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Economics and Contemporary Issues (with InfoTrac 1-Semester, Economic Applications Online Product Printed Access Card)

by: Moomaw, Ronald L.; Olson, Kent W.

Economics and Contemporary Issues (with InfoTrac 1-Semester, Economic Applications Online Product Printed Access Card)

by: Moomaw, Ronald L.; Olson, Kent W.

ISBN 13:
9780324321661
ISBN 10:
032432166X
Edition: 7th
Format: Paperback
Copyright: 04/24/2006
Publisher: South-Western College Pub
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Summary

Finally, an issues-oriented approach to economics! ECONOMICS AND CONTEMPORARY ISSUES examines important topics such as the collapse of communism, the role of government in a modern economy, crime, drugs, and poverty. Specifically for non-majors, this economics textbook has the study tools and the easy-to-read writing style that will make class a snap and transitioning into the job market no problem.

Preface

To the Student

xxi

Economic Growth: An Introduction to Scarcity and Choice

(26)

Recent Growth Experiences

(4)

Sources of Economic Growth

(8)

Production Possibilities for the Individual College Student

(1)

Production Possibilities for the Economy

(4)

The Best Combination of Goods and Services: Consumption Versus Growth

(2)

Resource Accumulation, Technological Improvement, and Efficiency Improvement

(1)

Productivity Growth: What Can We Expect in the ``New Economy''?

(5)

The Contribution of Capital Intensity Growth: The New Economy?

(1)

The Contribution of Technical Progress: The New Economy?

(2)

Economic and Productivity Growth in Various Parts of the World

(7)

Growth in Europe and Japan: Catching up

(1)

Developing Countries after 1950: Some Grow, Some Don't

(3)

Summary

(3)

An Introduction to Economic Systems and the Workings of the Price System

(38)

Market Economic Systems: An Introductory Look

(3)

What Does and Economic System Do? It Coordinates

(6)

The Division and Specialization of Labor

(1)

Comparative Advantage and Specialization

(2)

Economic Coordination and the Market System

(1)

The Price System as Coordinator

(7)

Demand

(3)

Supply

(2)

Putting the Pieces Together: Demand and Supply

(2)

Comparative Systems: An Introductory Sketch

(6)

The Price System

(1)

Information, Rationing, and Motivation in a Market Economy

(2)

Information, Rationing, and Motivation in a Command Economy

(2)

Systems and Coordination

(1)

Transitions to a Market Economy: Some Experiences

(14)

Stable Prices and the Monetary System

(2)

Other Economic Reforms

(7)

Additional Thoughts on Transition Economies

(1)

Summary

(3)

Competitive Markets and Government Policy: Agriculture

(34)

Demand and Supply Analysis

(6)

Other Demand Factors

(3)

Other Supply Factors

(3)

How Changes in Demand and Supply Affect Equilibrium Price and Quantity

(2)

Changes in Demand

(1)

Changes in Supply

(1)

Changes in Demand and Supply

(1)

U.S. Farm Policy

(8)

Economic and Historical Characteristics

(3)

Competitive Markets and Economic Profits

(5)

Price Controls

(4)

Rent Seeking

(6)

Summary

(3)

Appendix: The Price Elasticity of Demand

(4)

Efficiency in Resource Allocation: How Much Do We Have? How Much Do We Want?

(24)

Introduction

(1)

The Meaning of Efficiency in Resource Allocation

100

(1)

Requirements for Achieving Efficiency in Resource Allocation

100

(1)

The Competitive Market: An Example of Efficiency in Resource Allocation

101

(1)

Market Failure: Inefficiency in the Private Sector

102

(6)

Monopoly

103

(1)

External Benefits

104

(2)

Public Goods

106

(1)

External Costs

106

(1)

Imperfect Insurance Markets

107

(1)

Government Failure: Inefficiency in the Public Sector

108

(7)

Rent Controls

109

(1)

Agricultural Price Supports

109

(1)

Government-Subsidized Medical Care

110

(1)

Minimum Wage

111

(1)

Taxes

112

(3)

How Much Efficiency Do We Want?

115

(8)

Efficiency Versus Equity: Tax Trade-Offs

116

(1)

Efficiency Versus Innovation

116

(1)

Efficiency and Equity

117

(1)

Efficiency Offsets to Inefficiency

118

(1)

Summary

118

(5)

Market Power: Does It Help or Hurt the Economy?

123

(26)

Monopoly Analysis

124

(6)

Marginal Revenue

125

(2)

The Marginal Principle

127

(1)

Monopoly and Competition Compared

127

(3)

Market Power and Economic Efficiency

130

(3)

The Trend in Market Power

130

(1)

Barriers to Entry

131

(2)

OPEC: A Few Sellers Acting Like a Monopoly

133

(8)

Cartel Formation

134

(1)

The Determinants of Cartel Success

135

(1)

Problems of the OPEC Cartel

136

(4)

Do a Few Firms That Dominate a Market Have Market Power?

140

(1)

Market Power and Technical Progress

141

(3)

Government and Market Power

144

(5)

Summary

145

(4)

Air Pollution: Balancing Benefits and Costs

149

(20)

The Principal Air Pollution Problems

149

(2)

Urban Air Quality

150

(1)

Acid Rain

150

(1)

Global Warming

150

(1)

Stratospheric Ozone Depletion

151

(1)

Hazardous Air Pollutants

151

(1)

The Economic Perspective

151

(2)

Market Failure: Is Government Action Necessary?

153

(3)

Air Pollution Regulation: The Clean Air Act

156

(2)

National Ambient Air Quality Standards (NAAQS)

156

(1)

Emissions Limits

156

(1)

Restricted Technology

156

(1)

New Source Performance Standards

157

(1)

Prescribed Fuels

157

(1)

Offset Requirements

157

(1)

Emissions Trading

157

(1)

Prevention of Significant Deterioration

157

(1)

Monitoring and Compliance

157

(1)

Effects of the Clean Air Act on Air Quality

158

(1)

The Economics of the Clean Air Act: Have We Gone Too Far?

158

(3)

Benefits and Costs of the Clean Air Act, 1970--1990

159

(1)

Benefits and Costs of the Clean Air Act, 1990--2010

160

(1)

Cost-Reducing Measures

161

(8)

Emissions Taxes

161

(1)

Marketable Pollution Permits

162

(2)

Limiting Global Warming: Emissions Permits in an International Context

164

(2)

Summary

166

(3)

Health Care: How Much? For Whom?

169

(20)

The Rising Share of GDP Devoted to Health Care

169

(4)

How Much Can We Afford? Health Care Versus Non-Health Care

171

(1)

How Much Can We Afford? The Government Budget Constraint

172

(1)

How Much Can We Afford? The Rising Household Burden

173

(1)

The Growing Ranks of the Uninsured

173

(2)

Getting Our Money's Worth

175

(5)

Third-Party Payments

175

(2)

Physician-Induced Demand

177

(2)

Defensive Medicine

179

(1)

Federal Tax Exemption for Health Insurance

180

(1)

Limiting Health Care Expenditure Growth

180

(9)

Managed Care

181

(1)

Limiting Expenditure Growth Rationally

182

(4)

Summary

186

(3)

Crime and Drugs: A Modern Dilemma

189

(30)

Public Goods

191

(2)

Government Enforcement of Property Rights

192

(1)

Crime and Crime Control

193

(8)

An Economic Approach to Crime and Crime Control

194

(3)

A Comparison of Crime Trends in the United States and England

197

(4)

Drug Legalization: Competing Views

201

(1)

Liberty: An Argument for Legalization

201

(1)

Paternalism: An Argument Against Legalization

201

(1)

Morality: An Argument Against Legalization

202

(1)

The Final Analysis

202

(1)

A Positive Analysis of Drug Policy

202

(9)

Does Increased Enforcement Work?

205

(2)

Uninteded but Inevitable Consequences of Drug Prohibition

207

(1)

Unintended but Perhaps Avoidable Consequences of Drug Prohibition

208

(1)

Unintended Consequences of Drug Legalizations

209

(2)

Evaluation: Hawks, Doves, and Owls

211

(8)

Competing Views in Practice

211

(1)

Current Policy

211

(2)

Owlish Criticism

213

(2)

Summary

215

(4)

College Education: Is It Worth the Cost?

219

(18)

How to Evaluate an Investment

220

(2)

Determine Costs and Benefits

220

(1)

Adjust for Date of Occurrence

220

(1)

Apply an Investment Decision Rule

221

(1)

Investing in a College Education: Monetary Benefits and Costs

222

(6)

The Student's Perspective

223

(4)

The Social Perspective

227

(1)

Investing in a College Education: Nonmonetary Benefits and Costs

228

(2)

Nonmonetary Student Benefits

228

(1)

Nonmonetary Student Costs

229

(1)

Nonmonetary External Benefits

229

(1)

Nonmonetary External Costs

230

(1)

Is Government Support Necessary?

230

(7)

Ensuring that Society Invests Enough in College Education

231

(1)

Ensuring that Student Borrowing Reflects the Social Risk of Default

231

(2)

Increasing Enrollment of Lower-Income Students

233

(1)

Summary

234

(3)

Educational Reform: The Role of Incentives and Choice

237

(28)

The Nature of the Problem

238

(2)

Arguments for Public Support of Schools

240

(3)

The Economics of Student Achievement

243

(2)

High-Stakes Testing

245

(4)

The Economics of Investing in High-Stakes Testing

247

(2)

The Economic Organization of Public Education

249

(6)

Decision Making and Markets

250

(2)

Decision Making and State-Owned Enterprises

252

(1)

Decision Making and Public Schools

253

(2)

Government Policy

255

(10)

``Improve or Else''

256

(2)

``Consumer Choice''

258

(2)

``Improve or Else'' and ``Consumer Choice''

260

(1)

Summary

261

(4)

Poverty: Old and New Approaches to a Persistent Problem

265

(26)

The Scope of the Problem

266

(3)

Antipoverty Effectiveness of Government Transfers

269

(3)

Income-Tested Transfers and Income from Work

272

(6)

Food Stamps

272

(2)

Earned Income Tax Credit (EITC)

274

(1)

Temporary Assistance for Needy Families (TANF)

275

(1)

TANF + Food Stamps + EITC

276

(2)

Making Work Pay

278

(8)

Unemployment Policy

278

(1)

Childcare Assistance

279

(2)

Medical Protection

281

(1)

Minimum Wage

281

(1)

Wage Subsidies

282

(1)

Labor Market Discrimination Policy

282

(4)

Making Fathers Pay

286

(5)

Child Support Assistance

286

(1)

Child Support Assurance

287

(1)

Summary

287

(4)

Tracking and Explaining the Macroeconomy

291

(24)

Gross Domestic Product (GDP)

292

(1)

GDP'S Components

293

(3)

Consumption

293

(1)

Gross Investment

294

(1)

Government Purchases

295

(1)

Net Exports

296

(1)

Nominal GDP, Real GDP, and the GDP Deflator

296

(3)

The Nation's Economic Performance

299

(3)

Determining the Nation's Output and Price Level

302

(13)

Aggregate Demand

302

(4)

Aggregate Supply

306

(3)

Aggregate Demand and Supply Interaction

309

(3)

Summary

312

(3)

Unemployment: The Legacy of Recession, Technological Change, and Free Choice

315

(24)

Costs of Unemployment

315

(2)

Economic Costs

316

(1)

Non-Economic Costs

316

(1)

The Unemployment Rate

317

(1)

Principal Types of Unemployment

318

(2)

Frictional Unemployment

318

(1)

Structural Unemployment

319

(1)

Cyclical Unemployment

320

(1)

Full Employment and the Natural Rate of Unemployment

320

(1)

The Minimum Wage: An Unnatural Contributor to the Natural Rate

321

(2)

Causes of Recessions

323

(2)

Demand Shocks

324

(1)

Supply Shocks

324

(1)

Policies to Reduce Unemployment

325

(6)

Cyclical Unemployment

325

(4)

Structural Unemployment

329

(1)

Frictional Unemployment

330

(1)

Unemployment in Europe

331

(4)

Impediments to Hiring

331

(1)

Impediments to Accepting Employment

332

(1)

Summary

332

(3)

Appendix: The Labor Market

335

(4)

Inflation: A Monetary Phenomenon

339

(32)

Defining Inflation

339

(1)

Measuring Inflation

340

(2)

The GDP Deflator

340

(1)

The Consumer Price Index

340

(2)

Calculating the Inflation Rate

342

(1)

Recent Experience

342

(1)

Effects of Inflation

342

(5)

The Redistribution of Income and Wealth

343

(2)

Inflation and Government

345

(1)

Inflation and Net Exports

346

(1)

Other Effects

347

(1)

Money and the Money Supply

347

(3)

Money's Functions

347

(1)

The Money Supply

348

(2)

The Federal Reserve

350

(1)

Causes of Inflation

350

(7)

The Quantity Theory of Money

350

(4)

Inflation Is a Monetary Phenomenon

354

(1)

Inflation as a Monetary Phenomenon: Two Qualifications

355

(1)

Monopolies, Oil Markets, and Inflation

356

(1)

Inflation and Policy

357

(6)

Monetary Policy

357

(1)

Fiscal Policy

358

(1)

Monetary Policy in Action

358

(2)

Summary

360

(3)

Appendix: Money Creation and Monetary Policy

363

(8)

Sustained Budget Deficits: Is This Any Way to Run a Government?

371

(18)

The Budget, Budget Balances, and Debt

371

(2)

The Budget

371

(1)

Budget Balances

372

(1)

Debt

373

(1)

What's in Store?

373

(7)

The Deficit Over the Next Decade: Better or Worse?

373

(2)

The Long-run Deficit: Unsustainable

375

(2)

The Long-Run Fiscal Imbalance: Now for Some Really Large Numbers

377

(3)

Wait a Minute: Can't We Grow Our Way Out of the Problem?

380

(1)

How Will the Economy Be Affected?

381

(3)

In the Short-Run: Positively, If

381

(1)

In the Long Run: There Is No Silver Lining

381

(3)

How Will This Problem Affect You?

384

(1)

What Would Help?

385

(4)

Account for Long-Run Liabilities of Policy Choices

385

(1)

Hold the Line

385

(1)

Fix Social Security, But Especially Medicare and Medicaid

385

(1)

Summary

386

(3)

Social Security: Leading Issues and Approaches to Reform

389

(24)

Principal Features of Social Security

389

(3)

Social Security Trust Funds

390

(1)

Retirement Benefits

390

(2)

Leading Issues in Social Security

392

(11)

Is Social Security a Welfare Program?

392

(1)

Does Social Security Induce Early Retirement?

392

(1)

Does Social Security Reduce Household Savings?

393

(1)

Does Social Security Provide Low Individual Rates of Return?

394

(3)

Who Pays the Social Security Tax?

397

(2)

Can Social Security Fulfill Its Long-Run Obligations?

399

(4)

Approaches to Social Security Reform

403

(10)

Fixing the Current System

403

(2)

Investing in Private Securities

405

(4)

Summary

409

(4)

International Trade: Beneficial, but Controversial

413

(20)

Comparative Advantage: The Basis for Trade

413

(4)

Net Welfare Gains from Free Trade of Existing Products

417

(2)

Net Welfare Gains from Imports

417

(1)

Net Welfare Gains from Exports

418

(1)

Welfare Gains from Free Trade of New Varieties of Existing Products

419

(1)

Decreasing Costs

420

(1)

Increased Competition

420

(1)

If Free Trade Is So Beneficial, What About . . .?

421

(3)

U.S. Jobs Lost

421

(1)

Cheap Foreign Labor

422

(1)

National Defense

423

(1)

Infant Industries

423

(1)

Trade Deficits

423

(1)

Trade Policy

424

(9)

Tariffs

425

(1)

Quotas

426

(1)

Voluntary Export Restraints

426

(1)

Trade Agreements

426

(3)

Trade Adjustment Assistance

429

(1)

Summary

430

(3)

Financing Trade and the Trade Deficit

433

(16)

Pricing the Medium of Exchange: Currency Markets

434

(5)

Flexible-Rate Currency Market

434

(3)

Fixed-Rate Currency Markets

437

(2)

Financing the Trade Deficit

439

(1)

The Balance of Payments

439

(1)

Have We Accumulated Too Much Debt?

440

(2)

Should Countries Have Flexible or Fixed Currency Exchange Rates?

442

(2)

The Case for Flexible-Rate Currency Markets

442

(1)

The Case for Fixed-Rate Currency Markets

443

(1)

Should Capital Flows be Controlled?

444

(5)

Summary

446

(3)

Glossary

449

(10)

Index

459

Amazon no longer offers textbook rentals. We do!

Economics and Contemporary Issues (with InfoTrac 1-Semester, Economic Applications Online Product Printed Access Card)

Economics and Contemporary Issues (with InfoTrac 1-Semester, Economic Applications Online Product Printed Access Card)

9780324321661

032432166X

Summary

Table of Contents

Supplemental Materials

Write a Review

Amazon no longer offers textbook rentals. We do!

Economics and Contemporary Issues (with InfoTrac 1-Semester, Economic Applications Online Product Printed Access Card)

Economics and Contemporary Issues (with InfoTrac 1-Semester, Economic Applications Online Product Printed Access Card)

9780324321661

032432166X

Summary

Table of Contents

Supplemental Materials

Write a Review

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