |
|
The Current International Monetary System |
|
|
498 | (2) |
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500 | (1) |
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|
500 | (1) |
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|
501 | (1) |
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|
502 | (1) |
|
Working With Numbers and Graphs |
|
|
502 | (1) |
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|
|
503 | (2) |
|
Appendix D: Should You Major in Economics? |
|
|
505 | (1) |
|
Five Myths About Economics and an Economics Major |
|
|
506 | (2) |
|
What Awaits You as an Economics Major? |
|
|
508 | (1) |
|
|
|
509 | (1) |
|
Places to Find More Information |
|
|
510 | (1) |
|
|
|
510 | (1) |
| Self-Test Appendix |
|
511 | (16) |
| Glossary |
|
527 | (8) |
| Index |
|
535 | |
Other versions by this Author