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“Company town”, 25-6

“Company town”, 25-6 Comparative advantage, 2-1, 14-5, 15-14, 16-1-3, 16-8-9 Compensating wage differentials, 24-7 Competition, 3-8, 12-10, 14-4, 16-3, 16-7, 19-4, 22-2, 22-8 Competitive market, 1-3, 14-4-5, 15-9-12, 19-4 Complements, 3-3, 17-6-7 Compliance cost of a tax, 13-4-8 Compound interest, 31-10 Compounding, 15-3, 31-10 Concentrated benefits, 16-6, 28-5 Concentrated costs, 28-5 Conglomerate merger, 29-8 Congress, 9-9, 11-10 Congressional Budget Office, 31-3 Congressional district(s), 9-4, 28-5 Connecticut, 5-6 Consumer demand, 1-3, 2-7, 19-3, 22-8 Consumer-driven health care, 30-8-12 Consumer Expenditures Survey for 2013, 13-2 Consumer income, 17-6 Consumer interests, 15-9, 15-11 Consumer Price Index (CPI), 4-2-4, 6-10, 12-7 Consumer satisfaction, 1-2-3, 2-6-7, 3-1, 13-7, 18-1-2, 19-4, 21-7, 22-8, 31-7 Consumer’s surplus, 2-1, 3-7, 3-11, 13-4, 16-4-5, 17-10-13, 22-9 Consumption, 5-3, 6-1, 8-2-10, 9-5, 10-1, 13-5, 13-9, 14-3, 15-5, 16-11, 17-6, 18-1-2 Consumption function, 8-3 Consumption smoothing, 8-2 Container ship, 20-8 Continued inflation, 10-8, 11-9, 12-6 Contract rights, 2-9 Contraction, 5-6, 7-1 Contractionary fiscal policy, 9-3-5, 12-5 Contractionary monetary policy, 12-5 Contracts, 14-4, 15-6 Controlling externalities, 27-4-6 Copper, 14-12 Copyright, 22-2 Corporate charter, 19-6 Corporate income tax, 9-4, 13-3, 13-8, 19-7 Corporation(s), 19-5-6 Corruption, 14-4, 14-10, 15-7-8, 22-10 Corruption Perceptions Index, 15-7-8 Cost-minimizing combination of factors, 24-4-5 Cost Table, 20-6-8 Cost(s) of production, 3-4-6, 6-5, 13-3, 20-1, 22-8, 23-3 Costs of regulations, 29-5-6 Counter-cyclical payments, 30-4 Counterfeiting, 10-9 Counterproductive governmental policies, 14-10, 15-6-7 Coupons, 22-8 Court system, 14-4, 15-6 Craft union, 25-1 Crain, Nicole V., 29-5 Crain, W. Mark, 29-5 Creative destruction, 12-10, 28-7 Credit cards, 10-3 Credit crisis, 11-8 Credit market, 7-3 Crime rates, 15-6 Credit rating agencies, 11-5 Criminal law, 14-5, 15-7 Crop Insurance, 30-5 Cross elasticity of demand, 17-6-7 Crowding out, 9-4, 12-7, 13-9 Crude oil, 6-6 Crusoe, Robinson, 1-1, 1-10 Cultural norms, 15-6 Currency, 6-3, 10-3, 10-7, 11-1, 16-9-10 Currency in circulation, 10-3 Cyclical Unemployment, 4-7 Dairy farming, 14-4 Deadweight loss, 3-11, 22-6-7, 23-3, 23-9, 29-2-3, 31-7 Deadweight loss of a tax, 13-4-7, 14-5, 15-5, 17-10-13 Dean, James, 22-2 Deductible expenses, 13-8 Deduction of charitable contributions, 13-8 Deduction of home mortgage interest, 13-8 Deduction of state and local income and property taxes, 13-8 Deere, John, Intro-2 Default option, 26-8 Deficiency payments, 30-4-5 Deficit spending, 8-10-11, 9-1-6, 10-6, 13-10-11 Deflation, 4-8, 12-8, 14-5 Defoe, Daniel, 1-10 Demand, 3-1-5, 3-8-14, 8-1-2, 10-9-10, 17-2-6, 17-10-11, 24-1 Demand curve, 3-2-3, 3-8-14, 17-2-3, 18-8, 21-2-3, 22-3-5, 23-1, 23-3, 23-5 Demand curve for a factor, 24-3 Demand for farm products, 30-2-3 Demand for loanable funds, 26-2 Demand for money, 6-10 Demand schedule, 3-1, 17-3, 21-2, 22-3 Demand-side inflation, 10-7 Democracy, 14-10, 28-11-13 Denmark, 31-11 Dependency ratio, 15-5 Depletion of nonrenewable resources, 14-10 Deposits, 10-4-7 FOR REVIEW ONLY - NOT FOR DISTRIBUTION Index - 3

Depreciation in exchange rate, 6-3, 16-11 Deregulation, 29-6 Deregulation of the airline industry, 29-6 Derived demand, 24-1, 25-4 Determinant of short-run aggregate supply, 6-5 Determinant of supply, 3-5, 6-5 Determinants of demand, 3-2-4, 17-6-7 Determinants of economic growth, 14-2-4 Determinants of elasticity of demand for labor, 24-5-6, 25-3 Determinants of exchange rates, 16-9-10 Determinants of factor demand, 24-3-4 Determinants of labor supply, 24-6 Determinants of price elasticity of demand, 17-5-6 Developed countries, 5-6, 15-1-2, 30-1, Diamond-water paradox, 18-3 Diarrheal diseases, 15-2 Differences in wage rates, 24-7 Direct payments, 30-4 Direct relationship, 1-9, 3-4, 6-4, 12-1 Discount rate, 11-3 Discounts, 22-8 Discouraged workers, 4-6 Diseconomies of scale, 20-8-9 Disequilibrium, 3-9 Disincentive, 13-5, 31-8 Dispersed benefits, 28-5 Dispersed costs, 16-6, 28-5 Disposable income, 6-2, 6-10, 8-2-4, 8-6, 9-6, 11-4 Dissaving, 8-3-4 Distribution of income, 2-6, 13-1-2, 13-7, 18-2-3, 18-6, 31-1-3 Distribution of wealth, 31-3-4 Dividends, 19-7 Division of labor, 19-2, 19-8-10 Do-it-yourself production, 5-4, 5-6, 11-9 Dollar, 4-3, 8-3, 12-1 Domestic consumer(s), 16-3-6 Domestic consumer loss, 16-5-6 Domestic demand, 16-4-6 Domestic producer(s), 16-3-7, 22-2 Domestic producer gain, 16-5-6 Domestic supply, 16-4-6 Dominant strategy, 23-8 Dot-com boom and bust, 11-8, 12-9 Double coincidence of wants, 10-1 Double counting, 5-2 Double taxation, 19-6 Dow Jones Industrial Average (DJIA), 7-9, 11-4, 11-8, 12-9 Downsizing, 28-10 Downturn, 9-4-5, 12-7-8 Downward sloping demand curve, 22-3, 23-1-2, 23-5, 23-8, 25-1 Dr. Seuss, 22-2 Dumping, 16-6-7 DuPont Company, 22-1 Durable goods, 6-2, 6-11 Durant, Kevin, 23-9 Earmark, 28-5 Earned income, 13-2-3 Earned income tax credit, 31-8 Easterbrook, Gregg, Intro-3-4 Easterly, William, 15-12 Eastman, George, 1-3 Economic bads, 5-2, 5-7 Economic development, 15-5-8, 19-11 Economic efficiency, 2-5, 3-7, 13-5, 14-6, 16-6-7, 18-5, 20-1, 21-1, 21-7, 22-6, 30-7 Economic efficiency rule, 21-8, 22-7, 27-1, 29-2 Economic freedom, 15-3, 31-12 “Economic Freedom of the World, 2013 Annual Report”, 15-3, 16-7, 16-10 Economic growth, Intro-1-3, 2-4, 4-1, 4-6-7, 5-1, 9-1, 9-7, 11-9, 12-7, 12-10, 13-9, 14-1-10, 15-3-8, 15-14, 16-7 Economic growth rates, 15-3, 16-10 Economic inefficiency, 3-11, 18-6, 22-1, 22-6-7, 23-3, 23-8 Economic loss, 20-1, 21-5-8 Economic mobility, 31-1, 31-5, 31-9 “Economic Organization of a P.O.W. Camp, The”, 10-10-12 Economic profit, 20-1-2, 21-5-8, 22-1, 22-10-11, 23-4, 26-7-8 Economic rent, 26-5-7 “Economic Sophisms”, 16-8 Economic stimulus, 11-10 Economic systems, 2-5 “Economica”, 10-9 Economically efficient tax, 13-4 Economics, 1-2, 14-5 Economies of scale, 16-3, 20-8-9, 22-2, 23-4, 23-7, 29-1, 29-7 “Economist, The”, 14-10 Economy, 7-1, 7-9, 8-1-2, 9-1-4, 11-6, 12-1-3, Economy, short-run equilibrium, 6-5-8 Education, 12-11, 14-2, 15-9-10 Effects of inflation, 10-8-9 Egypt, Intro-5 Ehrlich, Paul R., 14-9 Einstein, Albert, 22-2 Elastic demand, 17-5-6, 23-5 Elasticity, 10-10, 13-6, 17-1 Elasticity of demand for labor, 24-5, 25-2 Elected officials, 9-3, 16-6-8, 28-3, 29-4 FOR REVIEW ONLY - NOT FOR DISTRIBUTION Index - 4

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    PRINCIPLES OF ECONOMICS JEFF HOLT S

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    Principles of Economics, 6th Editio

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    16. Study Guide for Chapter 7 17. C

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    11. Appendix: Book Review - “The

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    20. Appendix: The NCAA Cartel 21. S

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    Introduction: A Brief History of U.

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    In the twentieth century, per capit

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    Appendix: The 35 Largest National E

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    Multiple Choice: ___ 1. The Jamesto

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    2. Describe the economic cost of th

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    Chapter 1 Scarcity and Choices The

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    Example 5B: At the end of 1982, the

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    Example 11: When Cindy quits her jo

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    consequences may result in failure

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    An upward sloping curve (as in Exam

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    In making decisions, humans tend to

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    5. ______________________ _________

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    ___ 13. If the value of one variabl

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    Y Point X Y A 0 1 B 3 3 C 6 5 D 9 7

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    Chapter 2 Trade and Economic System

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    Example 4B: The following quantitie

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    1. An increase in the quantity of r

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    3. For whom to produce? This is det

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    The graph below illustrates the shi

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    The two primary economic systems ar

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    ___ 12. The capitalist vision sees

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    ___ 25. According to the book “Ca

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    Chapter 3 Demand, Supply, and Equil

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    . For inferior goods, income and de

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    The same information can be placed

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    Not only does a free market elimina

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    $7 - 6 - 5 - S 3 S1 S 2 Price 4 - 3

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    Example 17: The graph below illustr

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    Questions for Chapter 3 Fill-in-the

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    ___ 12. Assuming a market originall

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    $8 - 7 - 6 - 5 - Price 4 - 3 - 2 -

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    Chapter 4 Inflation and Unemploymen

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    Computing the Rate of Inflation The

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    Full Employment Though unemployment

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    3. Cyclical unemployment - due to d

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    During the Great Depression, the ec

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    Appendix: Think Like an Economist -

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    Answer questions 8. and 9. based on

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    ___ 25. The extension of unemployme

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    Chapter 5 Measuring Total Output: G

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    5. Leisure. Leisure time is by defi

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    The U.S. is a high per capita GDP c

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    Example 17: In “An International

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    The simple circular flow diagram be

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    ___ 3. Which of the following would

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    2. Explain what nonproduction trans

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    Chapter 6 The Aggregate Market The

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    Example 2C: Assume the same facts a

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    Example 5B: The price of crude oil

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    Price Level Real GDP SRAS AD 2 AD 1

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    Appendix: Why the Aggregate Demand

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    ___ 3. DEF Company can invest in ne

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    2. List and explain the two factors

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    Chapter 7 Classical Economic Theory

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    Notice that the investment demand c

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    Long-Run Equilibrium If Real GDP is

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    Example 6B: When the economy is in

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    Laissez-faire If the economy is sel

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    ___ 5. According to Say’s Law: a.

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    3. On the graph below, draw an aggr

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    Chapter 8 Keynesian Economic Theory

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    Example 2B: The graph below illustr

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    Example 5: Assume that the table be

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    Notice on the graph on the previous

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    According to Keynesian theory, a ch

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    “The General Theory” also inclu

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    ___ 8. If the consumption function

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    3. If the MPC is .667, and investme

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    Chapter 9 Fiscal Policy The basic e

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    Keynesian Fiscal Policy Theory and

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    Example 5A: The federal government

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    The Laffer Curve What will happen t

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    Appendix: The Importance of Incenti

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    ___ 4. A decrease in government exp

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    2. Explain what automatic stabilize

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    Chapter 10 Money, Money Creation, a

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    Example 4B: The castaways on Gillig

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    Looking at the balance sheet below,

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    Demand-side One-shot Inflation Exam

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    4. Inflation increases uncertainty

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    life; it came into existence not by

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    calculated by using the potential d

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    ___ 12. If the required-reserve rat

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    4. Referring to the balance sheet f

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    Chapter 11 The Federal Reserve Syst

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    5. After Bank X sells the $300,000

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    Low Mortgage Interest Rates Mortgag

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    Relaxed Standards for Mortgage Loan

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    The Bursting of the Housing Bubble

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    On February 17, 2009, the federal g

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    Fed policies caused short-term inte

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    ___ 10. The Fed’s most important

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    ___ 25. In response to the recessio

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    Chapter 12 Monetary Policy The basi

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    2. A change in aggregate demand (AD

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    Monetarist Transmission Mechanism C

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    3. Borrowers do not have to seek ou

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    Appendix: Book Review - “The Age

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    Questions for Chapter 12 Fill-in-th

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    ___ 16. The primary source of incom

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    7. According to Alan Greenspan, wha

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    Chapter 13 Taxes, Deficits, and the

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    Example 5: In 2015, Taxpayer A had

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    of $5 and a quantity of 10 units. T

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    The complexity of the tax law also

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    the current government spending and

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    cut of 1964. The top rate was lower

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    ___ 6. Federal excise taxes: a. are

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    3. How would eliminating the loopho

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    Chapter 14 Economic Growth The basi

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    2. Labor. Labor can contribute to e

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    estricting international trade (e.g

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    An improvement in technology (e.g.

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    The table below shows the economic

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    will increase both Real GDP and per

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    ___ 8. Which of the following is co

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    ___ 26. The opinion that economic g

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    Chapter 15 Less Developed Countries

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    Example 8: Countries A, B, C, and D

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    Obstacles to Economic Development f

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    c. Restrictions on international tr

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    Appendix: Book Review - “The Powe

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    Example 25: In Brazil, about half t

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    Study Guide for Chapter 15 Chapter

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    ___ 13. Among the counterproductive

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    4. List four ways that governments

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    Chapter 16 International Trade The

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    Other Benefits of Free Internationa

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    Example 6: The graph below illustra

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    competitive disadvantage. But dumpi

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    is only 25% as productive as before

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    Smith was skeptical of government a

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    ___ 4. For Country X, what is the o

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    ___ 18. Frédéric Bastiat’s “P

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    4. On the graph below: (1) What is

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    Chapter 17 Elasticity We are often

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    Example 4A: What is price elasticit

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    Example 5A: Gertie’s Gas and Go i

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    Example 10A: When the price of Good

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    Example 13B: On the graph below, su

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    $7 - 6 - 5 - Price 4 - 3 - 2 - 1 -

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    In the long run, would the deadweig

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    ___ 7. The factors that determine w

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    3. a. Which price (or prices) from

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    Chapter 18 Utility The basic econom

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    Nonetheless, society generally assu

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    Example 9: Capital City operates a

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    Marginal rate of substitution - the

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    The diamond-water paradox is the ob

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    Complete the table below to answer

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    4. The graph below shows indifferen

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    Chapter 19 The Firm The basic econo

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    than contributing to team productio

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    1. Difficulty in raising large amou

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    Corporations also use self-financin

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    Example 24: A blacksmith who produc

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    For financing needs, proprietorship

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    ___ 13. Corporations: a. are comple

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    5. List two things that the absence

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    Chapter 20 Production and Costs The

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    In Example 5B, Birdwell finds that

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    variable cost initially decreases,

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    Quantity TC MC AFC AVC ATC 0 240 X

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    If the scale of operation is increa

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    average total cost. Average fixed c

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    ___ 11. Concerning the cost curves:

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    5. Complete the following cost tabl

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    Chapter 21 Perfect Competition The

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    Even though a perfect competitor ca

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    Example 6C: This example builds on

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    At what price will there be neither

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    Appendix: Perfect Competition in th

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    Multiple Choice: ___ 1. A perfect c

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    ___ 17. Perfect competition: a. req

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    Answers for Chapter 21 Fill-in-the-

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    Chapter 22 Monopoly Of the four mar

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    3. Exclusive ownership of an essent

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    maximizing quantity (4 units) creat

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    $22 - 20 - 18 - 16 - 14 - Deadweigh

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    2. Negotiating, beginning at a high

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    Legal barriers are created by gover

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    ___ 8. The slope of the demand curv

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    Price Quantity 3. List some of the

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    Chapter 23 Monopolistic Competition

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    For Percomp (the perfect competitor

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    Example 7A: The graph below represe

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    Example 9: The Organization of the

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    Example 12 illustrates the dilemma

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    its current price and quantity. The

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    ___ 14. Game theory: a. is a method

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    Answers for Chapter 23 Fill-in-the-

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    Chapter 24 Factor Markets The basic

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    $ $240 - 200 - 160 - 120 - 80 - 40

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    Since producers will attempt to equ

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    2. Differences in nonmoney aspects

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    were his strikeouts, walks, and hom

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    ___ 3. To maximize profits, a produ

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    ___ 19. According to the book, “M

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    Multiple Choice: 1. a. 8. c. 15. d.

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    Chapter 25 Labor Unions The primary

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    The elasticity of demand for union

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    Example 4A: Assume that the graph b

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    Notice from the graph in Example 6

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    Wage Factory A Quantity of Labor S

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    As a cartel, a labor union faces a

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    ___ 10. For a monopsony: a. there i

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    3. The graph below represents a lab

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    Chapter 26 Interest, Present Value,

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    An increase in expected rates of re

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    An asset is valuable because we exp

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    Example 13B: General Ordnance prove

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    Appendix: Present Value Table One f

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    ___ 4. An increase in expected rate

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    Problems: 1. List and explain the t

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    Chapter 27 Market Failure The basic

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    External Benefit If a market genera

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    Example 2: To encourage the consump

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    $100 - 90 - 80 - MSC 70 - $ 60 - 50

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    A common good is nonexcludable. Non

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    Study Guide for Chapter 27 Chapter

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    ___ 5. What government policy would

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    4. Based on the information on the

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    Chapter 28 Public Choice and Govern

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    Candidates and the Median Voter Mod

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    Example 8: According to State and F

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    Example 10: When Elvis Presley was

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    4. Pessimistic bias. This is the te

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    ___ 5. An elected official will: a.

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    2. If a certain policy will yield s

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    Chapter 29 Government Regulation of

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    underproduction is the amount that

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    micromanagement results in business

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    market. They may agree with their c

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  • Page 480 and 481: ___ 10. The public interest theory
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  • Page 486 and 487: weather may cause bumper crops. Bad
  • Page 488 and 489: Security and Rural Investment Act o
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  • Page 492 and 493: 1. NHI would provide universal heal
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  • Page 498 and 499: Answer questions 7. through 10. by
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  • Page 502 and 503: Chapter 31 Income Distribution and
  • Page 504 and 505: Income is more equally distributed
  • Page 506 and 507: over a typical career is the accumu
  • Page 508 and 509: Ideal Income Redistribution The ide
  • Page 510 and 511: Poverty - a family whose income fal
  • Page 512 and 513: Appendix: Income Inequality around
  • Page 514 and 515: How is this story an analogy for th
  • Page 516 and 517: ___ 2. In 2013, the Lowest Income 6
  • Page 518 and 519: Problems: 1. Explain the two primar
  • Page 520 and 521: Absolute advantage - when one natio
  • Page 522 and 523: Fiat money - money by government de
  • Page 524 and 525: Nonrivalrous good - a good for whic
  • Page 526 and 527: Absolute advantage, 16-9 Absolute e
  • Page 530 and 531: Eli Lilly and Company, 22-1 Emergen
  • Page 532 and 533: Houston, Texas, 15-10 Human capital
  • Page 534 and 535: Market, 3-1, 3-8-9 Market basket, 4
  • Page 536 and 537: Political bias, 9-4, 12-7 Political
  • Page 538 and 539: Short run production, 20-2-3 Short-
  • Page 540 and 541: Upturns, 9-4 USDA, 27-9, 30-1-2, 30
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