Index - Principles of Microeconomics for AP® Courses 2e

Symbols

401(k) 6.4 Intertemporal Choices in Financial Capital Markets

A

absolute advantage 19.1 Absolute and Comparative Advantage

Accounting profit 7.1 Explicit and Implicit Costs, and Accounting and Economic Profit, 10.1 Monopolistic Competition

acquisition 11.1 Corporate Mergers

actual rate of return 17.2 How Households Supply Financial Capital

Adam Smith 1.1 What Is Economics, and Why Is It Important?, 2.3 Confronting Objections to the Economic Approach, 10.2 Oligopoly

additional external costs 12.1 The Economics of Pollution

Adverse selection 16.2 Insurance and Imperfect Information

Affirmative action 15.2 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 Act 15.2 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 Marshall 3.5 Demand, Supply, and Efficiency

Allocative efficiency 2.2 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 Key Concepts and Summary

American Federation of State 15.1 Market Power on the Supply Side of Labor Markets: Unions

Anthony Downs 18.1 Voter Participation and Costs of Elections

Anti-dumping laws 20.3 Arguments in Support of Restricting Imports

Antitrust Division of the Justice Department 10.2 Oligopoly

antitrust laws 11.1 Corporate Mergers

asymmetric information 16.1 The Problem of Imperfect Information and Asymmetric Information

average cost 7.3 Costs in the Short Run

average cost curve 11.3 Regulating Natural Monopolies

average profit 7.3 Costs in the Short Run

Average total cost 7.3 Costs in the Short Run

average variable cost 7.3 Costs in the Short Run

B

backward-bending supply curve for labor 6.3 Labor-Leisure Choices

bar graph Appendix A The Use of Mathematics in Principles of Economics

Barriers to entry 9.1 How Monopolies Form: Barriers to Entry

behavioral economics 6.4 Intertemporal Choices in Financial Capital Markets

behavioral economists 16.1 The Problem of Imperfect Information and Asymmetric Information

biodiversity 12.5 International Environmental Issues

Bipartisan Campaign Reform Act (BCRA) 18.1 Voter Participation and Costs of Elections

bond 17.1 How Businesses Raise Financial Capital

bond yield 17.2 How Households Supply Financial Capital

bondholder 17.1 How Businesses Raise Financial Capital

bonds 17.2 How Households Supply Financial Capital, Appendix C Present Discounted Value

break even point 8.2 How Perfectly Competitive Firms Make Output Decisions

budget constraint 2.1 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 line 14.2 The Poverty Trap

budget line Appendix B Indifference Curves

bundling 11.2 Regulating Anticompetitive Behavior

C

Capital 7.2 Production in the Short Run

capital gain 17.1 How Businesses Raise Financial Capital

cartel 10.2 Oligopoly

Celler-Kefauver Act 11.1 Corporate Mergers

certificate of deposit (CD) 17.2 How Households Supply Financial Capital

ceteris paribus 3.2 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 account 17.2 How Households Supply Financial Capital

circular flow diagram 1.3 How Economists Use Theories and Models to Understand Economic Issues

Civil Rights Act of 1964 15.2 Employment Discrimination

Civil Rights Act of 1991 15.2 Employment Discrimination

Clayton Antitrust Act 11.1 Corporate Mergers

Clean Air Act 12.2 Command-and-Control Regulation, 12.3 Market-Oriented Environmental Tools, 12.4 The Benefits and Costs of U.S. Environmental Laws

Clean Water Act 12.2 Command-and-Control Regulation

coinsurance 16.2 Insurance and Imperfect Information

collateral 16.1 The Problem of Imperfect Information and Asymmetric Information

collective bargaining 15.1 Market Power on the Supply Side of Labor Markets: Unions

collusion 10.2 Oligopoly

command economy 1.4 How To Organize Economies: An Overview of Economic Systems

command-and-control regulation 12.2 Command-and-Control Regulation

common markets 20.4 How Governments Enact Trade Policy: Globally, Regionally, and Nationally

common resources 13.3 Public Goods

comparative advantage 1.1 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

competition 13.1 Why the Private Sector Underinvests in Innovation

competitive market 15.2 Employment Discrimination

complements 3.2 Shifts in Demand and Supply for Goods and Services

Compound interest 17.3 How to Accumulate Personal Wealth

concentration ratio 11.1 Corporate Mergers

constant cost industry 8.3 Entry and Exit Decisions in the Long Run

constant returns to scale 7.5 Costs in the Long Run

Constant unitary elasticity 5.2 Polar Cases of Elasticity and Constant Elasticity

consumer equilibrium 6.1 Consumption Choices

consumer surplus 3.5 Demand, Supply, and Efficiency, 20.1 Protectionism: An Indirect Subsidy from Consumers to Producers

consumption 6.1 Consumption Choices

consumption budget constraint 2.2 The Production Possibilities Frontier and Social Choices

consumption choice budget constraint 6.3 Labor-Leisure Choices

copayment 16.2 Insurance and Imperfect Information

copyright 9.1 How Monopolies Form: Barriers to Entry

core competency 1.1 What Is Economics, and Why Is It Important?

corporate bond 17.1 How Businesses Raise Financial Capital

corporate governance 17.1 How Businesses Raise Financial Capital

corporation 17.1 How Businesses Raise Financial Capital

cosigner 16.1 The Problem of Imperfect Information and Asymmetric Information

cost 2.2 The Production Possibilities Frontier and Social Choices

cost-plus regulation 11.3 Regulating Natural Monopolies

County and Municipal Employees (AFSCME) 15.1 Market Power on the Supply Side of Labor Markets: Unions

coupon rate 17.2 How Households Supply Financial Capital

cross-price elasticity of demand 5.4 Elasticity in Areas Other Than Price

CTC 14.3 The Safety Net

D

David Ricardo 19.1 Absolute and Comparative Advantage

deadweight loss 3.5 Demand, Supply, and Efficiency

debit card 17.2 How Households Supply Financial Capital

decreasing cost industry 8.3 Entry and Exit Decisions in the Long Run

deductibles 16.2 Insurance and Imperfect Information

demand 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 13.1 Why the Private Sector Underinvests in Innovation

demand and supply diagram 3.5 Demand, Supply, and Efficiency

demand and supply models 4.3 The Market System as an Efficient Mechanism for Information

demand curve 3.1 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 curves 11.1 Corporate Mergers

demand schedule 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services

democracy 18.3 Flaws in the Democratic System of Government

Deposit insurance 16.2 Insurance and Imperfect Information

deregulation 9.1 How Monopolies Form: Barriers to Entry, 11.4 The Great Deregulation Experiment

differentiated products 10.1 Monopolistic Competition, 10.1 Monopolistic Competition

diminishing marginal productivity 7.3 Costs in the Short Run

diminishing marginal utility 6.1 Consumption Choices, Appendix B Indifference Curves

Discrimination 15.2 Employment Discrimination

diseconomies of scale 7.5 Costs in the Long Run

disruptive market change 20.5 The Tradeoffs of Trade Policy

diversification 17.2 How Households Supply Financial Capital

dividend 17.1 How Businesses Raise Financial Capital

division of labor 1.1 What Is Economics, and Why Is It Important?, 19.3 Intra-industry Trade between Similar Economies

Dodd-Frank Act 11.4 The Great Deregulation Experiment

Dow Jones Index 17.2 How Households Supply Financial Capital

dumping 19.4 The Benefits of Reducing Barriers to International Trade, 20.3 Arguments in Support of Restricting Imports

duopoly 10.2 Oligopoly

E

earned income tax credit (EITC) 14.3 The Safety Net

economic efficiency 2.3 Confronting Objections to the Economic Approach

Economic profit 7.1 Explicit and Implicit Costs, and Accounting and Economic Profit

economic surplus 3.5 Demand, Supply, and Efficiency

economic unions 20.4 How Governments Enact Trade Policy: Globally, Regionally, and Nationally

Economics 1.1 What Is Economics, and Why Is It Important?

economies of scale 1.1 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

ecotourism 12.4 The Benefits and Costs of U.S. Environmental Laws

effective income tax 14.5 Government Policies to Reduce Income Inequality

efficiency 3.5 Demand, Supply, and Efficiency

elastic demand 5.1 Price Elasticity of Demand and Price Elasticity of Supply

elastic supply 5.1 Price Elasticity of Demand and Price Elasticity of Supply

Elasticity Introduction to Elasticity

elasticity of savings 5.4 Elasticity in Areas Other Than Price

Entrepreneurship 7.2 Production in the Short Run

entry 8.3 Entry and Exit Decisions in the Long Run

Equal Employment Opportunity Commission (EEOC) 15.2 Employment Discrimination

Equal Pay Act of 1963 15.2 Employment Discrimination

equilibrium 3.1 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 price 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 16.1 The Problem of Imperfect Information and Asymmetric Information

equilibrium quantity 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 3.3 Changes in Equilibrium Price and Quantity: The Four-Step Process

equity 17.2 How Households Supply Financial Capital

estate tax 14.5 Government Policies to Reduce Income Inequality

European Union 20.4 How Governments Enact Trade Policy: Globally, Regionally, and Nationally

European Union (EU) 3.4 Price Ceilings and Price Floors

excess demand 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services

excess supply 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services

exclusive dealing 11.2 Regulating Anticompetitive Behavior

exit 8.3 Entry and Exit Decisions in the Long Run

expected rate of return 17.2 How Households Supply Financial Capital

Explicit costs 7.1 Explicit and Implicit Costs, and Accounting and Economic Profit

export 19.2 What Happens When a Country Has an Absolute Advantage in All Goods

Exports 1.4 How To Organize Economies: An Overview of Economic Systems

external costs 12.1 The Economics of Pollution

externality 12.1 The Economics of Pollution

F

face value 17.2 How Households Supply Financial Capital

Factor payments 7.3 Costs in the Short Run

factors of production 3.2 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 Commission 10.2 Oligopoly

Federal Trade Commission (FTC) 16.1 The Problem of Imperfect Information and Asymmetric Information

fee-for-service 16.2 Insurance and Imperfect Information

financial capital 4.2 Demand and Supply in Financial Markets

financial capital market 16.1 The Problem of Imperfect Information and Asymmetric Information

financial capital markets 16.1 The Problem of Imperfect Information and Asymmetric Information, Introduction to Financial Markets

financial intermediary 17.2 How Households Supply Financial Capital

firm 2.2 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

firms 10.1 Monopolistic Competition

fiscal policy 1.2 Microeconomics and Macroeconomics

fixed 7.2 Production in the Short Run

Fixed inputs 7.2 Production in the Short Run

fossil fuels 12.5 International Environmental Issues

Francine Blau 15.2 Employment Discrimination

free rider 13.3 Public Goods

free trade 20.3 Arguments in Support of Restricting Imports

free trade agreements 20.4 How Governments Enact Trade Policy: Globally, Regionally, and Nationally

function Appendix A The Use of Mathematics in Principles of Economics

fungible 6.4 Intertemporal Choices in Financial Capital Markets

G

gain from trade 19.1 Absolute and Comparative Advantage

game theory 10.2 Oligopoly

Gary Becker 15.2 Employment Discrimination

General Agreement on Tariffs and Trade (GATT) 20.4 How Governments Enact Trade Policy: Globally, Regionally, and Nationally

George Psacharopoulos 13.1 Why the Private Sector Underinvests in Innovation

globalization 1.4 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

good 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services

goods and services market 1.3 How Economists Use Theories and Models to Understand Economic Issues

Great Depression Introduction to International Trade

Great Recession 14.3 The Safety Net

gross domestic product (GDP) 12.6 The Tradeoff between Economic Output and Environmental Protection

Gross domestic product (GDP) 1.4 How To Organize Economies: An Overview of Economic Systems

growth rate Appendix 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 yield 17.2 How Households Supply Financial Capital

High-income countries 20.1 Protectionism: An Indirect Subsidy from Consumers to Producers, 20.3 Arguments in Support of Restricting Imports

I

immigrants 15.3 Immigration

imperfect information 16.1 The Problem of Imperfect Information and Asymmetric Information

imperfectly competitive Introduction to Monopolistic Competition and Oligopoly

Implicit costs 7.1 Explicit and Implicit Costs, and Accounting and Economic Profit

import quotas 20.1 Protectionism: An Indirect Subsidy from Consumers to Producers

Imports 1.4 How To Organize Economies: An Overview of Economic Systems, 19.2 What Happens When a Country Has an Absolute Advantage in All Goods

Income 14.1 Drawing the Poverty Line, 14.5 Government Policies to Reduce Income Inequality

income effect 6.2 How Changes in Income and Prices Affect Consumption Choices, Appendix B Indifference Curves

income elasticity of demand 5.4 Elasticity in Areas Other Than Price

increasing cost industry 8.3 Entry and Exit Decisions in the Long Run

index fund 17.2 How Households Supply Financial Capital

indifference curve Appendix B Indifference Curves

Individual Retirement Accounts (IRAs) 6.4 Intertemporal Choices in Financial Capital Markets

inelastic demand 5.1 Price Elasticity of Demand and Price Elasticity of Supply

inelastic supply 5.1 Price Elasticity of Demand and Price Elasticity of Supply

inequality 14.1 Drawing the Poverty Line

infant industry argument 20.3 Arguments in Support of Restricting Imports

inferior good 3.2 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 elasticity 5.2 Polar Cases of Elasticity and Constant Elasticity

initial public offering (IPO) 17.1 How Businesses Raise Financial Capital

inputs 3.2 Shifts in Demand and Supply for Goods and Services

Insurance 16.2 Insurance and Imperfect Information

intellectual property 9.1 How Monopolies Form: Barriers to Entry, 13.2 How Governments Can Encourage Innovation

Interest and dividends 7.3 Costs in the Short Run

interest rate 4.2 Demand and Supply in Financial Markets, Appendix C Present Discounted Value

international externalities 12.5 International Environmental Issues

international trade 19.3 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 constraint 6.4 Intertemporal Choices in Financial Capital Markets, 6.4 Intertemporal Choices in Financial Capital Markets

intertemporal choices 2.3 Confronting Objections to the Economic Approach

intertemporal decision making 4.2 Demand and Supply in Financial Markets

intra-industry trade 19.3 Intra-industry Trade between Similar Economies

invisible hand 2.3 Confronting Objections to the Economic Approach

J

Joan Robinson 18.3 Flaws in the Democratic System of Government

John Maynard Keynes 1.3 How Economists Use Theories and Models to Understand Economic Issues

junk bonds 17.2 How Households Supply Financial Capital

K

key input 5.3 Elasticity and Pricing

kinked demand curve 10.2 Oligopoly

L

Labor 7.2 Production in the Short Run

labor market 1.3 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 markets 14.4 Income Inequality: Measurement and Causes

labor-leisure budget constraint 6.3 Labor-Leisure Choices, 14.2 The Poverty Trap

labor-leisure diagram Appendix B Indifference Curves

Laurence Kahn 15.2 Employment Discrimination

law of demand 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 4.2 Demand and Supply in Financial Markets

Law of Diminishing Marginal Product 7.2 Production in the Short Run

law of diminishing marginal utility 2.1 How Individuals Make Choices Based on Their Budget Constraint

law of supply 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services

legal monopoly 9.1 How Monopolies Form: Barriers to Entry

leviathan effect 7.5 Costs in the Long Run

line graphs Appendix A The Use of Mathematics in Principles of Economics

liquidity 17.2 How Households Supply Financial Capital

living wage 4.1 Demand and Supply at Work in Labor Markets

lobbyists 18.2 Special Interest Politics

Logrolling 18.2 Special Interest Politics

long run 7.2 Production in the Short Run

long-run average cost (LRAC) curve 7.5 Costs in the Long Run

long-run equilibrium 8.3 Entry and Exit Decisions in the Long Run

Lorenz curve 14.4 Income Inequality: Measurement and Causes

loss aversion 6.4 Intertemporal Choices in Financial Capital Markets

low-income countries 20.1 Protectionism: An Indirect Subsidy from Consumers to Producers, 20.3 Arguments in Support of Restricting Imports

M

Macroeconomics 1.2 Microeconomics and Macroeconomics

marginal analysis 2.1 How Individuals Make Choices Based on Their Budget Constraint

marginal benefits 12.4 The Benefits and Costs of U.S. Environmental Laws

marginal cost 7.3 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 curve 12.4 The Benefits and Costs of U.S. Environmental Laws

marginal cost curves 12.3 Market-Oriented Environmental Tools

marginal product 7.2 Production in the Short Run

Marginal profit 9.2 How a Profit-Maximizing Monopoly Chooses Output and Price

marginal rate of substitution Appendix B Indifference Curves

marginal revenue 8.2 How Perfectly Competitive Firms Make Output Decisions, 9.2 How a Profit-Maximizing Monopoly Chooses Output and Price

marginal utility 6.1 Consumption Choices, Appendix B Indifference Curves

Marginal utility per dollar 6.1 Consumption Choices

market 1.4 How To Organize Economies: An Overview of Economic Systems, 11.1 Corporate Mergers, 16.2 Insurance and Imperfect Information

market economy 1.4 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 failure 12.1 The Economics of Pollution

market price 10.1 Monopolistic Competition

market share 11.1 Corporate Mergers

market structure Introduction to Perfect Competition

marketable permit program 12.3 Market-Oriented Environmental Tools

maturity date 17.2 How Households Supply Financial Capital

maximizing utility 6.1 Consumption Choices

median Appendix A The Use of Mathematics in Principles of Economics

median voter theory 18.3 Flaws in the Democratic System of Government

Medicaid 14.1 Drawing the Poverty Line, 14.3 The Safety Net

Medicare 18.2 Special Interest Politics

merger 11.1 Corporate Mergers

Michael S. Clune 15.3 Immigration

Microeconomics 1.2 Microeconomics and Macroeconomics

Midpoint Formula 5.1 Price Elasticity of Demand and Price Elasticity of Supply

Midpoint Method 5.1 Price Elasticity of Demand and Price Elasticity of Supply, 5.1 Price Elasticity of Demand and Price Elasticity of Supply

minimum wage 4.1 Demand and Supply at Work in Labor Markets, 20.2 International Trade and Its Effects on Jobs, Wages, and Working Conditions

model 1.3 How Economists Use Theories and Models to Understand Economic Issues

Mollie Orshansky 14.1 Drawing the Poverty Line

monetary policy 1.2 Microeconomics and Macroeconomics

money-back guarantee 16.1 The Problem of Imperfect Information and Asymmetric Information

monopolistic competition Introduction to Monopolistic Competition and Oligopoly

monopoly Introduction to a Monopoly, 11.2 Regulating Anticompetitive Behavior

Moody’s 17.2 How Households Supply Financial Capital

Moral hazard 16.2 Insurance and Imperfect Information

municipal bond 17.1 How Businesses Raise Financial Capital

mutual funds 17.2 How Households Supply Financial Capital

N

National Academy of Engineers 13.2 How Governments Can Encourage Innovation

National Academy of Scientists 13.2 How Governments Can Encourage Innovation

National Association of Insurance Commissioners 16.2 Insurance and Imperfect Information

National Education Association 15.1 Market Power on the Supply Side of Labor Markets: Unions

National Institutes of Health 13.2 How Governments Can Encourage Innovation

national interest argument 20.3 Arguments in Support of Restricting Imports

National Labor-Management Relations Act 15.1 Market Power on the Supply Side of Labor Markets: Unions

National Venture Capital Association 17.1 How Businesses Raise Financial Capital

natural monopoly 9.1 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-poor 14.3 The Safety Net

negative externalities 18.2 Special Interest Politics

negative externality 12.1 The Economics of Pollution

negative slope Appendix A The Use of Mathematics in Principles of Economics

non-rival 13.3 Public Goods

nonexcludable 13.3 Public Goods

Nontariff barriers 20.1 Protectionism: An Indirect Subsidy from Consumers to Producers

normal good 3.2 Shifts in Demand and Supply for Goods and Services

normal goods 5.4 Elasticity in Areas Other Than Price, 6.2 How Changes in Income and Prices Affect Consumption Choices

normative statements 2.3 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 licenses 16.1 The Problem of Imperfect Information and Asymmetric Information

oligopoly Introduction to Monopolistic Competition and Oligopoly, 10.2 Oligopoly

opportunity cost 2.1 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 set Appendix B Indifference Curves

Organization of Petroleum Exporting Countries (OPEC) 10.2 Oligopoly

output 10.2 Oligopoly

Oxfam International 20.1 Protectionism: An Indirect Subsidy from Consumers to Producers

P

partnership 17.1 How Businesses Raise Financial Capital

patent 9.1 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 insurance 16.2 Insurance and Imperfect Information

perfect competition 8.1 Perfect Competition and Why It Matters

perfect elasticity 5.2 Polar Cases of Elasticity and Constant Elasticity

perfect inelasticity 5.2 Polar Cases of Elasticity and Constant Elasticity

perfectly competitive firm 8.1 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 elastic 10.1 Monopolistic Competition

Pew Research Center for People and the Press 3.3 Changes in Equilibrium Price and Quantity: The Four-Step Process

pie chart Appendix A The Use of Mathematics in Principles of Economics

pie graph Appendix A The Use of Mathematics in Principles of Economics

pollution charge 12.3 Market-Oriented Environmental Tools

pork-barrel spending 18.2 Special Interest Politics

positive externalities 13.1 Why the Private Sector Underinvests in Innovation

positive externality 12.1 The Economics of Pollution

positive slope Appendix A The Use of Mathematics in Principles of Economics

positive statements 2.3 Confronting Objections to the Economic Approach

poverty 14.1 Drawing the Poverty Line

poverty line 14.1 Drawing the Poverty Line

poverty rate 14.1 Drawing the Poverty Line

poverty trap 14.2 The Poverty Trap

predatory pricing 9.1 How Monopolies Form: Barriers to Entry, 11.2 Regulating Anticompetitive Behavior

premiums 16.2 Insurance and Imperfect Information

present discounted value (PDV) Appendix C Present Discounted Value

present value 17.2 How Households Supply Financial Capital

price 2.1 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 regulation 11.3 Regulating Natural Monopolies

price ceiling 3.4 Price Ceilings and Price Floors, 3.5 Demand, Supply, and Efficiency

price control 3.5 Demand, Supply, and Efficiency

price controls 3.4 Price Ceilings and Price Floors, 4.3 The Market System as an Efficient Mechanism for Information, 18.2 Special Interest Politics

Price elasticity 5.1 Price Elasticity of Demand and Price Elasticity of Supply

price elasticity of demand 5.1 Price Elasticity of Demand and Price Elasticity of Supply

price elasticity of supply 5.1 Price Elasticity of Demand and Price Elasticity of Supply

price floor 3.4 Price Ceilings and Price Floors, 3.5 Demand, Supply, and Efficiency

price taker 8.1 Perfect Competition and Why It Matters

price takers Introduction to Monopolistic Competition and Oligopoly

prisoner’s dilemma 10.2 Oligopoly

private benefits 13.1 Why the Private Sector Underinvests in Innovation

private company 17.1 How Businesses Raise Financial Capital

private enterprise 1.4 How To Organize Economies: An Overview of Economic Systems

private insurance 16.2 Insurance and Imperfect Information

Private markets 12.1 The Economics of Pollution

private rates of return 13.1 Why the Private Sector Underinvests in Innovation

producer surplus 3.5 Demand, Supply, and Efficiency, 20.1 Protectionism: An Indirect Subsidy from Consumers to Producers

product differentiation 10.1 Monopolistic Competition

production Introduction to Production, Costs, and Industry Structure

production function 7.2 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 technologies 7.5 Costs in the Long Run

Productive efficiency 2.2 The Production Possibilities Frontier and Social Choices, 8.4 Efficiency in Perfectly Competitive Markets, 10.1 Monopolistic Competition, 12 Key Concepts and Summary

productivity 19.2 What Happens When a Country Has an Absolute Advantage in All Goods

Profit 7.3 Costs in the Short Run, 8.2 How Perfectly Competitive Firms Make Output Decisions

profit margin 7.3 Costs in the Short Run, 8.2 How Perfectly Competitive Firms Make Output Decisions

profit-maximizing 10.1 Monopolistic Competition

profits 10.2 Oligopoly

progressive tax system 14.5 Government Policies to Reduce Income Inequality

property rights 12.3 Market-Oriented Environmental Tools

protectionism 20.1 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 company 17.1 How Businesses Raise Financial Capital

public good 13.3 Public Goods

Public policy 14.5 Government Policies to Reduce Income Inequality

Q

quantity demanded 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 10.2 Oligopoly

quantity supplied 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services

quintiles 14.4 Income Inequality: Measurement and Causes

quotas 18.3 Flaws in the Democratic System of Government

R

race to the bottom 20.3 Arguments in Support of Restricting Imports

rational ignorance 18.1 Voter Participation and Costs of Elections

Raw materials prices 7.3 Costs in the Short Run

Redistribution 14.5 Government Policies to Reduce Income Inequality

regulatory capture 11.4 The Great Deregulation Experiment, 18.2 Special Interest Politics

Rent 7.3 Costs in the Short Run

restrictive practices 11.2 Regulating Anticompetitive Behavior

Retirement insurance 16.2 Insurance and Imperfect Information

revenue 7.1 Explicit and Implicit Costs, and Accounting and Economic Profit

Risk 17.2 How Households Supply Financial Capital

risk group 16.2 Insurance and Imperfect Information

S

safety net 14.3 The Safety Net

salary 4.1 Demand and Supply at Work in Labor Markets

Sarbanes-Oxley Act 11.4 The Great Deregulation Experiment

savings account 17.2 How Households Supply Financial Capital

Scarcity 1.1 What Is Economics, and Why Is It Important?, 2.3 Confronting Objections to the Economic Approach

service 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services

service contract 16.1 The Problem of Imperfect Information and Asymmetric Information

Service Employees International Union 15.1 Market Power on the Supply Side of Labor Markets: Unions

shareholders 17.1 How Businesses Raise Financial Capital

shares 17.1 How Businesses Raise Financial Capital

Sherman Antitrust Act 11.1 Corporate Mergers

shift in demand 3.2 Shifts in Demand and Supply for Goods and Services

shift in supply 3.2 Shifts in Demand and Supply for Goods and Services

short run 7.2 Production in the Short Run

short-run average cost (SRAC) curves 7.5 Costs in the Long Run

shortage 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services

Simple interest 17.3 How to Accumulate Personal Wealth

slope 2.2 The Production Possibilities Frontier and Social Choices, Appendix A The Use of Mathematics in Principles of Economics

social benefits 13.1 Why the Private Sector Underinvests in Innovation

social costs 12.1 The Economics of Pollution

social rate of return 13.1 Why the Private Sector Underinvests in Innovation

social surplus 3.5 Demand, Supply, and Efficiency

sole proprietorship 17.1 How Businesses Raise Financial Capital

Special interest groups 18.2 Special Interest Politics

Special Supplemental Food Program for Women, Infants and Children (WIC) 14.3 The Safety Net

specialization 1.1 What Is Economics, and Why Is It Important?, 19.1 Absolute and Comparative Advantage

spillovers 12.1 The Economics of Pollution

splitting up the value chain 19.3 Intra-industry Trade between Similar Economies

Standard & Poor’s 500 index 17.2 How Households Supply Financial Capital

Stock 17.1 How Businesses Raise Financial Capital, 17.3 How to Accumulate Personal Wealth

stocks Appendix C Present Discounted Value

straight-line demand curve 5.1 Price Elasticity of Demand and Price Elasticity of Supply

subsidies 20.1 Protectionism: An Indirect Subsidy from Consumers to Producers

substitute 3.2 Shifts in Demand and Supply for Goods and Services

substitution effect 6.2 How Changes in Income and Prices Affect Consumption Choices, Appendix B Indifference Curves

sunk costs 2.1 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

supply 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services

supply curve 3.1 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 curves 11.1 Corporate Mergers

supply schedule 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services

surplus 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services

T

tariff 18.2 Special Interest Politics

Tariffs 19.4 The Benefits of Reducing Barriers to International Trade, 20.1 Protectionism: An Indirect Subsidy from Consumers to Producers

tax incidence 5.3 Elasticity and Pricing

Technology 7.2 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 cost 2.2 The Production Possibilities Frontier and Social Choices

theory 1.3 How Economists Use Theories and Models to Understand Economic Issues

thick market 16.1 The Problem of Imperfect Information and Asymmetric Information

thin market 16.1 The Problem of Imperfect Information and Asymmetric Information

time series Appendix A The Use of Mathematics in Principles of Economics

total costs 8.2 How Perfectly Competitive Firms Make Output Decisions

total revenue 8.2 How Perfectly Competitive Firms Make Output Decisions, 9.2 How a Profit-Maximizing Monopoly Chooses Output and Price

total surplus 3.5 Demand, Supply, and Efficiency

total utility 6.1 Consumption Choices

trade secrets 9.1 How Monopolies Form: Barriers to Entry

trademark 9.1 How Monopolies Form: Barriers to Entry

tradeoffs 2.3 Confronting Objections to the Economic Approach

traditional economy 1.4 How To Organize Economies: An Overview of Economic Systems

Treasury bond 17.1 How Businesses Raise Financial Capital

Tying sales 11.2 Regulating Anticompetitive Behavior

Tyler Cowen 13.3 Public Goods

U

U.S. Census Bureau 3.2 Shifts in Demand and Supply for Goods and Services

U.S. Department of the Treasury 17.1 How Businesses Raise Financial Capital

underground economies 1.4 How To Organize Economies: An Overview of Economic Systems

Unemployment insurance 16.2 Insurance and Imperfect Information

Unitary elasticities 5.1 Price Elasticity of Demand and Price Elasticity of Supply

usury laws 4.2 Demand and Supply in Financial Markets

utility 2.1 How Individuals Make Choices Based on Their Budget Constraint, 6.1 Consumption Choices, Appendix B Indifference Curves

utility maximizing 16.1 The Problem of Imperfect Information and Asymmetric Information

utility-maximizing 18.1 Voter Participation and Costs of Elections

utility-maximizing choice 6.2 How Changes in Income and Prices Affect Consumption Choices

V

value chain 19.3 Intra-industry Trade between Similar Economies

variable 7.2 Production in the Short Run, Appendix A The Use of Mathematics in Principles of Economics

Variable costs 7.3 Costs in the Short Run

Variable inputs 7.2 Production in the Short Run

Venture capital 17.1 How Businesses Raise Financial Capital

voting cycle 18.3 Flaws in the Democratic System of Government

W

wage 4.1 Demand and Supply at Work in Labor Markets

wage elasticity of labor supply 5.4 Elasticity in Areas Other Than Price

Wages and salaries 7.3 Costs in the Short Run

Walter McMahon 13.1 Why the Private Sector Underinvests in Innovation

warranty 16.1 The Problem of Imperfect Information and Asymmetric Information

Wealth 14.5 Government Policies to Reduce Income Inequality

Workman’s compensation insurance 16.2 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 elasticity 5.2 Polar Cases of Elasticity and Constant Elasticity