Microeconomics, 11th Edition PDF by David C Colande

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Microeconomics, Eleventh Edition

By David C. Colande

Microeconomics, Eleventh Edition

Contents:

PART I

INTRODUCTION: THINKING LIKE AN ECONOMIST

11 Economics and Economic Reasoning 4

What Economics Is 5

Scarcity 5

Microeconomics and Macroeconomics 6

A Guide to Economic Reasoning 6

Marginal Costs and Marginal Benefits 8

The Economic Decision Rule 8

Economics and Passion 8

Opportunity Cost 9

Economic Forces, Social Forces, and Political Forces 11

Economic and Market Forces 11

Social and Political Forces 11

Using Economic Insights 13

The Invisible Hand Theorem 14

Economic Theory and Stories 15

Economic Institutions 15

Economic Policy Options 16

Objective Policy Analysis 17

Policy and Social and Political Forces 20

Conclusion 20

Summary, Key Terms, Questions and Exercises, Questions

from Alternative Perspectives, Issues to Ponder, Answers to Margin Questions 21–24

2 The Production Possibility Model, Trade, and Globalization 25

The Production Possibility Model 26

A Production Possibility Curve for an Individual 26

Increasing Opportunity Costs of the Trade-Off 27

Comparative Advantage 28

Efficiency 29

Distribution and Productive Efficiency 30

Examples of Shifts in the PPC 31

Trade and Comparative Advantage 32

Markets, Specialization, and Growth 33

The Benefits of Trade 34

Globalization and the Law of One Price 36

Globalization 36

Exchange Rates and Comparative Advantage 38

The Law of One Price 38

Globalization and the Timing of Benefits of Trade 39

Conclusion 39

Summary, Key Terms, Questions and Exercises, Questions

from Alternative Perspectives, Issues to Ponder, Answers to

Margin Questions 40–43

Appendix: Graphish: The Language of Graphs 44

3 Economic Institutions 53

Economic Systems 54

How Markets Work 54

What’s Good about the Market? 55

Capitalism and Socialism 55

Economic Institutions in a Market Economy 58

Business 59

Households 61

The Roles of Government 62

Government as an Actor 62

Government as a Referee 64

Specific Roles for Government 65

Market Failures and Government Failures 67

Global Institutions 68

Global Corporations 68

Coordinating Global Issues 68

Conclusion 69

Summary, Key Terms, Questions and Exercises, Questions

from Alternative Perspectives, Issues to Ponder, Answers to

Margin Questions 69–72

Appendix: The History of Economic Systems 73

4 Supply and Demand 78

Demand 78

The Law of Demand 79

The Demand Curve 79

Shifts in Demand versus Movements along a Demand Curve 80

Some Shift Factors of Demand 81

The Demand Table 82

From a Demand Table to a Demand Curve 82

Individual and Market Demand Curves 83

Supply 85

The Law of Supply 85

The Supply Curve 86

Shifts in Supply versus Movements along a Supply Curve 87

Shift Factors of Supply 88

The Supply Table 88

From a Supply Table to a Supply Curve 88

Individual and Market Supply Curves 88

The Interaction of Supply and Demand 89

Equilibrium 90

The Graphical Interaction of Supply and Demand 91

What Equilibrium Isn’t 91

Political and Social Forces and Equilibrium 92

Shifts in Supply and Demand 93

A Limitation of Supply/Demand Analysis 95

Conclusion 95

Summary, Key Terms, Questions and Exercises,

Questions from Alternative Perspectives,

Issues to Ponder, Answers to Margin Questions 96–100

5 Using Supply and Demand 101

Real-World Supply and Demand Applications 101

Government Intervention: Price Ceilings and Price Floors 104

Price Ceilings 105

Price Floors 106

Government Intervention: Excise Taxes and Tariffs 108

Government Intervention: Quantity Restrictions 109

Third-Party-Payer Markets 111

Conclusion 112

Summary, Key Terms, Questions and Exercises,

Questions from Alternative Perspectives,

Issues to Ponder, Answers to Margin Questions 112–116

Appendix: Algebraic Representation of Supply, Demand, and Equilibrium 117

Shifts in Demand versus Movements along a Demand Curve 80

Some Shift Factors of Demand 81

The Demand Table 82

From a Demand Table to a Demand Curve 82

Individual and Market Demand Curves 83

Supply 85

The Law of Supply 85

The Supply Curve 86

Shifts in Supply versus Movements along a Supply Curve 87

Shift Factors of Supply 88

The Supply Table 88

From a Supply Table to a Supply Curve 88

Individual and Market Supply Curves 88

The Interaction of Supply and Demand 89

Equilibrium 90

The Graphical Interaction of Supply and Demand 91

What Equilibrium Isn’t 91

Political and Social Forces and Equilibrium 92

Shifts in Supply and Demand 93

A Limitation of Supply/Demand Analysis 95

Conclusion 95

Summary, Key Terms, Questions and Exercises,

Questions from Alternative Perspectives,

Issues to Ponder, Answers to Margin Questions 96–100

5 Using Supply and Demand 101

Real-World Supply and Demand Applications 101

Government Intervention: Price Ceilings and Price Floors 104

Price Ceilings 105

Price Floors 106

Government Intervention: Excise Taxes and Tariffs 108

Government Intervention: Quantity Restrictions 109

Third-Party-Payer Markets 111

Conclusion 112

Summary, Key Terms, Questions and Exercises,

Questions from Alternative Perspectives,

Issues to Ponder, Answers to Margin Questions 112–116

Appendix: Algebraic Representation of Supply, Demand,

and Equilibrium 117Shifts in Demand versus Movements along a Demand Curve 80

Some Shift Factors of Demand 81

The Demand Table 82

From a Demand Table to a Demand Curve 82

Individual and Market Demand Curves 83

Supply 85

The Law of Supply 85

The Supply Curve 86

Shifts in Supply versus Movements along a Supply Curve 87

Shift Factors of Supply 88

The Supply Table 88

From a Supply Table to a Supply Curve 88

Individual and Market Supply Curves 88

The Interaction of Supply and Demand 89

Equilibrium 90

The Graphical Interaction of Supply and Demand 91

What Equilibrium Isn’t 91

Political and Social Forces and Equilibrium 92

Shifts in Supply and Demand 93

A Limitation of Supply/Demand Analysis 95

Conclusion 95

Summary, Key Terms, Questions and Exercises,

Questions from Alternative Perspectives,

Issues to Ponder, Answers to Margin Questions 96–100

5 Using Supply and Demand 101

Real-World Supply and Demand

Applications 101

Government Intervention: Price Ceilings and Price Floors 104

Price Ceilings 105

Price Floors 106

Government Intervention: Excise Taxes and Tariffs 108

Government Intervention: Quantity Restrictions 109

Third-Party-Payer Markets 111

Conclusion 112

Summary, Key Terms, Questions and Exercises, Questions from Alternative Perspectives,

Issues to Ponder, Answers to Margin Questions 112–116

Appendix: Algebraic Representation of Supply, Demand, and Equilibrium 117

PART II

MICROECONOMICS THE POWER OF TRADITIONAL ECONOMIC MODELS

6 Describing Supply and Demand: Elasticities 124

Price Elasticity 124

What Information Price Elasticity Provides 125

Classifying Demand and Supply as Elastic or Inelastic 125

Elasticity Is Independent of Units 126

Calculating Elasticities 126

Other Examples 128

Elasticity Is Not the Same as Slope 128

Five Terms to Describe Elasticity 130

Substitution and Elasticity 130

Substitution and Demand 131

How Substitution Factors Affect Specific Decisions 132

Elasticity, Total Revenue, and Demand 133

Total Revenue along a Demand Curve 134

Income and Cross-Price Elasticity 135

Income Elasticity of Demand 135

Cross-Price Elasticity of Demand 136

Some Examples 137

The Power of Supply/Demand Analysis 138

When Should a Supplier Not Raise Price? 138

Elasticity and Shifting Supply and Demand 139

Conclusion 139

Summary, Key Terms, Questions and Exercises, Questions

from Alternative Perspectives, Issues to Ponder, Answers to

Margin Questions 140–143

7 Taxation and Government Intervention 144

Producer and Consumer Surplus 144

Burden of Taxation 146

Who Bears the Burden of a Tax? 148

Tax Incidence and Current Policy Debates 151

Government Intervention as Implicit Taxation 152

Price Ceilings and Floors 152

The Difference between Taxes and Price Controls 153

Rent Seeking, Politics, and Elasticities 154

Inelastic Demand and Incentives to Restrict Supply 154

Inelastic Supplies and Incentives to Restrict Prices 157

The Long-Run/Short-Run Problem of Price Controls 158

Conclusion 160

Summary, Key Terms, Questions and Exercises, Questions

from Alternative Perspectives, Issues to Ponder, Answers to

Margin Questions 160–164

8 Market Failure versus Government Failure 165

Externalities 166

Effects of Positive and Negative Externalities 167

Alternative Methods of Dealing with Externalities 168

Direct Regulation 169

Incentive Policies 170

Voluntary Reductions 171

The Optimal Policy 172

Public Goods 172

The Market Value of a Public Good 173

Excludability and the Costs of Pricing 175

Informational and Moral Hazard Problems 176

Signaling and Screening 177

Policies to Deal with Informational Problems 177

Government Failure and Market Failures 180

Conclusion 182

Summary, Key Terms, Questions and Exercises, Questions

from Alternative Perspectives, Issues to Ponder, Answers to

Margin Questions 182–186

8W Politics and Economics: The Case of

Agricultural Markets 187 and 8W-1

The Good/Bad Paradox in Agriculture 8W-3

The Long-Run Decline of Farming 8W-3

The Short-Run Cyclical Problem Facing Farmers 8W-4

The Difficulty of Coordinating Farm Production 8W-4

Ways around the Good/Bad Paradox 8W-4

The General Rule of Political Economy 8W-5

Four Price Support Options 8W-5

Supporting the Price by Regulatory Measures 8W-6

Providing Economic Incentives to Reduce Supply 8W-8

Subsidizing the Sale of the Good 8W-9

Buying Up and Storing, Giving Away, or Destroying the Good 8W-9

Which Group Prefers Which Option? 8W-10

Economics, Politics, and Real-World Policies 8W-10

Interest Groups 8W-11

International Issues 8W-12

Conclusion 8W-12

Summary, Key Terms, Questions and Exercises, Questions

from Alternative Perspectives, Issues to Ponder, Answers to

Margin Questions 8W-13–8W-16

INTERNATIONAL ECONOMIC POLICY ISSUES

9 Comparative Advantage, Exchange

Rates, and Globalization 188

The Principle of Comparative Advantage 188

The Gains from Trade 189

Dividing Up the Gains from Trade 190

Why Economists and Laypeople Differ in Their Views of Trade 192

Gains Are Often Stealth 192

Opportunity Cost Is Relative 192

Trade Is Broader Than Manufactured Goods 192

Trade Has Distributional Effects 193

Sources of U.S. Comparative Advantage 194

Some Concerns about the Future 196

Inherent and Transferable Sources of

Comparative Advantages 196

The Law of One Price 196

How the United States Gained and Is Now Losing

Sources of Comparative Advantage 197

Methods of Equalizing Trade Balances 197

Determination of Exchange Rates and Trade 198

Exchange Rates and Trade 200

Some Complications in Exchange Rates 201

Conclusion 202

Summary, Key Terms, Questions and Exercises, Questions

from Alternative Perspectives, Issues to Ponder, Answers to

Margin Questions 202–206

10 International Trade Policy 207

The Nature and Patterns of Trade 207

Increasing but Fluctuating World Trade 207

Differences in the Importance of Trade 208

What and with Whom the United States Trades 208

Debtor and Creditor Nations 210

Varieties of Trade Restrictions 212

Tariffs and Quotas 212

Voluntary Restraint Agreements 214

Sanctions 214

Regulatory Trade Restrictions 215

Nationalistic Appeals and “Buy Domestic”

Requirements 215

Reasons for and against Trade Restrictions 215

Unequal Internal Distribution of the Gains from Trade 216

Haggling by Companies over the Gains from Trade 218

Haggling by Countries over Trade Restrictions 218

Specialized Production 219

Macroeconomic Costs of Trade 220

National Security 221

International Politics 221

Increased Revenue Brought In by Tariffs 221

Why Economists Generally Oppose Trade

Restrictions 221

Institutions Supporting Free Trade 223

Conclusion 225

Summary, Key Terms, Questions and Exercises, Questions

from Alternative Perspectives, Issues to Ponder, Answers to

Margin Questions 225–228

PRODUCTION AND COST ANALYSIS

11 Production and Cost

Analysis I 229

The Role of the Firm 230

Firms Maximize Profit 231

The Difference between Economists’ Profits and Accountants’ Profits 232

The Production Process 233

The Long Run and the Short Run 233

Production Tables and Production Functions 233

The Law of Diminishing Marginal Productivity 235

The Costs of Production 236

Fixed Costs, Variable Costs, and Total Costs 236

Average Costs 237

Marginal Cost 237

Graphing Cost Curves 238

Total Cost Curves 239

Average and Marginal Cost Curves 239

Intermission 243

Summary, Key Terms, Questions and Exercises, Questions

from Alternative Perspectives, Issues to Ponder, Answers to

Margin Questions, 244–248

12 Production and Cost Analysis II 249

Technical Efficiency and Economic Efficiency 250

The Shape of the Long-Run Cost Curve 250

Economies of Scale 251

Diseconomies of Scale 253

Constant Returns to Scale 254

The Importance of Economies and

Diseconomies of Scale 255

Envelope Relationship 255

Entrepreneurial Activity and the

Supply Decision 257

Using Cost Analysis in the Real World 258

Economies of Scope 258

Learning by Doing and Technological Change 259

Many Dimensions 262

Unmeasured Costs 262

The Standard Model as a Framework 263

Conclusion 263

Summary, Key Terms, Questions and Exercises, Questions

from Alternative Perspectives, Issues to Ponder, Answers to

Margin Questions 264–267

Appendix: Isocost/Isoquant Analysis 267

MARKET STRUCTURE

13 Perfect Competition 272

Perfect Competition as a Reference Point 272

Conditions for Perfect Competition 273

Demand Curves for the Firm and the Industry 273

The Profit-Maximizing Level of Output 274

Marginal Revenue 274

Marginal Cost 275

Profit Maximization: MC = MR 275

The Marginal Cost Curve Is the Supply Curve 276

Firms Maximize Total Profit 276

Total Profit at the Profit-Maximizing Level of Output 278

Determining Profit from a Table of Costs and Revenue 278

Determining Profit from a Graph 279

The Shutdown Point 281

Short-Run Market Supply and Demand 282

Long-Run Competitive Equilibrium: Zero Profit 283

Adjustment from the Short Run to the Long Run 284

An Increase in Demand 284

Long-Run Market Supply 285

An Example in the Real World 286

Conclusion 287

Summary, Key Terms, Questions and Exercises, Questions

from Alternative Perspectives, Issues to Ponder, Answers to Margin Questions 288–292

14 Monopoly and Monopolistic Competition 293

The Key Difference between a Monopolist and a Perfect Competitor 293

A Model of Monopoly 294

Determining the Monopolist’s Price and Output Numerically 294

Determining Price and Output Graphically 295

Comparing Monopoly and Perfect Competition 297

An Example of Finding Output and Price 297

Profits and Monopoly 298

Welfare Loss from Monopoly 300

The Normal Monopolist 300

The Price-Discriminating Monopolist 301

Barriers to Entry and Monopoly 302

Natural Ability 304

Natural Monopolies 304

Network and Platform Monopolies 306

Monopolistic Competition 308

Characteristics of Monopolistic Competition 308

Advertising and Monopolistic Competition 309

Output, Price, and Profit of a Monopolistic Competitor 311

Comparing Monopoly, Monopolistic Competition, and Perfect Competition 312

Conclusion 313

Summary, Key Terms, Questions and Exercises, Questions

from Alternative Perspectives, Issues to Ponder, Answers to

Margin Questions 314–319

Appendix: The Algebra of Competitive and Monopolistic Firms 319

15 Oligopoly and Antitrust Policy 321

The Distinguishing Characteristics of Oligopoly 321

Models of Oligopoly Behavior 322

The Cartel Model 322

The Contestable Market Model 325

Comparison of the Contestable Market Model

and the Cartel Model 325

Classifying Industries and Markets in Practice 327

The North American Industry Classification System 328

Empirical Measures of Industry Structure 329

Conglomerate Firms and Bigness 330

Oligopoly Models and Empirical Estimates

of Market Structure 330

Antitrust Policy 331

Judgment by Performance or Structure? 331

The Role of Antitrust in Today’s Economy 333

Conclusion 335

Summary, Key Terms, Questions and Exercises, Questions

from Alternative Perspectives, Issues to Ponder, Answers to

Margin Questions 336–339

16 Real-World Competition and

Technology 340

Competition Is for Losers 341

The Goals of Real-World Firms

and the Monitoring Problem 341

What Do Real-World Firms Maximize? 344

The Lazy Monopolist and X-Inefficiency 344

The Fight between Competitive and Monopolistic Forces 346

How Monopolistic Forces Affect Perfect Competition 347

Economic Insights and Real-World Competition 347

How Competitive Forces Affect Monopoly 348

Competition: Natural and Platform Monopolies 349

How Firms Protect Their Monopolies 350

Cost/Benefit Analysis of Creating and

Maintaining Monopolies 351

Establishing Market Position 351

Platform Monopolies and Technology 352

Standards and Winner-Take-All Industries 352

Technological Lock-In 353

Conclusion 354

Summary, Key Terms, Questions and Exercises, Questions

from Alternative Perspectives, Issues to Ponder, Answers to

Margin Questions 354–358

FACTOR MARKETS

17 Work and the Labor Market 359

The Supply of Labor 360

Real Wages and the Opportunity Cost of Work 361

The Supply of Labor and Nonmarket Activities 362

Income Taxation, Work, and Leisure 362

The Elasticity of the Supply of Labor 363

Immigration and the International Supply of Labor 364

The Derived Demand for Labor 364

Factors Influencing the Elasticity of Demand for Labor 365

Labor as a Factor of Production 365

Shift Factors of Demand 365

Determination of Wages 369

Imperfect Competition and the Labor Market 370

Political and Social Forces and the Labor Market 371

Fairness and the Labor Market 372

Discrimination and the Labor Market 374

Three Types of Direct Demand-Side

Discrimination 374

Institutional Discrimination 376

The Evolution of Labor Markets 377

Evolving Labor Laws 377

The Labor Market and You 377

Conclusion 378

Summary, Key Terms, Questions and Exercises, Questions

from Alternative Perspectives, Issues to Ponder, Answers to

Margin Questions 379–382

Appendix: Derived Demand 383

17W Nonwage and Asset Income: Rents,

Profits, and Interest 389 and 17W-1 Rent 17W-3

The Effect of a Tax on Land 17W-3

Quasi Rents 17W-4

Rent Seeking and Institutional Constraints 17W-5

Profit 17W-6

Profit, Entrepreneurship, and Disequilibrium

Adjustment 17W-6

Market Niches, Profit, and Rent 17W-7

Interest 17W-7

The Present Value Formula 17W-8

Some Rules of Thumb for Determining Present Value 17W-9

The Importance of Present Value 17W-11

The Marginal Productivity Theory

of Income Distribution 17W-11

Conclusion 17W-12

Summary, Key Terms, Questions and Exercises, Questions

from Alternative Perspectives, Issues to Ponder, Answers to

Margin Questions 17W-12–17W-14

18 Who Gets What? The Distribution of Income 390

Measuring the Distribution of Income,

Wealth, and Poverty 391

The Lorenz Curve 391

U.S. Income Distribution over Time 393

Defining Poverty 394

International Dimensions of Income Inequality 397

The Distribution of Wealth 398

Socioeconomic Dimensions of Income and Wealth Inequality 400

Income Distribution According to

Socioeconomic Characteristics 400

Income Distribution According to Class 400

Income Distribution and Fairness 403

Philosophical Debates about Equality and Fairness 403

Fairness and Equality 403

Fairness as Equality of Opportunity 404

The Problems of Redistributing Income 405

Three Important Side Effects of Redistributive Programs 405

Politics, Income Redistribution, and Fairness 405

Income Redistribution Policies 407

How Successful Have Income Redistribution Programs Been? 410

Conclusion 411

Summary, Key Terms, Questions and Exercises, Questions

from Alternative Perspectives, Issues to Ponder, Answers to

Margin Questions 412–415

CHOICE AND DECISION MAKING

19 The Logic of Individual Choice: The Foundation of Supply and Demand 416

Rational Choice Theory 417

Total Utility and Marginal Utility 417

Diminishing Marginal Utility 419

Rational Choice and Marginal Utility 419

Maximizing Utility and Equilibrium 422

An Example of Maximizing Utility 422

Extending the Principle of Rational Choice 423

Rational Choice and the Laws

of Demand and Supply 424

The Law of Demand 424

Income and Substitution Effects 425

The Law of Supply 426

Opportunity Cost 427

Applying Economists’ Theory of Choice

to the Real World 427

The Cost of Decision Making 427

Given Tastes 428

Utility Maximization 430

Conclusion 431

Summary, Key Terms, Questions and Exercises, Questions

from Alternative Perspectives, Issues to Ponder, Answers to

Margin Questions 432–435

Appendix: Indifference Curve Analysis 436

20 Game Theory, Strategic Decision

Making, and Behavioral

Economics 441

Game Theory and the Economic

Way of Thinking 442

Game Theory and Economic Modeling 442

The Game Theory Framework 443

The Prisoner’s Dilemma 444

Dominant Strategies and Nash Equilibrium 445

An Overview of Game Theory as a Tool

in Studying Strategic Interaction 447

Some Specific Games 447

Strategies of Players 448

Informal Game Theory and Modern

Behavioral Economics 451

Informal Game Theory 452

Real-World Applications of Informal Game Theory 452

An Application of Game Theory: Auction Markets 454

Game Theory and the Challenge to Standard Economic Assumptions 455

Fairness 455

Endowment Effects 456

Framing Effects 456

Behavioral Economics and the Traditional Model 456

The Importance of the Traditional Model: Money Is Not Left on the Table 457

Conclusion 457

Summary, Key Terms, Questions and Exercises, Questions

from Alternative Perspectives, Issues to Ponder, Answers to

Margin Questions 458–461

Appendix: Game Theory and Oligopoly 462

MODERN ECONOMIC THINKING

21 Thinking Like a Modern Economist 466

The Nature of Economists’ Models 467

Scientific and Engineering Models 468

Behavioral and Traditional Building Blocks 468

Behavioral Economic Models 468

The Advantages and Disadvantages of Modern Traditional and Behavioral Models 471

Behavioral and Traditional Informal (Heuristic) Models 473

The Armchair Economist: Heuristic Models Using Traditional Building Blocks 473

The Economic Naturalist: Heuristic Models Using Behavioral Building Blocks 476

The Limits of Heuristic Models 477

Empirical and Formal Models 478

The Importance of Empirical Work in Modern Economics 478

The Role of Formal Models 481

What Difference Does All This Make to Policy? 487

Conclusion 488

Summary, Key Terms, Questions and Exercises, Questions

from Alternative Perspectives, Issues to Ponder, Answers to

Margin Questions 488–491

22 Behavioral Economics and Modern Economic Policy 492

Behavioral Economic Policy in Perspective 492

Behavioral Economics and Economic Engineering 493

Economists as Mechanism Design Engineers 494

Behavioral Economics and Mechanism Design 495

Policy Implications of Traditional Economics 497

Choice Architecture and Behavioral Economic Policy 497

Nudge Policy and Libertarian Paternalism 499

When Are Nudges Needed? 499

Two Types of Nudges 501

The Problems of Implementing Nudges 502

Distinguishing a Nudge from a Push 503

Behavioral and Traditional Economic Policy Frames 503

Concerns about Behavioral Economic Policies 505

Few Policies Meet the Libertarian Paternalism

Criterion 505

Designing Helpful Policies Is Complicated 505

It Isn’t Clear Government Knows Better 506

Government Policy May Make the Situation Worse 506

A Changing View of Economists: From Pro-market

Advocates to Economic Engineers 507

Conclusion 507

Summary, Key Terms, Questions and Exercises, Questions

from Alternative Perspectives, Issues to Ponder, Answers to

Margin Questions 508–510

23 Microeconomic Policy, Economic

Reasoning, and Beyond 511

Economists’ Differing Views about Social Policy 512

How Economists’ Value Judgments Creep into Policy

Proposals 512

The Need for a Worldview 514

Agreement among Economists about Social Policy 514

Economists’ Cost/Benefit Approach

to Government Regulation 515

The Value of Life 515

Comparing Costs and Benefits of Different

Dimensions 517

Putting Cost/Benefit Analysis in Perspective 518

The Problem of Other Things Changing 518

The Cost/Benefit Approach in Context 519

Failure of Market Outcomes 519

Distribution 520

Consumer Sovereignty and Rationality Problems 521

Inalienable Rights 523

Government Failure 524

Conclusion 525

Summary, Key Terms, Questions and Exercises, Questions

from Alternative Perspectives, Issues to Ponder, Answers to

Margin Questions 527–530

Glossary G-1

Colloquial Glossary CG

Index I-1

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