[Joseph_E._Stiglitz,_Carl_E._Walsh]_Economics(Bookos.org) (1)

branches of, 17
definition of, 6–15
information in, 647, 882–84
laws of, see specific laws and principles
normative, 19–20
positive, 19
as social science, 18
economies, modern:
creating money in, 615–26
financial system in, 612–26
economies of scale, 145, 267–70
economies of scope, 148
economists:
disagreement of, 19–20
models used by, 18
monetarists, 846
new classical, see new classical economists
new Keynesian, see new Keynesian economists
on price determination, 70
real business-cycle, 844
thinking of, 25–44
economy:
basic model of, 26–29
centrally planned, see centrally planned
economy
changes in effects of, 541
closed, 549, 570, 690
dual, 798
future of, 541
market, see market economy
mixed, 12
planned, see planned economies
stimulation of, 477, 479–81
strategies for transition, 812–13
in transition, 808–13
education:
age and years of, 205
consumption decision and, 206
economic trade-offs and, 206
federal funding for, 379
human capital and, 203–4, 592
income and, 203–4
labor supply decision and, 203–4
in LDCs, 798, 799
opportunity costs and, 40
state funding for, 390
trade-offs and, 206
in U.S., 592
wage gap and, 230
wealth distribution and, 226
efficiency, 220–25, 457–61
basic competitive model and, 28
competitive markets and, 215–34
rent control and, 218–19, 226
taxes and, 220–21
trade-offs and, 380–81
see also Pareto efficiency
efficiency wage, 646
efficiency wage theory, 366
efficient market theory, 881–84
elasticity:
infinite, 80
of labor supply, 176–78
relative, 79
relative inelasticity vs., 80
and slope, 98–99
substitutes and, 110
unitary, 79
zero, 80
elasticity of demand:
income, 105–7
monopoly and, 263
price, see price elasticity of demand
relative, 79–80
elasticity of supply, price, see price elasticity
of supply
elderly, social spending on, 562
electricity prices, 94, 112, 298–99
employment, full, see full employment
Employment Act of 1946, 474, 476, 477, 481,
641
employment-wage puzzle, 643–48
Endangered Species Act of 1973, 410–11
endowment effect, 120
endowments:
acquired, 430, 431
natural, 430, 431
energy prices, 71, 112, 704–5, 706, 710
see also electricity prices; oil prices
Enron, 13
entitlements, 389–90, 548, 839–40
deficit problem and, 558
as property rights, 32
entry, entering the market, 160–61, 169–70
barriers to, 281–84
commitment and, 328
environment:
economics of, 405–18
externalities and, 405–18
incentives and, 253
information and, 418
international trade and, 447
natural resources in, 405–18
pollution and, 390, 414–15
supply curves and, 67
environmental degradation:
command and control of, 410
GDP and, 497–98
as negative externality, 407–18
Equal Employment Opportunity
Commission, 364
equality, incentives vs., 31
equilibrium:
analysis of, 227–34
analysis of partial, 234
in capital markets, 534–35, 538–42, 691
competitive, see competitive equilibrium
exchange rates and, 578–80, 760–63, 774
in federal funds market, 720–21
general, 538–41
gross domestic product and, 534–35,
663–64, 681–82, 683–84, 693–701,
832–33
in labor markets, 527–32, 534–35, 540–41,
644–45, 646
macroeconomics and, 526–27
minimum wage and, 231–32
with monopolistic competition, 273–74
in product markets, 535, 540–42
see also general equilibrium
equilibrium output, 160, 534–35, 663–65,
670–71, 676, 681–83, 684, 693–701,
832–33
equilibrium price, 67–68, 70, 87–90
equilibrium quantity, 67–68
equilibrium real interest rate, 551, 557–58,
745–48, 839
equilibrium wage, 184–85
equity:
horizontal, 382
and redistribution of income, 378–79
vertical, 382
equity concerns, distribution of goods and,
15
equity-efficiency trade-off, 380–81
essential inputs, 282
estate taxes, 383
euro-dollar exchange rate, 758–62, 788–89
Eurodollars, 619
Europe, Eastern:
alternative economic systems in, 810–11
failure of socialist economies in, 793,
808–10
future of, 813
European Central Bank, 734, 788–89, 855
European Monetary Union, 734, 770,
788–89, 855
European Union (EU), 447, 448, 734,
788–89, 805, 810
excess capacity, marketing strategies and,
282
excess demand, 68
excess reserves, 718–19
excess supply, 68
exchange, 7, 423
distribution and, 224
globalization and, 432–33
voluntary, 117, 432
see also international trade; trade
exchange efficiency, 223, 225
exchange rates:
aggregate expenditures and, 781–83
INDEX ∂ A-19