Skip to Content
OpenStax Logo
Principles of Microeconomics for AP® Courses 2e

Index

Principles of Microeconomics for AP® Courses 2eIndex
  1. Preface
  2. 1 Welcome to Economics!
    1. Introduction
    2. 1.1 What Is Economics, and Why Is It Important?
    3. 1.2 Microeconomics and Macroeconomics
    4. 1.3 How Economists Use Theories and Models to Understand Economic Issues
    5. 1.4 How To Organize Economies: An Overview of Economic Systems
    6. Key Terms
    7. Key Concepts and Summary
    8. Self-Check Questions
    9. Review Questions
    10. Critical Thinking Questions
  3. 2 Choice in a World of Scarcity
    1. Introduction to Choice in a World of Scarcity
    2. 2.1 How Individuals Make Choices Based on Their Budget Constraint
    3. 2.2 The Production Possibilities Frontier and Social Choices
    4. 2.3 Confronting Objections to the Economic Approach
    5. Key Terms
    6. Key Concepts and Summary
    7. Self-Check Questions
    8. Review Questions
    9. Critical Thinking Questions
    10. Problems
  4. 3 Demand and Supply
    1. Introduction to Demand and Supply
    2. 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
    3. 3.2 Shifts in Demand and Supply for Goods and Services
    4. 3.3 Changes in Equilibrium Price and Quantity: The Four-Step Process
    5. 3.4 Price Ceilings and Price Floors
    6. 3.5 Demand, Supply, and Efficiency
    7. Key Terms
    8. Key Concepts and Summary
    9. Self-Check Questions
    10. Review Questions
    11. Critical Thinking Questions
    12. Problems
  5. 4 Labor and Financial Markets
    1. Introduction to Labor and Financial Markets
    2. 4.1 Demand and Supply at Work in Labor Markets
    3. 4.2 Demand and Supply in Financial Markets
    4. 4.3 The Market System as an Efficient Mechanism for Information
    5. Key Terms
    6. Key Concepts and Summary
    7. Self-Check Questions
    8. Review Questions
    9. Critical Thinking Questions
    10. Problems
  6. 5 Elasticity
    1. Introduction to Elasticity
    2. 5.1 Price Elasticity of Demand and Price Elasticity of Supply
    3. 5.2 Polar Cases of Elasticity and Constant Elasticity
    4. 5.3 Elasticity and Pricing
    5. 5.4 Elasticity in Areas Other Than Price
    6. Key Terms
    7. Key Concepts and Summary
    8. Self-Check Questions
    9. Review Questions
    10. Critical Thinking Questions
    11. Problems
  7. 6 Consumer Choices
    1. Introduction to Consumer Choices
    2. 6.1 Consumption Choices
    3. 6.2 How Changes in Income and Prices Affect Consumption Choices
    4. 6.3 Labor-Leisure Choices
    5. 6.4 Intertemporal Choices in Financial Capital Markets
    6. Key Terms
    7. Key Concepts and Summary
    8. Self-Check Questions
    9. Review Questions
    10. Critical Thinking Questions
    11. Problems
  8. 7 Production, Costs and Industry Structure
    1. Introduction to Production, Costs, and Industry Structure
    2. 7.1 Explicit and Implicit Costs, and Accounting and Economic Profit
    3. 7.2 Production in the Short Run
    4. 7.3 Costs in the Short Run
    5. 7.4 Production in the Long Run
    6. 7.5 Costs in the Long Run
    7. Key Terms
    8. Key Concepts and Summary
    9. Self-Check Questions
    10. Review Questions
    11. Critical Thinking Questions
    12. Problems
  9. 8 Perfect Competition
    1. Introduction to Perfect Competition
    2. 8.1 Perfect Competition and Why It Matters
    3. 8.2 How Perfectly Competitive Firms Make Output Decisions
    4. 8.3 Entry and Exit Decisions in the Long Run
    5. 8.4 Efficiency in Perfectly Competitive Markets
    6. Key Terms
    7. Key Concepts and Summary
    8. Self-Check Questions
    9. Review Questions
    10. Critical Thinking Questions
    11. Problems
  10. 9 Monopoly
    1. Introduction to a Monopoly
    2. 9.1 How Monopolies Form: Barriers to Entry
    3. 9.2 How a Profit-Maximizing Monopoly Chooses Output and Price
    4. Key Terms
    5. Key Concepts and Summary
    6. Self-Check Questions
    7. Review Questions
    8. Critical Thinking Questions
    9. Problems
  11. 10 Monopolistic Competition and Oligopoly
    1. Introduction to Monopolistic Competition and Oligopoly
    2. 10.1 Monopolistic Competition
    3. 10.2 Oligopoly
    4. Key Terms
    5. Key Concepts and Summary
    6. Self-Check Questions
    7. Review Questions
    8. Critical Thinking Questions
    9. Problems
  12. 11 Monopoly and Antitrust Policy
    1. Introduction to Monopoly and Antitrust Policy
    2. 11.1 Corporate Mergers
    3. 11.2 Regulating Anticompetitive Behavior
    4. 11.3 Regulating Natural Monopolies
    5. 11.4 The Great Deregulation Experiment
    6. Key Terms
    7. Key Concepts and Summary
    8. Self-Check Questions
    9. Review Questions
    10. Critical Thinking Questions
    11. Problems
  13. 12 Environmental Protection and Negative Externalities
    1. Introduction to Environmental Protection and Negative Externalities
    2. 12.1 The Economics of Pollution
    3. 12.2 Command-and-Control Regulation
    4. 12.3 Market-Oriented Environmental Tools
    5. 12.4 The Benefits and Costs of U.S. Environmental Laws
    6. 12.5 International Environmental Issues
    7. 12.6 The Tradeoff between Economic Output and Environmental Protection
    8. Key Terms
    9. Key Concepts and Summary
    10. Self-Check Questions
    11. Review Questions
    12. Critical Thinking Questions
    13. Problems
  14. 13 Positive Externalities and Public Goods
    1. Introduction to Positive Externalities and Public Goods
    2. 13.1 Why the Private Sector Underinvests in Innovation
    3. 13.2 How Governments Can Encourage Innovation
    4. 13.3 Public Goods
    5. Key Terms
    6. Key Concepts and Summary
    7. Self-Check Questions
    8. Review Questions
    9. Critical Thinking Questions
    10. Problems
  15. 14 Poverty and Economic Inequality
    1. Introduction to Poverty and Economic Inequality
    2. 14.1 Drawing the Poverty Line
    3. 14.2 The Poverty Trap
    4. 14.3 The Safety Net
    5. 14.4 Income Inequality: Measurement and Causes
    6. 14.5 Government Policies to Reduce Income Inequality
    7. Key Terms
    8. Key Concepts and Summary
    9. Self-Check Questions
    10. Review Questions
    11. Critical Thinking Questions
    12. Problems
  16. 15 Labor Markets and Income
    1. Introduction to Labor Markets and Income
    2. 15.1 Market Power on the Supply Side of Labor Markets: Unions
    3. 15.2 Employment Discrimination
    4. 15.3 Immigration
    5. Key Terms
    6. Key Concepts and Summary
    7. Self-Check Questions
    8. Review Questions
    9. Critical Thinking Questions
  17. 16 Information, Risk, and Insurance
    1. Introduction to Information, Risk, and Insurance
    2. 16.1 The Problem of Imperfect Information and Asymmetric Information
    3. 16.2 Insurance and Imperfect Information
    4. Key Terms
    5. Key Concepts and Summary
    6. Self-Check Questions
    7. Review Questions
    8. Critical Thinking Questions
    9. Problems
  18. 17 Financial Markets
    1. Introduction to Financial Markets
    2. 17.1 How Businesses Raise Financial Capital
    3. 17.2 How Households Supply Financial Capital
    4. 17.3 How to Accumulate Personal Wealth
    5. Key Terms
    6. Key Concepts and Summary
    7. Self-Check Questions
    8. Review Questions
    9. Critical Thinking Questions
    10. Problems
  19. 18 Public Economy
    1. Introduction to Public Economy
    2. 18.1 Voter Participation and Costs of Elections
    3. 18.2 Special Interest Politics
    4. 18.3 Flaws in the Democratic System of Government
    5. Key Terms
    6. Key Concepts and Summary
    7. Self-Check Questions
    8. Review Questions
    9. Critical Thinking Questions
    10. Problems
  20. 19 International Trade
    1. Introduction to International Trade
    2. 19.1 Absolute and Comparative Advantage
    3. 19.2 What Happens When a Country Has an Absolute Advantage in All Goods
    4. 19.3 Intra-industry Trade between Similar Economies
    5. 19.4 The Benefits of Reducing Barriers to International Trade
    6. Key Terms
    7. Key Concepts and Summary
    8. Self-Check Questions
    9. Review Questions
    10. Critical Thinking Questions
    11. Problems
  21. 20 Globalization and Protectionism
    1. Introduction to Globalization and Protectionism
    2. 20.1 Protectionism: An Indirect Subsidy from Consumers to Producers
    3. 20.2 International Trade and Its Effects on Jobs, Wages, and Working Conditions
    4. 20.3 Arguments in Support of Restricting Imports
    5. 20.4 How Governments Enact Trade Policy: Globally, Regionally, and Nationally
    6. 20.5 The Tradeoffs of Trade Policy
    7. Key Terms
    8. Key Concepts and Summary
    9. Self-Check Questions
    10. Review Questions
    11. Critical Thinking Questions
    12. Problems
  22. A | The Use of Mathematics in Principles of Economics
  23. B | Indifference Curves
  24. C | Present Discounted Value
  25. Answer Key
    1. Chapter 1
    2. Chapter 2
    3. Chapter 3
    4. Chapter 4
    5. Chapter 5
    6. Chapter 6
    7. Chapter 7
    8. Chapter 8
    9. Chapter 9
    10. Chapter 10
    11. Chapter 11
    12. Chapter 12
    13. Chapter 13
    14. Chapter 14
    15. Chapter 15
    16. Chapter 16
    17. Chapter 17
    18. Chapter 18
    19. Chapter 19
    20. Chapter 20
  26. References
  27. Index
Symbols
401(k)6.4 Intertemporal Choices in Financial Capital Markets
A
AARP18.2 Special Interest Politics
absolute advantage19.1 Absolute and Comparative Advantage
Accounting profit7.1 Explicit and Implicit Costs, and Accounting and Economic Profit, 10.1 Monopolistic Competition
acquisition11.1 Corporate Mergers
actual rate of return17.2 How Households Supply Financial Capital
Adam Smith1.1 What Is Economics, and Why Is It Important?, 2.3 Confronting Objections to the Economic Approach, 10.2 Oligopoly
additional external costs12.1 The Economics of Pollution
Adverse selection16.2 Insurance and Imperfect Information
Affirmative action15.2 Employment Discrimination
Affordable Care Act (ACA)Introduction to Information, Risk, and Insurance, 16.2 Insurance and Imperfect Information, 18.2 Special Interest Politics
Age Discrimination in Employment Act15.2 Employment Discrimination
Agriculture and Food Research Initiative (AFRI)13.2 How Governments Can Encourage Innovation
Aid to Families with Dependent Children (AFDC)14.3 The Safety Net
Alfred Marshall3.5 Demand, Supply, and Efficiency
Allocative efficiency2.2 The Production Possibilities Frontier and Social Choices, 8.4 Efficiency in Perfectly Competitive Markets, 9.2 How a Profit-Maximizing Monopoly Chooses Output and Price, 12.6 The Tradeoff between Economic Output and Environmental Protection
American Federation of State15.1 Market Power on the Supply Side of Labor Markets: Unions
Anthony Downs18.1 Voter Participation and Costs of Elections
Anti-dumping laws20.3 Arguments in Support of Restricting Imports
Antitrust Division of the Justice Department10.2 Oligopoly
antitrust laws11.1 Corporate Mergers
asymmetric information16.1 The Problem of Imperfect Information and Asymmetric Information
average cost7.3 Costs in the Short Run
average cost curve11.3 Regulating Natural Monopolies
average profit7.3 Costs in the Short Run
Average total cost7.3 Costs in the Short Run
average variable cost7.3 Costs in the Short Run
B
backward-bending supply curve for labor6.3 Labor-Leisure Choices
bar graphAppendix A The Use of Mathematics in Principles of Economics
Barriers to entry9.1 How Monopolies Form: Barriers to Entry
behavioral economics6.4 Intertemporal Choices in Financial Capital Markets
behavioral economists16.1 The Problem of Imperfect Information and Asymmetric Information
biodiversity12.5 International Environmental Issues
Bipartisan Campaign Reform Act (BCRA)18.1 Voter Participation and Costs of Elections
bond17.1 How Businesses Raise Financial Capital
bond yield17.2 How Households Supply Financial Capital
bondholder17.1 How Businesses Raise Financial Capital
bonds17.2 How Households Supply Financial Capital, Appendix C Present Discounted Value
break even point8.2 How Perfectly Competitive Firms Make Output Decisions
budget constraint2.1 How Individuals Make Choices Based on Their Budget Constraint, 6.1 Consumption Choices, 6.2 How Changes in Income and Prices Affect Consumption Choices, 6.4 Intertemporal Choices in Financial Capital Markets, Appendix B Indifference Curves
budget constraint (or budget line)6.1 Consumption Choices
budget constraint line14.2 The Poverty Trap
budget lineAppendix B Indifference Curves
bundling11.2 Regulating Anticompetitive Behavior
C
Capital7.2 Production in the Short Run
capital gain17.1 How Businesses Raise Financial Capital
cartel10.2 Oligopoly
Celler-Kefauver Act11.1 Corporate Mergers
certificate of deposit (CD)17.2 How Households Supply Financial Capital
ceteris paribus3.2 Shifts in Demand and Supply for Goods and Services, 3.3 Changes in Equilibrium Price and Quantity: The Four-Step Process, 4.1 Demand and Supply at Work in Labor Markets
checking account17.2 How Households Supply Financial Capital
circular flow diagram1.3 How Economists Use Theories and Models to Understand Economic Issues
Civil Rights Act of 196415.2 Employment Discrimination
Civil Rights Act of 199115.2 Employment Discrimination
Clayton Antitrust Act11.1 Corporate Mergers
Clean Air Act12.2 Command-and-Control Regulation, 12.3 Market-Oriented Environmental Tools, 12.4 The Benefits and Costs of U.S. Environmental Laws
Clean Water Act12.2 Command-and-Control Regulation
coinsurance16.2 Insurance and Imperfect Information
collateral16.1 The Problem of Imperfect Information and Asymmetric Information
collective bargaining15.1 Market Power on the Supply Side of Labor Markets: Unions
collusion10.2 Oligopoly
command economy1.4 How To Organize Economies: An Overview of Economic Systems
command-and-control regulation12.2 Command-and-Control Regulation
common markets20.4 How Governments Enact Trade Policy: Globally, Regionally, and Nationally
common resources13.3 Public Goods
comparative advantage1.1 What Is Economics, and Why Is It Important?, 2.2 The Production Possibilities Frontier and Social Choices, 19.1 Absolute and Comparative Advantage, 20.2 International Trade and Its Effects on Jobs, Wages, and Working Conditions
competition13.1 Why the Private Sector Underinvests in Innovation
competitive market15.2 Employment Discrimination
complements3.2 Shifts in Demand and Supply for Goods and Services
Compound interest17.3 How to Accumulate Personal Wealth
concentration ratio11.1 Corporate Mergers
constant cost industry8.3 Entry and Exit Decisions in the Long Run
constant returns to scale7.5 Costs in the Long Run
Constant unitary elasticity5.2 Polar Cases of Elasticity and Constant Elasticity
consumer equilibrium6.1 Consumption Choices
consumer surplus3.5 Demand, Supply, and Efficiency, 20.1 Protectionism: An Indirect Subsidy from Consumers to Producers
consumption6.1 Consumption Choices
consumption budget constraint2.2 The Production Possibilities Frontier and Social Choices
consumption choice budget constraint6.3 Labor-Leisure Choices
copayment16.2 Insurance and Imperfect Information
copyright9.1 How Monopolies Form: Barriers to Entry
core competency1.1 What Is Economics, and Why Is It Important?
corporate bond17.1 How Businesses Raise Financial Capital
corporate governance17.1 How Businesses Raise Financial Capital
corporation17.1 How Businesses Raise Financial Capital
cosigner16.1 The Problem of Imperfect Information and Asymmetric Information
cost2.2 The Production Possibilities Frontier and Social Choices
cost-plus regulation11.3 Regulating Natural Monopolies
County and Municipal Employees (AFSCME)15.1 Market Power on the Supply Side of Labor Markets: Unions
coupon rate17.2 How Households Supply Financial Capital
cross-price elasticity of demand5.4 Elasticity in Areas Other Than Price
CTC14.3 The Safety Net
D
David Ricardo19.1 Absolute and Comparative Advantage
deadweight loss3.5 Demand, Supply, and Efficiency
debit card17.2 How Households Supply Financial Capital
decreasing cost industry8.3 Entry and Exit Decisions in the Long Run
deductibles16.2 Insurance and Imperfect Information
demand3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 13.1 Why the Private Sector Underinvests in Innovation
demand and supply diagram3.5 Demand, Supply, and Efficiency
demand and supply models4.3 The Market System as an Efficient Mechanism for Information
demand curve3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 3.2 Shifts in Demand and Supply for Goods and Services, 5.1 Price Elasticity of Demand and Price Elasticity of Supply, 5.2 Polar Cases of Elasticity and Constant Elasticity, 10.1 Monopolistic Competition, 10.1 Monopolistic Competition, 20.1 Protectionism: An Indirect Subsidy from Consumers to Producers
demand curves11.1 Corporate Mergers
demand schedule3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
democracy18.3 Flaws in the Democratic System of Government
Deposit insurance16.2 Insurance and Imperfect Information
deregulation9.1 How Monopolies Form: Barriers to Entry, 11.4 The Great Deregulation Experiment
differentiated products10.1 Monopolistic Competition, 10.1 Monopolistic Competition
diminishing marginal productivity7.3 Costs in the Short Run
diminishing marginal utility6.1 Consumption Choices, Appendix B Indifference Curves
Discrimination15.2 Employment Discrimination
diseconomies of scale7.5 Costs in the Long Run
disruptive market change20.5 The Tradeoffs of Trade Policy
diversification17.2 How Households Supply Financial Capital
dividend17.1 How Businesses Raise Financial Capital
division of labor1.1 What Is Economics, and Why Is It Important?, 19.3 Intra-industry Trade between Similar Economies
Dodd-Frank Act11.4 The Great Deregulation Experiment
Dow Jones Index17.2 How Households Supply Financial Capital
dumping19.4 The Benefits of Reducing Barriers to International Trade, 20.3 Arguments in Support of Restricting Imports
duopoly10.2 Oligopoly
E
earned income tax credit (EITC)14.3 The Safety Net
economic efficiency2.3 Confronting Objections to the Economic Approach
Economic profit7.1 Explicit and Implicit Costs, and Accounting and Economic Profit
economic surplus3.5 Demand, Supply, and Efficiency
economic unions20.4 How Governments Enact Trade Policy: Globally, Regionally, and Nationally
Economics1.1 What Is Economics, and Why Is It Important?
economies of scale1.1 What Is Economics, and Why Is It Important?, 7.5 Costs in the Long Run, 9.1 How Monopolies Form: Barriers to Entry, 19.3 Intra-industry Trade between Similar Economies
ecotourism12.4 The Benefits and Costs of U.S. Environmental Laws
effective income tax14.5 Government Policies to Reduce Income Inequality
efficiency3.5 Demand, Supply, and Efficiency
elastic demand5.1 Price Elasticity of Demand and Price Elasticity of Supply
elastic supply5.1 Price Elasticity of Demand and Price Elasticity of Supply
ElasticityIntroduction to Elasticity
elasticity of savings5.4 Elasticity in Areas Other Than Price
Entrepreneurship7.2 Production in the Short Run
entry8.3 Entry and Exit Decisions in the Long Run
Equal Employment Opportunity Commission (EEOC)15.2 Employment Discrimination
Equal Pay Act of 196315.2 Employment Discrimination
equilibrium3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 3.5 Demand, Supply, and Efficiency, 4.1 Demand and Supply at Work in Labor Markets, 10.1 Monopolistic Competition, 16.1 The Problem of Imperfect Information and Asymmetric Information, 20.1 Protectionism: An Indirect Subsidy from Consumers to Producers
equilibrium price3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 16.1 The Problem of Imperfect Information and Asymmetric Information
equilibrium quantity3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 3.3 Changes in Equilibrium Price and Quantity: The Four-Step Process
equity17.2 How Households Supply Financial Capital
estate tax14.5 Government Policies to Reduce Income Inequality
European Union20.4 How Governments Enact Trade Policy: Globally, Regionally, and Nationally
European Union (EU)3.4 Price Ceilings and Price Floors
excess demand3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
excess supply3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
exclusive dealing11.2 Regulating Anticompetitive Behavior
exit8.3 Entry and Exit Decisions in the Long Run
expected rate of return17.2 How Households Supply Financial Capital
Explicit costs7.1 Explicit and Implicit Costs, and Accounting and Economic Profit
export19.2 What Happens When a Country Has an Absolute Advantage in All Goods
Exports1.4 How To Organize Economies: An Overview of Economic Systems
external costs12.1 The Economics of Pollution
externality12.1 The Economics of Pollution
F
face value17.2 How Households Supply Financial Capital
Factor payments7.3 Costs in the Short Run
factors of production3.2 Shifts in Demand and Supply for Goods and Services
Federal Deposit Insurance Corporation (FDIC)17.2 How Households Supply Financial Capital
Federal Reserve Economic Data (FRED)Introduction to Financial Markets
Federal Trade Commission10.2 Oligopoly
Federal Trade Commission (FTC)16.1 The Problem of Imperfect Information and Asymmetric Information
fee-for-service16.2 Insurance and Imperfect Information
financial capital4.2 Demand and Supply in Financial Markets
financial capital market16.1 The Problem of Imperfect Information and Asymmetric Information
financial capital markets16.1 The Problem of Imperfect Information and Asymmetric Information, Introduction to Financial Markets
financial intermediary17.2 How Households Supply Financial Capital
firm2.2 The Production Possibilities Frontier and Social Choices, 3.2 Shifts in Demand and Supply for Goods and Services, Introduction to Production, Costs, and Industry Structure, 10.1 Monopolistic Competition, 10.2 Oligopoly, 13.1 Why the Private Sector Underinvests in Innovation, 17.1 How Businesses Raise Financial Capital, 18.3 Flaws in the Democratic System of Government
firms10.1 Monopolistic Competition
fiscal policy1.2 Microeconomics and Macroeconomics
fixed7.2 Production in the Short Run
Fixed inputs7.2 Production in the Short Run
fossil fuels12.5 International Environmental Issues
Francine Blau15.2 Employment Discrimination
free rider13.3 Public Goods
free trade20.3 Arguments in Support of Restricting Imports
free trade agreements20.4 How Governments Enact Trade Policy: Globally, Regionally, and Nationally
functionAppendix A The Use of Mathematics in Principles of Economics
fungible6.4 Intertemporal Choices in Financial Capital Markets
G
gain from trade19.1 Absolute and Comparative Advantage
game theory10.2 Oligopoly
Gary Becker15.2 Employment Discrimination
General Agreement on Tariffs and Trade (GATT)20.4 How Governments Enact Trade Policy: Globally, Regionally, and Nationally
George Psacharopoulos13.1 Why the Private Sector Underinvests in Innovation
globalization1.4 How To Organize Economies: An Overview of Economic Systems, 11.1 Corporate Mergers, 14.4 Income Inequality: Measurement and Causes, Introduction to International Trade, 20.2 International Trade and Its Effects on Jobs, Wages, and Working Conditions
good3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
goods and services market1.3 How Economists Use Theories and Models to Understand Economic Issues
Great DepressionIntroduction to International Trade
Great Recession14.3 The Safety Net
Gross domestic product (GDP)1.4 How To Organize Economies: An Overview of Economic Systems, 12.6 The Tradeoff between Economic Output and Environmental Protection
growth rateAppendix A The Use of Mathematics in Principles of Economics
H
Health Care for America Now (HCAN)18.2 Special Interest Politics
health maintenance organization (HMO)16.2 Insurance and Imperfect Information
Herfindahl-Hirschman Index (HHI)11.1 Corporate Mergers
high yield17.2 How Households Supply Financial Capital
High-income countries20.1 Protectionism: An Indirect Subsidy from Consumers to Producers, 20.3 Arguments in Support of Restricting Imports
I
immigrants15.3 Immigration
imperfect information16.1 The Problem of Imperfect Information and Asymmetric Information
imperfectly competitiveIntroduction to Monopolistic Competition and Oligopoly
Implicit costs7.1 Explicit and Implicit Costs, and Accounting and Economic Profit
import quotas20.1 Protectionism: An Indirect Subsidy from Consumers to Producers
Imports1.4 How To Organize Economies: An Overview of Economic Systems, 19.2 What Happens When a Country Has an Absolute Advantage in All Goods
Income14.1 Drawing the Poverty Line, 14.5 Government Policies to Reduce Income Inequality
income effect6.2 How Changes in Income and Prices Affect Consumption Choices, Appendix B Indifference Curves
income elasticity of demand5.4 Elasticity in Areas Other Than Price
increasing cost industry8.3 Entry and Exit Decisions in the Long Run
index fund17.2 How Households Supply Financial Capital
indifference curveAppendix B Indifference Curves
Individual Retirement Accounts (IRAs)6.4 Intertemporal Choices in Financial Capital Markets
inelastic demand5.1 Price Elasticity of Demand and Price Elasticity of Supply
inelastic supply5.1 Price Elasticity of Demand and Price Elasticity of Supply
inequality14.1 Drawing the Poverty Line
infant industry argument20.3 Arguments in Support of Restricting Imports
inferior good3.2 Shifts in Demand and Supply for Goods and Services, 5.4 Elasticity in Areas Other Than Price, 6.2 How Changes in Income and Prices Affect Consumption Choices
Infinite elasticity5.2 Polar Cases of Elasticity and Constant Elasticity
initial public offering (IPO)17.1 How Businesses Raise Financial Capital
inputs3.2 Shifts in Demand and Supply for Goods and Services
Insurance16.2 Insurance and Imperfect Information
intellectual property9.1 How Monopolies Form: Barriers to Entry, 13.2 How Governments Can Encourage Innovation
Interest and dividends7.3 Costs in the Short Run
interest rate4.2 Demand and Supply in Financial Markets, Appendix C Present Discounted Value
international externalities12.5 International Environmental Issues
international trade19.3 Intra-industry Trade between Similar Economies, 20.5 The Tradeoffs of Trade Policy
International Trade Commission (ITC)18.3 Flaws in the Democratic System of Government
intertemporal budget constraint6.4 Intertemporal Choices in Financial Capital Markets, 6.4 Intertemporal Choices in Financial Capital Markets
intertemporal choices2.3 Confronting Objections to the Economic Approach
intertemporal decision making4.2 Demand and Supply in Financial Markets
intra-industry trade19.3 Intra-industry Trade between Similar Economies
invisible hand2.3 Confronting Objections to the Economic Approach
J
Joan Robinson18.3 Flaws in the Democratic System of Government
John Maynard Keynes1.3 How Economists Use Theories and Models to Understand Economic Issues
junk bonds17.2 How Households Supply Financial Capital
K
key input5.3 Elasticity and Pricing
kinked demand curve10.2 Oligopoly
L
Labor7.2 Production in the Short Run
labor market1.3 How Economists Use Theories and Models to Understand Economic Issues, 4.1 Demand and Supply at Work in Labor Markets, 16.1 The Problem of Imperfect Information and Asymmetric Information
labor markets14.4 Income Inequality: Measurement and Causes
labor-leisure budget constraint6.3 Labor-Leisure Choices, 14.2 The Poverty Trap
labor-leisure diagramAppendix B Indifference Curves
Laurence Kahn15.2 Employment Discrimination
law of demand3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 4.2 Demand and Supply in Financial Markets
Law of Diminishing Marginal Product7.2 Production in the Short Run
law of diminishing marginal utility2.1 How Individuals Make Choices Based on Their Budget Constraint
law of supply3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
legal monopoly9.1 How Monopolies Form: Barriers to Entry
leviathan effect7.5 Costs in the Long Run
line graphsAppendix A The Use of Mathematics in Principles of Economics
liquidity17.2 How Households Supply Financial Capital
living wage4.1 Demand and Supply at Work in Labor Markets
lobbyists18.2 Special Interest Politics
Logrolling18.2 Special Interest Politics
long run7.2 Production in the Short Run
long-run average cost (LRAC) curve7.5 Costs in the Long Run
long-run equilibrium8.3 Entry and Exit Decisions in the Long Run
Lorenz curve14.4 Income Inequality: Measurement and Causes
loss aversion6.4 Intertemporal Choices in Financial Capital Markets
low-income countries20.1 Protectionism: An Indirect Subsidy from Consumers to Producers, 20.3 Arguments in Support of Restricting Imports
M
Macroeconomics1.2 Microeconomics and Macroeconomics
marginal analysis2.1 How Individuals Make Choices Based on Their Budget Constraint
marginal benefits12.4 The Benefits and Costs of U.S. Environmental Laws
marginal cost7.3 Costs in the Short Run, 7.3 Costs in the Short Run, 8.2 How Perfectly Competitive Firms Make Output Decisions, 9.2 How a Profit-Maximizing Monopoly Chooses Output and Price, 11.3 Regulating Natural Monopolies
marginal cost curve12.4 The Benefits and Costs of U.S. Environmental Laws
marginal cost curves12.3 Market-Oriented Environmental Tools
marginal product7.2 Production in the Short Run
Marginal profit9.2 How a Profit-Maximizing Monopoly Chooses Output and Price
marginal rate of substitutionAppendix B Indifference Curves
marginal revenue8.2 How Perfectly Competitive Firms Make Output Decisions, 9.2 How a Profit-Maximizing Monopoly Chooses Output and Price
marginal utility6.1 Consumption Choices, Appendix B Indifference Curves
Marginal utility per dollar6.1 Consumption Choices
market1.4 How To Organize Economies: An Overview of Economic Systems, 11.1 Corporate Mergers, 16.2 Insurance and Imperfect Information
market economy1.4 How To Organize Economies: An Overview of Economic Systems, 2.2 The Production Possibilities Frontier and Social Choices, 13.1 Why the Private Sector Underinvests in Innovation
market failure12.1 The Economics of Pollution
market price10.1 Monopolistic Competition
market share11.1 Corporate Mergers
market structureIntroduction to Perfect Competition
marketable permit program12.3 Market-Oriented Environmental Tools
maturity date17.2 How Households Supply Financial Capital
maximizing utility6.1 Consumption Choices
medianAppendix A The Use of Mathematics in Principles of Economics
median voter theory18.3 Flaws in the Democratic System of Government
Medicaid14.1 Drawing the Poverty Line, 14.3 The Safety Net
Medicare18.2 Special Interest Politics
merger11.1 Corporate Mergers
Michael S. Clune15.3 Immigration
Microeconomics1.2 Microeconomics and Macroeconomics
Midpoint Formula5.1 Price Elasticity of Demand and Price Elasticity of Supply
Midpoint Method5.1 Price Elasticity of Demand and Price Elasticity of Supply, 5.1 Price Elasticity of Demand and Price Elasticity of Supply
minimum wage4.1 Demand and Supply at Work in Labor Markets, 20.2 International Trade and Its Effects on Jobs, Wages, and Working Conditions
model1.3 How Economists Use Theories and Models to Understand Economic Issues
Mollie Orshansky14.1 Drawing the Poverty Line
monetary policy1.2 Microeconomics and Macroeconomics
money-back guarantee16.1 The Problem of Imperfect Information and Asymmetric Information
monopolistic competitionIntroduction to Monopolistic Competition and Oligopoly
monopolyIntroduction to a Monopoly, 11.2 Regulating Anticompetitive Behavior
Moody’s17.2 How Households Supply Financial Capital
Moral hazard16.2 Insurance and Imperfect Information
municipal bond17.1 How Businesses Raise Financial Capital
mutual funds17.2 How Households Supply Financial Capital
N
National Academy of Engineers13.2 How Governments Can Encourage Innovation
National Academy of Scientists13.2 How Governments Can Encourage Innovation
National Association of Insurance Commissioners16.2 Insurance and Imperfect Information
National Education Association15.1 Market Power on the Supply Side of Labor Markets: Unions
National Institutes of Health13.2 How Governments Can Encourage Innovation
national interest argument20.3 Arguments in Support of Restricting Imports
National Labor-Management Relations Act15.1 Market Power on the Supply Side of Labor Markets: Unions
National Venture Capital Association17.1 How Businesses Raise Financial Capital
natural monopoly9.1 How Monopolies Form: Barriers to Entry, 10.2 Oligopoly, 11.3 Regulating Natural Monopolies
Natural Resources (Land and Raw Materials)7.2 Production in the Short Run
near-poor14.3 The Safety Net
negative externalities18.2 Special Interest Politics
negative externality12.1 The Economics of Pollution
negative slopeAppendix A The Use of Mathematics in Principles of Economics
non-rival13.3 Public Goods
nonexcludable13.3 Public Goods
Nontariff barriers20.1 Protectionism: An Indirect Subsidy from Consumers to Producers
normal good3.2 Shifts in Demand and Supply for Goods and Services
normal goods5.4 Elasticity in Areas Other Than Price, 6.2 How Changes in Income and Prices Affect Consumption Choices
normative statements2.3 Confronting Objections to the Economic Approach
North American Free Trade Agreement (NAFTA)20.2 International Trade and Its Effects on Jobs, Wages, and Working Conditions, 20.4 How Governments Enact Trade Policy: Globally, Regionally, and Nationally
O
occupational licenses16.1 The Problem of Imperfect Information and Asymmetric Information
oligopolyIntroduction to Monopolistic Competition and Oligopoly, 10.2 Oligopoly
opportunity cost2.1 How Individuals Make Choices Based on Their Budget Constraint, 19.1 Absolute and Comparative Advantage, 19.2 What Happens When a Country Has an Absolute Advantage in All Goods, 20.2 International Trade and Its Effects on Jobs, Wages, and Working Conditions
opportunity setAppendix B Indifference Curves
Organization of Petroleum Exporting Countries (OPEC)10.2 Oligopoly
output10.2 Oligopoly
Oxfam International20.1 Protectionism: An Indirect Subsidy from Consumers to Producers
P
partnership17.1 How Businesses Raise Financial Capital
patent9.1 How Monopolies Form: Barriers to Entry, 13.2 How Governments Can Encourage Innovation
Patient Protection and Affordable Care Act (PPACA)16.2 Insurance and Imperfect Information
Patient Protection and Affordable Care Act (PPACA)Introduction to Information, Risk, and Insurance
Pension insurance16.2 Insurance and Imperfect Information
perfect competition8.1 Perfect Competition and Why It Matters
perfect elasticity5.2 Polar Cases of Elasticity and Constant Elasticity
perfect inelasticity5.2 Polar Cases of Elasticity and Constant Elasticity
perfectly competitive firm8.1 Perfect Competition and Why It Matters, 8.2 How Perfectly Competitive Firms Make Output Decisions, 8.3 Entry and Exit Decisions in the Long Run, 9.2 How a Profit-Maximizing Monopoly Chooses Output and Price
perfectly elastic10.1 Monopolistic Competition
Pew Research Center for People and the Press3.3 Changes in Equilibrium Price and Quantity: The Four-Step Process
pie chartAppendix A The Use of Mathematics in Principles of Economics
pie graphAppendix A The Use of Mathematics in Principles of Economics
pollution charge12.3 Market-Oriented Environmental Tools
pork-barrel spending18.2 Special Interest Politics
positive externalities13.1 Why the Private Sector Underinvests in Innovation
positive externality12.1 The Economics of Pollution
positive slopeAppendix A The Use of Mathematics in Principles of Economics
positive statements2.3 Confronting Objections to the Economic Approach
poverty14.1 Drawing the Poverty Line
poverty line14.1 Drawing the Poverty Line
poverty rate14.1 Drawing the Poverty Line
poverty trap14.2 The Poverty Trap
predatory pricing9.1 How Monopolies Form: Barriers to Entry, 11.2 Regulating Anticompetitive Behavior
premiums16.2 Insurance and Imperfect Information
present discounted value (PDV)Appendix C Present Discounted Value
present value17.2 How Households Supply Financial Capital
price2.1 How Individuals Make Choices Based on Their Budget Constraint, 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 3.2 Shifts in Demand and Supply for Goods and Services, 10.2 Oligopoly
price cap regulation11.3 Regulating Natural Monopolies
price ceiling3.4 Price Ceilings and Price Floors, 3.5 Demand, Supply, and Efficiency
price control3.5 Demand, Supply, and Efficiency
price controls3.4 Price Ceilings and Price Floors, 4.3 The Market System as an Efficient Mechanism for Information, 18.2 Special Interest Politics
Price elasticity5.1 Price Elasticity of Demand and Price Elasticity of Supply
price elasticity of demand5.1 Price Elasticity of Demand and Price Elasticity of Supply
price elasticity of supply5.1 Price Elasticity of Demand and Price Elasticity of Supply
price floor3.4 Price Ceilings and Price Floors, 3.5 Demand, Supply, and Efficiency
price taker8.1 Perfect Competition and Why It Matters
price takersIntroduction to Monopolistic Competition and Oligopoly
prisoner’s dilemma10.2 Oligopoly
private benefits13.1 Why the Private Sector Underinvests in Innovation
private company17.1 How Businesses Raise Financial Capital
private enterprise1.4 How To Organize Economies: An Overview of Economic Systems
private insurance16.2 Insurance and Imperfect Information
Private markets12.1 The Economics of Pollution
private rates of return13.1 Why the Private Sector Underinvests in Innovation
producer surplus3.5 Demand, Supply, and Efficiency, 20.1 Protectionism: An Indirect Subsidy from Consumers to Producers
product differentiation10.1 Monopolistic Competition
productionIntroduction to Production, Costs, and Industry Structure
production function7.2 Production in the Short Run
production possibilities frontier (PPF)2.2 The Production Possibilities Frontier and Social Choices
production possibility frontier (PPF)12.6 The Tradeoff between Economic Output and Environmental Protection, 19.1 Absolute and Comparative Advantage
production technologies7.5 Costs in the Long Run
Productive efficiency2.2 The Production Possibilities Frontier and Social Choices, 8.4 Efficiency in Perfectly Competitive Markets, 10.1 Monopolistic Competition, 12.6 The Tradeoff between Economic Output and Environmental Protection
productivity19.2 What Happens When a Country Has an Absolute Advantage in All Goods
Profit7.3 Costs in the Short Run, 8.2 How Perfectly Competitive Firms Make Output Decisions
profit margin7.3 Costs in the Short Run, 8.2 How Perfectly Competitive Firms Make Output Decisions
profit-maximizing10.1 Monopolistic Competition
profits10.2 Oligopoly
progressive tax system14.5 Government Policies to Reduce Income Inequality
property rights12.3 Market-Oriented Environmental Tools
protectionism20.1 Protectionism: An Indirect Subsidy from Consumers to Producers, 20.1 Protectionism: An Indirect Subsidy from Consumers to Producers, 20.2 International Trade and Its Effects on Jobs, Wages, and Working Conditions
public company17.1 How Businesses Raise Financial Capital
public good13.3 Public Goods
Public policy14.5 Government Policies to Reduce Income Inequality
Q
quantity demanded3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 10.2 Oligopoly
quantity supplied3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
quintiles14.4 Income Inequality: Measurement and Causes
quotas18.3 Flaws in the Democratic System of Government
R
race to the bottom20.3 Arguments in Support of Restricting Imports
rational ignorance18.1 Voter Participation and Costs of Elections
Raw materials prices7.3 Costs in the Short Run
Redistribution14.5 Government Policies to Reduce Income Inequality
regulatory capture11.4 The Great Deregulation Experiment, 18.2 Special Interest Politics
Rent7.3 Costs in the Short Run
restrictive practices11.2 Regulating Anticompetitive Behavior
Retirement insurance16.2 Insurance and Imperfect Information
revenue7.1 Explicit and Implicit Costs, and Accounting and Economic Profit
Risk17.2 How Households Supply Financial Capital
risk group16.2 Insurance and Imperfect Information
S
safety net14.3 The Safety Net
salary4.1 Demand and Supply at Work in Labor Markets
Sarbanes-Oxley Act11.4 The Great Deregulation Experiment
savings account17.2 How Households Supply Financial Capital
Scarcity1.1 What Is Economics, and Why Is It Important?, 2.3 Confronting Objections to the Economic Approach
service3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
service contract16.1 The Problem of Imperfect Information and Asymmetric Information
Service Employees International Union15.1 Market Power on the Supply Side of Labor Markets: Unions
shareholders17.1 How Businesses Raise Financial Capital
shares17.1 How Businesses Raise Financial Capital
Sherman Antitrust Act11.1 Corporate Mergers
shift in demand3.2 Shifts in Demand and Supply for Goods and Services
shift in supply3.2 Shifts in Demand and Supply for Goods and Services
short run7.2 Production in the Short Run
short-run average cost (SRAC) curves7.5 Costs in the Long Run
shortage3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
Simple interest17.3 How to Accumulate Personal Wealth
slope2.2 The Production Possibilities Frontier and Social Choices, Appendix A The Use of Mathematics in Principles of Economics
social benefits13.1 Why the Private Sector Underinvests in Innovation
social costs12.1 The Economics of Pollution
social rate of return13.1 Why the Private Sector Underinvests in Innovation
social surplus3.5 Demand, Supply, and Efficiency
sole proprietorship17.1 How Businesses Raise Financial Capital
Special interest groups18.2 Special Interest Politics
Special Supplemental Food Program for Women, Infants and Children (WIC)14.3 The Safety Net
specialization1.1 What Is Economics, and Why Is It Important?, 19.1 Absolute and Comparative Advantage
spillovers12.1 The Economics of Pollution
splitting up the value chain19.3 Intra-industry Trade between Similar Economies
Standard & Poor’s 500 index17.2 How Households Supply Financial Capital
Stock17.1 How Businesses Raise Financial Capital, 17.3 How to Accumulate Personal Wealth
stocksAppendix C Present Discounted Value
straight-line demand curve5.1 Price Elasticity of Demand and Price Elasticity of Supply
subsidies20.1 Protectionism: An Indirect Subsidy from Consumers to Producers
substitute3.2 Shifts in Demand and Supply for Goods and Services
substitution effect6.2 How Changes in Income and Prices Affect Consumption Choices, Appendix B Indifference Curves
sunk costs2.1 How Individuals Make Choices Based on Their Budget Constraint, 7.3 Costs in the Short Run
Supplemental Nutrition Assistance Program (SNAP)14.3 The Safety Net
supply3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
supply curve3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 3.2 Shifts in Demand and Supply for Goods and Services, 20.1 Protectionism: An Indirect Subsidy from Consumers to Producers
supply curves11.1 Corporate Mergers
supply schedule3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
surplus3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
T
tariff18.2 Special Interest Politics
Tariffs19.4 The Benefits of Reducing Barriers to International Trade, 20.1 Protectionism: An Indirect Subsidy from Consumers to Producers
tax incidence5.3 Elasticity and Pricing
Technology7.2 Production in the Short Run, 13.1 Why the Private Sector Underinvests in Innovation
Temporary Assistance for Needy Families (TANF)14.3 The Safety Net
the law of increasing opportunity cost2.2 The Production Possibilities Frontier and Social Choices
theory1.3 How Economists Use Theories and Models to Understand Economic Issues
thick market16.1 The Problem of Imperfect Information and Asymmetric Information
thin market16.1 The Problem of Imperfect Information and Asymmetric Information
time seriesAppendix A The Use of Mathematics in Principles of Economics
total costs8.2 How Perfectly Competitive Firms Make Output Decisions
total revenue8.2 How Perfectly Competitive Firms Make Output Decisions, 9.2 How a Profit-Maximizing Monopoly Chooses Output and Price
total surplus3.5 Demand, Supply, and Efficiency
total utility6.1 Consumption Choices
trade secrets9.1 How Monopolies Form: Barriers to Entry
trademark9.1 How Monopolies Form: Barriers to Entry
tradeoffs2.3 Confronting Objections to the Economic Approach
traditional economy1.4 How To Organize Economies: An Overview of Economic Systems
Treasury bond17.1 How Businesses Raise Financial Capital
Tying sales11.2 Regulating Anticompetitive Behavior
Tyler Cowen13.3 Public Goods
U
U.S. Census Bureau3.2 Shifts in Demand and Supply for Goods and Services
U.S. Department of the Treasury17.1 How Businesses Raise Financial Capital
underground economies1.4 How To Organize Economies: An Overview of Economic Systems
Unemployment insurance16.2 Insurance and Imperfect Information
Unitary elasticities5.1 Price Elasticity of Demand and Price Elasticity of Supply
usury laws4.2 Demand and Supply in Financial Markets
utility2.1 How Individuals Make Choices Based on Their Budget Constraint, 6.1 Consumption Choices, Appendix B Indifference Curves
utility maximizing16.1 The Problem of Imperfect Information and Asymmetric Information
utility-maximizing18.1 Voter Participation and Costs of Elections
utility-maximizing choice6.2 How Changes in Income and Prices Affect Consumption Choices
V
value chain19.3 Intra-industry Trade between Similar Economies
variable7.2 Production in the Short Run, Appendix A The Use of Mathematics in Principles of Economics
Variable costs7.3 Costs in the Short Run
Variable inputs7.2 Production in the Short Run
Venture capital17.1 How Businesses Raise Financial Capital
voting cycle18.3 Flaws in the Democratic System of Government
W
wage4.1 Demand and Supply at Work in Labor Markets
wage elasticity of labor supply5.4 Elasticity in Areas Other Than Price
Wages and salaries7.3 Costs in the Short Run
Walter McMahon13.1 Why the Private Sector Underinvests in Innovation
warranty16.1 The Problem of Imperfect Information and Asymmetric Information
Wealth14.5 Government Policies to Reduce Income Inequality
Workman’s compensation insurance16.2 Insurance and Imperfect Information
World Trade Organization (WTO)19.4 The Benefits of Reducing Barriers to International Trade, 20.1 Protectionism: An Indirect Subsidy from Consumers to Producers, 20.3 Arguments in Support of Restricting Imports, 20.4 How Governments Enact Trade Policy: Globally, Regionally, and Nationally
Z
Zero elasticity5.2 Polar Cases of Elasticity and Constant Elasticity
Previous
Order a print copy

As an Amazon Associate we earn from qualifying purchases.

Citation/Attribution

Want to cite, share, or modify this book? This book is Creative Commons Attribution License 4.0 and you must attribute OpenStax.

Attribution information
  • If you are redistributing all or part of this book in a print format, then you must include on every physical page the following attribution:
    Access for free at https://openstax.org/books/principles-microeconomics-ap-courses-2e/pages/1-introduction
  • If you are redistributing all or part of this book in a digital format, then you must include on every digital page view the following attribution:
    Access for free at https://openstax.org/books/principles-microeconomics-ap-courses-2e/pages/1-introduction
Citation information

© Jan 27, 2021 OpenStax. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License 4.0 license. The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo are not subject to the Creative Commons license and may not be reproduced without the prior and express written consent of Rice University.