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Tables of Contents for Principles of Microeconomics
Chapter/Section Title
Page #
Page Count
PREFACE
PART ONE INTRODUCTION
1
170
CHAPTER 1 THE AUTOMOBILE AND ECONOMICS
1
26
THE AUTOMOBILE: A BRIEF HISTORY
2
4
CRISIS IN THE AMERICAN AUTOMOBILE INDUSTRY
4
1
CHRYSLER: GOVERNMENT TO THE RESCUE
5
1
POLICY PERSPECTIVE: WHEN IS A TRUCK A CAR?
6
3
PROTECTION FROM FOREIGN COMPETITION
7
1
THE REBIRTH OF THE AMERICAN AUTOMOBILE INDUSTRY
8
1
THE HISTORY OF THE AUTOMOBILE IN STATISTICS
8
1
WHAT IS ECONOMICS?
9
3
MARKETS AND GOVERNMENT IN THE MIXED ECONOMY
12
3
MARKETS
13
1
THE ROLE OF GOVERNMENT
13
1
THE THREE MAJOR MARKETS
14
1
CLOSE-UP: A FAILED ALTERNATIVE TO THE MIXED ECONOMY
15
2
TWO CAVEATS
17
1
MICROECONOMICS AND MACROECONOMICS: THE TWO BRANCHES OF ECONOMICS
17
1
THE SCIENCE OF ECONOMICS
18
3
DISCOVERING AND INTERPRETING RELATIONSHIPS
19
1
CAUSATION VERSUS CORRELATION
19
1
EXPERIMENTS IN ECONOMICS
20
1
WHY ECONOMISTS DISAGREE
21
1
CLOSE-UP: ECONOMISTS AGREE!
22
2
DISAGREEMENTS WITHIN POSITIVE ECONOMICS
23
1
DISAGREEMENTS WITHIN NORMATIVE ECONOMICS
23
1
CONSENSUS ON THE IMPORTANCE OF SCARCITY
24
1
REVIEW AND PRACTICE
24
3
CHAPTER 2 THINKING LIKE AN ECONOMIST
27
25
THE BASIC COMPETITIVE MODEL
28
2
RATIONAL CONSUMERS AND PROFIT-MAXIMIZING FIRMS
28
1
COMPETITIVE MARKETS
29
1
PRICES, PROPERTY RIGHTS, AND PROFITS: INCENTIVES AND INFORMATION
30
3
INCENTIVES VERSUS EQUALITY
32
1
WHEN PROPERTY RIGHTS FAIL
32
1
CONSENSUS ON INCENTIVES
33
1
RATIONING
33
2
OPPORTUNITY SETS
35
5
BUDGET AND TIME CONSTRAINTS
35
2
THE PRODUCTION POSSIBILITIES CURVE
37
3
COST
40
2
OPPORTUNITY COSTS
41
1
CLOSE-UP: OPPORTUNITY COSTS OF MEETINGS
42
2
SUNK COSTS
42
1
MARGINAL COSTS
43
1
POLICY PERSPECTIVE: POLICY AT THE MARGIN
44
1
USING ECONOMICS: USING MARGINAL ANALYSIS TO SET SAFETY STANDARDS
45
1
REVIEW AND PRACTICE
45
3
APPENDIX: READING GRAPHS
48
4
CHAPTER 3 TRADE
52
19
THE BENEFITS OF ECONOMIC INTERDEPENDENCE
53
2
THE GAINS FROM TRADE
53
2
TRADE BETWEEN COUNTRIES
55
6
COMPARATIVE ADVANTAGE
59
2
USING ECONOMICS: CALCULATING THE GAINS FROM TRADE
61
3
CLOSE-UP: THE COMPARATIVE ADVANTAGE OF THE UNITED STATES
64
1
THE PERCEIVED COSTS OF INTERNATIONAL INTERDEPENDENCE
65
2
POLICY PERSPECTIVE: GETTING NAFTA PASSED
67
1
REVIEW AND PRACTICE
68
3
CHAPTER 4 DEMAND, SUPPLY, AND PRICE
71
25
THE ROLE OF PRICES
72
1
DEMAND
73
4
THE INDIVIDUAL DEMAND CURVE
73
2
THE MARKET DEMAND CURVE
75
1
SHIFTS IN DEMAND CURVES
76
1
POLICY PERSPECTIVE: GOOD NEWS IS BAD NEWS
77
2
SOURCES OF SHIFTS IN DEMAND CURVES
78
1
CLOSE-UP: GASOLINE PRICES AND DEMAND FOR SMALL CARS
79
3
SHIFTS IN A DEMAND CURVE VERSUS MOVEMENTS ALONG A DEMAND CURVE
81
1
SUPPLY
82
3
MARKET SUPPLY
83
2
SHIFTS IN SUPPLY CURVES
85
1
SOURCES OF SHIFTS IN SUPPLY CURVES
85
1
USING ECONOMICS: PREDICTING THE EFFECTS OF THE DROUGHT OF 1988
86
1
SHIFTS IN A SUPPLY CURVE VERSUS MOVEMENTS ALONG A SUPPLY CURVE
87
1
LAW OF SUPPLY AND DEMAND
87
2
CLOSE-UP: THE STRUCTURE OF ECONOMIC MODELS
89
2
USING DEMAND AND SUPPLY CURVES
90
1
CONSENSUS ON THE DETERMINATION OF PRICES
91
1
PRICE, VALUE, AND COST
91
2
REVIEW AND PRACTICE
93
3
CHAPTER 5 USING DEMAND AND SUPPLY
96
26
SENSITIVITY TO PRICE CHANGES: THE PRICE ELASTICITY OF DEMAND
97
6
PRICE ELASTICITY AND REVENUES
99
4
THE DETERMINANTS OF THE ELASTICITY OF DEMAND
103
2
THE PRICE ELASTICITY OF SUPPLY
105
2
USING DEMAND AND SUPPLY ELASTICITIES
107
2
TAX POLICY AND THE LAW OF SUPPLY AND DEMAND
109
1
SHORTAGES AND SURPLUSES
109
3
POLICY PERSPECTIVE: ILLUSORY GAINS FROM TAXING LUXURIES?
112
1
INTERFERING WITH THE LAW OF SUPPLY AND DEMAND
113
1
CLOSE-UP: RENT CONTROL IN NEW YORK CITY
114
3
PRICE CEILINGS: THE CASE OF RENT CONTROL
115
1
PRICE FLOORS: THE CASE OF AGRICULTURAL SUPPORTS
116
1
ALTERNATIVE SOLUTIONS
117
1
USING ECONOMICS: CALCULATING RESPONSES TO OIL PRICE CHANGES
117
1
REVIEW AND PRACTICE
118
4
CHAPTER 6 TIME AND RISK
122
21
INTEREST
123
2
THE TIME VALUE OF MONEY
123
2
USING ECONOMICS: THE VALUE OF WINNING A LOTTERY
125
1
THE MARKET FOR LOANABLE FUNDS
125
2
INFLATION AND THE REAL RATE OF INTEREST
127
1
THE MARKET FOR ASSETS
128
2
FORMING EXPECTATIONS
129
1
THE MARKET FOR RISK
130
1
RESPONDING TO RISK
131
2
POLICY PERSPECTIVE: ADVERSE SELECTION AND HEALTH INSURANCE
133
3
THE RISK-INCENTIVE TRADE-OFF
135
1
CLOSE-UP: AUTO INSURANCE AND ADVERSE SELECTION IN NEW JERSEY
136
1
ENTREPRENEURSHIP
137
1
AN OVERVIEW OF FINANCIAL MARKETS
138
1
REVIEW AND PRACTICE
138
3
APPENDIX: CALCULATING PRESENT DISCOUNTED VALUE
141
2
CHAPTER 7 THE PUBLIC SECTOR
143
28
THE CHANGING ROLES OF GOVERNMENT
145
2
THE PICTURE IN STATISTICS
146
1
POLICY PERSPECTIVE: THE "PEACE DIVIDEND"--NOW YOU SEE IT, NOW YOU DON'T
147
2
STATE AND LOCAL GOVERNMENT
148
1
WHAT DISTINGUISHES THE PRIVATE AND PUBLIC SECTORS?
148
1
CLOSE-UP: INTERNATIONAL PERSPECTIVES
149
1
ADAM SMITH'S "INVISIBLE HAND" AND THE CENTRAL ROLE OF MARKETS
150
1
CLOSE-UP: ADAM SMITH--FOUNDER OF MODERN ECONOMICS
151
1
GOVERNMENT AND IGNORANCE OF ECONOMICS
152
1
GOVERNMENT AND REDISTRIBUTION
152
1
GOVERNMENT AND MARKET FAILURES
153
2
STABILIZATION OF THE ECONOMY
154
1
LACK OF COMPETITION
154
1
EXTERNALITIES
154
1
USING ECONOMICS: CORRECTING FOR EXTERNALITIES
155
6
PUBLIC GOODS
157
2
MISSING MARKETS
159
1
INFORMATION AND KNOWLEDGE
159
1
BEYOND MARKET FAILURES
160
1
GOVERNMENT'S OPTIONS
161
2
TAKING DIRECT ACTION
161
1
PROVIDING INCENTIVES TO THE PRIVATE SECTOR
162
1
MANDATING ACTION IN THE PRIVATE SECTOR
162
1
COMBINING OPTIONS
163
1
GOVERNMENT FAILURES
163
3
IMPERFECT INFORMATION
163
1
INCENTIVES AND THE EFFICIENCY OF GOVERNMENT
164
1
WASTE IN GOVERNMENT
165
1
UNFORESEEN RESPONSES TO A PROGRAM
165
1
POLICY PERSPECTIVE: REINVENTING GOVERNMENT--THE THIRTY-PAGE T-SHIRT
166
2
AN APPRAISAL OF THE ROLE OF GOVERNMENT
168
1
REVIEW AND PRACTICE
168
3
PART TWO PERFECT MARKETS
171
164
CHAPTER 8 THE CONSUMPTION DECISION
171
28
THE BASIC PROBLEM OF CONSUMER CHOICE
172
6
THE BUDGET CONSTRAINT
172
2
CHOOSING A POINT ON THE BUDGET CONSTRAINT: INDIVIDUAL PREFERENCES
174
1
WHAT HAPPENS TO CONSUMPTION WHEN INCOME CHANGES?
175
3
POLICY PERSPECTIVE: THE FATE OF THE BTU TAX
178
2
A CLOSER LOOK AT THE DEMAND CURVE
179
1
USING ECONOMICS: CALCULATING TAX REVENUES
180
2
DERIVING DEMAND CURVES
180
1
THE IMPORTANCE OF DISTINGUISHING BETWEEN INCOME AND SUBSTITUTION EFFECTS
181
1
USING ECONOMICS: INCOME AND SUBSTITUTION EFFECTS
182
1
UTILITY AND THE DESCRIPTION OF PREFERENCES
182
5
LOOKING BEYOND THE BASIC MODEL: HOW WELL DO THE UNDERLYING ASSUMPTIONS MATCH REALITY?
187
1
CLOSE-UP: INTERNATIONAL PRICE AND INCOME ELASTICITIES FOR FOOD
188
1
REVIEW AND PRACTICE
189
2
APPENDIX: INDIFFERENCE CURVES AND THE CONSUMPTION DECISION
191
8
CHAPTER 9 LABOR SUPPLY AND SAVINGS
199
27
THE LABOR SUPPLY DECISION
200
7
THE CHOICE BETWEEN LEISURE AND CONSUMPTION
201
3
LABOR FORCE PARTICIPATION
204
2
TAX POLICY AND LABOR SUPPLY
206
1
POLICY PERSPECTIVE: THE AMBIGUOUS EFFECTS OF THE EARNED INCOME CREDIT
207
1
THE RETIREMENT DECISION
208
1
HUMAN CAPITAL AND EDUCATION
208
3
EDUCATION AND ECONOMIC TRADE-OFFS
209
1
THE WIDENING WAGE GAP
210
1
CLOSE-UP: THE "RATIONAL" COUPLES DEBATE
211
1
BUDGET CONSTRAINTS AND SAVINGS
212
4
SAVINGS AND THE INTEREST RATE
214
1
OTHER FACTORS AFFECTING SAVINGS
215
1
USING ECONOMICS: INTEREST ELASTICITY OF SAVINGS
216
1
CLOSE-UP: WHY IS THE U.S. SAVINGS RATE SO LOW?
217
1
POLICY PERSPECTIVE: STIMULATING SAVINGS
218
1
REVIEW AND PRACTICE
219
3
APPENDIX: INDIFFERENCE CURVES AND THE LABOR SUPPLY AND SAVINGS DECISIONS
222
4
CHAPTER 10 A STUDENT'S GUIDE TO INVESTING
226
24
INVESTMENT ALTERNATIVES
227
4
BANK DEPOSITS
227
1
HOUSING
228
1
BONDS
228
1
SHARES OF STOCK
229
1
MUTUAL FUNDS
230
1
DESIRABLE ATTRIBUTES OF INVESTMENTS
231
6
EXPECTED RETURNS
232
3
RISK
235
1
TAX CONSIDERATIONS
236
1
CLOSE-UP: STOCK MARKET CRASHES
237
2
LIQUIDITY
238
1
POLICY PERSPECTIVE: CAPITAL GAINS
239
1
EFFICIENT MARKET THEORY
240
1
USING ECONOMICS: ARBITRAGE--RISK-FREE RETURNS?
241
3
EFFICIENCY AND THE STOCK MARKET
241
3
EFFICIENT MARKETS OR RANDOM NOISE?
244
1
STRATEGIES FOR INTELLIGENT INVESTING
244
2
CLOSE-UP: JUST HOW SMART IS THE "SMART MONEY"?
246
1
REVIEW AND PRACTICE
247
3
CHAPTER 11 THE FIRM'S COSTS
250
31
PROFITS, COSTS, AND FACTORS OF PRODUCTION
251
9
PRODUCTION WITH ONE VARIABLE INPUT
252
3
COST CURVES
255
5
CLOSE-UP: HOW IMPORTANT IS THE FORTUNE 500?
260
2
PRODUCTION WITH MANY FACTORS
262
3
COST MINIMIZATION
262
1
THE PRINCIPLE OF SUBSTITUTION
263
2
POLICY PERSPECTIVE: THE SUBSTITUTION PRINCIPLE AND GLOBAL WARMING
265
1
SHORT-RUN AND LONG-RUN COST CURVES
266
4
SHORT-RUN COST CURVES
266
1
LONG-RUN COST CURVES
267
3
USING ECONOMICS: ECONOMIES OF SCALE IN SAVINGS AND LOAN BRANCHES
270
1
LOOKING BEYOND THE BASIC MODEL: COST CURVES AND THE COMPETITIVENESS OF MARKETS
270
1
ECONOMIES OF SCOPE
271
1
REVIEW AND PRACTICE
272
3
APPENDIX: COST MINIMIZATION WITH MANY INPUTS
275
6
CHAPTER 12 PRODUCTION
281
28
REVENUE
282
1
COSTS
283
1
BASIC CONDITIONS OF COMPETITIVE SUPPLY
284
3
ENTRY, EXIT, AND MARKET SUPPLY
287
3
SUNK COSTS AND EXIT
288
1
THE FIRM'S SUPPLY CURVE
289
1
THE MARKET SUPPLY CURVE
289
1
USING ECONOMICS: ENTERING THE PAINTING BUSINESS
290
2
LONG-RUN VERSUS SHORT-RUN SUPPLY
292
2
POLICY PERSPECTIVE: THE 1996 GASOLINE CRISIS
294
2
LOOKING BEYOND THE BASIC MODEL: SUNK COSTS, ENTRY, AND COMPETITION
295
1
CLOSE-UP: PAN AM'S EXIT
296
1
ACCOUNTING PROFITS AND ECONOMIC PROFITS
297
2
OPPORTUNITY COSTS
297
1
ECONOMIC RENT
298
1
FACTOR DEMAND
299
4
FROM THE FIRM'S FACTOR DEMAND TO THE MARKET'S FACTOR DEMAND
302
1
CLOSE-UP: FACTOR ELASTICITIES ON THE FARM
303
2
FACTOR DEMANDS WITH TWO OR MORE FACTORS
304
1
THE THEORY OF THE COMPETITIVE FIRM
304
1
REVIEW AND PRACTICE
305
2
APPENDIX: ALTERNATIVE WAYS OF CALCULATING THE DEMAND FOR LABOR
307
2
CHAPTER 13 COMPETITIVE EQUILIBRIUM
309
26
GENERAL EQUILIBRIUM ANALYSIS
310
3
EXAMPLE: THE CORPORATE INCOME TAX
310
2
WHEN PARTIAL EQUILIBRIUM ANALYSIS WILL DO
312
1
EXAMPLE: A TAX ON CIGARETTES
312
1
THE BASIC COMPETITIVE EQUILIBRIUM MODEL
313
2
THE CIRCULAR FLOW OF FUNDS
315
3
COMPETITIVE GENERAL EQUILIBRIUM AND ECONOMIC EFFICIENCY
318
2
CLOSE-UP: THE MINIMUM WAGE AND GENERAL EQUILIBRIUM
319
3
PARETO EFFICIENCY
320
1
CONDITIONS FOR THE PARETO EFFICIENCY OF THE MARKET ECONOMY
320
2
CLOSE-UP: PARETO IMPROVEMENT IN THE SKIES
322
2
POLICY PERSPECTIVE: THE COST OF AIR SAFETY FOR CHILDREN
324
2
COMPETITIVE MARKETS AND PARETO EFFICIENCY
324
1
COMPETITIVE MARKETS AND INCOME DISTRIBUTION
325
1
LOOKING BEYOND THE BASIC MODEL: MARKET FAILURES AND THE ROLE OF GOVERNMENT
326
2
REVIEW AND PRACTICE
328
3
APPENDIX: PARETO EFFICIENCY AND COMPETITIVE MARKETS
331
4
PART THREE IMPERFECT MARKETS
335
170
CHAPTER 14 MONOPOLIES AND IMPERFECT COMPETITION
335
28
MARKET STRUCTURES
336
2
MONOPOLY OUTPUT
338
5
AN EXAMPLE: THE ABC-MENT COMPANY
341
2
USING ECONOMICS: MONOPOLY VERSUS COMPETITIVE PRICES
343
2
MONOPOLY PROFITS
343
1
PRICE DISCRIMINATION
344
1
IMPERFECT COMPETITION
345
3
NUMBER OF FIRMS IN THE INDUSTRY
346
1
PRODUCT DIFFERENTIATION
346
2
BARRIERS TO ENTRY: WHY IS COMPETITION LIMITED?
348
2
GOVERNMENT POLICIES
349
1
SINGLE OWNERSHIP OF AN ESSENTIAL INPUT
349
1
INFORMATION
349
1
POLICY PERSPECTIVE: USING PATENTS TO MAINTAIN A MONOPOLY--THE CASE OF XEROX
350
5
ECONOMIES OF SCALE AND NATURAL MONOPOLIES
351
2
MARKET STRATEGIES
353
2
EQUILIBRIUM WITH MONOPOLISTIC COMPETITION
355
2
CLOSE-UP: IBM--FROM THE EDGE OF MONOPOLY TO THE EDGE OF COMPETITION
357
1
SCHUMPETERIAN COMPETITION
358
1
REVIEW AND PRACTICE
358
2
APPENDIX A: MONOPSONY
360
1
APPENDIX B: DEMAND FOR INPUTS UNDER MONOPOLY AND IMPERFECT COMPETITION
361
2
CHAPTER 15 OLIGOPOLIES
363
25
COLLUSION
364
2
THE PROBLEM OF SELF-ENFORCEMENT
364
2
CLOSE-UP: GOVERNMENT COMPLICITY
366
3
THE PROBLEM OF COORDINATION
366
2
THE PROBLEM OF ENTRY
368
1
CLOSE-UP: PRICE FIXING IN ACTION
369
1
GAME THEORY: THE PRISONER'S DILEMMA
370
2
USING ECONOMICS: GAME THEORY AND COLLUSION
372
1
RESTRICTIVE PRACTICES
373
1
POLICY PERSPECTIVE: RESTRICTIVE PRACTICES AND THE MICROSOFT CASE
374
2
CONSEQUENCES OF RESTRICTIVE PRACTICES
375
1
THE MANY DIMENSIONS OF COMPETITION AMONG OLIGOPOLISTS
376
1
PRICE AND OUTPUT COMPETITION
377
2
COURNOT COMPETITION
377
1
BERTRAND COMPETITION
377
1
KINKED DEMAND CURVES
378
1
THE IMPORTANCE OF IMPERFECTIONS IN COMPETITION
379
1
REVIEW AND PRACTICE
380
4
APPENDIX: DESCRIBING THE MARKET EQUILIBRIUM FOR OLIGOPOLY
384
4
CHAPTER 16 GOVERNMENT POLICIES TOWARD COMPETITION
388
23
THE DRAWBACKS OF MONOPOLIES AND LIMITED COMPETITION
389
4
RESTRICTED OUTPUT
389
2
MANAGERIAL SLACK
391
1
REDUCED RESEARCH AND DEVELOPMENT
392
1
RENT SEEKING
392
1
FURTHER DRAWBACKS OF LIMITED COMPETITION
393
1
POLICIES TOWARD NATURAL MONOPOLIES
393
3
PUBLIC OWNERSHIP
394
1
REGULATION
395
1
POLICY PERSPECTIVE: CORPORATIZING THE AIR TRAFFIC CONTROL SYSTEM
396
4
ENCOURAGING COMPETITION
398
2
CLOSE-UP: THE BREAKUP OF AT&T
400
1
ANTITRUST POLICIES
401
5
LIMITING MARKET DOMINATION
401
2
DEFINING MARKETS
403
1
CURBING RESTRICTIVE PRACTICES
404
1
ENFORCING THE ANTITRUST LAWS
405
1
USING ECONOMICS: COKE AND PEPSI PLAY MERGER MANIA
406
3
CURRENT ANTITRUST CONTROVERSIES
407
2
REVIEW AND PRACTICE
409
2
CHAPTER 17 TECHNOLOGICAL CHANGE
411
19
LINKS BETWEEN TECHNOLOGICAL CHANGE AND IMPERFECT COMPETITION
412
6
PATENTS
413
1
THE TRADE-OFF BETWEEN SHORT-RUN EFFICIENCY AND INNOVATION
413
3
R & D AS A FIXED COST
416
1
LEARNING BY DOING
417
1
CLOSE-UP: ELI WHITNEY AND THE COTTON GIN
418
2
ACCESS TO CAPITAL MARKETS
419
1
CLOSE-UP: JOSEPH SCHUMPETER AND SCHUMPETERIAN COMPETITION
420
1
BASIC RESEARCH AS A PUBLIC GOOD
421
2
GOVERNMENT PROMOTION OF TECHNOLOGICAL PROGRESS
423
1
SUBSIDIES
423
1
POLICY PERSPECTIVE: SUCCESS STORIES IN GOVERNMENT RESEARCH PROGRAMS
424
2
PROTECTION
425
1
POLICY PERSPECTIVE: COMPETITION VS. COOPERATION IN AIRCRAFT MANUFACTURING
426
1
RELAXING ANTITRUST POLICIES
426
1
TECHNOLOGICAL CHANGE AND ECONOMIC GROWTH
427
1
REVIEW AND PRACTICE
428
2
CHAPTER 18 IMPERFECT INFORMATION IN THE PRODUCT MARKET
430
24
THE INFORMATION PROBLEM
431
2
HOW BIG A PROBLEM?
432
1
HOW PRICES CONVEY INFORMATION
432
1
MARKETS FOR INFORMATION
432
1
THE MARKET FOR LEMONS AND ADVERSE SELECTION
433
3
SIGNALING
435
1
JUDGING QUALITY BY PRICE
435
1
CLOSE-UP: AUTOMOBILE BROKERS AND IMPERFECT INFORMATION
436
1
THE INCENTIVE PROBLEM
437
2
MARKET SOLUTIONS
438
1
POLICY PERSPECTIVE: MEDICAL SAVINGS ACCOUNTS
439
3
CONTRACT SOLUTIONS
440
1
REPUTATION SOLUTIONS
441
1
POLICY PERSPECTIVE: INFORMATION PROBLEMS AND INCENTIVES IN THE MEDICAL CARE INDUSTRY
442
1
THE SEARCH PROBLEM
443
2
SEARCH AND IMPERFECT COMPETITION
444
1
SEARCH AND INFORMATION INTERMEDIARIES
445
1
ADVERTISING
445
1
USING ECONOMICS: EXPLAINING JOB MOBILITY--THE ECONOMICS OF SEARCH
446
2
ADVERTISING AND COMPETITION
447
1
ADVERTISING AND PROFITS
447
1
CLOSE-UP: ADVERTISING ORANGE JUICE
448
2
THE IMPORTANCE OF IMPERFECT INFORMATION
450
1
GOVERNMENT AND INFORMATION
451
1
REVIEW AND PRACTICE
451
3
CHAPTER 19 IMPERFECTIONS IN THE LABOR MARKET
454
21
LABOR UNIONS
455
6
A BRIEF HISTORY
455
3
ECONOMIC EFFECTS
458
2
LIMITS ON UNION POWER
460
1
CLOSE-UP: LESSONS FROM UNIONS IN OTHER COUNTRIES
461
2
WAGE DIFFERENTIALS
463
3
DISCRIMINATION
464
2
MOTIVATING WORKERS
466
3
PIECE RATES AND INCENTIVES
466
1
EFFICIENCY WAGES
467
1
OTHER INCENTIVES
468
1
POLICY PERSPECTIVE: MINIMUM WAGES
469
2
CLOSE-UP: FRINGE BENEFITS
471
1
REVIEW AND PRACTICE
472
3
CHAPTER 20 FINANCING, CONTROLLING, AND MANAGING THE FIRM
475
30
THE FIRM'S LEGAL FORM
476
2
CORPORATE FINANCE
478
3
WHY CORPORATIONS CARE ABOUT FINANCIAL STRUCTURE
480
1
USING ECONOMICS: ESTIMATING THE TAX BENEFITS OF DEBT VERSUS EQUITY
481
6
FINANCE AND CONTROL
482
2
LIMITED FINANCIAL OPTIONS
484
3
OVERVIEW: THE LIFE CYCLE OF A FIRM
487
1
TAKEOVERS, CONTROL OF FIRMS, AND THE MARKET FOR MANAGERS
487
4
TAKEOVERS: PROS AND CONS
489
1
PUBLIC POLICY TOWARD TAKEOVERS
490
1
POLICY PERSPECTIVE: WHY PENNSYLVANIA COMPANIES DO NOT WANT PROTECTION AGAINST TAKEOVERS
491
1
MAKING DECISIONS
492
2
DELEGATION AND THE PRINCIPAL-AGENT PROBLEM
493
1
CLOSE-UP: THE BEST EXECUTIVES FOR THE MONEY?
494
2
CLOSE-UP: WHAT IS GOOD MANAGEMENT?
496
3
CENTRALIZATION AND DECENTRALIZATION
497
2
THE BOUNDARIES OF THE FIRM
499
2
REVIEW AND PRACTICE
501
4
PART FOUR POLICY ISSUES
505
CHAPTER 21 EXTERNALITIES AND THE ENVIRONMENT
505
17
NEGATIVE EXTERNALITIES AND OVERSUPPLY
506
3
ENVIRONMENTAL PROTECTION AND CONSERVATION: EXAMPLES
508
1
POLICY RESPONSES TO PROBLEMS IN THE ENVIRONMENT
509
2
PROPERTY RIGHTS RESPONSES
509
1
REGULATION
510
1
CLOSE-UP: THE MARKET FOR WHALES
511
2
TAXES AND SUBSIDIES
512
1
USING ECONOMICS: CALCULATING THE EFFECTS OF A GASOLINE TAX
513
2
THE MARKETABLE PERMIT RESPONSE
513
1
WEIGHING THE ALTERNATIVE APPROACHES
514
1
POLICY PERSPECTIVE: UNFUNDED MANDATES, TAKINGS, AND COST-BENEFIT ANALYSIS
515
1
NATURAL RESOURCES
516
2
MERIT GOODS AND BADS
518
1
REVIEW AND PRACTICE
518
4
CHAPTER 22 TAXES, TRANSFERS, AND REDISTRIBUTION
522
21
THE CASE FOR INCOME REDISTRIBUTION
523
1
THE CHANGING U.S. INCOME DISTRIBUTION
524
1
TAXES
524
3
CHARACTERISTICS OF A GOOD TAX SYSTEM
526
1
POLICY PERSPECTIVE: CAPITAL GAINS TAXATION
527
4
GRADING THE U.S. TAX SYSTEM
528
3
TRANSFERS
531
2
NEED-BASED TRANSFER PROGRAMS
531
2
CLOSE-UP: DRAWING A POVERTY LINE
533
1
SOCIAL INSURANCE
534
2
THE COSTS AND BENEFITS OF REDISTRIBUTION
536
2
EQUITY-EFFICIENCY TRADE-OFFS
536
1
HOW WELL DOES THE UNITED STATES DO?
537
1
THE ROLES OF GOVERNMENT: A REVIEW
538
2
REVIEW AND PRACTICE
540
3
CHAPTER 23 PUBLIC DECISION MAKING
543
DECISION MAKING IN A DEMOCRACY
544
4
COLLECTIVE DECISION MAKING
544
1
MAJORITY VOTING AND THE MEDIAN VOTER
545
1
THE VOTING PARADOX
546
1
INTEREST GROUPS AND RENT SEEKING
547
1
POLICY PERSPECTIVE: MOTOR VOTERS
548
2
BUREAUCRACIES
549
1
AGRICULTURE: A CASE STUDY IN MIXED MOTIVES
549
1
CLOSE-UP: ECONOMICS, LIABILITY, AND LEGAL REFORM
550
2
PUBLIC FAILURES
552
4
INCENTIVES AND CONSTRAINTS
553
1
BUDGETING AND SPENDING PROCEDURES
554
1
UNINTENDED CONSEQUENCES
555
1
POLICY PERSPECTIVE: REINVENTING GOVERNMENT
556
1
DECENTRALIZATION AND THE FEDERAL ROLE
557
3
REVIEW AND PRACTICE
560
GLOSSARY
A1
16
CREDITS
A17
2
INDEX
A19