Microeconomics + DiscoverEcon with Paul Solman Videos code card

by Colander, David C.

• ISBN13: 9780073222967
• ISBN10: 0073222968
• Edition: 6th
• Format: Paperback
• Copyright: 2005-07-08
• Publisher: McGraw-Hill/Irwin

Summary

Written in an informal colloquial style, this student-friendly Principles of Microeconomics textbook does not sacrifice intellectual depth in its quest for accessibility. The author's primary concern is to instill "economic sensibility" in the student. Colander emphasizes the intellectual and historical context to which the economic models are applied. This new edition offers improvements to this established and respected text including special Questions from Alternate Perspectives end-of-chapter questions that facilitate class discussion of differing school of thought in the discipline, and access to over 250 minutes of new videos from Paul Solman of the Lehrer NewsHour.

Author Biography

David C. Colander is a professor at Middlebury College.

Table of Contents

PART I Introduction: Thinking Like An Economist
Economics and Economic Reasoning	4	(19)
What Economics Is	4	(1)
A Guide to Economic Reasoning	5	(6)
Marginal Costs and Marginal Benefits	6	(1)
Economics and Passion	7	(1)
Opportunity Cost	8	(1)
Economic and Market Forces	9	(2)
Economic Terminology	11	(1)
Economic Insights	11	(3)
The Invisible Hand Theory	12	(1)
Economic Theory and Stories	13	(1)
Microeconomics and Macroeconomics	14	(1)
Economic Institutions	14	(1)
Economic Policy Options	15	(2)
Objective Policy Analysis	16	(1)
Policy and Social and Political Forces	17	(1)
Conclusion	17	(6)
Summary
Key Terms
Questions for Thought and Review
Problems and Exercises
Questions from Alternative Perspectives
Web Questions
Answers to Margin Questions
Trade, Trade-Offs, and Government Policy	23	(35)
The Production Possibilities Model	23	(8)
A Production Possibility Curve for an Individual	24	(2)
A Production Possibility Curve for a Society	26	(2)
Increasing Marginal Opportunity Cost	28	(1)
Efficiency	29	(1)
Distribution and Productive Efficiency	30	(1)
Examples of Shifts in the PPC	30	(1)
Trade and Comparative Advantage	31	(8)
Markets, Specialization, and Growth	32	(1)
The Benefits of Trade	32	(2)
Comparative Advantage and the Combined PPC	34	(1)
U.S. Textile Production and Trade	34	(1)
Outsourcing, Trade, and Comparative Advantage	35	(4)
Regulating Trade: Institutions, Government, and Trade	39	(5)
Roles of Government in a Market	39	(3)
Market Failures and Government Failures	42	(1)
Regulating Markets Internationally	42	(2)
The Production Possibilities Model and Government Policy	44	(1)
Conclusion	44	(14)
Summary
Key Terms
Questions for Thought and Review
Problems and Exercises
Questions from Alternative Perspectives
Web Questions
Answers to Margin Questions
Appendix A Graphish: The Language of Graphs	49	(9)
The Evolving U.S. Economy in Perspective	58	(32)
The U.S. Economy in Historical Perspective	59	(5)
How Markets Work	59	(1)
What's Good about the Market?	60	(1)
Capitalism and Socialism	60	(2)
Evolving Economic Systems	62	(2)
The U.S. Economy	64	(8)
Business	65	(4)
Households	69	(1)
Government	70	(2)
The U.S. Economy and Globalization	72	(8)
Global Corporations	73	(2)
Global Markets	75	(1)
Surviving in a Global Economy	76	(2)
Does Globalization Eliminate Jobs?	78	(1)
Globalization and the Law of One Price	78	(2)
Dealing with Globalization	80	(1)
Conclusion	80	(10)
Summary
Key Terms
Questions for Thought and Review
Problems and Exercises
Questions from Alternative Perspectives
Web Questions
Answers to Margin Questions
Appendix A: The History of Economic Systems	84	(6)
Supply and Demand	90	(24)
Demand	90	(6)
The Law of Demand	91	(1)
The Demand Curve	91	(1)
Shifts in Demand versus Movements along a Demand Curve	92	(1)
Shift Factors of Demand	92	(1)
A Review	93	(1)
The Demand Table	94	(1)
From a Demand Table to a Demand Curve	94	(1)
Individual and Market Demand Curves	95	(1)
Supply	96	(6)
The Law of Supply	97	(1)
The Supply Curve	98	(1)
Shifts in Supply versus Movements along a Supply Curve	98	(1)
Shift Factors of Supply	99	(1)
A Shift in Supply versus a Movement along a Supply Curve	99	(1)
A Review	100	(1)
The Supply Table	100	(1)
From a Supply Table to a Supply Curve	101	(1)
Individual and Market Supply Curves	101	(1)
The Interaction of Supply and Demand	102	(5)
Equilibrium	103	(1)
What Equilibrium Isn't	103	(1)
Excess Supply	103	(1)
Excess Demand	103	(1)
Price Adjusts	104	(1)
The Graphical Interaction of Supply and Demand	104	(1)
Political and Social Forces and Equilibrium	105	(1)
Shifts in Supply and Demand	106	(1)
The Limitations of Supply/Demand Analysis	107	(1)
Conclusion	108	(6)
Summary
Key Terms
Questions for Thought and Review
Problems and Exercises
Questions from Alternative Perspectives
Web Questions
Answers to Margin Questions
Using Supply and Demand	114	(26)
Real-World Supply and Demand Applications	114	(7)
The Market for Advertising	114	(2)
The Price of a Foreign Currency	116	(1)
Three Real-World Examples	117	(3)
A Review	120	(1)
Government Intervention in the Market	121	(7)
Price Ceilings	121	(2)
Price Floors	123	(2)
Excise Taxes	125	(1)
Quantity Restrictions	126	(1)
Third-Party-Payer Markets	127	(1)
Conclusion	128	(12)
Summary
Key Terms
Questions for Thought and Review
Problems and Exercises
Questions from Alternative Perspectives
Web Questions
Answers to Margin Questions
Appendix A: Algebraic Representation of Supply, Demand, and Equilibrium	133	(7)
PART II MICROECONOMICS
Section I Microeconomics: The Basics
Describing Supply and Demand: Elasticities	140	(26)
Price Elasticity	140	(2)
What Information Price Elasticity Provides	141	(1)
Classifying Demand and Supply as Elastic or Inelastic	141	(1)
Elasticity Is Independent of Units	142	(1)
Calculating Elasticities	142	(3)
Other Examples	144	(1)
Elasticity and Supply and Demand Curves	145	(3)
Elasticity Is Not the Same as Slope	145	(1)
Elasticity Changes along Straight-Line Curves	145	(3)
Substitution and Elasticity	148	(3)
Substitution and Demand	148	(1)
Substitution and Supply	149	(1)
How Substitution Factors Affect Specific Decisions	149	(1)
Empirical Estimates of Elasticities of Demand and Supply	150	(1)
Elasticity, Total Revenue, and Demand	151	(3)
Total Revenue along a Demand Curve	152	(1)
Elasticity of Individual and Market Demand	153	(1)
Other Elasticity Concepts	154	(4)
Income Elasticity of Demand	155	(1)
Cross-Price Elasticity of Demand	156	(1)
Some Examples	157	(1)
The Power of Supply/Demand Analysis	158	(2)
When Should a Supplier Not Raise Price?	158	(1)
Elasticity and Shifting Supply and Demand	159	(1)
Conclusion	160	(6)
Summary
Key Terms
Questions for Thought and Review
Problems and Exercises
Questions from Alternative Perspectives
Web Questions
Answers to Margin Questions
Taxation and Government Intervention	166	(22)
Producer and Consumer Surplus	166	(2)
Taxation and Government	168	(8)
How Much Should Government Tax?	168	(3)
Two Principles of Taxation	171	(1)
Who Bears the Burden of a Tax?	172	(3)
Tax Incidence and Current Policy Debates	175	(1)
Government Intervention	176	(6)
Government Intervention as Implicit Taxation	176	(3)
Rent Seeking, Politics, and Elasticities	179	(3)
Conclusion	182	(6)
Summary
Key Terms
Questions for Thought and Review
Problems and Exercises
Questions from Alternative Perspectives
Web Questions
Answers to Margin Questions
Section II Foundations of Supply and Demand
The Logic of Individual Choice: The Foundation of Supply and Demand	188	(26)
Utility Theory and Individual Choice	188	(3)
Measuring Pleasure	189	(1)
Total Utility and Marginal Utility	189	(1)
Diminishing Marginal Utility	190	(1)
Rational Choice and Marginal Utility	191	(2)
Some Choices	191	(1)
The Principle of Rational Choice	192	(1)
Simultaneous Decisions	193	(1)
Maximizing Utility and Equilibrium	193	(3)
An Example of Maximizing Utility	194	(1)
Extending the Principle of Rational Choice	195	(1)
Rational Choice and the Laws of Demand and Supply	196	(3)
The Law of Supply	198	(1)
Opportunity Cost	199	(1)
Applying Economists' Theory of Choice to the Real World	199	(4)
The Cost of Decision Making	199	(1)
Given Tastes	200	(1)
Behavioral Economics	201	(2)
Conclusion	203	(11)
Summary
Key Terms
Questions for Thought and Review
Problems and Exercises
Questions from Alternative Perspectives
Web Questions
Answers to Margin Questions
Appendix A: Indifference Curve Analysis	208	(6)
Production and Cost Analysis I	214	(18)
The Role of the Firm	215	(2)
The Firm and the Market	215	(1)
Firms Maximize Profit	215	(2)
The Production Process	217	(3)
The Long Run and the Short Run	218	(1)
Production Tables and Production Functions	218	(1)
The Law of Diminishing Marginal Productivity	219	(1)
The Costs of Production	220	(2)
Fixed Costs, Variable Costs, and Total Costs	220	(1)
Average Total Cost, Average Fixed Cost, and Average Variable Cost	221	(1)
Marginal Cost	222	(1)
Graphing Cost Curves	222	(5)
Total Cost Curves	222	(1)
Average and Marginal Cost Curves	222	(1)
Downward-Sloping Shape of the Average Fixed Cost Curve	223	(1)
The U Shape of the Average and Marginal Cost Curves	223	(1)
The Relationship between the Marginal Productivity and Marginal Cost Curves	224	(1)
The Relationship between the Marginal Cost and Average Cost Curves	225	(2)
Intermission	227	(5)
Summary
Key Terms
Questions for Thought and Review
Problems and Exercises
Questions from Alternative Perspectives
Web Questions
Answers to Margin Questions
Production and Cost Analysis II	232	(21)
Making Long-Run Production Decisions	232	(1)
Technical Efficiency and Economic Efficiency	233	(1)
Determinants of the Shape of the Long-Run Cost Curve	233	(4)
Economies of Scale	233	(2)
Diseconomies of Scale	235	(1)
Constant Returns to Scale	236	(1)
The Importance of Economies and Diseconomies of Scale	236	(1)
Envelope Relationship	237	(2)
Entrepreneurial Activity and the Supply Decision	239	(1)
Using Cost Analysis in the Real World	240	(5)
Economies of Scope	240	(1)
Learning by Doing and Technological Change	241	(2)
Many Dimensions	243	(1)
Unmeasured Costs	243	(1)
The Standard Model as a Framework	243	(2)
Conclusion and a Look Ahead	245	(8)
Summary
Key Terms
Questions for Thought and Review
Problems and Exercises
Questions from Alternative Perspectives
Web Questions
Answers to Margin Questions
Appendix A: Isocost/Isoquant Analysis	248	(5)
Section III Market Structure and Policy
Perfect Competition	253	(23)
A Perfectly Competitive Market	253	(4)
The Necessary Conditions for Perfect Competition	254	(1)
The Definition of Supply and Perfect Competition	254	(2)
Demand Curves for the Firm and the Industry	256	(1)
The Profit-Maximizing Level of Output	257	(4)
Marginal Revenue	258	(1)
Marginal Cost	258	(1)
Profit Maximization: MC = MR	258	(1)
The Marginal Cost Curve Is the Supply Curve	259	(1)
Firms Maximize Total Profit	260	(1)
Profit Maximization Using Total Revenue and Total Cost	260	(1)
Total Profit at the Profit-Maximizing Level of Output	261	(4)
Determining Profit from a Table of Costs and Revenue	261	(1)
Determining Profit from a Graph	262	(2)
The Shutdown Point	264	(1)
Short-Run Market Supply and Demand	265	(1)
Long-Run Competitive Equilibrium	266	(1)
Adjustment from the Short Run to the Long Run	267	(3)
An Increase in Demand	267	(1)
Long-Run Market Supply	268	(2)
An Example in the Real World	270	(1)
Conclusion	270	(6)
Summary
Key Terms
Questions for Thought and Review
Problems and Exercises
Questions from Alternative Perspectives
Web Questions
Answers to Margin Questions
Monopoly	276	(21)
The Key Difference between a Monopolist and a Perfect Competitor	276	(1)
A Model of Monopoly	277	(4)
Determining the Monopolist's Price and Output Numerically	277	(2)
Determining the Monopolist's Price and Output Graphically	279	(1)
Comparing Monopoly and Perfect Competition	280	(1)
An Example of Finding Output and Price	281	(1)
Profits and Monopoly	281	(3)
A Monopolist Making a Profit	282	(1)
A Monopolist Breaking Even and Making a Loss	282	(2)
The Welfare Loss from Monopoly	284	(1)
The Price-Discriminating Monopolist	285	(1)
Barriers to Entry and Monopoly	286	(3)
Natural Ability	286	(1)
Economies of Scale	286	(3)
Government-Created Monopolies	289	(1)
Normative Views of Monopoly	289	(1)
Government Policy and Monopoly: AIDS Drugs	290	(1)
Conclusion	291	(6)
Summary
Key Terms
Questions for Thought and Review
Problems and Exercises
Questions from Alternative Perspectives
Web Questions
Answers to Margin Questions
Appendix A: The Algebra of Competitive and Monopolistic Firms	295	(2)
Monopolistic Competition, Oligopoly, and Strategic Pricing	297	(24)
The Problems of Determining Market Structure	297	(3)
Classifying Industries	298	(1)
Determining Industry Structure	299	(1)
Conglomerate Firms and Bigness	300	(1)
The Importance of Classifying Industry Structure	300	(1)
Characteristics of Monopolistic Competition	300	(2)
Many Sellers	301	(1)
Product Differentiation	301	(1)
Multiple Dimensions of Competition	302	(1)
Ease of Entry of New Firms in the Long Run	302	(1)
Output, Price, and Profit of a Monopolistic Competitor	302	(4)
Comparing Monopolistic Competition with Perfect Competition	303	(2)
Comparing Monopolistic Competition with Monopoly	305	(1)
Advertising and Monopolistic Competition	305	(1)
Characteristics of Oligopoly	306	(1)
Models of Oligopoly Behavior	306	(4)
The Cartel Model	306	(3)
The Contestable Market Model	309	(1)
Comparison of the Contestable Market Model and the Cartel Model	309	(1)
Strategic Pricing and Oligopoly	309	(1)
Game Theory, Oligopoly, and Strategic Decision Making	310	(6)
Prisoner's Dilemma and a Duopoly Example	311	(2)
Duopoly and a Payoff Matrix	313	(1)
Oligopoly Models, Structure, and Performance	314	(2)
Conclusion	316	(5)
Summary
Key Terms
Questions for Thought and Review
Problems and Exercises
Questions from Alternative Perspectives
Web Questions
Answers to Margin Questions
Real-World Competition and Technology	321	(20)
The Goals of Real-World Firms and the Monitoring Problem	321	(3)
Short-Run versus Long-Run Profit	321	(1)
The Problem with Profit Maximization	322	(2)
What Do Real-World Firms Maximize?	324	(1)
The Lazy Monopolist and X-Inefficiency	324	(2)
How Competition Limits the Lazy Monopolist	325	(1)
Motivations for Efficiency Other Than the Profit Incentive	326	(1)
The Fight between Competitive and Monopolistic Forces	326	(4)
How Monopolistic Forces Affect Perfect Competition	326	(1)
Economic Insights and Real-World Competition	327	(1)
How Competitive Forces Affect Monopoly	327	(1)
Competition and Natural Monopoly	328	(2)
How Firms Protect Their Monopolies	330	(2)
Cost/Benefit Analysis of Creating and Maintaining Monopolies	330	(1)
Establishing Market Position	331	(1)
Technology	332	(1)
Technology, Efficiency, and Market Structure	332	(3)
Perfect Competition and Technology	333	(1)
Monopolistic Competition and Technology	333	(1)
Monopoly and Technology	333	(1)
Oligopoly and Technology	333	(1)
Network Externalities, Standards, and Technological Lock-In	334	(1)
Conclusion	335	(6)
Summary
Key Terms
Questions for Thought and Review
Problems and Exercises
Questions from Alternative Perspectives
Web Questions
Answers to Margin Questions
Antitrust Policy and Regulation	341	(26)
Antitrust Policy: Judgment by Performance or Structure?	341	(1)
History of U.S. Antitrust Laws	342	(5)
The Sherman Antitrust Act	342	(1)
The Standard Oil and American Tobacco Cases: Judging Market Competitiveness by Performance	343	(1)
The Clayton Act and the Federal Trade Commission Act	344	(1)
The ALCOA Case: Judging Market Competitiveness by Structure	344	(1)
Judging Markets by Structure and Performance: The Reality	345	(2)
Recent Antitrust Enforcement	347	(1)
Three Modern Antitrust Cases	347	(7)
The IBM Case	347	(2)
The AT&T Case	349	(2)
The Microsoft Case	351	(3)
Assessment of U.S. Antitrust Policy	354	(1)
Mergers, Acquisitions, and Takeovers	354	(4)
Acquisitions and Takeovers	355	(1)
Mergers	355	(2)
Recent Merger Activity and Deacquisitions	357	(1)
Assessment of Mergers and Acquisitions	358	(1)
International Competition and Antitrust Policy in Other Countries	358	(2)
European Antitrust Policy	358	(2)
Globalization and Antitrust in the Future	360	(1)
Regulation, Government Ownership, and Industrial Policies	360	(2)
Regulation	360	(2)
Government Ownership	362	(1)
Industrial Policies	362	(1)
Conclusion	362	(5)
Summary
Key Terms
Questions for Thought and Review
Problems and Exercises
Questions from Alternative Perspectives
Web Questions
Answers to Margin Questions
Section IV Factor Markets
Work and the Labor Market	367	(31)
The Supply of Labor	368	(4)
Real Wages and the Opportunity Cost of Work	369	(1)
The Supply of Labor and Nonmarket Activities	370	(1)
Income Taxation, Work, and Leisure	371	(1)
The Elasticity of the Supply of Labor	371	(1)
Immigration and the International Supply of Labor	372	(1)
The Derived Demand for Labor	372	(4)
Factors Influencing the Elasticity of Demand for Labor	373	(1)
Labor as a Factor of Production	374	(1)
Shift Factors of Demand	374	(2)
The Role of Other Forces in Wage Determination	376	(1)
Imperfect Competition and the Labor Market	377	(2)
Monopsony	377	(1)
Union Monopoly Power	378	(1)
Bilateral Monopoly	378	(1)
Downsizing, Upsizing, and X-Inefficiency	378	(1)
Political and Social Forces and the Labor Market	379	(5)
Fairness and the Labor Market	379	(2)
Job Discrimination and the Labor Market	381	(3)
The Evolution of Labor Markets	384	(1)
Conclusion: The Labor Market and You	384	(14)
Summary
Key Terms
Questions for Thought and Review
Problems and Exercises
Questions from Alternative Perspectives
Web Questions
Answers to Margin Questions
Appendix A: Derived Demand	392	(6)
Who Gets What? The Distribution of Income	398	(24)
Ways of Considering the Distribution of Income	399	(1)
The Share Distribution of Income	399	(3)
The Lorenz Curve	399	(1)
U.S. Income Distribution over Time	400	(2)
Defining Poverty	402	(2)
The Official Definition of Poverty	402	(1)
Debates about the Definition of Poverty	403	(1)
The Costs of Poverty	403	(1)
International Dimensions of Income Inequality	404	(2)
Comparing Income Distribution across Countries	405	(1)
Income Distribution among Countries	405	(1)
The Total Amount of Income in Various Countries	406	(1)
The Distribution of Wealth	406	(1)
A Lorenz Curve of the Distribution of Wealth	406	(1)
How Much Wealth Do the Wealthy Have?	407	(1)
Socioeconomic Dimensions of Income Inequality	407	(3)
Income Distribution According to Socioeconomic Characteristics	408	(1)
Income Distribution According to Class	408	(2)
Income Distribution and Fairness	410	(2)
Philosophical Debates about Equality and Fairness	410	(1)
Fairness and Equality	411	(1)
Fairness as Equality of Opportunity	412	(1)
The Problems of Redistributing Income	412	(1)
Three Important Side Effects of Redistributive Programs	412	(1)
Politics, Income Redistribution, and Fairness	413	(1)
Income Redistribution Policies	413	(5)
Taxation to Redistribute Income	414	(1)
Expenditure Programs to Redistribute Income	415	(2)
How Successful Have Income Redistribution Programs Been?	417	(1)
Conclusion	418	(4)
Summary
Key Terms
Questions for Thought and Review
Problems and Exercises
Questions from Alternative Perspectives
Web Questions
Answers to Margin Questions
Section V Applying Economic Reasoning to Policy
Government Policy and Market Failures	422	(20)
Market Failures	422	(1)
Externalities	423	(2)
A Negative Externality Example	424	(1)
A Positive Externality Example	425	(1)
Alternative Methods of Dealing with Externalities	425	(4)
Direct Regulation	425	(1)
Incentive Policies	426	(2)
Voluntary Reductions	428	(1)
The Optimal Policy	429	(1)
Public Goods	429	(3)
Excludability and the Costs of Pricing	431	(1)
Informational Problems	432	(1)
Policies to Deal with Informational Problems	433	(3)
A Market in Information	434	(1)
Licensing of Doctors	434	(1)
The Informational Alternative to Licensure	435	(1)
Government Failure and Market Failures	436	(1)
Conclusion	437	(5)
Summary
Key Terms
Questions for Thought and Review
Problems and Exercises
Questions from Alternative Perspectives
Web Questions
Answers to Margin Questions
Politics and Economics: The Case of Agricultural Markets	442	(16)
The Nature of Agricultural Markets	442	(1)
The Good/Bad Paradox in Agriculture	443	(3)
The Long-Run Decline of Farming	443	(1)
The Short-Run Cyclical Problem Facing Farmers	444	(1)
The Difficulty of Coordinating Farm Production	445	(1)
Ways around the Good/Bad Paradox	445	(1)
The General Rule of Political Economy	445	(1)
Four Price Support Options	446	(5)
Supporting the Price by Regulatory Measures	447	(2)
Providing Economic Incentives to Reduce Supply	449	(1)
Subsidizing the Sale of the Good	449	(1)
Buying Up and Storing, Giving Away, or Destroying the Good	450	(1)
Which Group Prefers Which Option?	450	(1)
Economics, Politics, and Real-World Policies	451	(1)
Interest Groups	451	(1)
International Issues	452	(1)
Conclusion	452	(6)
Summary
Key Terms
Questions for Thought and Review
Problems and Exercises
Questions from Alternative Perspectives
Web Questions
Answers to Margin Questions
Microeconomic Policy, Economic Reasoning, and Beyond	458	(20)
Economists' Differing Views about Social Policy	459	(2)
How Economists' Value Judgments Creep into Policy Proposals	459	(1)
The Need for a Worldview	460	(1)
Agreement among Economists about Social Policy	461	(1)
Economists' Cost/Benefit Approach to Government Regulation	461	(5)
The Value of Life	462	(1)
Comparing Costs and Benefits of Different Dimensions	463	(1)
Putting Cost/Benefit Analysis in Perspective	464	(1)
The Problem of Other Things Changing	464	(1)
The Cost/Benefit Approach in Context	465	(1)
Failure of Market Outcomes	466	(4)
Distribution	466	(2)
Consumer Sovereignty and Rationality Problems	468	(1)
Inalienable Rights	468	(2)
Government Failure	470	(2)
Conclusion	472	(6)
Summary
Key Terms
Questions for Thought and Review
Problems and Exercises
Questions from Alternative Perspectives
Web Questions
Answers to Margin Questions
International Trade Policy, Comparative Advantage, and Outsourcing	478
Patterns of Trade	478	(5)
Increasing but Fluctuating World Trade	478	(1)
Differences in the Importance of Trade	478	(1)
What and with Whom the United States Trades	479	(3)
Debtor and Creditor Nations	482	(1)
The Principle of Comparative Advantage	483	(3)
The Gains from Trade	483	(2)
Dividing Up the Gains from Trade	485	(1)
Comparative Advantage in Today's Economy	486	(5)
Other Sources of U.S. Comparative Advantage	488	(1)
Some Concerns about the Future	489	(2)
Varieties of Trade Restrictions	491	(4)
Tariffs and Quotas	492	(2)
Voluntary Restraint Agreements	494	(1)
Embargoes	494	(1)
Regulatory Trade Restrictions	494	(1)
Nationalistic Appeals	495	(1)
Reasons for Trade Restrictions	495	(5)
Unequal Internal Distribution of the Gains from Trade	495	(2)
Haggling by Companies over the Gains from Trade	497	(1)
Haggling by Countries over Trade Restrictions	497	(1)
Specialized Production	498	(1)
Macroeconomic Aspects of Trade	499	(1)
National Security	500	(1)
International Politics	500	(1)
Increased Revenue Brought in by Tariffs	500	(1)
Why Economists Generally Oppose Trade Restrictions	500	(2)
Free Trade Increases Total Output	501	(1)
International Trade Provides Competition	501	(1)
Restrictions Based on National Security Are Often Abused or Evaded	502	(1)
Trade Restrictions Are Addictive	502	(1)
Institutions Supporting Free Trade	502	(2)
Conclusion	504
Summary
Key Terms
Questions for Thought and Review
Problems and Exercises
Questions from Alternative Perspectives
Web Questions
Answers to Margin Questions
Nonwage and Asset Income: Rents, Profits, and Interest www.mhhe.com/economics/colander6
Glossary; Colloquial Glossary; Photo Credits; Index