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

open market operations, 628–29, 630,
716–17, 719–20, 721–22, 787
opportunity costs, 38–39, 40, 140, 166–67,
504, 643
opportunity sets, 34–37
choices and, 34–37
costs and, 37–44
Oracle, 5
Organization of Petroleum Exporting
Countries (OPEC), 59, 275, 478, 705,
706, 830–31
organizations, see firms
OSHA (Occupational Safety and Health
Administration), 360
output, 15, 844
ADI curve and, 698–701
aggregate, 493
alternative measures of, 496
costs of recession, 504, 642–43
equilibrium, 160, 534–35, 663–65, 670–71,
676, 681–83, 684, 693–701, 832–33
final, 489–91, 493
full employment level of, 533, 553, 554
gap, 496, 503–4, 638–40, 642–43, 700,
702
growth and, 586–89
intermediate, 489, 491, 492
labor and, 134
level of, 133
measurement of, 485–98, 505
of monopolies, 261–67, 289–92
per capita, 599
potential, 533
problems in measurement of, 496–97
as production function, 134
restricted, 289–92
revenue and, 155–56
value of, 489–93
output stability-inflation stability trade-off,
729
outside lag, 751
outsourcing, 805–7
oversupply, negative externalities and,
405–7
Pacific Gas & Electric Company (PG&E),
872–74
panics, bank, 322–24
Pareto, Vilfredo, 222
Pareto efficiency, 222–24
competitive markets and, 225
conditions for, 222–24
Pareto efficient, 226–27
partial equilibrium, analysis of, 227, 234
patents, 282, 457–59, 595
efficiency and, 457–59
idea production and, 455–57
life of, 458
limitations to, 459
protection of, 458–59
trade secrets and, 459
paternalism, 418
pay-as-you-go, Social Security as, 396
payroll taxes, 383, 389
peak of cycle, 640–42
Pell grants, 379
Penn World Table, 495
PeopleSoft, 5
economies of scope and, 148, 150
PepsiCo, Inc., 306–7
perfect competition, 26–29, 242
perfect information, 333
performance, compensation tied to, 31,
364–70
persuasive advertising, 348
pharmaceuticals, cost of, 399
Phillips, A. W., 821
Phillips curve, 828
expectations-augmented, 822
shifts in, 821–23
unemployment-inflation trade-off and,
820–23
physical capital, 204
piece-rate system, 365–66
planned economies, socialist, 793, 808–10
planning, by government, see centrally
planned economy
plant and equipment, investment in,
672–73
Poland, market economy and, 810
politics, unions and, 360
pollution, 390
acid rain and, 414–15
population growth:
labor supply and, 798–99
in LDCs, 798–99
portfolio, diversification of, 885–86
positive economics, 19
positive externalities, 454
positive slope, 48
potential output, 533
poverty, 798, 826, 879
predatory pricing, marketing strategies
and, 282
preferences, description of, 113–18
prejudice, see discrimination
Prescott, Ed, 844
present discounted value, 193–94, 211–12,
233, 879–80
price, prices, 8, 29–30, 53–71
adjustments to, see price changes
of assets, 878–81
changes in, see price changes
consensus on, 70
cost and, 70–71
definition of, 53, 70
demand and, 53–61, 70–71; see also price
elasticity of demand
determination of, 70–71
energy, 704–5, 706
entry and, 160
equilibrium, 67–68, 70, 87–90
exchange rates as, 578, 579
of gasoline, 59–60, 108
in imperfect markets, 244–45
as incentive, 53
income effect and, 112
inflation and, 511, 652–53, 722–23, 820, 821
information and, 248
interest rates and, 880
international trade and, 678–80, 783–85
of oil, 71, 83, 91, 232–33
predatory, 282
quality and, 336
relative, 38, 103, 758
role of, 53–54
sticky, see sticky prices
supply and, 61, 63, 71; see also price elasticity
of supply
utility and, 117–18
value and, 70–71
price ceilings, 91–92
price changes:
consumption decision and, 109–11
demand curves and, 77–78, 109–11; see
also price elasticity of demand
labor demand curves and, 183
responses to, 111
sensitivity to, 77–78
small vs. large, 81
wage changes as, 177
price discrimination, 266–67, 268
Internet and, 293
price dispersion, 343
price elasticity of demand, 77–78, 81, 85
short-run vs. long-run, 81–82
small vs. large price changes and, 81–82
use of, 78
price elasticity of supply, 82, 84–85
short-run vs. long-run, 85, 164
use of, 82, 84–85
price floors, 93–94, 118
price index:
consumer, 514–17, 605–7
“fixed basket problem” and, 516
software and, 518
use of term, 487–88, 514
price level, 605, 606–12, 652
aggregate, 606–7
money supply and demand and, 609–12
price level targeting, 854–55, 862
price makers, 244
price rigidities, see sticky prices
price system, market economy as, 29–30
INDEX ∂ A-27