did-you-know? rent-now

Rent More, Save More! Use code: ECRENTAL

did-you-know? rent-now

Rent More, Save More! Use code: ECRENTAL

5% off 1 book, 7% off 2 books, 10% off 3+ books

9780324221152

Microeconomics Principles and Policy (with InfoTrac)

by ;
  • ISBN13:

    9780324221152

  • ISBN10:

    0324221150

  • Edition: 10th
  • Format: Paperback
  • Copyright: 2005-06-21
  • Publisher: South-Western College Pub
  • View Upgraded Edition
  • Purchase Benefits
  • Free Shipping Icon Free Shipping On Orders Over $35!
    Your order must be $35 or more to qualify for free economy shipping. Bulk sales, PO's, Marketplace items, eBooks and apparel do not qualify for this offer.
  • eCampus.com Logo Get Rewarded for Ordering Your Textbooks! Enroll Now
List Price: $277.99 Save up to $1.39
  • Buy New
    $276.60
    Add to Cart Free Shipping Icon Free Shipping

    USUALLY SHIPS IN 24-48 HOURS

Summary

This microeconomics text is well known for using the Keynesian model in the teaching of economics; yet in recent editions, the authors have expanded coverage of the growth model considerably to achieve more balanced coverage. The text uses the aggregate supply/ aggregate demand model as a fundamental tool for learning macroeconomics. It achieves the right level of rigor and detail, presenting complicated concepts in a relatively straightforward manner and using timely economic data. Using puzzles, issues, and well-developed examples, the authors provide a good balance of theory to application. Homework Xpress and Aplia are available with the Anniversary Tenth Edition and two new sets of end of chapter questions have been added as well to help students prepare for exams: Test Yourself” and Discussion Questions”.

Table of Contents

Preface xxiii
PART I GETTING ACQUAINTED WITH ECONOMICS
1(74)
What is Economics?
3(16)
Ideas for Beyond the Final Exam
4(3)
Idea 1: How Much Does It Really Cost?
4(1)
Idea 2: Attempts to Repeal the Laws of Supply and Demand---The Market Strikes Back
5(1)
Idea 3: The Surprising Principle of Comparative Advantage
5(1)
Idea 4: Trade is a Win--Win Situation
5(1)
Idea 5: The Importance of Thinking at the Margin
6(1)
Idea 6: Externalities---A Shortcoming of the Market Cured by Market Methods
6(1)
Idea 7: The Trade-Off between Efficiency and Equality
7(1)
Epilogue
7(1)
Inside the Economist's Tool Kit
7(5)
Economics as a Discipline
7(1)
The Need for Abstraction
8(2)
The Role of Economic Theory
10(1)
What Is an Economic Model?
10(1)
Reasons for Disagreements: Imperfect Information and Value Judgments
11(1)
Summary
12(1)
Key Terms
12(1)
Discussion Questions
12(1)
Appendix: Using Graphs: A Review
13(6)
Graphs Used in Economic Analysis
13(1)
Two-Variable Diagrams
13(1)
The Definition and Measurement of Slope
14(1)
Rays Through the Origin and 45° Lines
15(1)
Squeezing Three Dimensions into Two: Contour Maps
16(1)
Summary
17(1)
Key Terms
17(1)
Test Yourself
18(1)
The Economy: Myth and Reality
19(16)
The American Economy: A Thumbnail Sketch
20(3)
A Private-Enterprise Economy
21(1)
A Relatively ``Closed'' Economy
21(1)
A Growing Economy . . .
22(1)
But with Bumps along the Growth Path
22(1)
The Inputs: Labor and Capital
23(5)
The American Workforce: Who Is in It?
23(2)
The American Workforce: What Does It Do?
25(2)
The American Workforce: What It Earns
27(1)
Capital and Its Earnings
27(1)
The Outputs: What Does America Produce?
28(1)
The Central Role of Business Firms
28(1)
What's Missing From the Picture? Government
29(4)
The Government as Referee
30(1)
The Government as Business Regulator
30(1)
Government Expenditures
31(1)
Taxes in America
31(1)
The Government as Redistributor
32(1)
Conclusion: It's a Mixed Economy
33(1)
Summary
33(1)
Key Terms
33(1)
Discussion Questions
33(2)
The Fundamental Economic Problem: Scarcity and Choice
35(16)
Issue: What to Do about the Budget Deficit?
36(1)
Scarcity, Choice, and Opportunity Cost
36(2)
Opportunity Cost and Money Cost
37(1)
Optimal Choice: Not Just Any Choice
38(1)
Scarcity and Choice for a Single Firm
38(3)
The Production Possibilities Frontier
39(1)
The Principle of Increasing Costs
40(1)
Scarcity and Choice for the Entire Society
41(2)
Scarcity and Choice Elsewhere in the Economy
41(1)
Issue Revisited: Coping with the Budget Deficit
42(1)
The Concept of Efficiency
43(1)
The Three Coordination Tasks of Any Economy
44(1)
Specialization Fosters Efficient Resource Allocation
44(2)
The Wonders of the Division of Labor
44(1)
The Amazing Principle of Comparative Advantage
45(1)
Specialization Leads to Exchange
46(1)
Markets, Prices, and the Three Coordination Tasks
46(2)
Last Word: Don't Confuse Ends with Means
48(1)
Summary
48(1)
Key Terms
49(1)
Test Yourself
49(1)
Discussion Questions
49(2)
Supply and Demand: An Initial Look
51(24)
Puzzle: What Happened to Oil Prices?
52(1)
The Invisible Hand
52(1)
Demand and Quantity Demanded
53(4)
The Demand Schedule
54(1)
The Demand Curve
54(1)
Shifts of the Demand Curve
54(3)
Supply and Quantity Supplied
57(3)
The Supply Schedule and the Supply Curve
57(1)
Shifts of the Supply Curve
58(2)
Supply and Demand Equilibrium
60(2)
The Law of Supply and Demand
62(1)
Effects of Demand Shifts on Supply-Demand Equilibrium
62(1)
Supply Shifts and Supply-Demand Equilibrium
63(3)
Those Leaping Oil Prices: Puzzle Resolved
64(1)
Application: Who Really Pays that Tax?
65(1)
Battling the Invisible Hand: the Market Fights Back
66(6)
Restraining the Market Mechanism: Price Ceilings
66(2)
Case Study: Rent Controls in New York City
68(1)
Restraining the Market Mechanism: Price Floors
69(1)
Case Study: Farm Price Supports and the Case of Sugar Prices
69(1)
A Can of Worms
70(2)
A Simple But Powerful Lesson
72(1)
Summary
72(1)
Key Terms
72(1)
Test Yourself
73(1)
Discussion Questions
74(1)
PART II THE BUILDING BLOCKS OF DEMAND AND SUPPLY
75(116)
Consumer Choice: Individual and Market Demand
77(24)
Puzzle: Why Shouldn't Water Be Worth More Than Diamonds?
78(2)
Scarcity and Demand
80
Utility: A Tool to Analyze Purchase Decisions
79(7)
The Purpose of Utility Analysis: Analyzing How People Behave, Not What They Think
79(1)
Total Versus Marginal Utility
80(1)
The ``Law'' of Diminishing Marginal Utility
80(2)
Using Marginal Utility: The Optimal Purchase Rule
82(2)
From Diminishing Marginal Utility to Downward-Sloping Demand Curves
84(2)
Consumer Choice as a Trade-Off: Opportunity Cost
86(3)
Consumer's Surplus: The Net Gain from a Purchase
86(2)
Resolving the Diamond-Water Puzzle
88(1)
Income and Quantity Demanded
89(1)
From Individual Demand Curves to Market Demand Curves
89(2)
Market Demand as a Horizontal Sum
89(1)
The ``Law'' of Demand
90(1)
Exceptions to the ``Law'' of Demand
91(1)
Summary
91(1)
Key Terms
92(1)
Test Yourself
92(1)
Discussion Questions
92(1)
Appendix: Analyzing Consumer Choice Graphically: Indifference Curves
93(6)
Geometry of Available Choices: The Budget Line
93(1)
Properties of the Budget Line
93(1)
Changes in the Budget Line
94(1)
What the Customer Prefers: Properties of the Indifference Curve
95(1)
The Slopes of Indifference Curves and Budget Lines
96(1)
Tangency Conditions
97(1)
Consequences of Income Changes: Inferior Goods
98(1)
Consequences of Price Changes: Deriving the Demand Curve
98(1)
Summary
99(1)
Key Terms
99(1)
Test Yourself
100(1)
Demand and Elasticity
101(20)
Issue: Will Taxing Cigarettes Make Teenagers Stop Smoking?
102(1)
Elasticity: The Measure of Responsiveness
102(5)
Price Elasticity of Demand and the Shapes of Demand Curves
105(2)
Price Elasticity of Demand: Its Effect on Total Revenue and Total Expenditure
107(2)
Issue Revisited: Will a Cigarette Tax Decrease Teenage Smoking Significantly?
108(1)
What Determines Demand Elasticity?
109(1)
Elasticity as a General Concept
110(2)
Income Elasticity
110(1)
Price Elasticity of Supply
111(1)
Cross Elasticity of Demand
111(1)
Changes in Demand: Movements Along the Demand Curve Versus Shifts in the Demand Curve
112(2)
Demand Shifters
113(1)
The Time Period of the Demand Curve and Economic Decision Making
114(1)
Real-World Application: Polaroid Versus Kodak
115(1)
In Conclusion
116(1)
Summary
116(1)
Key Terms
117(1)
Test Yourself
117(1)
Discussion Questions
117(1)
Appendix: How Can We Find a Legitimate Demand Curve From Historical Statistics?
118(3)
An Illustration: Did the Advertising Program Work?
119(1)
How Can We Find a Legitimate Demand Curve From the Statistics?
119(2)
Production, Inputs, and Cost: Building Blocks for Supply Analysis
121(28)
Puzzle: How Can We Tell If Larger Firms Are More Efficient?
122(1)
Short-Run Versus Long-Run Costs: What Makes an Input Variable?
122(2)
The Economic Short Run Versus the Economic Long Run
123(1)
Fixed Costs and Variable Costs
123(1)
Production, Input Choice, and Cost with One Variable Input
124(3)
Total, Average, and Marginal Physical Products
124(1)
Marginal Physical Product and the ``Law'' of Diminishing Marginal Returns
125(1)
The Optimal Quantity of an Input and Diminishing Returns
126(1)
Multiple Input Decisions: The Choice of Optimal Input Combinations
127(4)
Substitutability: The Choice of Input Proportions
128(1)
The Marginal Rule for Optimal Input Proportions
129(1)
Changes in Input Prices and Optimal Input Proportions
130(1)
Cost and Its Dependence on Output
131(5)
Input Quantities and Total, Average, and Marginal Cost Curves
131(3)
The Law of Diminishing Marginal Productivity and the U-Shaped Average Cost Curve
134(1)
The Average Cost Curve in the Short and Long Run
135(1)
Economies of Scale
136(5)
The ``Law'' of Diminishing Returns and Returns to Scale
137(1)
Historical Costs Versus Analytical Cost Curves
138(1)
Resolving the Economies of Scale Puzzle
139(1)
Cost Minimization in Theory and Practice
140(1)
Summary
141(1)
Key Terms
142(1)
Test Yourself
142(1)
Discussion Questions
143(1)
Appendix: Production Indifference Curves
143(6)
Characteristics of the Production Indifference Curves, or Isoquants
143(1)
The Choice of Input Combinations
144(1)
Cost Minimization, Expansion Path, and Cost Curves
145(1)
Summary
146(1)
Key Terms
146(1)
Test Yourself
147(2)
Output, Price, and Profit: The Importance of Marginal Analysis
149(22)
Puzzle: Can a Company Make a Profit by Selling Below its Costs?
151(1)
Price and Quantity: One Decision, Not Two
151(1)
Total Profit: Keep Your Eye on the Goal
152(1)
Economic Profit and Optimal Decision Making
152(5)
Total, Average, and Marginal Revenue
153(1)
Total, Average, and Marginal Cost
154(1)
Maximization of Total Profit
155(1)
Profit Maximization: A Graphical Interpretation
156(1)
Marginal Analysis and Maximization of Total Profit
157(4)
Marginal Revenue and Marginal Cost: Guides to Optimization
159(1)
Finding the Optimal Price from Optimal Output
160(1)
Generalization: The Logic of Marginal Analysis and Maximization
161(3)
Application: Fixed Cost and the profit-Maximizing Price
162(1)
Puzzle Resolved: Using Marginal Analysis to Unravel the Case of the ``Unprofitable'' Calculator
163(1)
Conclusion: The Fundamental Role of Marginal Analysis
164(1)
The Theory and Reality: A Word of Caution
165(1)
Summary
165(1)
Key Terms
166(1)
Test Yourself
166(1)
Discussion Questions
166(1)
Appendix: The Relationships Among Total, Average, and Marginal Data
167(4)
Graphical Representation of Marginal and Average Curves
168(1)
Test Yourself
169(2)
Investing in Business: Stocks and Bonds
171(20)
Puzzle #1: What in the World Happened to the Stock Market?
172(1)
Puzzle #2: The Stock Market's Unpredictability
172(1)
Corporations and Their Unique Characteristics
173(1)
Financing Corporate Activity: Stocks and Bonds
174(3)
Plowback, or Retained Earnings
176(1)
What Determines Stock Prices? The Role of Expected Company Earnings
177(1)
Buying Stocks and Bonds
177(3)
Selecting a Portfolio: Diversification
178(1)
Following a Portfolio's Performance
179(1)
Stock Exchanges and Their Functions
180(4)
Regulation of the Stock Market
182(1)
Stock Exchanges and Corporate Capital Needs
182(2)
Speculation
184(4)
Puzzle #2 Resolved: Unpredictable Stock Prices as ``Random Walks''
185(3)
Puzzle #1 Redux: The Boom and Bust of the U.S. Stock Market
188(1)
Summary
188(1)
Key Terms
189(1)
Test Yourself
189(1)
Discussion Questions
189(2)
PART III MARKETS AND THE PRICE SYSTEM
191(88)
The Firm and the Industry Under Perfect Competition
193(18)
Puzzle: Pollution Reduction Incentives That Actually Increase Pollution
194(1)
Perfect Competition Defined
194(1)
The Perfectly Competitive Firm
195(5)
The Firm's Demand Curve under Perfect Competition
195(1)
Short-Run Equilibrium for the Perfectly Competitive Firm
196(1)
Short-Run Profit: Graphic Representation
197(1)
The Case of Short-Term Losses
198(1)
Shutdown and Break-Even Analysis
198(2)
The Perfectly Competitive Firm's Short-Run Supply Curve
200(1)
The Perfectly Competitive Industry
200(7)
The Perfectly Competitive Industry's Short-Run Supply Curve
200(1)
Industry Equilibrium in the Short Run
201(1)
Industry and Firm Equilibrium in the Long Run
202(3)
Zero Economic Profit: The Opportunity Cost of Capital
205(1)
The Long-Run Industry Supply Curve
206(1)
Perfect Competition and Economic Efficiency
207(2)
Puzzle Resolved: Which Is Better to Cut Pollution--The Carrot or the Stick?
208(1)
Summary
209(1)
Key Terms
210(1)
Test Yourself
210(1)
Discussion Questions
210(1)
Monopoly
211(18)
Puzzle: What Happened to AT&T's ``Natural Monopoly'' in Telephone Service?
212(1)
Monopoly Defined
212(3)
Sources of Monopoly: Barriers to Entry and Cost Advantages
213(1)
Natural Monopoly
214(1)
The Monopolist's Supply Decision
215(5)
Determining the Profit-Maximizing Output
216(1)
Comparing Monopoly and Perfect Competition
217(2)
Monopoly Is Likely to Shift Demand
219(1)
Monopoly Is Likely to Shift Cost Curves
220(1)
Can Anything Good Be Said About Monopoly?
220(1)
Monopoly May Aid Innovation
220(1)
Natural Monopoly: Where Single-firm Production is Cheapest
221(1)
Price Discrimination Under Monopoly
221(4)
Is Price Discrimination Always Undesirable?
223(1)
The Puzzle Resolved: Competition in Telephone Service
224(1)
Summary
225(1)
Key Terms
226(1)
Test Yourself
226(1)
Discussion Questions
226(3)
Between Competition and Monopoly
229(28)
Three Puzzling Observations
230(1)
Puzzle 1: Why Are There So Many Retailers?
230(1)
Puzzle 2: Why Do Oligopolists Advertise More Than ``More Competitive'' Firms?
230(1)
Puzzle 3: Why Do Oligopolists Seem to Change Their Prices So Infrequently?
230(1)
Monopolistic Competition
230(5)
Characteristics of Monopolistic Competition
231(1)
Price and Output Determination Under Monopolistic Competition
232(1)
The Excess Capacity Theorem and Resource Allocation
233(1)
1st Puzzle Resolved: Explaining the Abundance of Retailers
234(1)
Oligopoly
235(14)
2nd Puzzle Resolved: Why Oligopolists Advertise but Perfectly Competitive Firms Generally Do Not
235(1)
Why Oligopolistic Behavior Is So Difficult to Analyze
236(1)
A Shopping List
236(4)
Sales Maximization: An Oligopoly Model with Interdependence Ignored
240(1)
3rd Puzzle Resolved: The Kinked Demand Curve Model
241(2)
The Game-Theory Approach
243(1)
Games with Dominant Strategies
244(2)
Games without Dominant Strategies
246(1)
Other Strategies: The Nash Equilibrium
246(1)
Zero-Sum Games
247(1)
Repeated Games
247(2)
Monopolistic Competition, Oligopoly, and Public Welfare
249(2)
A Glance Backward: Comparing the Four Market Forms
251(2)
Summary
253(1)
Key Terms
254(1)
Test Yourself
254(1)
Discussion Questions
254(3)
Limiting Market Power: Regulation and Antitrust
257(22)
The Public Interest Issue: Monopoly Power Versus Mere Size
258(1)
Part 1: Regulation
259(1)
What Is Regulation?
259(1)
Puzzle: Why Do Regulators Often Raise Prices?
260(1)
Some Objectives of Regulation
260(2)
Control of Market Power Resulting from Economies of Scale and Scope
260(1)
Universal Service and Rate Averaging
261(1)
Two Key Issues That Face Regulators
262(3)
Setting Prices to Protect Consumers' Interests and Allow Regulated Firms to Cover Their Costs
262(1)
Marginal versus Average Cost Pricing
262(2)
Preventing Monopoly Profit but Keeping Incentives for Efficiency and Innovation
264(1)
The Pros and Cons of ``Bigness''
265(1)
Economies of Large Size
265(1)
Required Scale for Innovation
265(1)
Deregulation
266(3)
The Effects of Deregulation
266(2)
The Puzzle Revisited: Why Regulators Often Push Prices Upward
268(1)
Part 2: Antitrust Laws and Policies
269(1)
Measuring Market Power: Concentration
270(3)
Concentration: Definition and Measurement---The Herfindahl-Hirschman Index
270(2)
The Evidence of Concentration in Reality
272(1)
A Crucial Problem for Antitrust: The Resemblance of Monopolization and Vigorous Competition
273(1)
Anticompetitive Practices and Antitrust
273(2)
Predatory Pricing
273(1)
The Microsoft Case: Bottlenecks, Bundling, and Network Externalities
274(1)
Use of Antitrust Laws to Prevent Competition
275(1)
Concluding Observations
276(1)
Summary
277(1)
Key Terms
278(1)
Discussion Questions
278(1)
PART IV THE VIRTUES AND LIMITATIONS OF MARKETS
279(112)
The Case for Free Markets I: The Price System
281(24)
Puzzle: Crossing the San Francisco-Oakland Bay Bridge: Is the Price Right?
282(1)
Efficient Resource Allocation and Pricing
282(4)
Pricing to Promote Efficiency: An Example
283(1)
Can Price Increases Ever Serve the Public Interest?
284(2)
Scarcity and the Need to Coordinate Economic Decisions
286(7)
Three Coordination Tasks in the Economy
287(3)
Input-Output Analysis: The Near Impossibility of Perfect Central Planning
290(2)
Which Buyers and Which Sellers Get Priority?
292(1)
How Perfect Competition Achieves Efficiency: A Graphic Analysis
293(3)
How Perfect Competition Achieves Optimal Output: A Marginal Analysis
296(5)
The Invisible Hand at Work
298(1)
Other Roles of Prices: Income Distribution and Fairness
298(2)
Yet Another Free-Market Achievement: Growth versus Efficiency
300(1)
San Francisco Bridge Pricing Revisited
300(1)
Toward Assessment of the Price Mechanism
301(1)
Summary
302(1)
Key Terms
302(1)
Test Yourself
302(1)
Discussion Questions
303(2)
The Shortcomings of Free Markets
305(24)
Puzzle: Why Are Health-Care Costs in Canada Rising?
306(1)
What Does the Market Do Poorly?
306(1)
Efficient Resource Allocation: A Review
306(2)
Externalities: Getting the Prices Wrong
308(4)
Externalities and Inefficiency
308(2)
Externalities Are Everywhere
310(1)
Government Policy and Externalities
311(1)
Provision of Public Goods
312(1)
Allocation of Resources Between Present and Future
313(2)
The Role of the Interest Rate
313(1)
How Does It Work in Practice?
314(1)
Some Other Sources of Market Failure
315(4)
Imperfect Information: ``Caveat Emptor''
315(1)
Rent Seeking
315(1)
Moral Hazard
316(1)
Principals, Agents, and Recent Stock Option Scandals
317(2)
Market Failure and Government Failure
319(1)
The Cost Disease of the Service Sector in the Economy
320(5)
Deteriorating Personal Services
320(1)
Personal Services Are Getting More Expensive
321(1)
Why Are These ``In-Person'' Services Costing So Much More?
322(1)
Uneven Labor Productivity Growth in the Economy
322(1)
A Future of More Goods but Fewer Services: Is It Inevitable?
323(1)
Government May Make the Problem Worse
324(1)
The Puzzle Resolved: Explaining the Rising Costs of Canadian Health Care
324(1)
The Market System on Balance
325(1)
Epilogue: The Unforgiving Market, Its Gift of Abundance, and Its Dangerous Friends
326(1)
Summary
327(1)
Key Terms
327(1)
Test Yourself
328(1)
Discussion Questions
328(1)
The Case for Free Markets II: Innovation and Growth
329(22)
The Market Economy's Incredible Growth Record
330(2)
Innovation, Not Invention, is the Unique Free-Market Accomplishment
332(1)
The Big Puzzle: What Accounts for the Free Market's Incredible Growth Record?
332(1)
Sources of Free-Market Innovation: Role of the Entrepreneur
333(7)
Breakthrough Invention and the Entrepreneurial Firm
334(2)
The Large Enterprises and Their Innovation ``Assembly Lines''
336(3)
The Market Economy and the Speedy Dissemination of New Technology
339(1)
Microeconomic Analysis of the Innovative Firm
340(5)
Financing the Innovation ``Arms Race'': Firms with High R&D Costs and Low Marginal Costs
340(1)
The Profits of Innovation
341(1)
How Much Will a Profit-Maximizing Firm Spend on Innovation?
342(1)
A Kinked Revenue Curve Model of Spending on Innovation
343(1)
Innovation as a Public Good
344(1)
Effects of Process Research on Outputs and Prices
344(1)
Do Free Markets Spend Enough on R&D Activities?
345(2)
Innovation as a Beneficial Externality
346(1)
Why the Shortfall in Innovation Spending May Not Be So Big After All
347(1)
Conclusion: The Market Economy and Its Innovation Assembly Line
347(2)
Toward Solution of the Puzzle: How the Market Achieved its Unprecedented Growth
348(1)
Summary
349(1)
Key Terms
349(1)
Discussion Questions
350(1)
Externalities, the Environment, and Natural Resources
351(22)
Puzzle: Those Resilient Natural Resource Supplies
352(1)
Part 1: The Economics of Environmental Protection
352(1)
Externalities: A Critical Shortcoming of the Market Mechanism
352(7)
The Facts: Is the World Really Getting Steadily More Polluted?
353(3)
The Role of Individuals and Governments in Environmental Damage
356(1)
Pollution and the Law of Conservation of Matter and Energy
356(3)
Supply-Demand Analysis of Environmental Externalities
359(1)
Basic Approaches to Environmental Policy
359(5)
Emissions Taxes versus Direct Control
361(2)
Another Financial Device to Protect the Environment: Emissions Permits
363(1)
Two Cheers for the Market
364(1)
Part 2: The Economics of Natural Resources
365(1)
Economic Analysis: The Free Market and Pricing of Depletable Resources
365(2)
Scarcity and Rising Prices
365(1)
Supply-Demand Analysis and Consumption
366(1)
Actual Resource Prices in the Twentieth Century
367(4)
Interferences with Price Patterns
368(2)
Is Price Interference Justified?
370(1)
On the Virtues of Rising Prices
371(1)
Growing Reserves of Exhaustible Natural Resources: The Puzzle Revisited
371(1)
Summary
371(1)
Key Terms
372(1)
Test Yourself
372(1)
Discussion Questions
372(1)
Taxation and Resource Allocation
373(18)
Issue: Were the Tax Cuts of 2001-2003 Sound Policy?
374(1)
The Level and Types of Taxation
374(1)
Progressive, Proportional, and Regressive Taxes
375(1)
Direct versus Indirect Taxes
375(1)
The Federal Tax System
375(4)
The Federal Personal Income Tax
375(2)
The Payroll Tax
377(1)
The Corporate Income Tax
377(1)
Excise Taxes
377(1)
The Payroll Tax and the Social Security System
377(2)
The State and Local Tax System
379(1)
Sales and Excise Taxes
379(1)
Property Taxes
379(1)
Fiscal Federalism
380(1)
The Concept of Equity in Taxation
380(1)
Horizontal Equity
380(1)
Vertical Equity
380(1)
The Benefits Principle
381(1)
The Concept of Efficiency in Taxation
381(2)
Tax Loopholes and Excess Burden
383(1)
Shifting the Tax Burden: Tax Incidence
383(4)
The Incidence of Excise Taxes
385(1)
The Incidence of the Payroll Tax
386(1)
When Taxation Can Improve Efficiency
387(1)
Equity, Efficiency, and the Optimal Tax
387(1)
Issue Revisited: The Pros and Cons of the Bush Tax Cuts
388(1)
Summary
388(1)
Key Terms
389(1)
Test Yourself
389(1)
Discussion Questions
390(1)
PART V THE DISTRIBUTION OF INCOME
391(68)
Pricing the Factors of Production
393(22)
Puzzle: Why Does a Higher Return to Savings Reduce the Amount Some People Save?
394(1)
The Principle of Marginal Productivity
394(1)
Inputs and Their Derived Demand Curves
395(2)
Investment, Capital, and Interest
397(4)
The Demand for Funds
398(1)
The Downward-Sloping Demand Curve for Funds
399(1)
The Supply of Funds: The Puzzle Resolved
400(1)
The Issue of Usury Laws: Are Interest Rates Too High?
400(1)
The Determination of Rent
401(6)
Land Rents: Further Analysis
402(2)
Generalization: Economic Rent Seeking
404(1)
Rent as a Component of an Input's Compensation
405(1)
An Application of Rent Theory: Salaries of Professional Athletes
406(1)
Rent Controls: The Misplaced Analogy
407(1)
Payments to Entrepreneurship: Are Profits Too High or Too Low?
407(3)
What Accounts for Profits?
408(2)
Taxing Profits
410(1)
Criticisms of Marginal Productivity Theory
410(1)
Summary
411(1)
Key Terms
412(1)
Test Yourself
412(1)
Discussion Questions
412(1)
Appendix: Discounting and Present Value
413(2)
Summary
414(1)
Key Terms
414(1)
Test Yourself
414(1)
Labor: The Human Input
415(24)
Issue: Do Cheap Foreign Labor and Technological Progress Contribute to Lagging Wages?
417(1)
Wage Determination in Competitive Labor Markets
417(4)
The Demand for Labor and the Determination of Wages
418(1)
Influences on MRPL: Shifts in the Demand for Labor
418(1)
Technical Change, Productivity Growth, and the Demand for Labor
419(1)
The Service Economy and the Demand for Labor
420(1)
The Supply of Labor
421(3)
Rising Labor-Force Participation
421(1)
An Important Labor Supply Conundrum
422(1)
The Labor Supply Conundrum Resolved
423(1)
Why Do Wages Differ?
424(5)
Labor Demand in General
425(1)
Labor Supply in General
425(1)
Ability and Earnings: The Rent Component of Wages
426(1)
Investment in Human Capital
426(1)
Education and Earnings: Dissenting Views
427(1)
The Effects of Minimum Wage Legislation
428(1)
Unions and Collective Bargaining
429(8)
Unions as Labor Monopolies
431(2)
Monopsony and Bilateral Monopoly
433(1)
Collective Bargaining and Strikes
434(2)
Issue Revisited: Foreign Competition, Technology, and American Jobs: Are Union Fears Justified?
436(1)
Summary
437(1)
Key Terms
438(1)
Test Yourself
438(1)
Discussion Questions
438(1)
Poverty, Inequality, and Discrimination
439(20)
Issue: Were the Bush Tax Cuts Unfair?
440(1)
The Facts: Poverty
440(3)
Counting the Poor: The Poverty Line
441(1)
Absolute versus Relative Poverty
442(1)
The Facts: Inequality
443(1)
Some Reasons for Unequal Incomes
444(2)
The Facts: Discrimination
446(1)
The Trade-Off Between Equality and Efficiency
447(2)
Policies to Combat Poverty
449(3)
Education as a Way Out
449(1)
The Welfare Debate and the Trade-Off
449(1)
The Negative Income Tax
450(2)
Other Policies to Combat Inequality
452(1)
The Personal Income Tax
452(1)
Death Duties and Other Taxes
452(1)
Policies to Combat Discrimination
452(2)
A Look Back
454(1)
Summary
454(1)
Key Terms
455(1)
Test Yourself
455(1)
Discussion Questions
455(1)
Appendix: The Economic Theory of Discrimination
456(1)
Discrimination by Employers
456(1)
Discrimination by Fellow Workers
456(1)
Statistical Discrimination
456(1)
The Roles of the Market and the Government
457(1)
Summary
458(1)
Key Term
458(1)
PART VI THE UNITED STATES IN THE WORLD ECONOMY
459(24)
International Trade and Comparative Advantage
461(22)
Issue: How Can Americans Compete with ``Cheap Foreign Labor''?
462(1)
Why Trade?
463(1)
Mutual Gains from Trade
463(1)
International Versus Intranational Trade
464(1)
Political Factors in International Trade
464(1)
The Many Currencies Involved in International Trade
464(1)
Impediments to Mobility of Labor and Capital
464(1)
The Law of Comparative Advantage
465(4)
The Arithmetic of Comparative Advantage
465(1)
The Graphics of Comparative Advantage
466(3)
Issue Resolved: Comparative Advantage Exposes the ``Cheap Foreign Labor'' Fallacy
469(1)
Tariffs, Quotas, and Other Interferences with Trade
469(2)
Tariffs versus Quotas
471(1)
Why Inhibit Trade?
471(4)
Gaining a Price Advantage for Domestic Firms
471(1)
Protecting Particular Industries
472(1)
National Defense and Other Noneconomic Considerations
473(1)
The Infant-Industry Argument
474(1)
Strategic Trade Policy
474(1)
Can Cheap Imports Hurt a Country?
475(2)
A Last Look at the ``Cheap Foreign Labor'' Argument
476(1)
Summary
477(1)
Key Terms
478(1)
Test Yourself
478(1)
Discussion Questions
478(1)
Appendix: Supply, Demand, and Pricing in World Trade
479(4)
How Tariffs and Quotas Work
480(1)
Summary
481(1)
Test Yourself
481(2)
Glossary 483(8)
Index 491

Supplemental Materials

What is included with this book?

The New copy of this book will include any supplemental materials advertised. Please check the title of the book to determine if it should include any access cards, study guides, lab manuals, CDs, etc.

The Used, Rental and eBook copies of this book are not guaranteed to include any supplemental materials. Typically, only the book itself is included. This is true even if the title states it includes any access cards, study guides, lab manuals, CDs, etc.

Rewards Program