Economics today

목차 (Table of Contents)

• CONTENTS
• UNIT ONE GETTING STARTED = 1
• Issue Ⅰ-1 The Scarcity Society : Are We Running Out of Everything? = 3
• 1 What Economics Is All About = 3
• A Reading and Working with Graphs = 13
• Issue Ⅰ-2 Does Money Mean Happiness? How Important Is Material Well-Being? = 23
• 2 How Different Systems Solve the Economic Problem = 25
• Issue Ⅰ-3 Is There a New Breed of People on the Mainland? China Today = 38
• 3 Some Economic Tools : Demand, Supply, and Elasticity = 43
• Issue Ⅰ-4 Illegal Activities : Prohibition in Retrospect = 64
• UNIT TWO THE AMERICAN ECONOMY AND ITS PROBLEMS = 71
• 4 Measuring the Economy's Performance : National Income and Product = 73
• Issue Ⅰ-5 Does GNP Mean Gross National Promise? Are We Measuring the Wrong Thing? = 86
• Biography Economic Growth and Income Redistribution / JAMES TOBIN = 92
• 5 Government Spending and Taxation = 94
• Biography Young Man at the End of an Era / ARTHUR OKUN = 110
• Issue Ⅰ-6 What Are Our National Priorities? How Should Public Funds Be Used? = 112
• Biography Fiscal Policy and Trend Analysis / OTTO ECKSTEIN = 118
• Issue Ⅰ-7 The Rape of the Taxpayer : What Do Loopholes Cost the American Taxpayer? = 120
• 6 Changing Business Conditions and Unemployment = 126
• Issue Ⅰ-8 Does Unemployment Compensation Cause Unemployment? Does Our System Have a Built-In Incentive for Not Working? = 142
• 7 Inflation and Stagflation = 147
• Issue Ⅰ-9 Would Indexing Help Fight Inflation? The Use of Economywide Escalator Clauses = 163
• Issue Ⅰ-10 Can Wage and Price Controls Work? Direct Attempts at Combating Inflation = 168
• UNIT THREE INCOME AND EMPLOYMENT DETERMINATION MODELS = 175
• 8 Consumption, Saving, and Investment = 177
• 9 Income and Employment Determination = 198
• Biography The Spirit of His Age / JOHN MAYNARD KEYNES = 214
• B The Acceleration Principle and the Interaction between the Accelerator and the Multiplier = 216
• 10 Fiscal Policy = 219
• Biography The Economic New Frontiersman / WALTER HELLER = 231
• Issue Ⅰ-11 Direct Fiscal Fine Tuning : Public Service Employment Programs = 233
• Biography Economics in the Public Mind / PAUL A. SAMUELSON = 236
• Issue Ⅰ-12 Is There a Burden of the Public Debt? The Long-Run Effects of Deficit Financing = 238
• 11 Money and the Banking System = 244
• Biography Doctor of High Finance / ARTHUR BURNS = 263
• Issue Ⅰ-13 Should Commercial Banks Be Subsidized? Borrowing from the Federal Reserve = 265
• 12 Money ina Keynesian Model = 270
• 13 The Role of Money : Other Views = 284
• Biography The Iconoclast As Institution / MILTON FRIEDMAN = 294
• Issue Ⅰ-14 Is Short-Run Stabilization Possible? Policymakers' Problems = 296
• UNIT FOUR THE INTERNATIONAL SCENE = 303
• 14 Benefiting from Trade among Nations = 305
• Issue Ⅰ-15 Does International Competition Pose a Threat? The Question of Job Protection = 320
• 15 Financing World Trade = 326
• Issue Ⅰ-16 Can Flexible Exchange Rates Halt Worldwide Inflation? The Changing World of International Finance = 345
• UNIT FIVE MARKETS, THE FIRM, AND RESOURCE ALLOCATION = 351
• 16 Demand and Consumer Choice = 353
• C Looking at Consumer Choice with Graphs = 361
• Issue Ⅰ-17 Why Was the Onions Futures Market Abolished? The Nature of Speculation = 367
• 17 Analyzing the Costs of a Business = 372
• 18 The Firm in Competition = 387
• Issue Ⅰ-18 The Perpetual Investment Fraud : On Not Getting Rich Quick = 407
• Issue Ⅰ-19 The Changing Agricultural Sector : Will the Past Be Seen Again? = 416
• 19 Monopoly Management = 424
• Biography Heretic to the Orthodox / HOAN ROBINSON = 440
• Issue Ⅰ-20 Medical Care for All : Theory and Practice = 442
• Issue Ⅰ-21 On Forming an International Monopoly : Can Economic Warfare Be Successful? = 452
• 20 Regulation the Big Ones = 458
• Biography Senate Voice for the Consumer / PHILIP A. HART = 475
• Issue Ⅰ-22 Is the Post Office a Natural Monopoly? Competition Rears Its Ugly Head = 477
• Issue Ⅰ-23 Consumerism : Are Consumer Protection Laws Justifiable? = 482
• Biography The Fifth Branch of Government / RALPH NADER = 488
• 21 In between Monopoly and Competition = 490
• Issue Ⅰ-24 Should Large Corporations Be Broken Up? The Question of Economic Power = 499
• Biography Economic Statesman / JOHN KENNETH GALBRAITH = 504
• Issue Ⅰ-25 Should the Corporate Structure Be Changed? How the "Planning" Sector Affects Our Lives = 506
• UNIT SIX DERIVED DEMAND AND INCOME DISTRIBUTION = 509
• 22 Aspects of the Labor Market = 511
• Biography Lobbyist for the Organized / GEORGE MEANY = 525
• Issue Ⅰ-26 Sexism in the Labor Market : Employers'and Customers Sexual Discrimination = 527
• 23 The Decision to Hire and Fire = 534
• Issue Ⅰ-27 Crime and Punishment : The Economics of Criminal Deterrence = 553
• Issue Ⅰ-28 Athletic Slavery : Monopoly and Monopsony in Sports = 561
• 24 Wealth, Capital, and Savings = 568
• Issue Ⅰ-29 Restrictions on Rates of Return : Usury Laws and Selective Credit Controls = 578
• 25 The Distribution of Income = 586
• Issue Ⅰ-30 Poverty and the Poor : Finding Alternatives to Welfare = 602
• Biography Economics As a Moral Issue / GUNNAR MYRDAL = 611
• UNIT SEVEN ECOLOGY, POLITICS, AND GROWTH = 613
• 26 Social Costs and the Ecology = 615
• Issue Ⅰ-31 Who Gets the Ocean's Wealth? The Common Heritage of All Nations = 626
• Issue Ⅰ-32 Conservation and Energy : How Should We Utilize Our Resources? = 631
• 27 Politics and Public Choice = 638
• Biography The Mathematics of Uncertainty / KENNETH J. ARROW = 646
• Issue Ⅰ-33 Should Political Campaigns Be Publicly Financed? On Preventing Future Watergates = 648
• 28 Population Economics = 653
• Issue Ⅰ-34 Was Malthus Right? the Exploding Population = 664
• 29 Development of the Less-Developed Countries = 671
• Biography The Economist As Evangelist / BARBARA WARD = 678
• Issue Ⅰ-35 Can Foreign Aid Help Less-Developed Countries? Can Development Assistance Work? = 680
• 30 Economic Growth = 686
• Issue Ⅰ-36 Should Growth Be Stopped? What Does the Future Hold? = 696
• CONTENTS
• UNIT ONE
• GETTING STARTED = 1
• Issue Ⅰ-1 The Scarcith Society : Are We Running Out of Everything? = 3
• Can We Preserve Our Way of Life? = 3
• The Shortage Society = 3
• The Energy Shortage That Started It All = 3
• The Impending Food Crisis = 3
• Our Dwindling Mineral Resources = 4
• Some Proposed Solutions to Shortages = 5
• The Other Side of the Story = 5
• Another View of Energy Shortages = 6
• World Mineral Supplies = 6
• Who Is Right? = 7
• DEFINITIONS OF NEW TERMS = 7
• SELECTED REFERENCES = 7
• 1 What Economics Is All About = 8
• Scarcity, Economic Goods, and Free Goods = 8
• Exchange and Choice = 9
• Voluntary and Involuntary Exchanges = 9
• Markets-Where Exchanges Take Place = 10
• Exchanges and Specialization = 10
• A Simple Example of Specialization = 11
• Comparative Advantages = 12
• Opportunity Costs = 13
• Economics As a Science = 14
• Assumptions = 14
• The Role of Assumptions = 14
• The Complexity of the World = 16
• DEFINITIONS OF NEW TERMS = 16
• CHAPTER SUMMARY = 17
• QUESTIONS FOR THOUGHT AND DISCUSSION = 17
• SELECTED REFERENCES = 17
• A Reading and Working with Graphs = 18
• A Basic Graph = 18
• The Numbers on the Axes = 19
• Issue Ⅰ-2 Does Money Mean Happiness? How Important Is Material Well-Being? = 23
• The difficulty of Measuring Happiness = 23
• An Opinion Poll = 23
• Another Study Confirms = 23
• Other Factors Affecting Happiness = 23
• Comfort to the Economist = 24
• QUESTIONS FOR THOUGHT AND DISCUSSION = 24
• 2 How Different Systems Solve the Economic Problem = 25
• Society's Choices = 25
• The Numbers = 26
• Putting the Numbers onto a Graph = 26
• Inefficiency and Underemployment = 26
• Why the Production-Possibilities Frontier Is Bowed Outward (the Law of Diminishing Returns) = 26
• What Is an Economic System? = 29
• Alternative Economic Systems = 29
• Capitalism in Theory = 30
• Difference between Capital and Capitalism = 30
• Private Property = 31
• Free Enterprise = 31
• The Price System = 31
• The Role of Government = 32
• American Capitalism = 32
• Restrictions in the American System = 32
• Competition and Capitalism = 32
• Socialism in Theory = 33
• Socialism As a Movement = 33
• Economics-the Core of Socialism = 33
• Key Attributes = 33
• Russia Today = 34
• Resource Allocation = 34
• The Problem of Coordination = 35
• The Economic Problem Is Universal = 35
• DEFINITIONS OF NEW TERMS = 36
• CHAPTER SUMMARY = 36
• QUESTIONS FOR THOUGHT AND DISCUSSION = 37
• SELECTED REFERENCES = 37
• Issue Ⅰ-3 Is There a New Breed of People on the Mainland? China Today = 38
• The Early System under Mao = 38
• Maoist Economics = 38
• The Planning Operation = 38
• The New Policy = 38
• Growth in the Chinese Economy = 38
• Goals of the New Men and Women = 39
• Serving the Proletariat = 40
• Deemphasizing Careers = 41
• Keeping the Experiment Alive = 41
• QUESTIONS FOR THOUGHT AND DISCUSSION = 42
• SELECTED REFERENCES = 42
• 3 Some Economic Tools : Demand, Supply, and Elasticity = 43
• PART A : DEMAND AND SUPPLY = 43
• The Law of Demand = 43
• The Law in Words = 44
• The Law in Numbers = 44
• The Law in Graphic Terms = 45
• The Law of Supply = 45
• The Law in Words = 47
• The Law in Numbers = 47
• The Law in Graphic Terms = 47
• Putting Demand and Supply Together = 47
• Supply and Demand in One Graph = 49
• Movements Along the Curve = 50
• Shifting the Curves = 50
• PART B : ELASTICITY = 53
• Price Responsiveness = 53
• Price Elasticity of Demand = 53
• Different Kinds of Elasticities = 54
• Extreme Elasticities = 55
• Price Elasticity of Supply = 56
• Elasticity and Slope = 57
• The Long and the Short of Elasticities = 57
• Demand = 58
• Supply = 59
• DEFINITIONS OF NEW TERMS = 60
• CHAPTER SUMMARY = 61
• QUESTIONS FOR THOUGHT AND DISCUSSION = 62
• SELECTED REFERENCES = 63
• Issue Ⅰ-4 Illegal Activities : Prohibition in Retrospect = 64
• Applying Supply and Demand = 64
• Alcohol Prohibition = 64
• From the Supply Side = 64
• From the Demand Side = 65
• The Final Outcome = 67
• A Graphic Analysis = 68
• The Case of Completely Inelastic Demand = 68
• Was Society Better Off after January 16, 1920? = 68
• QUESTIONS FOR THOUGHT AND DISCUSSION = 69
• SELECTED REFERENCES = 69
• UHIT TWO THE AMERICAN ECONOMY AND ITS PROBLEMS = 71
• 4 Measuring the Economy's Performance : National Income and Product = 73
• National Income = 73
• Product = 74
• The Circular Flow of Income and Product = 74
• Gross National Product = 75
• Deriving GNP with the Expenditure Approach = 75
• Government Expenditures = 76
• Gross Private Domestic Investment = 77
• The Foreign Sector = 77
• Getting Rid of the Gross = 77
• GNP with the Income Approach = 78
• Indirect Business Taxes = 79
• Depreciation = 79
• The Rest of National Income accounting = 80
• National Income = 80
• Personal Income = 81
• disposable Personal Income = 81
• Correcting GNP = 81
• Per Capita GNP = 81
• DEFINITIONS OF NEW TERMS = 82
• CHAPTER SUMMARY = 84
• QUESTIONS FOR THOUGHT AND DISCUSSION = 84
• SELECTED REFERENCES = 85
• Issue Ⅰ-5 Does GNP Mean Gross National Promise? Are We Measuring the Wrong Thing? = 86
• National Income Accounting and human Happiness = 86
• More Corrections for GNP = 86
• Do-It-Yourself Activities = 86
• Housewives' Services = 86
• Illegal Activities = 87
• Income Never Reported = 87
• Measures of Satisfaction = 87
• Gross National Pollution = 88
• MEW : A New Measure of GNP = 89
• QUESTIONS FOR THOUGHT AND DISCUSSION = 91
• SELECTED REFERENCES = 91
• Biography Economic Growth and Income Redistribution / JAMES TOBIN = 92
• 5 Government Spending and Taxation = 94
• The Economic Functions of Government = 94
• Providing Public Goods = 95
• Regulating Economic Activity = 95
• redistributing Income = 96
• Stabilizing the Economy = 96
• Administering Justice = 96
• The Growth of Government = 97
• The Components of Government Expenditures = 97
• The Federal Budget = 98
• State and Local Expenditures = 98
• Taxation = 99
• Theories of Taxation = 100
• Types of Taxes = 100
• Income Taxes = 101
• Personal Income Taxes = 102
• Progressive Taxation and Income Distribution = 103
• The corporate Income Tax = 103
• Not a Tax on All Profits = 105
• Do Corporations Really Pay Their Taxes? = 105
• Taxes on Wealth = 105
• Estate Taxes = 106
• Property Taxes = 106
• Taxes on Economic Activities = 106
• Unemployment and Social Security Taxes = 106
• Problems with Spending and Collecting = 107
• DEFINITIONS OF NEW TERMS = 107
• CHAPTER SUMMARY = 108
• QUESTIONS FOR THOUGHT AND DISCUSSION = 109
• SELECTED REFERENCES = 109
• Biography Yound Man at the End of an Era / ARTHUR OKUN = 110
• Issue Ⅰ-6 What Are Our National Priorities? How Sjpi ; d {ib ; oc Fimds Be Used? = 112
• Government and the Problem of Scarcity = 112
• Setting National Priorities = 112
• Trends in Government Expenditures = 112
• Declining Priorities = 112
• Advancing Priorities = 113
• Income Redistribution = 113
• Defense Spending Declines = 114
• The True Cost of the Military = 114
• Government Subsidies = 116
• QUESTIONS FOR THOUGHT AND DISCUSSION = 116
• SELECTED REFERENCE = 117
• Biography Fiscal Policy and Trend Analysis / OTTO ECKSTEIN = 116
• Issue Ⅰ-7 The Rape of the Taxpayer : What Do Loopholes Cost the American Taxpayer? = 120
• Taxes and Best Sellers = 120
• Progressive Taxes and Loopholes = 120
• Why Congress Legislates Loopholes = 120
• Tax-Exempt Bonds = 121
• The Oil Game = 122
• Oil Depletion Allowance = 122
• Dry Holes = 123
• IDCs = 124
• Capital Gains = 124
• You Can Lose Money in Tax Shelters = 124
• Tax Shelters and opportunity Costs = 124
• Other Costs of Tax Shelters = 125
• An Alternative = 125
• DEFINITIONS OF NEW TERMS = 125
• QUESTIONS FOR THOUGHT AND DISCUSSION = 125
• SELECTED REFERENGES = 125
• 6 Changing Business Conditions and Unemployment = 126
• The Business Cycle and Business Activity in the United States = 126
• Phases in the Business Cycle = 127
• Indicators of Business Activity = 127
• Earlier Business-Cycle Theories = 130
• The Sunspot Theory = 130
• The Innovation Theory = 130
• The Psychological Theory = 131
• Marx's Theory of the Business Cycle = 131
• Economic Crises = 131
• Business Cycles = 131
• Unemployment = 132
• How Is It Measured? = 132
• Voluntary Unemployment = 133
• The Business Cycle and the Duration of Unemployment = 134
• Hidden Unemployment = 135
• the Major Types of Unemployment = 137
• Frictional Unemployment = 137
• Cyclical Unemployment = 137
• Seasonal Unemployment = 137
• Structural Unemployment = 138
• reducing the Suffering = 139
• DEFINITIONS OF NEW TERMS = 139
• CHAPTER SUMMARY = 140
• QUESTIONS FOR THOUGHT AND DISCUSSION = 141
• SELECTED REFERENCES = 141
• Issue Ⅰ-8 Does Unemployment Compensation Cause Unemployment? Does Our System Have a Built-In Incentive for Not Working? = 142
• Helping Out the Jobless = 142
• The Low Opportunity Cost of Not Working = 142
• The Benefits of Unemployment = 143
• The Effective Marginal Tax Rate = 144
• Inverse Seniority = 144
• Seasonal Unemployment = 144
• The New Unemployment = 145
• QUESTIONS FOR THOUGHT AND DISCUSSION = 146
• SELECTED REFERENCES = 146
• 7 Inflation and Stagflation = 147
• Inflation and the History of Prices = 147
• Inflation in Other Countries = 148
• How We Measure Inflation = 149
• Real-World Price Indices = 150
• Consumer Price Index = 150
• Wholesale Price Index = 151
• Implicit Price Deflator = 152
• The Accuracy of Price Indices = 152
• Theories of Inflation = 152
• Quantity Theory of Money and Prices = 152
• Demand-Pull Inflation = 153
• Cost-Push Inflation = 153
• Who Bears the Burden of Inflation? = 154
• Creditors and Debtors = 154
• Wage Earners = 155
• Inflation and the Poor = 155
• How Inflation Affects Fixed Incomes = 155
• The Poor Man's Price Index = 156
• National Income and Inflation = 156
• Unemployment and Inflation = 157
• The Phillips Curve = 157
• The Trade-Off = 158
• Unemployment and Inflation Added Together = 159
• Stagflation = 159
• The Use of Models in Policymaking = 160
• DEFINITIONS OF NEW TERMS = 160
• CHAPTER SUMMARY = 161
• QUESTIONS FOR THOUGHT AND DISCUSSION = 162
• SELECTED REFERENCES = 162
• Issue Ⅰ-9 Would Indexing Help Fight Inflation? The Use of Economywide Escalator Clauses = 163
• Contracts That Take Account of Inflation = 163
• Escalator Clauses Today = 163
• A Short History of Escalator Clauses = 163
• Brazil-A Case Study of Indexing = 164
• Indexing in the United States = 165
• Indexing Taxes = 165
• Government Bonds = 165
• The Private Sector = 166
• The Pros and Cons of Indexing = 166
• Will We Have More Indexing? = 167
• QUESTIONS FOR THOUGHT AND DISCUSSION = 167
• SELECTED REFERENCES = 167
• Issue Ⅰ-10 Can Wage and Price Controls Work? direct Attempts at Combating Inflation = 168
• The past As the Future = 168
• Controls in Times Past = 168
• Controls in America during World War ll = 168
• controls in Other Countries = 170
• the Netherlands = 170
• the Rest of Western Europe = 171
• The American Experience = 171
• Guideposts = 171
• Jawboning = 172
• Controlling Prices and Wages i8n the 1970s = 172
• The Nitty-Gritty = 172
• Why Controls? = 172
• The Expectations Argument = 173
• DEFINITIONS OF NEW TERMS = 174
• QUESTIONS FOR THOUGHT AND DISCUSSION = 174
• SELECTED REFERENCES = 174
• UNIT THREE
• INCOME AND EMPLOYMENT DETERMINATION MODELS = 175
• 8 Consumption, Saving, and Investment = 177
• Definitions and Relationships = 177
• The Difference Between Stocks and Flows = 178
• Relating Income to Saving and Consumption = 178
• Investment = 178
• Who Does the Saving and Investing? = 178
• The Circular Flow with Saving and Investment = 179
• The Classical Theory and Mr. Say = 179
• Determinants of Consumption and Saving = 180
• graphing the Numbers = 182
• Dissaving and Autonomous Consumption = 182
• Average Propensity to Consume and to Save = 182
• Marginal Propensity to Consume and to Save = 184
• Some Relationships = 184
• Distinguishing between a Movement and a Shift = 184
• The Historical Record = 186
• Short-vs. Long-Run Consumption Functions = 187
• Other Determinants of Consumption = 188
• Liquid Assets = 188
• Expectations = 189
• determinants of Investments = 189
• The Planned Investment Function = 190
• The Elasticity of the Demand for Investment = 190
• Other Determinants of Investment = 190
• Expectations = 191
• Cost of New Capital Goods = 191
• Innovation and Technology = 191
• Business Taxes = 191
• The Equality of Saving and Investment = 192
• DEFINITIONS OF NEW TERMS = 194
• CHAPTER SUMMARY = 195
• QUESTIONS FOR THOUGHT AND DISCUSSION = 197
• SELECTED REFERENCES = 197
• 9 Income and Employment Determination = 198
• Aggregate Demand = 198
• Aggregate Supply = 200
• Finding Equilibrium = 201
• What About Employment? = 202
• What happens When We Are Out of Equilibrium? = 202
• Looking at saving and Investment = 203
• The Multiplier = 205
• The Multiplier in Graphical Terms = 206
• The Multiplier Formula = 206
• The Effects of More Saving = 207
• The Paradox of Thrift = 209
• Inflationary and Deflationary Gaps = 209
• DEFINITIONS OF NEW TERMS = 211
• CHAPTER SUMMARY = 211
• QUESTIONS FOR THOUGHT AND DISCUSSION = 212
• SELECTED REFERENCES = 213
• Biography The Spirit of His Age / JOHN MAYNARD KEYNES = 214
• B The Acceleration Principle and the Interaction between the Accelerator and the Multiplier = 216
• The Acceleration Principle = 216
• The Interaction between the Accelerator and the Multiplier = 21
• 10 Fiscal Policy = 219
• Adding the Government Sector = 219
• Adding Government purchases to Aggregate Demand = 219
• Filling the Deflationary Gap = 221
• Reducing the Inflationary Gap = 222
• The Effects of Changing Taxes = 222
• The Balanced-Budget Multiplier = 223
• Fiscal Policy = 224
• Discretionary Fiscal Policy = 224
• Automatic Fiscal Policy = 225
• fiscal policy and a Full-Employment Budget = 226
• Fiscal Policy and the Budget = 226
• DEFINITIONS OF NEW TERMS = 228
• CHAPTER SUMMARY = 228
• QUESTIONS FOR THOUGHT AND DISCUSSION = 229
• SELECTED REFERENCES = 230
• Biography The Economic New Frontiersman / WALTER W. HELLER = 231
• Issue Ⅰ-11 Direct Fiscal Fine Tuning : Public Service Employment Programs = 233
• Traditional vs. Nontraditional Fiscal policy = 233
• The Position in Favor of PSE = 233
• Why PSE Is So Popular = 233
• The Problem of federal Fund Usage = 233
• The Multiplier at Work = 234
• Do the Disadvantaged Get help? = 234
• PSE and Fiscal Policy in the Future = 235
• QUESTIONS FOR THOUGHT AND DISCUSSION = 235
• SELECTED REFERENCES = 235
• Biography Economics in the Public Mind / PAUL A. SAMUELSON = 236
• Issue Ⅰ-12 Is There a Burden of the Public Debt? The Long-Run Effects of Deficit Financing = 238
• Operation in the Red = 238
• Growth of Public Debt = 238
• Gross and Net Debt = 238
• How Do We Measure the Burden? = 238
• Changes in Capital Stocks = 239
• Alternatives to Debt = 239
• Taxation vs. Borrowing = 240
• Borrowing from Abroad = 240
• How Big Is the Interest Payment on the National Debt? = 240
• Redistribution of Income = 240
• Conclusions = 241
• DEFINITONS OF NEW TERMS = 243
• QUESTIONS FOR THOUGHT AND DISCUSSION = 243
• SELECTED REFERENCES = 243
• 11 Money and the Banking System = 244
• Types of Monetary Standards = 244
• The Functions of Money = 245
• Money As a Medium of Exchange = 245
• Money As a Unit of Accounting = 245
• Money As a Store of Value = 245
• the Distinction between Money and Crdeit = 246
• Defining the Money Supply = 246
• The Federal Reserve System = 248
• Organization of the Federal Reserve System = 248
• Member Banks = 248
• reserves = 249
• Assets and Liabilities = 249
• Excess Reserves = 249
• The Supply of Money = 251
• Federal Open Market Committee = 251
• The Relationship Between Reserves and Total Deposits = 251
• The Money Supply Expands = 253
• The Expansion Multiplier = 255
• The Tools of Monetary Policy = 256
• Open-Market Operatives = 256
• Member-Bank Borrowing and the Discount Rate = 257
• Reserve Requirement Changes = 258
• The Dynamics of Monetary Policy = 259
• DEFINITIONS OF NEW TERMS = 260
• CHAPTER SUMMARY = 260
• QUESTIONS FOR THOUGHT AND DISCUSSION = 261
• SELECTED REFERENCES = 262
• Biography Doctor of High Finance / ARTHUR BURNS = 263
• Issue Ⅰ-13 Should Commercial Banks Be Subsidized? Borrowing from the Federal Reserve
• Looking at the Discount Rate from a Different Perspective = 265
• The Subsidy Aspect of the Discount Window Operations = 265
• A Case History of Subsidization = 266
• Protecting the Banking System = 267
• The Federal Deposit Insurance Corporation = 268
• The Pros and Cons Summarized = 269
• QUESTIONS FOR THOUGHT AND DISCUSSION = 269
• SELECTED REFERENCE = 269
• 12 Money in a Keynesian Model = 270
• The Demand for Money of Cash = 270
• Transactions Demand for Money = 270
• Precautionary Demand for Money = 271
• The Speculative Demand for Money = 271
• Interest rates-An Introduction = 271
• Interest Rates and Bond Prices = 271
• The Demand for Money and the Interest Rate = 272
• Adding the Money Supply = 274
• Excess Supply = 274
• Excess Demand = 274
• Completing the Keynesian Model = 275
• Transmitting Monetary Policy = 275
• Closing the Inflationary Gap = 278
• The Transmission Mechanism = 278
• When Monetary Policy Doesn't Work = 279
• Other Views on the Subject = 280
• DEFINITIONS OF NEW TERMS = 281
• CHAPTER SUMMARY = 281
• QUESTIONS FOR THOUGHT AND DISCUSSION = 282
• SELECTED REFERENCES = 28
• 13 The Role of Money : Other Views = 284
• Stressing the Transactions Demand for Money = 284
• The Transmission Mechanism = 285
• The Monetarists' Explanation of an Inflationary Recession = 285
• Expectation = 287
• Resulting Unemployment = 288
• The Phillips Curve = 288
• The Importance of Expectations = 288
• Full Anticipation = 289
• Short-Run Effects = 290
• Graphic Analysis = 290
• DEFINITION OF NEW TERM = 292
• CHAPTER SUMMARY = 292
• QUESTIONS FOR THOUGHT AND DISCUSSION = 293
• SELECTED REFERENCES = 293
• Biography The Iconoclast As Institution / MILTON FRIEDMAN = 294
• Issue Ⅰ-14 Is Short-Run Stabilization Possible? Policymakers' Problems = 296
• Keeping the Economy pm am Even Keel = 296
• How Do We Define Full Employment? = 297
• Deciding What to Do = 297
• Time Lags for Short-Run Policies = 298
• The Information Time Lag = 298
• The Action Time Lag = 298
• The Effect Time Lag = 298
• Taking Lags into Account = 298
• Coordination = 299
• Policymaking and the Public = 300
• The Final Word = 301
• DEFINITION OF NEW TERM = 302
• QUESTIONS FOR THOUGHT AND DISCUSSION = 302
• SELECTED REFERENCES = 302
• UNIT FOUR
• THE INTERNATIONAL SCENE = 303
• 14 Benefiting from Trade among Nations = 305
• Putting Trade in Its Place = 305
• If Foreign Trade Stopped = 306
• Exports = 306
• Voluntary Trade = 307
• Demand and Supply of Imports and Exports = 307
• Imports = 307
• Exports = 308
• The Quantity of Trade in a Foreign Country = 309
• International Equilibrium (in a Two-Country World) = 310
• The Gains from Trade = 311
• Comparative and Absolute Advantage = 312
• Finding One's Comparative Advantages = 313
• Comparative Advantage and Opportunity Cost = 314
• Differing Resource Mixes = 314
• Advantageous Trade Will Always Exist = 314
• Costs of Trade = 315
• Japanese Miracle = 315
• Arguments against Free Trade = 315
• Infant Industry Argument = 315
• National Security = 316
• Stability = 316
• Protecting American Jobs = 317
• DEFINITIONS OF NEW TERMS = 317
• CHAPTER SUMMARY = 317
• QUESTIONS FOR THOUGHT AND DISCUSSION = 319
• SELECTED REFERENCES = 319
• Issue Ⅰ-15 Does International Competition Pose a Threat? The Question of Job Protection = 320
• The Tenets of Protectionism = 320
• Getting Hurt from Free Trade = 320
• How We Pay for Imports = 321
• How Trade Can Be Handled = 321
• Quotas = 321
• Tariffs = 323
• What the Future Holds = 324
• QUESTIONS FOR THOUGHT AND DISCUSSION = 325
• SELECTED REFERENCES = 325
• 15 Financing World Trade = 326
• Flexible Exchange Rates = 326
• Equilibrium Foreign Exchange Rate = 327
• Demand Schedule of Francs = 327
• Supply Schedule of Francs = 329
• Equilibrium = 329
• A Shift in Demand = 329
• Constant and Floating Exchange Rate = 329
• Balance of Payments = 332
• How We Measure the Balance of Payments = 332
• The United States Deficit = 333
• The Hypothetical Pure Gold Standard = 333
• Inflation in France = 333
• Rise in American Prices = 334
• Fall in French Prices = 334
• Real-Income Adjustment Mechanism = 334
• Pure Gold Standard in Theory = 335
• Monetary Policies Come into Play = 335
• A Recap = 336
• Currency Crisis = 337
• Internal Policies = 337
• Devaluation = 338
• Financial Assets = 338
• The Multiplier = 339
• Sectoral Effects = 339
• DEFINITIONS OF NEW TERMS = 340
• CHAPTER SUMMARY = 341
• QUESTIONS FOR THOUGHT AND DISCUSSION = 344
• SELECTED REFERENCES = 344
• IssueⅠ-16 Can Flexible Exchange Rates Halt Worldwide Inflation? The Changing World of International Finance = 345
• Inflation-A Worldwide Problem = 345
• The International Monetary Fund = 345
• Lord Keynes-Head of British Delegation = 345
• Harry White-Head of American Delegation = 346
• The IMF quota System = 346
• Marshall Plan = 346
• The United States Develops a Deficit = 346
• Dwindling Gold Stock = 346
• A Two-Tiered Gold System = 347
• A Rise in the official Price of Gold = 347
• Exchange Rates and Monetary Policy = 348
• The United States Experience = 349
• Floating Exchange Rates and Oil Prices = 350
• DEFINITIONS OF NEW TERMS = 350
• QUESTIONS FOR THOUGHT AND DISCUSSION = 350
• SELECTED REFERENCES = 350
• UNIT FIVE
• MARKETS, THE FIRM, AND RESOURCE ALLOCATION = 351
• 16 Demand and Consumer Choice = 353
• Utility Theory = 353
• The Law of Diminishing Marginal Utility = 354
• Reaching Equilibrium = 355
• Equilibrium and Price Change = 356
• The Demand Curve Revisited = 357
• Using Marginal Utility Analysis to Explain the Diamond-Water Paradox = 358
• The Supply = 359
• Total vs. Marginal Utility = 359
• DEFINITIONS OF NEW TERMS = 359
• CHAPTER SUMMARY = 359
• QUESTIONS FOR THOUGHT AND DISCUSSION = 360
• SELECTED REFERENCES = 360
• C Looking at Consumer Choice with Graphs = 361
• On Being Indifferent = 361
• The Shape of the Indifference Curve = 362
• The Marginal Rate of Substitution = 363
• The Indifference Map = 363
• The Budget Constant = 364
• Consumer Equilibrium Revisited = 365
• Income and Substitution Effects = 366
• Issue Ⅰ-17 Why Was the Onions Futures Market Abolished? The Nature of Speculation = 367
• Onions and the Future = 367
• Commodities Today and in the Future = 367
• Speculation and Total Utility = 368
• Maximizing Total Utility = 369
• Speculation and Price Stability = 370
• Banning Futures Trading = 371
• DEFINITIONS OF NEW TERMS = 371
• QUESTIONS FOR THOUGHT AND DISCUSSION = 371
• SELECTED REFERENCES = 371
• 17 Analyzing the Costs of a Business = 372
• Defining a Business = 372
• Corporations = 373
• Partnerships = 373
• Proprietorships = 373
• The Firm = 373
• Profit = 373
• Opportunity Cost of Capital = 374
• Forgetting the Opportunity Cost of Certain Other Inputs = 374
• Accounting Profits = 374
• economic Profits = 374
• The Relationship between Output and Inputs = 375
• Diminishing Returns = 375
• Measuring Diminishing Returns = 377
• An Example = 377
• Short-RunFirm Costs = 378
• Total Fixed Costs = 378
• Total Variable Costs = 379
• Short-Run Average Cost Curves = 379
• Marginal Cost = 381
• The Relationship between Average and Marginal Costs = 382
• Finding Minimum Costs = 382
• DEFINITIONS OF NEW TERMS = 383
• CHAPTER SUMMARY = 384
• QUESTIONS FOR THOUGHT AND DISCUSSION = 385
• SELECTED REFERENCES = 386
• 18 The Firm Competition = 387
• Characteristics of a Competitive Firm = 387
• Single-Firm Demand Curve = 388
• How Much Does the Perfect Competito Produce? = 389
• Total Revenues = 389
• Total Costs = 389
• Comparing Total Costs with Total Revenues = 389
• Using Marginal Analysis = 392
• Marginal Revenue = 392
• When Profits Are Maximized = 392
• Finding the Firm's Short-Run Profits = 393
• The Break-Even Point = 393
• The Meaning of Zero Economic Profits = 393
• Average Costs and Profits in the Long Run = 395
• Distinguishing between the Short and the Long Run = 396
• The Shutdown Poing = 397
• The Firm's Supply Curve = 398
• The Industry Supply Curve = 398
• Competitive Price Determination = 399
• The Long and the Short of a Competitive Supply Curve = 399
• Why Economists Are Fascinated with the Competitive Solution = 399
• Is Perfect Competition Possible? = 401
• DEFINITION OF NEW TERMS = 403
• CHAPTER SUMMARY = 403
• QUESTIONS FOR THOUGHT AND DISCUSSION = 405
• SELECTED REFERENCES = 406
• Issue Ⅰ-18 The Perpetual Investment Fraud : On Not Getting Rich Quick = 407
• A Truly Competitive Market Situation = 407
• Making Money = 407
• Getting Advice on the Market = 407
• Some Facts on the Stock Market = 408
• Capital Gains and Losses = 408
• What Affects the Price of a Stock? = 408
• Public Information = 409
• Inside Information = 409
• Capitalization = 409
• Hot Tips = 410
• Why So Much "Research"? = 410
• The Random Walk = 411
• Charting the Future = 411
• What about Investment Plans? = 412
• Is There No Way to Get Rich Quick? = 412
• A Sure-fire Scje,e = 414
• DEFINITIONS OF NEW TERMS = 415
• QUESTIONS FOR THOUGHT AND DISCUSSION = 415
• SELECTED REFERENCES = 415
• Issue Ⅰ-19 The Changing Agricultural Sector : Will the Past Be Seen Again? The Farming Sector = 416
• Poor Farmers = 416
• The Growth in Demand for Farm Products = 416
• Low Price Elasticity of Demand = 417
• History of the Farmer's Dilemma = 418
• Price Supports = 420
• How Can Supports Last? = 420
• Who Benefits from Price Supports? = 421
• Tobacco = 421
• Moving into an Era of No Surpluses = 422
• Target Prices = 422
• Graphically Speaking = 422
• DEFINITIONS OF NEW TERMS = 423
• QUESTIONS FOR THOUGHT AND DISCUSSION = 423
• SELECTED REFERENCES = 423
• 19 MonoPoly Management = 424
• Definition of a Monopolist = 424
• Monopolist's Demand Curve = 424
• Some Examples of Monopolies = 425
• On Becoming a Monopolist = 425
• Barriers to Entry = 425
• Economies of Scale = 426
• The Profit to Be Made from Increasing Production = 426
• Competitor's Marginal Revenue = 427
• Monopolist's Marginal Revenue = 427
• Marginal Revenuse from Marijuana = 428
• Output and Price Determination for the Monopolist = 428
• Marginal Revenue and Elasticity = 430
• Adding the Cost Curves = 430
• Figuring Out Profits = 433
• The Cost to Society of a Monopoly = 433
• Can a Monopolist Make Even More Money? = 435
• DEFINITIONS OF NEW TERMS = 436
• CHAPTER SUMMARY = 437
• QUESTIONS FOR THOUGHT AND DISCUSSION = 438
• SELECTED REFERENCES = 439
• Biography Heretic to the Orthodox / JOAN ROBINSON = 440
• Issue Ⅰ-20 Medical Care for All : Theory and Practice = 442
• Rising Costs of Medical Care = 442
• Medical Care Expenditures = 442
• The Supply of Medical Care = 443
• The Production of Medical Doctors = 443
• Restrictions = 443
• The Past = 445
• Why Did the AMA Seek Control? = 446
• AMA's Motives Not Satisfied = 446
• Jumps in Demand Medicare = 447
• Price Discrimination = 447
• Graphic Analysis = 448
• Fighting the Group Health Plans = 448
• National Health Insurance = 449
• The Real Problem = 450
• QUESTIONS FOR THOUGHT AND DISCUSSION = 451
• SELECTED REFERENCES = 451
• Issue Ⅰ-21 On Forming an International Monopoly : Can Economic Warfare Be Successful? = 452
• Joining Together to Make More Profits = 452
• International Commodity Cartels = 452
• A History of OPEC = 452
• The Yom Kippur War = 452
• Other Catels Formed = 453
• On Making a Successful Cartel = 453
• Assessing the Chances of a Cartel's Success = 454
• The Desire to Cheat = 455
• Political problems = 455
• The Prospects for the Future = 456
• DEFINITIONS OF NEW TERMS = 457
• QUESTIONS FOR THOUGHT AND DISCUSSION = 457
• SELECTED REFERENCES = 457
• 20 Regulating the Big Ones = 458
• One Way for a Monopoly to Arise = 458
• Regulating the Natural Monopolist = 460
• Subsidization = 461
• Price Discrimination = 461
• Methods of Regulating Monopolies = 462
• Cost of Service = 462
• Controlling the Rate of Return on Investment = 463
• Problems with Inflation = 464
• Quality of Service = 464
• regulating Prices-the Case of the Airlines = 465
• Nonprice Competition = 465
• Timing of Flights = 465
• Antitrust Policy = 466
• The Sherman Act = 467
• The Clayton Act = 467
• The Robinson-Patman Act = 468
• The Miller-Tydings Act = 469
• other Exemption Laws = 469
• The Enforcement of Antitrust Laws = 470
• When to Prosecute? = 470
• DEFINITIONS OF NEW TERMS = 471
• CHAPTER SUMMARY = 472
• QUESTIONS FOR THOUGHT AND DISCUSSION = 473
• SELECTED REFERENCES = 473
• Biography Senate Voice for the Consumer / PHILIP A. HART = 475
• Issue Ⅰ-22 Is the Post Office a Natural Monopoly? competition rears Its Ugly Head = 477
• The Postal Service Comes under fire = 477
• History of Postal Service = 477
• Private Express Statutes = 477
• Creation of the U.S. Postal Service = 477
• The Natural Monopoly Argument = 478
• Cream Skimming = 478
• Price discrimination = 479
• cream Skimming Already Exists = 479
• What the Future Might Hold = 480
• DEFINITION OF NEW TERM = 481
• QUESTIONS FOR THOUGHT AND DISCUSSION = 481
• SELECTED REFERENCES = 481
• Issue Ⅰ-23 Consumerism : Are Consumer Protection Laws Justifiable? = 482
• Straight Economics = 482
• The Need for Protection = 482
• The Case of the Fat Wienie = 483
• Economic Analysis = 483
• Marginal Analysis = 484
• Truth in Labeling = 485
• Unsafe at Any Speed = 485
• Changing Quality = 485
• Commission on Product Safety = 485
• Costs and Benefits of Safety = 486
• Safety May Decline = 486
• DEFINITIONS OF NEW TERMS = 487
• QUESTIONS FOR THOUGHT AND DISCUSSION = 487
• SELECTED REFERENCES = 487
• Biography The Fifth Branch of Government / RALPH NADER = 488
• 21 In between Monopoly and Competition = 490
• Monopolistic Competition = 490
• Assumptions = 491
• Zero Profits = 491
• How Has Chamberlin's Theory Fared? = 491
• Advertising-a Way of Differentiating the Product = 491
• Arguments against Advertising = 493
• Oligopoly = 495
• Oligopoly vs. Pure Forms of market Structure = 495
• Characteristics of Oligopolies = 497
• DEFINITIONS OF NEW TERMS = 497
• CHAPTER SUMMARY = 497
• QUESTIONS = 498
• SELECTED REFERENCES = 498
• Issue Ⅰ-24 Should Large Corporations Be Broken Up? The Question of Economic Power = 499
• Oligopolies on the Run = 499
• Power and Concentration = 499
• Concentration Ratios = 499
• The Meaning of Economic Power = 500
• Wasted Efforts = 501
• The Question of Legislation = 502
• Finally-Looking at Costs and Benefits = 503
• QUESTIONS FOR THOUGHT AND DISCUSSION = 503
• SELECTED REFERENCES = 503
• Biography Economic Statesman / JOHN KENNETH GALBRAITH = 504
• Issue Ⅰ-25 Should the Corporate Structure Be Changed? How the "Planning" Sector Affects Our Lives = 506
• The Galbraithian System = 506
• The Traditional Market System = 506
• The Planning System = 506
• The Technostructure = 507
• Restructuring the Corporation = 507
• A Sweeping Change = 508
• DEFINITIONS OF NEW TERMS = 508
• QUESTIONS FOR THOUGHT AND DISCUSSION = 508
• SELECTED REFERENCES = 508
• UNIT SIX
• DERIVED DEMAND AND INCOME DISTRIBUTION = 509
• 22 Aspects of the Labor Market = 511
• Union Power and the Labor Movement = 511
• American Labor Movement = 512
• The Great Depression = 513
• The Wagner Act-Labor's magna Carta = 513
• The Congress of Industrial organizations = 514
• The Taft-Hartley Act = 514
• The Merging of the Two Federations = 514
• What Do Unions Attempt to Do? = 515
• Demand Curve for labor = 515
• The Supply of Labor = 516
• Putting Demand and Supply Together = 518
• Limiting Entry = 519
• What Do Unions Maximize? = 519
• Has the Labor Movement Helped Workers? = 520
• Problems in the Labor Market = 520
• Seeking Highest Valued Employment = 521
• DEFINITIONS OF NEW TERMS = 522
• CHAPTER SUMMARY = 523
• QUESTIONS FOR THOUGHT AND DISCUSSION = 524
• SELECTED REFERENCES = 524
• Biography Lobbyist for the Organized / GEORGE MEANY = 525
• Issue Ⅰ-26 Sexism in the Labor Market : Employers' and Customers' Sexual discrimination = 527
• Women's Wages = 527
• Tastes for Discrimination = 527
• Other Explanations for Male-Female Wage Differences = 527
• Employer As Chief Sexist = 527
• Customer Discrimination = 531
• The Effects of Legislation = 532
• DEFINITIONS OF NEW TERMS = 533
• QUESTIONS FOR THOUGHT AND DISCUSSION = 533
• SELECTED REFERENCES = 533
• 23 The Decision to Hire and Fire = 534
• A Competitive Market = 535
• Constant Factor Costs = 535
• Marginal Physical Product = 535
• Value of Marginal Product = 535
• Rule for Hiring = 536
• Denied Demand = 536
• Input Demand Curve for All Firms Taken Together = 537
• Determinants of Demand Elasticity for Inputs = 541
• Monopoly = 542
• Monopsony : A Buyer's Monopoly = 544
• Marginal Factor Costs = 544
• An Example = 544
• The Monopsony Model and Minimum Wages = 546
• Bilateral Monopoly = 548
• When There Are Other Factors of Production = 548
• Profit Maximization = 548
• Cost Minimization = 549
• DEFINITIONS OF NEW TERMS = 550
• CHAPTER SUMMARY = 550
• QUESTIONS FOR THOUGHT AND DISCUSSION = 551
• SELECTED REFERENCES = 552
• Issue Ⅰ-27 Crime and punishment : The Economics of Criminal Deterrence = 553
• The Costs of Crime = 553
• Constraining the Chief of Police = 553
• Eliminate Vice or Theft? = 555
• The City Council = 556
• Deterring Crime = 556
• Hard Drug Problems = 557
• Looking at the Margin = 557
• Offensive Supplies = 557
• Increasing the Probability of Detection = 557
• The Courts = 558
• No Compensation for the Innocent = 558
• Civil Suits = 558
• The Victims = 558
• A Solution-Full Liability = 559
• QUESTIONS FOR THOUGHT AND DISCUSSION = 560
• SELECTED REFERENCES = 560
• Issue Ⅰ-28 Athletic Slavery : Monopoly and Monopsony in Sports = 561
• "No Freedom, No Football" = 561
• Unrestricted Labor Market = 561
• Coping with Excess Demand = 561
• Restricting the Market = 562
• Collusion = 562
• the Baseball Market = 562
• Reserve Clauses = 562
• Drafts = 562
• "Need" for Restrictions? = 562
• Is the Distribution of Good Players Altered? = 563
• Monopsony and Monopoly = 564
• Graphic Analysis = 564
• other Professional Sports = 566
• conclusion = 566
• DEFINITIONS OF NEW TERMS = 566
• QUESTIONS FOR THOUGHT AND DISCUSSION = 567
• SELECTED REFERENCES = 567
• 24 Wealth, Capital, and Savings = 568
• Concentration of Wealth = 568
• Wealth = 569
• How th Get Wealth = 569
• Durable and nondurable Goods = 570
• Saving = 570
• Net Worth = 570
• Stocks and Flows = 570
• Present Values = 571
• Annuities = 571
• The Nature of Compound Interest = 574
• The Unkind Truth = 576
• DEFINITIONS OF NEW TERMS = 576
• CHAPTER SUMMARY = 576
• QUESTIONS FOR THOUGHT AND DISCUSSION = 576
• Issue Ⅰ-29 Restrictions on Rates of Return : Usury Laws and Selective Credit Controls = 578
• Savers and Borrowers Getting Together = 578
• Usury Laws = 578
• The Case of Washington State = 578
• Supply and Demand Analysis = 579
• Borrowing As a Form of Dissaving = 580
• Setting the Maximum Rate below the Equilibrium Rate = 580
• the Lesson to Be Learned = 581
• you have to Pay to Get Money = 581
• Selective Credit Controls = 582
• Graphic Analysis of Zero Interest Rate for Checking Accounts = 582
• Competition in Banking = 583
• Destructive Competition = 584
• Housing Hunt = 584
• Regulating Bank Credit = 584
• DEFINITIONS OF NEW TERMS = 585
• QUESTIONS FOR THOUGHT AND DISCUSSION = 585
• SELECTED REFERENCES = 585
• 25 The Distribution of Income = 586
• Income Distribution-Past and Present = 586
• Lorenz Curve = 586
• Measuring the Degree of Income Inequality = 589
• The Age-Earnings Cycle = 590
• Marginal Productivity Theory = 591
• Process of Competition = 591
• Full Adiustment Is Never Obtained = 591
• Earning Too Much = 593
• Economic Rent Cannot Be Eliminated = 593
• Joan Baez's "Peculiar" Habit = 593
• Risk Factor = 594
• Exploitation and Discrimination = 594
• Exploitation = 595
• Discrimination = 596
• Investment in Human Capital = 597
• Theories of Income Distribution = 598
• Need = 598
• Equality = 598
• Productivity = 598
• DEFINITIONS OF NEW TERMS = 600
• CHAPTER SUMMARY = 600
• QUESTIONS FOR THOUGHT AND DISCUSSION = 601
• SELECTED REFERENCES = 601
• Issue Ⅰ-30 Poverty and the Poor : Finding Alternatives to Welfare = 602
• Poverty Still Around = 602
• The Low-Income Population = 602
• Defining Poverty = 602
• The Relative Nature of Poverty = 602
• Who Are the Poor? = 603
• Minority Groups = 603
• The Elderly = 603
• The Young = 604
• Rural Population = 604
• Households Headed by Women = 604
• The Welfare Mess = 604
• Public Assistance = 604
• Disparity of Payments = 605
• Disadvantages of Current Public Assistance = 605
• Incentives Not to Work = 605
• Man-in-the-House Rule = 605
• Social Insurance = 606
• Food Stamps = 607
• Some Alternative Ways to Eliminate Poverty = 607
• Guaranteed Annual Income = 607
• Negative Taxes = 607
• Advantages of the Negative Income Tax = 608
• Disadvantages of the Negative Income Tax = 609
• Taking into Account Preferences of Taxpayers = 609
• A Final Note = 610
• DEFINITIONS OF NEW TERMS = 610
• QUESTIONS FOR THOUGHT AND DISCUSSION = 610
• SELECTED REFERENCES = 610
• Biography Economics As a Moral Issue / GUNNAR MYRDAL = 611
• UNIT SEVEN
• ECOLOGY, POLITICS, AND GROWTH = 613
• 26 Social Costs and the Ecology = 615
• Social vs. Private Costs = 615
• Social Costs = 616
• Polluted Air = 616
• Externalities = 616
• Correcting the Signals = 617
• Property Rights = 618
• Common Property = 618
• When Private Costs Equal Social Costs = 619
• Pinpointing Property Rights = 621
• What about External Benefits? = 621
• External Benefits and Nonpayers = 622
• Public Goods = 622
• DEFINITIONS OF NEW TERMS = 623
• CHAPTER SUMMARY = 624
• QUESTIONS FOR THOUGHT AND DISCUSSION = 625
• SELECTED REFERENCES = 625
• Issue Ⅰ-31 Who Gets the Ocean's Wealth? The Common Heritage of All Nations = 626
• Resources from the Sea = 626
• Territorial Waters = 626
• Economic Zones = 626
• Suggestions for Mining Modules = 627
• The Fishing Problem Revisited = 627
• Another Problem-Ocean Spills = 629
• The Real Issue-The Distribution of Wealth = 629
• QUESTIONS FOR THOUGHT AND DISCUSSION = 630
• SELECTED REFERENCES = 630
• Issue Ⅰ-32 Conservation and Energy : How Should We Utilize Our Resources? = 631
• The Debate = 631
• What Conservation Really Means = 631
• Limited Resources = 631
• An Operational Definition = 631
• Discounting = 633
• Conservation Defined Operationally = 633
• Depletion of Nonrenewable Resources = 633
• Correct Timing = 634
• Using Substitutes = 634
• Using Too Little May Mean Less for the Future = 634
• The Energy Question = 635
• The Problem of Dependency = 636
• Further Energy Considerations = 636
• DEFINITION OF NEW TERM = 637
• QUESTIONS FOR THOUGHT AND DISCUSSION = 637
• SELECTED REFERENCES = 637
• 27 Politics and Public Choice = 638
• The Ideal Political Democracy = 638
• Defining an Ideal Political Democracy = 638
• The Equilibrium Point = 639
• Actual Democracies = 639
• Tie-In Activities = 640
• Coalitions and Cartels = 640
• Politics and the Size of the Pie = 640
• The Question of Ignorance = 640
• Bureaucracy and Public Choice = 642
• The Gains to Political Entrepreneurship = 642
• Concluding Remarks = 644
• CHAPTER SUMMARY = 645
• QUESTIONS FOR THOUGHT AND DISCUSSION = 645
• SELECTED REFERENCES = 645
• Biography The Mathematics of Uncertainty / KENNETH J. ARROW = 646
• Issue Ⅰ-33 Should Political Campaigns Be Publicly Financed? On Preventing Future Watergates = 648
• The American Public Is Shocked = 648
• The Federal Campaign Reform Act = 648
• private Campaign Money = 648
• Does More Money Ensure Winning? = 649
• The Problems of Regulating Campaign Financing = 650
• Investments and Campaign Spending Limits = 650
• Public Financing = 650
• The Pros = 650
• The Cons = 651
• The Future of Reform = 652
• QUESTIONS FOR THOUGHT AND DISCUSSION = 652
• SELECTED REFERENCES = 652
• 28 Population Economics = 653
• The Arithmetic of Population Growth = 653
• Doubling Time = 654
• Net Reproduction Rate = 655
• Where the People Are = 655
• The Population Curve = 656
• Why Has the S Curve Gone Awry? = 656
• Birth Control = 658
• Investing in Children = 658
• Children as Consumption = 658
• Cost of Children = 658
• The Economic and Social Consequences of ZPG = 659
• Crowding = 660
• An Unexpected Result of ZPGA Geriatric Population = 660
• Depopulation = 661
• DEFINITIONS OF NEW TERMS = 661
• CHAPTER SUMMARY = 662
• QUESTIONS FOR THOUGHT AND DISCUSSION = 662
• SELECTED REFERENCES = 663
• Issue Ⅰ-34 Was Malthus Right? The Exploding Population = 664
• Essay on Population = 664
• A Product of Traditional Europe = 664
• Positive Checks = 664
• Key Assumption = 666
• What Went Wrong? = 666
• "Passion between the Sexes" Not the Answer = 666
• Falling Mortality Rate a Mixed Blessing = 669
• Breaking Out of the Malthusian Cycle = 669
• DEFINITIONS OF NEW TERMS = 670
• QUESTIONS FOR THOUGHT AND DISCUSSION = 670
• SELECTED REFERENCES = 670
• 29 Development of the Less-Developed Countries = 671
• How Do We Define an LDC? = 671
• The Problems of the Information Explosion = 671
• Geographical Theories of Economic Development = 673
• The Race Theory of Development = 673
• More Modern Theories = 673
• Balancing Industry with Agriculture = 673
• The Stages of Development = 674
• Agriculture Subsidized = 674
• Planning Development in the LDCs = 675
• Property Rights and Economic Development = 676
• What Hope Is There for LDCs? = 676
• CHAPTER SUMMARY = 676
• QUESTIONS FOR THOUGHT AND DISCUSSION = 677
• SELECTED REFERENCES = 677
• Biography The Economist As Evangelist / BARBARA WARD = 678
• Issue Ⅰ-35 Can Foreign Aid Help Less-Developed Countries? Can Development Assistance Work? = 680
• The Rationale behind Foreign Aid = 680
• Security = 680
• Economics = 680
• Politics = 680
• humanitarianism = 680
• A Brief Rundown of American Foreign Aid = 681
• The Marshall Plan = 682
• A Shift in Emphasis = 682
• The Case of India = 683
• Problems with Assistance to Less-Developed Countries = 684
• The Situation in Less-Developed Countries = 684
• The Rate fo Return on Investment = 684
• Destroying Relative Prices = 684
• A Final Note = 685
• QUESTIONS FOR THOUGHT AND DISCUSSION = 685
• SELECTED REFERENCES = 685
• 30 Economic Growth = 686
• What Is the Meaning of Economic Growth? = 686
• Growth and the Production-Possibilities Curve = 687
• The Importance of Growth Rates = 687
• Natural resources and Economic Growth = 688
• Capital Accumulation = 689
• Why Is Capital Important? = 690
• Saving Decisions = 690
• Saving and the Poor = 691
• The Hard Facts = 691
• Improving Technology = 692
• Can We Tell Which Factor Is Most Important? = 692
• Economic Growth-A Policy Objective = 693
• DEFINITION OF NEW TERM = 694
• CHAPTER SUMMARY = 694
• QUESTIONS FOR THOUGHT AND DISCUSSION = 695
• SELECTED REFERENCES = 695
• Issue Ⅰ-36 Should Growth Be Stopped? What Does the Future Hold? = 696
• The Economic Problem = 696
• Stopping GNP Growth = 696
• The Limits to Growth = 696
• Changing the Equation = 698
• The Problem with Gloom and Doom Projections = 700
• Planning for Planning = 700
• QUESTIONS FOR THOUGHT AND DISCUSSION = 701
• SELECTED REFERENCES = 701