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Principles of Microeconomics for AP® Courses

Index

Principles of Microeconomics for AP® CoursesIndex
  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 Economies Can Be Organized: 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 Cost and Industry Structure
    1. Introduction to Cost and Industry Structure
    2. 7.1 Explicit and Implicit Costs, and Accounting and Economic Profit
    3. 7.2 The Structure of Costs in the Short Run
    4. 7.3 The Structure of Costs in the Long Run
    5. Key Terms
    6. Key Concepts and Summary
    7. Self-Check Questions
    8. Review Questions
    9. Critical Thinking Questions
    10. 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 Under Invests 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 Issues in Labor Markets: Unions, Discrimination, Immigration
    1. Introduction to Issues in Labor Markets: Unions, Discrimination, Immigration
    2. 15.1 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 Trade Policy Is Enacted: 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
A
additional external costs 12.1 The Economics of Pollution
Affirmative action 15.2 Employment Discrimination
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
American Federation of State 15.1 Unions
Antitrust Division of the Justice Department 10.2 Oligopoly
antitrust laws 11.1 Corporate Mergers
C
Celler-Kefauver Act 11.1 Corporate Mergers
certificate of deposit (CD) 17.2 How Households Supply Financial Capital
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
collective bargaining 15.1 Unions
collusion 10.2 Oligopoly
command-and-control regulation 12.2 Command-and-Control Regulation
common resources 13.3 Public Goods
competitive market 15.2 Employment Discrimination
concentration ratio 11.1 Corporate Mergers
constant returns to scale 7.3 The Structure of Costs in the Long Run
consumer equilibrium 6.1 Consumption Choices
consumption choice budget constraint 6.3 Labor-Leisure Choices
cost-plus regulation 11.3 Regulating Natural Monopolies
County and Municipal Employees (AFSCME) 15.1 Unions
cross-price elasticity of demand 5.4 Elasticity in Areas Other Than Price
D
demand and supply diagram 3.5 Demand, Supply and Efficiency
demand curves 11.1 Corporate Mergers
diminishing marginal returns 7.2 The Structure of Costs in the Short Run
disruptive market change 20.5 The Tradeoffs of Trade Policy
duopoly 10.2 Oligopoly
E
earned income tax credit (EITC) 14.3 The Safety Net
Equal Employment Opportunity Commission (EEOC) 15.2 Employment Discrimination
Equal Pay Act of 1963 15.2 Employment Discrimination
F
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
free rider 13.3 Public Goods
I
immigrants 15.3 Immigration
income elasticity of demand 5.4 Elasticity in Areas Other Than Price
indifference curve Appendix B Indifference Curves
Individual Retirement Accounts (IRAs) 6.4 Intertemporal Choices in Financial Capital Markets
initial public offering (IPO) 17.1 How Businesses Raise Financial Capital
international externalities 12.5 International Environmental Issues
International Trade Commission (ITC) 18.3 Flaws in the Democratic System of Government
intertemporal decision making 4.2 Demand and Supply in Financial Markets
K
kinked demand curve 10.2 Oligopoly
L
labor union 15.1 Unions
labor-leisure budget constraint 6.3 Labor-Leisure Choices, 14.2 The Poverty Trap
labor-leisure diagram Appendix B Indifference Curves
long-run average cost (LRAC) curve 7.3 The Structure of Costs in the Long Run
M
marginal rate of substitution Appendix B Indifference Curves
Marginal utility per dollar 6.1 Consumption Choices
market share 11.1 Corporate Mergers
marketable permit program 12.3 Market-Oriented Environmental Tools
maximizing utility 6.1 Consumption Choices
Michael S. Clune 15.3 Immigration
minimum resale price maintenance agreement 11.2 Regulating Anticompetitive Behavior
monopoly firm 15.1 Unions
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 Unions
National Institutes of Health 13.2 How Governments Can Encourage Innovation
National Labor-Management Relations Act 15.1 Unions
National Venture Capital Association 17.1 How Businesses Raise Financial Capital
negative externalities 18.2 Special Interest Politics
negative externality 12.1 The Economics of Pollution
nonexcludable 13.3 Public Goods
nonrivalrous 13.3 Public Goods
P
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
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
pork-barrel spending 18.2 Special Interest Politics
positive externality 12.1 The Economics of Pollution
poverty trap 14.2 The Poverty Trap
present discounted value (PDV) Appendix C Present Discounted Value
price cap regulation 11.3 Regulating Natural Monopolies
prisoner’s dilemma 10.2 Oligopoly
product differentiation 10.1 Monopolistic Competition
production possibilities frontier (PPF) 2.2 The Production Possibilities Frontier and Social Choices
profit-maximizing 10.1 Monopolistic Competition
profits 10.2 Oligopoly
public good 13.3 Public Goods
S
safety net 14.3 The Safety Net
Service Employees International Union 15.1 Unions
Sherman Antitrust Act 11.1 Corporate Mergers
short-run average cost (SRAC) curves 7.3 The Structure of Costs in the Long Run
Special interest groups 18.2 Special Interest Politics
Special Supplemental Food Program for Women, Infants and Children (WIC) 14.3 The Safety Net
Standard & Poor’s 500 index 17.2 How Households Supply Financial Capital
Supplemental Nutrition Assistance Program (SNAP) 14.3 The Safety Net
supply curves 11.1 Corporate Mergers
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