ZICw2w

Index • 505ISI (import-substituting industrialization),385–86IS-LM model: overview, 321–22; ecologicaleconomics, adapting to,348–50, 349f; exogenous changes inIS and LM, 330–33, 333f; inflationand disinflation, 336–39; interestrates and income, policy impacts on,333–36, 337t; IS and LM combined,329, 330f; monetary sector and LMcurve, 326–29, 327f; purpose of,329; real sector and IS curve,323–26, 324f; real-world policy issues,345–47; scale, distribution,and allocation, policy impacts on,341–45; unemployment and,340–41Isolated systems, 15, 28Ithaca HOURS, 291JJevons, William Stanley, 20, 68Joule, James, 65Junk bonds, 331b–332bJustice. See Policies for just distributionKKahneman, D., 241Kapor, Mitch, 374Keynes, John Maynard: Bretton Woodsinstitutions and, 364–65; on cosmicprotectionism, 218; on globalization,373; on government role, 249b–250b;on “long term,” 98; monetary sectorand, 322; Say’s Law and, 26; onspeculators, 297; on transaction demandfor money, 327; unemploymentand, 263; on user cost, 198b–199bKnight, Frank, 95b, 290, 296Knowledge. See Information andknowledgeKropotkin, Peter, 234bKrugman, Paul, 310b, 356Kuhn, Thomas, 23–24Kyoto protocol, 120LLabor and standards-lowering competition,383–86Labor power, 304Land. See Ricardian landLandlord class, 310Land tax, 453–55, 465fLatin American debt crisis, 396, 396b,405Lawn, P., 348nLaw of diminishing marginal cost,19–21, 19b–20bLaw of diminishing marginal physicalproduct, 129–31, 152, 156, 157fLaw of diminishing marginal utility,19–21, 19b–20b, 129–31, 138, 161,162f, 242Law of entropy. See Thermodynamicsand entropyLaws of nature, 54Lay, Kenneth, 377bLDCs (less-developed countries),384–87Leakages, 26–28Legislation, environmental, 474Leisure, 275nLess-developed countries (LDCs),384–87Lessig, Lawrence, 374Leverage, 398, 407Liability rule, 425, 430, 462Liberalization of the financial sector,395–97, 395tLimits on resources. See Full-worldeconomyLinear throughput. See ThroughputLinux operating system, 174b–175bLiquidity preference, 327, 331–32Liquidity trap, 336LM curve, 326–29, 327f, 331–33,333f. See also IS-LM modelLoan subsidies, 450, 467Lobbying, 377bLocke, John, 9nLorenz curve, 306f, 307–8Lovelock, James, 104nLow-entropy matter-energy, 38–39, 40MMacro-allocation, 182–83, 342–45,464–67Macro-control and micro-variability, 415Macroeconomics: defined, 6n, 21n;ecological economics and, 261–62,264–65; limits to growth, 269f; microeconomicsvs., 261–66; schoolsof, 261n. See also specific topicsMalthus, Thomas, 32–33, 159bMarginal abatement costs (MACs), 429,430Marginal costs: defined, 16n; law of diminishingmarginal cost, 19–21,19b–20b; monopoly and, 135; optimalscale and, 16–17Marginal disutility (MDU), 20–21, 20fMarginal external cost (MEC), 184,186–87, 186f, 228, 229f, 430,469–70Marginal extraction costs (MEX), 194,194fMarginal net private benefit (MNPB),186–87, 186f, 227, 229, 229fMarginal physical product, 128,129–31, 152, 156–57, 157f. See alsoMarket equation, basicMarginal propensity to consume, 330Marginal propensity to save, 330–31,333fMarginal revenue and monopoly, 135Marginal user cost (MUC), 195–98,196f, 198b–199bMarginal utility (MU): balanced withmarginal disutility, 20–21, 20f; defined,128; diamonds-water paradoxand, 287b; income distribution and,445–46; law of diminishing marginalutility, 19–21, 19b–20b,129–31, 138, 161, 162f, 242; forrich vs. poor, 163–64. See also Marketequation, basicMargin of error, 415–16Market equation, basic: concepts andcomponents of, 128–33; meaning of,133–35; monopoly and, 135–36;non-price adjustments, 136–38;supply and demand and, 138–44Market failures: abiotic resources and,193–209; advertising and, 465; bioticresources and, 211–30; congestiblegoods and multi-tier pricing,177; excludability, rivalness, andcongestibility, 165–69, 169t; externalities,184–88; fossil fuels,194–200; freshwater, 204–6; informationand intellectual propertyrights, 173–77; mineral resources,200–201, 201t; missing markets,188–90; open access regimes,169–73, 170b–171b; public goods,177–84; renewable resource fundsand services, 222–26; renewable resourcestocks and flows, 211–21; Ricardianland, 206–8; scarcity andprices, 202–4; solar energy, 208; systemof biotic and abiotic resources,230–31; waste absorption capacity,226–30Market price method, 461bMarkets: as communications systems,