AP Principles of Microeconomics

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booksp_e/anrep_e/anrep14_chap10_e.pdf.

548 References
This OpenStax book is available for free at http://cnx.org/content/col11858/1.4

Index 549

INDEX

Symbols behavioral economics, 148, 151 constant unitary elasticity, 122
behavioral economists, 359 consumer equilibrium, 134, 151
401(k), 147 biodiversity, 276, 279 consumer surplus, 68, 445
Bipartisan Campaign Reform consumption, 128
A Act (BCRA), 405 consumption budget constraint,
bond, 378, 397 33
AARP, 407 bond yield, 384, 397 consumption choice budget
absolute advantage, 419, 434 bondholder, 378, 397 constraint, 141
Accounting profit, 157 bonds, 383, 501 copayment, 364, 370
accounting profit, 172, 230 budget constraint, 26, 40, 129, copyright, 206, 219
acquisition, 244, 258 135, 146, 490 core competency, 11
actual rate of return, 381, 397 budget constraint line, 129, 151, corporate bond, 378, 397
Adam Smith, 10, 37, 233 309 corporate governance, 380, 397
additional external cost, 279 budget line, 489 corporation, 378, 397
additional external costs, 266 bundling, 250, 258 cosigner, 361, 370
Adverse selection, 365 cost, 33
adverse selection, 370 C cost-plus regulation, 254, 258
Affirmative action, 346 County and Municipal
affirmative action, 351 capital gain, 379, 397 Employees (AFSCME), 340
Affordable Care Act (ACA), 355, cartel, 232, 238 coupon rate, 384, 397
368, 407 Celler-Kefauver Act, 246 cross-price elasticity of demand,
Age Discrimination in certificate of deposit (CD), 382, 119, 122
Employment Act, 346 397 CTC, 314
Agriculture and Food Research ceteris paribus, 50, 62, 71, 82
Initiative (AFRI), 295 checking account, 382, 397 D
Aid to Families with Dependent circular flow diagram, 14, 21
Children (AFDC), 313 Civil Rights Act of 1964, 344 David Ricardo, 418
Allocative efficiency, 34, 217 Civil Rights Act of 1991, 346 deadweight loss, 69
allocative efficiency, 40, 196, Clayton Antitrust Act, 246 debit card, 382, 397
219, 280 Clean Air Act, 268, 271, 273 decreasing cost industry, 195
American Federation of State, Clean Water Act, 268 deductible, 370
340 coinsurance, 364, 370 deductibles, 364
Anthony Downs, 405 collateral, 361, 370 demand, 45, 71, 290
Anti-dumping laws, 452 collective bargaining, 336, 351 demand and supply diagram, 68
anti-dumping laws, 463 collusion, 232, 238 demand and supply models, 94
Antitrust Division of the Justice command economy, 16, 21 demand curve, 45, 50, 71, 107,
Department, 233 command-and-control 109, 225, 229, 443
antitrust laws, 245, 258 regulation, 268, 279 demand curves, 249
asymmetric information, 357, common market, 463 demand schedule, 45, 71
370 common markets, 458 Democracy, 409
average cost curve, 252 common resources, 298 Deposit insurance, 363
average profit, 162, 172 comparative advantage, 11, 35, deregulation, 207, 219, 255
Average total cost, 161 40, 419, 449 differentiated product, 238
average total cost, 172 competition, 289 differentiated products, 225, 231
Average variable cost, 161 competitive market, 345 diminishing marginal returns,
average variable cost, 172 complements, 52, 71 160
Compound interest, 394 diminishing marginal utility, 130,
B compound interest, 397 151, 488
concentration ratio, 246, 258 Discrimination, 342
backward-bending supply curve constant cost industry, 195 discrimination, 351
for labor, 142, 151 constant returns to scale, 167, diseconomies of scale, 168, 172
bar graph, 479 172 disruptive market change, 461,
Barriers to entry, 205 Constant unitary elasticity, 110 463
barriers to entry, 219

550 Index

diversification, 388, 397 F H
dividend, 379, 397
division of labor, 10, 21, 429 face value, 384, 397 Health Care for America Now
Dodd-Frank Act, 256 factors of production, 54, 71 (HCAN), 407
Dow Jones Index, 386 Federal Deposit Insurance health maintenance
dumping, 432, 463 Corporation (FDIC), 383 organization (HMO), 364, 370
Dumping, 452 Federal Reserve Economic Herfindahl-Hirschman Index
duopoly, 234, 238 Data (FRED), 376 (HHI), 247, 258
Federal Trade Commission, 233 high yield, 383
E Federal Trade Commission high yield bonds, 397
(FTC), 361 High-income countries, 444
earned income tax credit fee-for-service, 364, 370 high-income countries, 453
(EITC), 313, 327 financial capital, 89
economic efficiency, 37 financial capital market, 361 I
Economic profit, 157 financial capital markets, 357
economic profit, 172 Financial capital markets, 376 immigrants, 348
economic surplus, 69 financial intermediary, 381, 397 imperfect information, 357, 370
economic union, 463 firm, 35, 56, 156, 172, 230, 236, imperfectly competitive, 224,
economic unions, 458 289, 337, 377, 411 238
Economics, 8 firms, 224 Implicit costs, 157
economics, 21 Fiscal policy, 13 implicit costs, 172
economies of scale, 11, 21, 430 fiscal policy, 21 import quotas, 440, 463
Economies of scale, 165, 205 fixed cost, 172 Imports, 18
ecotourism, 273 Fixed costs, 158 imports, 21, 426
effective income tax, 323, 327 fossil fuels, 276 Income, 306, 323
efficiency, 68 four-firm concentration ratio, income, 327
elastic demand, 105, 122 258 income effect, 137, 151, 491
elastic supply, 105, 122 Francine Blau, 342 income elasticity of demand,
Elasticity, 104 free rider, 296, 300 119
elasticity, 122 free trade, 453 income inequality, 327
elasticity of savings, 120, 122 free trade agreement, 463 increasing cost industry, 195
entry, 194, 198 free trade agreements, 458 index fund, 388, 397
Equal Employment Opportunity function, 469 indifference curve, 487
Commission (EEOC), 347 fungible, 149, 151 Individual Retirement Accounts
Equal Pay Act of 1963, 346 (IRAs), 147
equilibrium, 48, 68, 71, 82, 230, G inelastic demand, 105, 122
357, 441 inelastic supply, 105, 122
equilibrium price, 48, 71, 358 gain from trade, 422, 434 inequality, 306
equilibrium quantity, 48, 64, 71 game theory, 233, 238 infant industry argument, 450
equity, 388, 397 Gary Becker, 345 inferior good, 52, 71, 119, 136
estate tax, 324, 327 General Agreement on Tariffs Infinite elasticity, 109
European Union, 458 and Trade (GATT), 457, 463 infinite elasticity, 122
European Union (EU), 67 George Psacharopoulos, 291 initial public offering (IPO), 379,
excess demand, 49, 71 globalization, 18, 21, 249, 322, 397
excess supply, 49, 71 418, 449 inputs, 54, 71
exclusive dealing, 250, 258 good, 46 Insurance, 362
exit, 194, 198 goods and services market, 14, insurance, 370
expected rate of return, 381, 21 intellectual property, 207, 219,
397 Great Depression, 418 300
Explicit costs, 157 Great Recession, 315 Intellectual property, 292
explicit costs, 172 gross domestic product (GDP), interest rate, 90, 99, 501
export, 426 18, 21, 277 international externalities, 276,
Exports, 18 growth rate, 473 279
exports, 21 international trade, 431, 461
external costs, 266 International Trade Commission
externality, 265, 279 (ITC), 412

This OpenStax book is available for free at http://cnx.org/content/col11858/1.4

Index 551

intertemporal budget constraint, marginal cost curves, 269 National Association of
144, 145 Marginal profit, 214 Insurance Commissioners, 367
intertemporal choices, 39 marginal profit, 219 National Education Association,
intertemporal decision making, marginal rate of substitution, 340
91 488 National Institutes of Health,
intra-industry trade, 429, 434 marginal revenue, 181, 198, 212 295
invisible hand, 38, 40 marginal utility, 130, 151, 488 national interest argument, 456,
Marginal utility per dollar, 132 463
J marginal utility per dollar, 151 National Labor-Management
market, 16, 21, 249, 365 Relations Act, 341
Joan Robinson, 412 market economy, 16, 21, 35, National Venture Capital
John Maynard Keynes, 13 289 Association, 377
junk bonds, 383, 397 market failure, 268, 279 natural monopoly, 205, 219,
market price, 225 232, 252
K market share, 246, 258 near-poor, 313, 327
market structure, 178, 198 negative externalities, 407
key input, 113 marketable permit program, negative externality, 265, 279
kinked demand curve, 236, 238 271, 279 negative slope, 471
maturity date, 384, 398 nonexcludable, 296, 300
L maximizing utility, 133 nonrivalrous, 296, 300
median, 474 Nontariff barriers, 441
labor, 158 median voter theory, 410, 414 nontariff barriers, 463
labor market, 14, 21, 82, 360 Medicaid, 308, 315, 327 normal good, 52, 71
labor markets, 317 Medicare, 407 normal goods, 119, 136
labor union, 336, 351 merger, 244, 258 normative statement, 40
labor-leisure budget constraint, Michael S. Clune, 349 normative statements, 37
139, 309 Microeconomics, 12 North American Free Trade
labor-leisure diagram, 493 microeconomics, 21 Agreement (NAFTA), 447, 458
Laurence Kahn, 342 Midpoint Formula, 107
law of demand, 45, 71, 91 Midpoint Method, 105, 108 O
law of diminishing marginal minimum resale price
utility, 30, 40 maintenance agreement, 250, occupational license, 370
law of diminishing returns, 33, 258 Occupational licenses, 360
40 minimum wage, 87, 99, 449 oligopoly, 224, 238
law of supply, 46, 71 model, 14, 21 Oligopoly, 232
legal monopoly, 205, 219 Mollie Orshansky, 306 opportunity cost, 27, 40, 419,
leviathan effect, 168 Monetary policy, 13 427, 447
line graphs, 474 monetary policy, 21 opportunity set, 26, 40, 492
liquidity, 381, 397 money-back guarantee, 359, Organization of Petroleum
living wage, 87 370 Exporting Countries (OPEC),
lobbyists, 407 monopolistic competition, 224, 235
logrolling, 409, 414 238 output, 235
long-run average cost (LRAC) monopoly, 204, 219, 251 Oxfam International, 444
curve, 166, 172 monopoly firm, 338
long-run equilibrium, 194, 198 Moody’s, 385 P
Lorenz curve, 318, 327 Moral hazard, 364
loss aversion, 148 moral hazard, 370 partnership, 379, 398
low-income countries, 444, 453 municipal bond, 378 patent, 206, 219, 292
municipal bonds, 398 Patient Protection and
M mutual funds, 388, 398 Affordable Care Act (PPACA),
355, 367
Macroeconomics, 12 N Pension insurance, 363
macroeconomics, 21 perfect competition, 178, 198
marginal analysis, 30, 40 National Academy of Engineers, perfect elasticity, 109, 122
marginal benefits, 274 295 perfect inelasticity, 109, 122
Marginal cost, 161 National Academy of Scientists, perfectly competitive firm, 178,
marginal cost, 172, 183, 212, 295 179, 194, 208
254
marginal cost curve, 274

552 Index

perfectly elastic, 225 productive efficiency, 40, 230, short-run average cost (SRAC)
Pew Research Center for 280 curve, 172
People and the Press, 61 productivity, 424 short-run average cost (SRAC)
physical capital, 158 profit, 179 curves, 166
pie chart, 477 profit margin, 163 shortage, 49, 72
pie graph, 477 profit-maximizing, 227 shutdown point, 198
pollution charge, 269, 279 profits, 235 Simple interest, 393
pork-barrel spending, 408, 414 progressive tax system, 323, simple interest, 398
positive externalities, 289, 300 327 slope, 32, 470
positive externality, 265, 279 property rights, 272, 279 social benefits, 289, 300
positive slope, 471 protectionism, 440, 444, 463 social costs, 265, 279
positive statement, 40 Protectionism, 447 social rate of return, 291, 300
positive statements, 37 public company, 379, 398 social surplus, 69
poverty, 306, 327 public good, 295, 300 sole proprietorship, 379, 398
poverty line, 306, 327 Public policy, 324 Special interest groups, 407
poverty rate, 306, 327 special interest groups, 414
poverty trap, 309, 327 Q Special Supplemental Food
predatory pricing, 207, 219, 251 Program for Women, Infants
premium, 370 quantity demanded, 45, 71 and Children (WIC), 315
premiums, 362 Quantity demanded, 232 specialization, 11, 21, 422
present discounted value (PDV), quantity supplied, 46, 71 spillover, 279
501 quintile, 327 spillovers, 265
present value, 384, 398 quintiles, 317 splitting up the value chain, 429,
price, 29, 45, 49, 71, 236 quotas, 410 434
price cap regulation, 254, 258 Standard & Poor’s 500 index,
price ceiling, 65, 70, 71 R 386
price control, 69, 71 Stock, 378
Price controls, 65 race to the bottom, 453, 463 stock, 392, 398
price controls, 96, 408 rational ignorance, 404, 414 stocks, 501
Price elasticity, 104 Redistribution, 323 straight-line demand curve, 107
price elasticity, 122 redistribution, 327 subsidies, 444
price elasticity of demand, 104, regulatory capture, 256, 258, substitute, 52, 72
122 407 substitution effect, 137, 151,
price elasticity of supply, 104, restrictive practices, 250, 258 491
122 Retirement insurance, 363 sunk costs, 30, 40, 162
price floor, 65, 70, 71 revenue, 157, 172 Supplemental Nutrition
price taker, 178, 198 Risk, 381 Assistance Program (SNAP),
price takers, 224 risk, 398 314, 327
prisoner’s dilemma, 233, 238 risk group, 364, 370 supply, 46, 72
private benefits, 289, 300 supply curve, 47, 50, 72, 443
private company, 379, 398 S supply curves, 249
private enterprise, 16, 21, 172 supply schedule, 47, 72
Private enterprise, 157 safety net, 313, 327 surplus, 49, 72
private insurance, 363 salary, 80
Private markets, 265 Sarbanes-Oxley Act, 256 T
private rates of return, 291, 300 savings account, 382, 398
producer surplus, 69, 445 Scarcity, 8 Taft-Hartley Act, 339
product differentiation, 225 scarcity, 21, 37 tariff, 406
production, 156, 172 service, 46 Tariffs, 432
production possibilities frontier service contract, 360, 370 tariffs, 434, 440
(PPF), 31, 40 Service Employees International tax incidence, 116, 122
production possibility frontier Union, 340 technology, 289
(PPF), 277, 420 shareholders, 378, 398 Temporary Assistance for
production technologies, 163, shares, 378, 398 Needy Families (TANF), 313
172 Sherman Antitrust Act, 246 theory, 14, 21
Productive efficiency, 34, 196 shift in demand, 53, 72 thick market, 358
shift in supply, 54, 72 thin market, 358

This OpenStax book is available for free at http://cnx.org/content/col11858/1.4

Index 553

time series, 477 zero inelasticity, 122
total cost, 172
total costs, 158, 180
Total revenue, 180
total revenue, 212
total surplus, 72
total utility, 129, 151
trade secrets, 207, 219
trademark, 206, 219
tradeoffs, 37
traditional economy, 15, 21
Treasury bond, 378, 398
Tying sales, 250
tying sales, 258
Tyler Cowen, 299

U

U.S. Census Bureau, 52
U.S. Department of the
Treasury, 378
underground economies, 18
underground economy, 22
Unemployment insurance, 363
Unitary elasticities, 105
unitary elasticity, 122
United Mineworkers union, 339
usury laws, 94, 99
utility, 30, 40, 129, 487
utility maximizing, 359
utility-maximizing, 404
utility-maximizing choice, 135

V

value chain, 429, 434
variable, 470
variable cost, 172
Variable costs, 159
Venture capital, 377
venture capital, 398
voting cycle, 411, 414

W

wage, 80
wage elasticity of labor supply,
120, 122
Walter McMahon, 291
warranty, 360, 370
wealth, 323, 327
Workman’s compensation
insurance, 363
World Trade Organization
(WTO), 432, 441, 452, 457, 463

Z

Zero elasticity, 109