Economics: Private & Public Choice

by Gwartney, James D.; Stroup, Richard L.; Sobel, Russell S.; Macpherson, David A.

• ISBN13: 9780324205640
• ISBN10: 0324205643
• Edition: 11th
• Format: Hardcover
• Copyright: 2005-03-23
• Publisher: South-Western College Pub

Summary

Authors James D. Gwartney, Richard L. Stroup, Russell S. Sobel, and David Macpherson, believe that a course on principles of economics should focus on the power and relevance of the economic way of thinking. It is this belief and corresponding writing approach that has made ECONOMICS: PRIVATE AND PUBLIC CHOICE one of South-Western's most solid and enduring texts. Throughout this text, the authors integrate applications and real-world data in an effort to make the basic concepts of economics come alive for the reader.

Table of Contents

Part 1 The Economic Way of Thinking	1	(53)
The Economic Approach	4	(25)
What Is Economics About?	5	(1)
Outstanding Economist
The Importance of Adam Smith, the Father of Economic Science	6	(1)
Economics at the Movies
Ferris Bueller's Day Off (1986)	6	(4)
The Economic Way of Thinking	10	(7)
Positive and Normative Economics	17	(1)
Pitfalls to Avoid in Economic Thinking	17	(3)
Economics as a Career	20	(1)
Key Points	20	(1)
Critical Analysis Questions	21	(2)
Addendum
Understanding Graphs	23	(6)
Some Tools of the Economist	29	(25)
What Shall We Give Up?	30	(2)
Trade Creates Value	32	(1)
Outstanding Economist
Thomas Sowell	32	(1)
Economics at the Movies
Wall Street (1987)	33	(2)
The Importance of Property Rights	35	(1)
Key to Prosperity
Private Ownership	35	(4)
Applications in Economics
Protecting Endangered Species and the Environment with Private-Property Rights	39	(1)
Production Possibilities Curve	40	(5)
Trade, Output, and Living Standards	45	(1)
Key to Prosperity
Gains from Trade	45	(2)
Human Ingenuity and the Creation of Wealth	47	(1)
Key to Prosperity
Human Ingenuity	47	(1)
Economic Organization	48	(2)
Key Points	50	(1)
Critical Analysis Questions	51	(1)
Addendum
Comparative Advantage, Specialization, and Gains from Trade	52	(2)
Part 2 Markets and Government	54	(92)
Supply, Demand, and the Market Process	56	(27)
Consumer Choice and the Law of Demand	58	(3)
Changes in Demand Versus Changes in Quantity Demanded	61	(4)
Thumbnail Sketch
Factors That Cause Changes in Demand and Quantity Demanded	65	(1)
Producer Choice and the Law of Supply	65	(1)
Key to Prosperity
Profits and Losses	66	(2)
Outstanding Economist
Alfred Marshall	68	(1)
Changes in Supply Versus Changes in Quantity Supplied	69	(1)
Thumbnail Sketch
Factors That Cause Changes in Supply and Quantity Supplied	69	(2)
How Market Prices are Determined: Supply and Demand Interact	71	(3)
Economics at the Movies
Pretty Woman (1990)	74	(1)
How Markets Respond to Changes in Demand and Supply	75	(2)
Thumbnail Sketch
How Changes in Demand and Supply Affect Market Price and Quantity	77	(1)
Invisible Hand Principle	78	(1)
Key to Prosperity
Invisible Hand Principle	78	(3)
Key Points	81	(1)
Critical Analysis Questions	81	(2)
Supply and Demand: Applications and Extensions	83	(24)
The Link between Resource and Product Markets	84	(2)
The Economics of Price Controls	86	(1)
Applications in Economics
The Imposition of Price Ceilings During Hurricane Hugo	87	(5)
Black Markets and the Importance of the Legal Structure	92	(2)
The Impact of a Tax	94	(5)
Tax Rates, Tax Revenues, and the Laffer Curve	99	(3)
Applications in Economics
The Laffer Curve and Mountain-Climbing Deaths	102	(1)
The Impact of a Subsidy	102	(3)
Key Points	105	(1)
Critical Analysis Questions	105	(2)
Difficult Cases for the Market, and the Role of Government	107	(17)
A Closer Look at Economic Efficiency	108	(1)
If It's Worth Doing, It's Worth Doing Imperfectly	109	(1)
Economics at the Movies
Along Came Polly (2004)	110	(1)
Thinking about the Economic Role of Government	110	(2)
Potential Shortcomings of the Market	112	(5)
Applications in Economics
Capturing External Benefits: The Case of Walt Disney World	117	(4)
Pulling Things Together	121	(1)
Key Points	122	(1)
Critical Analysis Questions	122	(2)
The Economics of Collective Decision Making	124	(22)
The Size and Growth of the U.S. Government	125	(2)
The Differences and Similarities between Governments and Markets	127	(1)
Applications in Economics
Perspectives on the Cost of Political Competition: What Does It Cost to Get Elected?	127	(2)
Political Decision Making: An Overview	129	(1)
Outstanding Economist
James Buchanan	130	(2)
When the Political Process Works Well	132	(2)
When the Political Process Works Poorly	134	(1)
Applications in Economics
Sweet Subsides to Sugar Growers: A Case Study of Special-Interest Effect	135	(5)
Economic Organization: Who Produces: Who Pays, and Why It Matters	140	(2)
The Economic Way of Thinking about Government	142	(1)
Could Constitutional Changes Help Promote Prosperity?	142	(1)
Thumbnail Sketch
What Weakens the Case for Market-Sector Allocation Versus Public-Sector Intervention, and Vice Versa	142	(1)
Key Points	143	(1)
Critical Analysis Questions	144	(2)
Part 3 Core Macroeconomics	146	(220)
Taking the Nation's Economic Pulse	148	(21)
GDP---A Measure of Output	149	(1)
Outstanding Economist
Simon Kuznets	149	(2)
GDP as a Measure of Both Output and Income	151	(5)
Adjusting for Price Changes and Deriving Real GDP	156	(4)
Problems with GDP as a Measuring Rod	160
Applications in Economics
Converting Prior Data to Current Dollars: The Case of Gasoline	159	(3)
Differences in GDP Over Time	162	(1)
Applications in Economics
The Time Cost of Goods: Today and Yesterday	163	(2)
The Great Contribution of GDP	165	(1)
Key Points	165	(1)
Critical Analysis Questions	166	(2)
Addendum
The Construction of a Price Index	168	(1)
Economic Fluctuations, Unemployment, and Inflation	169	(20)
Swings in the Economic Pendulum	170	(2)
Measures of Economic Activity
Expansions and Recessions	172	(1)
Economic Fluctuations and the Labor Market	172	(2)
Measures of Economic Activity
Deriving the Unemployment Rate	174	(1)
Thumbnail Sketch
Formulas for Key Labor Market Indicators	175	(1)
Three Types of Unemployment	176	(1)
Myths in Economics
Unemployment Would Not Exist If the Economy Were Operating Efficiently	177	(2)
Employment Fluctuations---The Historical Record	179	(1)
Measures of Economic Activity
Would Personal Savings Accounts Reduce the Rate of Unemployment?	180	(1)
Actual and Potential GDP	181	(1)
The Effects of Inflation	182	(4)
Key Points	186	(1)
Critical Analysis Questions	186	(3)
An Introduction to Basic Macroeconomic Markets	189	(25)
Understanding Macroeconomics: Our Game Plan	190	(1)
Four Key Markets: Resources, Goods and Services, Loanable Funds, and Foreign Exchange	190	(3)
Aggregate Demand for Goods and Services	193	(2)
Thumbnail Sketch
Why Is the Aggregate Quantity Demanded Inversely Related to the Price Level?	195	(1)
Aggregate Supply of Goods and Services	195	(3)
Thumbnail Sketch
Why Is the Short-Run Aggregate Quantity Supplied Directly Related to the Price Level?	198	(1)
Equilibrium in the Goods and Services Market	198	(4)
Resource Market	202	(1)
Loanable Funds Market	203	(3)
Foreign Exchange Market	206	(1)
Applications in Economics
Bonds, Interest Rates, and Bond Prices	207	(2)
Leakages and Injections from the Circular Flow of Income	209	(2)
Key Points	211	(1)
Critical Analysis Questions	212	(2)
Working with Our Basic Aggregate Demand and Aggregate Supply Model	214	(22)
Anticipated and Unanticipated Changes	215	(1)
Factors That Shift Aggregate Demand	215	(3)
Thumbnail Sketch
What Factors Affect Aggregate Demand?	218	(1)
Shifts in Aggregate Supply	218	(3)
Thumbnail Sketch
What Factors Affect Long-Run and Short-Run Aggregate Supply?	221	(1)
Steady Economic Growth and Anticipated Changes in Long-Run Aggregate Supply	221	(1)
Unanticipated Changes and Market Adjustments	222	(6)
The Business Cycle Revisited	228	(2)
Does a Market Economy Have a Self-Correcting Mechanism?	230	(4)
Key Points	234	(1)
Critical Analysis Questions	234	(2)
Keynes and the Evolution of Macroeconomics	236	(20)
The Great Depression and Macroeconomics	237	(1)
Outstanding Economist
John Maynard Keynes	238	(3)
Keynesian Equilibrium	241	(5)
The Keynesian Model Within the AD-AS Framework	246	(1)
The Multiplier	247	(3)
Applications in Economics
Sports Stadiums, Development Subsidies, and the Multiplier	250	(1)
Keynesian View of the Business Cycle	251	(1)
Evolution of Modern Macroeconomics	252	(2)
Key Points	254	(1)
Critical Analysis Questions	254	(2)
Fiscal Policy	256	(21)
Budget Deficits and Surpluses	257	(1)
Keynesian View of Fiscal Policy	258	(2)
The Outstanding Economist
Paul Samuelson	260	(1)
Fiscal Policy and the Crowding-Out Effect	260	(2)
New Classical View of Fiscal Policy	262	(2)
Fiscal Policy Changes and Problems of Timing	264	(2)
How Politics Hampers the Effectiveness of Fiscal Policy	266	(1)
Fiscal Policy as a Stabilization Tool: A Modern Synthesis	267	(1)
The Supply-Side Effects of Fiscal Policy	268	(2)
Applications in Economics
Have Supply-Side Economists Found a Way to Soak the Rich?	270	(2)
The Fiscal Policy of the United States	272	(1)
Thumbnail Sketch
The Impact of Expansionary Fiscal Policy---A Summary of Four Views	272	(3)
Key Points	275	(1)
Critical Analysis Questions	275	(2)
Money and the Banking System	277	(25)
What Is Money?	278	(1)
How the Supply of Money Affects Its Value	279	(1)
How Is the Money Supply Measured?	280	(2)
The Business of Banking	282	(3)
Economics at the Movies
It's a Wonderful Life (1946)	285	(1)
How Banks Create Money by Extending Loans	285	(2)
The Federal Reserve System	287	(2)
Outstanding Economist
Alan Greenspan	289	(5)
Thumbnail Sketch
What Are the Differences between the U.S. Treasury and the Federal Reserve Banking System?	294	(1)
Ambiguities in the Meaning and Measurement of the Money Supply	295	(2)
Applications in Economics
Will Money Be Electronic in the Future?	297	(1)
The Changing Nature of Money around the World	297	(2)
Key Points	299	(1)
Critical Analysis Questions	299	(3)
Modern Macroeconomics and Monetary Policy	302	(25)
The Impact of Monetary Policy on Output and Inflation	303	(1)
Outstanding Economist
Milton Friedman	304	(4)
Thumbnail Sketch
The Transmission of Monetary Policy---A Summary	308	(3)
Monetary Policy in the Long Run	311	(4)
Monetary Policy When the Effects Are Anticipated	315	(1)
Interest Rates and Monetary Policy	315	(3)
Effects of Monetary Policy---A Summary	318	(1)
Thumbnail Sketch
What Are the Effects of Monetary Policy?	318	(1)
Testing the Major Implications of Monetary Theory	319	(5)
Key Points	324	(1)
Critical Analysis Questions	325	(2)
Stabilization Policy, Output, and Employment	327	(19)
Economic Fluctuations---The Historical Record	328	(1)
Can Discretionary Policy Promote Economic Stability?	329	(2)
Measures of Economic Activity
Index of Leading Indicators	331	(1)
How Are Expectations Formed?	332	(2)
Outstanding Economist
Robert Lucas	334	(1)
Macro Policy Implications of Adaptive and Rational Expectations	334	(2)
The Phillips Curve: The View of the 1960s Versus Today	336	(4)
Applications in Economics
Perverse Macroeconomic Policy and the Great Depression	340	(1)
Economics at the Movies
Seabiscuit (2003)	341	(1)
The Modern Consensus View of Stabilization Policy	342	(1)
Key to Prosperity
Price Stability	342	(2)
Key Points	344	(1)
Critical Analysis Questions	344	(2)
Economic Growth and the Wealth of Nations	346	(20)
Importance of Economic Growth	347	(2)
Best and Worst Growth Records	349	(1)
What Determines Whether a Country Will Grow or Stagnate?	350	(1)
Applications in Economics
China: Is It a Special Case?	351	(3)
Outstanding Economist
Douglass C. North	354	(1)
What Institutions and Policies Will Promote Growth?	354	(1)
Thumbnail Sketch
Sources of Economic Growth	355	(2)
Role of Government and Economic Progress	357	(1)
Key to Prosperity
Government and the Environment for Prosperity	357	(4)
Economic Freedom and Growth	361	(3)
Key Points	364	(1)
Critical Analysis Questions	364	(2)
Part 4 International Economics	366	(51)
Gaining from International Trade	369	(24)
The Trade Sector of the United States	370	(1)
Gains from Specialization and Trade	371	(1)
Economics at the Movies
Cast Away (2000)	372	(4)
Key to Prosperity
International Trade	376	(1)
Supply, Demand, and International Trade	377	(2)
The Economics of Trade Restrictions	379	(3)
Why Do Nations Adopt Trade Restrictions?	382	(1)
Applications in Economics
Do More Open Economies Perform Better?	383	(2)
Trade Barriers and Popular Trade Fallacies	385	(2)
The Changing Nature of Global Trade	387	(2)
Key Points	389	(1)
Critical Analysis Questions	390	(3)
International Finance and the Foreign Exchange Market	393	(24)
The Foreign Exchange Market	394	(2)
Determinants of the Exchange Rate	396	(1)
Why Do Exchange Rates Change?	397	(4)
Thumbnail Sketch
What Factors Cause a Nation's Currency to Appreciate or Depreciate?	401	(1)
International Finance and Alternative Exchange Rate Regimes	401	(2)
Balance of Payments	403	(5)
Myths in Economics	408	(1)
Are Trade Deficits Bad and Trade Surpluses Good?	408	(2)
Key Points	410	(1)
Critical Analysis Questions	411	(2)
Addendum
Selected Economic Indicators: An International Comparison	413	(4)
Part 5 Core Microeconomics	417	(184)
Consumer Choice and Elasticity	420	(22)
The Fundamentals of Consumer Choice	421	(1)
Marginal Utility, Consumer Choice, and the Demand Curve of an Individual	422	(4)
Market Demand Reflects the Demand of Individual Consumers	426	(1)
Elasticity of Demand	426	(6)
How Demand Elasticity and Price Changes Affect Total Expenditures (or Revenues) on a Product	432	(1)
Income Elasticity	433	(1)
Price Elasticity of Supply	434	(1)
Key Points	435	(1)
Critical Analysis Questions	435	(1)
Addendum
Consumer Choice and Indifference Curves	436	(6)
Costs and the Supply of Goods	442	(25)
The Organization of the Business Firm	443	(3)
Costs, Competition, and the Corporation	446	(2)
Applications in Economics
Cooking the Books: How the Market Responds to Criminal Behavior	448	(1)
The Economic Role of Costs	449	(1)
Short-Run and Long-Run Time Periods	450	(1)
Applications in Economics
Economic and Accounting Costs: A Hypothetical Example	451	(1)
Categories of Costs	451	(1)
Output and Costs in the Short Run	452	(1)
Thumbnail Sketch
Compact Glossary on Cost	453	(4)
Output and Cost in the Long Run	457	(4)
What Factors Cause Cost Curves to Shift?	461	(1)
The Economic Way of Thinking about Costs	462	(2)
Myths of Economics
A Good Business Decision Maker Will Never Sell a Product for Less than Its Production Costs	464	(1)
Key Points	465	(1)
Critical Analysis Questions	465	(2)
Price Takers and the Competitive Process	467	(21)
Price Takers and Price Searchers	468	(1)
Applications in Economics
The Aalsmeer Flower Auction: An Illustration of a Competitive Market	468	(1)
What Are the Characteristics of Price-Taker Markets?	469	(1)
How Does the Price Taker Maximize Profit?	470	(2)
Applications in Economics
Experimental Economics: The Significance of Competition	472	(3)
The Firm's Short-Run Supply Curve	475	(1)
The Short-Run Market Supply Curve	476	(1)
Price and Output in Price-Taker Markets	476	(4)
Applications in Economics
Coffee Production In a Price Takers' Market	480	(2)
The Role of Profits and Losses	482	(1)
Competition Promotes Prosperity	483	(1)
Key to Prosperity
Competition	483	(1)
Outstanding Economist
Friedrich A. von Hayek	484	(1)
Key Points	485	(1)
Critical Analysis Questions	485	(3)
Price-Searcher Markets with Low Entry Barriers	488	(19)
Competitive Price-Searcher Markets	488	(4)
Economics at the Movies
You've Got Mail (1998)	492	(1)
Dynamic Competition, Innovation, and Business Failures	493	(1)
Contestable Markets and the Competitive Process	493	(2)
Complex Decision Making and the Entrepreneur	495	(1)
Applications in Economics
Entrepreneurs at the Helm of Some Bizarre Occupations	496	(1)
Applications in Economics
Five Entrepreneurs Who Have Changed Our Lives	497	(2)
Entrepreneurship and Economic Progress	499	(1)
Key to Prosperity
Entrepreneurship	499	(1)
Evaluating Competitive Price-Searcher Markets	500	(2)
A Special Case: Price Discrimination	502	(2)
Key Points	504	(1)
Critical Analysis Questions	505	(2)
Price-Searcher Markets with High Entry Barriers	507	(23)
Why Are Entry Barriers Sometimes High?	508	(1)
The Characteristics of a Monopoly	509	(4)
The Characteristics of an Oligopoly	513	(1)
Price and Output under Oligopoly	514	(4)
Market Power and Profit---The Early Bird Catches the Worm	518	(1)
Applications in Economics
Oligopolistic Decision Making, Game Theory, and the Prisoner's Dilemma	519	(1)
Defects of Markets with High Entry Barriers	520	(1)
Economics at the movies
A Beautiful Mind (2001)	520	(1)
Policy Alternatives When Entry Barriers Are High	521	(5)
The Competitive Process in the Real World	526	(1)
Key Points	527	(1)
Critical Analysis Questions	528	(2)
The Supply of and Demand for Productive Resources	530	(20)
Human and Nonhuman Resources	531	(2)
Outstanding Economist
Gary Becker	533	(1)
The Demand for Resources	533	(4)
Marginal Productivity and the Firm's Hiring Decision	537	(4)
The Supply of Resources	541	(3)
Supply, Demand, and Resource Prices	544	(2)
The Coordinating Function of Resource Prices	546	(1)
Key Points	547	(1)
Critical Analysis Questions	548	(2)
Earnings, Productivity, and the Job Market	550	(16)
Why Do Earnings Differ?	551	(2)
Applications in Economics
A College Degree as a Job Market Signal: Why You Should Take More Math	553	(3)
Thumbnail Sketch
What Are the Sources of Earnings Differentials?	556	(1)
Applications in Economics
America's Millionaires	557	(1)
The Economics of Employment Discrimination	557	(3)
The Link between Productivity and Earnings	560	(1)
Key to Economic Progress
Link between Productivity and Earnings	560	(2)
Myths of Economics
Automation Is the Major Cause of Unemployment	562	(1)
Applications in Economics
Are Lifetime Jobs Disappering?	563	(1)
Key Points	564	(1)
Critical Analysis Questions	564	(2)
Investment, the Capital Market, and the Wealth of Nations	566	(18)
Why People Invest	567	(1)
Economics at the Movies
A Knight's Tale (2001)	568	(1)
Interest Rates	568	(3)
The Present Value of Future Income and Costs	571	(2)
Present Value, Profitability, and Investment	573	(1)
Applications in Economics
Would You Like to Become a Millionaire?	574	(1)
Investing in Human Capital	575	(1)
Uncertainty, Entrepreneurship, and Profit	576	(1)
Outstanding Economist
Joseph Schumpeter	577	(2)
The Capital Market and the Wealth of Nations	579	(1)
Key to Economic Progress
Innovation and the Capital Market	579	(2)
Key Points	581	(1)
Critical Analysis Questions	582	(2)
Income Inequality and Poverty	584	(17)
How Much Income Inequality Exists in the United States?	585	(4)
Income Mobility and Inequality in Economic Status	589	(2)
Poverty in the United States	591	(1)
Measures of Economic Activity
How Is the Poverty Rate Calculated?	592	(3)
Applications in Economics
Competition for Transfers and the Net Gain of Recipients	595	(1)
Income Inequality: Some Concluding Thoughts	596	(2)
Key Points	598	(1)
Critical Analysis Questions	598	(3)
Part 6 Applying the Basics: Special Topics	601	(138)
Government Spending and Taxation	604	(11)
Government Expenditures	605	(2)
Taxes and the Finance of Government	607	(1)
Taxes and the Cost of Government	608	(4)
Size of Government: The U.S. Versus Other Countries	612	(1)
Key Points	613	(1)
Critical Analysis Questions	614	(1)
The Internet: How Is It Changing the Economy?	615	(8)
Use of the Internet	616	(1)
Economic Gains from the Internet	616	(2)
Key Sectors of Internet Growth	618	(1)
More Efficient Consumer Markets	619	(1)
More Efficient Input Markets and Production Process	620	(1)
Labor Markets and the Internet: Faster and Better Employee-Employer watches	620	(1)
Concluding Thought	621	(1)
Key Points	622	(1)
Critical Analysis Questions	622	(1)
The Economics of Social Security	623	(11)
Why Is Social Security Headed for Problems?	625	(1)
Will the Trust Fund Lighten the Future Tax Burden?	626	(1)
The Real Problem of the Current System	627	(1)
Who Is Helped and Who Is Hurt by Social Security?	628	(2)
Personal Retirement Accounts and Social Security Reform	630	(2)
Key Points	632	(1)
Critical Analysis Questions	633	(1)
The Stock Market: Its Function, Performance, and Potential as an Investment Opportunity	634	(10)
The Economic Functions of the Stock Market	635	(1)
Stock Market Performance: The Historical Record	636	(1)
The Interest Rate, the Value of Future Income, and Stock Prices	637	(1)
The Random Walk Theory of the Stock Market	638	(1)
How the Ordinary Investor Can Beat the Experts	639	(3)
Key Points	642	(1)
Critical Analysis Questions	643	(1)
The Federal Budget and the National Debt	644	(10)
Deficits, Surpluses, and the National Debt	645	(1)
Who Owns the National Debt?	645	(2)
How Does Debt, Financing Influence Future Generations?	647	(3)
Government Debt: A Cross-Country Comparison	650	(1)
Social Security, Budget Deficits, and National Debt	651	(1)
The Political Economy, Demographics, and Debt Financing	651	(1)
Demographic Changes and Budget Deficits	652	(1)
Key Points	652	(1)
Critical Analysis Questions	653	(1)
Labor Market Policies and Unemployment: A Cross-Country Analysis	654	(11)
Cross-Country Variations in Unemployment Rates	655	(1)
The Structure of Labor Markets	656	(7)
Key Points	663	(1)
Critical Analysis Questions	664	(1)
Institutions, Policies, and the Irish Miracle	665	(8)
Ireland's U-Turn	666	(2)
The Impact of the Policy U-Turn	668	(3)
Key Points	671	(1)
Critical Analysis Questions	671	(2)
The Economics of Health Care	673	(10)
The Structure of the Health-Care Industry	674	(2)
Third-Party Payments and Health-Care Inflation	676	(2)
Is the U.S. Headed for a Health-Care Crisis?	678	(1)
Applications in Economics
Could Imports from Canada Reduce the Drug Prices of Americans?	679	(1)
Averting the Crisis: How to Move Toward a Consumer-Driven System	679	(3)
Key Points	682	(1)
Critical Analysis Questions	682	(1)
School Choice: Can It Improve the Quality of Education in America?	683	(8)
Educational Spending and Student Performance	684	(1)
Economics and the Structure of the Educational System	685	(2)
Alternative Ways of Increasing Competition and Expanding the Options of Consumers	687	(2)
The Impact of Structural Change	689	(1)
Conclusion	690	(1)
Key Points	690	(1)
Critical Analysis Questions	690	(1)
Is Discrimination Responsible for the Earnings Difference between Men and Women?	691	(6)
Employment Discrimination and the Earnings of Women	692	(1)
Marital Status and the Earnings of Women	693	(1)
The Changing Career Objectives of Women	693	(3)
Implications for the Future	696	(1)
Key Points	696	(1)
Critical Analysis Questions	696	(1)
Do Labor Unions Increase the Wages of Workers?	697	(11)
Union Membership as a Share of the Workforce	698	(2)
How Do Unions Influence Wages?	700	(3)
What Gives a Union Strength?	703	(2)
The Wages of Union and Nonunion Employees	705	(1)
The Impact of Unions on the Wages of All Workers	706	(1)
Key Points	707	(1)
Critical Analysis Questions	707	(1)
How Does Government Regulation Affect Your Life?	708	(11)
Regulation of Business	709	(1)
The Political Economy of Regulation	710	(2)
Applications in Economics
Limousines and Restraints on Entry	712	(1)
The Costs of Regulation	713	(1)
Applications in Economics
Superfund: a Highly Inefficient Cleanup Program	714	(3)
Future Directions for Regulatory Policy	717	(1)
Key Points	718	(1)
Critical Analysis Questions	718	(1)
Resource Management: How Property Rights and Markets Replace Conflict with Cooperation	719	(10)
Property Rights: The Key to Environmental Quality	720	(4)
Applications in Economics
Looking Ahead at the Flying D Ranch	724	(1)
How Property Rights Affect Environmental Quality and Life Expectancy	724	(1)
Markets, Economizing, and Resource Conservation	724	(2)
Applications in Economics
Managing Forests for Nature, Too	726	(2)
Key Points	728	(1)
Critical Analysis Questions	728	(1)
Difficult Environmental Cases and the Role of Government	729	(10)
Government Regulation and the Environment	730	(1)
Climate Change and the Uncertainty Problem	730	(2)
Market-like Schemes: Reducing the Cost of Specific Regulations	732	(1)
Applications in Economics
Fighting the Risks of Global Warming: Mitigation or Adaptation?	733	(1)
Property Rights as a Tool for Government Policy	734	(1)
Weakening Property Rights: The Endangered Species Act	735	(2)
Government Ownership of Resources and Provision of Services	737	(1)
Conclusion	738	(1)
Key Points	738	(1)
Critical Analysis Questions	738	(1)
Appendix A General Business and Economic Indicators for the United States	739	(8)
Appendix B Answers to Selected Critical Analysis Questions	747	(25)
Glossary	772	(11)
Index	783