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

price takers, 27, 131, 218
price wars, 269
prime interest rate, 737–38
principal, 193
prisoner’s dilemma, 277–79, 312–16, 321, 326
private goods, 255
private marginal costs, 407
private property, rights of, see property
rights
private sector, 12
privatization, 802–3, 810, 812–13
in centrally planned economy, 12, 296
in former Soviet Union, 296
movement for, 295
producer price index, 517
producer surplus, 217–18, 220, 224
product, marginal, 133, 136
product differentiation:
and defining markets, 302–3
imperfect competition and, 271–72
production:
costs of, 147, 156–58
efficiency, 223
factors of, 132
multiple factors of, 146–49
with single variable factor, 132
production decision:
and basic conditions of competitive supply,
158–60
costs and, 156–58
entry and, 160, 169–70
exit and, 161–62
factor demand and, 182–84
of firms, 155–71
profits and, 166–71
revenues and, 155–56
supply and, 160, 163–64
and theory of competitive firm, 169–70
production efficiency, 223, 225
production-facilitating function of inventories,
674–75
production function, 133–34
short-run, 533
production input, 132–33
production possibilities curve, 35–37
comparative advantage and, 427
Pareto efficiency and, 223
productivity:
Internet and, 455
specialization and, 428–29
productivity growth, 585–603, 708–9
and allocation of resources, 592–93
explaining, 589–96
in full-employment model, 585–86
investment and, 590–91
labor force growth and, 597, 599
R & D spending and, 593–94, 595
rate of, 586–89, 592
residual, 597
standard of living and, 585–90
structural, 650–51
technological change and, 589, 593–96,
708–9
total factor analysis of, 596–99
productivity wage differentials, 362
product market, 15–16, 532–35
aggregate demand and supply in, 533–35
aggregate supply in, 533–35
consumers in, 16
equilibrium in, 535, 540–42
in full-employment model, 540, 541
government and, 549, 554
interdependence in, 424
product-mix efficiency, 223
products, joint, 148
profit-and-loss statement, 156
profit-maximizing firms, 26–29, 158–60
profits:
accounting, 166–71
advertising and, 348–49
definition of, 132
economic, 166–71
entry and, 160–61
as incentives, 29–30
market economy and, 29–30
of monopolies, 265
pure, 265
progressive tax systems, 380
property rights:
entitlement as, 32
failure of, 31–32
ideas and, 594–95
ill-defined, 31
incentives and, 29–30, 253
intellectual, 303, 457
intellectual property and, 595
online piracy and, 4–5
restricted, 32
tragedy of the commons and, 31
property rights responses, 407–10
property taxes, 383
protectionism, 802
displacement and, 674–75
international trade and, 246, 432–34,
439–45
political and economic rationale for,
439–45
use of term, 432
public choice theory, 394
public goods:
basic research as, 464–65
free-rider problem of, 255
imperfect markets and, 241–42, 254–55
pure, 457
public ownership, 294–95
public sector, see government
publishing industry, 165
pure profit, 265
pure public goods, 457
quality:
of labor force, 592
measurement of changes in, 496
price and, 336
quantity:
equilibrium, 67–68
in imperfect markets, 244–45
quantity equation of exchange, 608–9
queues, rationing by, 32–33
quota rents, 436
racial quotas, 364
random walk, 883–84
rational consumers, 26–29, 34, 44
rational expectations, 880–81
rationing, 32–33
by coupons, 33
by lotteries, 33
by queues, 32–33
in Soviet Union, 809
Reagan, Ronald, 395, 700
real business-cycle theory of business fluctuations,
844
real estate agents, housing and, 343
real exchange rates, 764, 771–72
real interest rates, 195, 673–74, 675, 740–41,
839
aggregate expenditures schedule and,
683–84
budget surpluses and, 839–40
capital markets and, 690–91
full-employment, 551, 557–58, 745–48
inflation and, 739–41
investment function and changes in, 538,
551, 673, 675
monetary policy and, 691–97, 739–41,
745– 48
after tax, 684
reality, models vs., 118–19
real product wage, 182
real wage, 178
recession, 495–96, 638–43
fiscal policy and, 732–33
monetary policy in, 742–43
of 1995–96, 782
output costs of, 504, 642–43
of 2001, 165, 480, 551, 558, 561
redistribution of income, see income redistribution
regional trading blocs, 448–49
regressive tax systems, 380
regulation, of natural monopolies, 295–96
regulatory capture, 296
regulatory measures response, 407–10
A-28 ∂ INDEX