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third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.freebookslides.com This is an electronic version of the print textbook Due to electronic rights restrictions, some third party content may be suppressed Editorial review has deemed that any suppressed content does not materially affect the overall learning experience The publisher reserves the right to remove content from this title at any time if subsequent rights restrictions require it For valuable information on pricing, previous editions, changes to current editions, and alternate formats, please visit www.cengage.com/highered to search by ISBN#, author, title, or keyword for materials in your areas of interest Important Notice: Media content referenced within the product 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Unless otherwise noted, all items © Cengage Learning Analyst: Jen Nonemacher Library of Congress Control Number: 2014952100 Project Manager: Sarah Shainwald ISBN: 978-1-285-85944-6 Interior design element: Flying Colours Ltd/ Photodisc/Getty Images; © Robert Kneschke/ Shutterstock.com; © Zeed/Shutterstock.com Cengage Learning 20 Channel Center Street Boston, MA 02210 USA Cengage Learning is a leading provider of customized learning solutions with office locations around the globe, including Singapore, the United Kingdom, Australia, Mexico, Brazil, and Japan Locate your local office at: www.cengage.com/global Cengage Learning products are represented in Canada by Nelson Education, Ltd To learn more about Cengage Learning Solutions, visit www.cengage.com Purchase any of our products at your local college store or at our preferred online store www.cengagebrain.com Printed in the United States of America Print Number: 01 Print Year: 2014 Copyright 2016 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.freebookslides.com D edicati o n To Teachers of Economics Everywhere: Opening Their Students’ Minds to the Wonders of Economics v Copyright 2016 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.freebookslides.com Copyright 2016 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.freebookslides.com 660 Index market (cont.) foreign exchange, 623–627 income distribution and, 55 prices, 51 product, 76 signals, 71, 73 unintended consequences in, 148 market demand curve, 99–100 market economy, 72, 138–139 market equilibrium, 120, 133–142 market failure, 53–55, 192, 212–232 asymmetric information and, 229–232 externalities and, 213–217 property rights and the environment and, 223–224 public goods and, 225–228 public policy and the environment and, 219–222 market supply curve, 112, 113 Marshall, Alfred, 192–193 means of deferred payment, 478 median voter model, 251 median voters, majority rule and, 250–251 Medicaid, 240, 461, 464 Medicare, 240, 241, 242, 463, 464–465 medium of exchange, 477–478 menu costs, 285, 385, 398 Merrill Lynch, 364 Mexico, auto parts production in, 47 microeconomics, 12 Microsoft, 349, 388 minimum wage, 145–147 minimum-wage rate, 274 misperception effect, 385 mixed economy, 72 monetary policy, 516–539 aggregate demand and, 520–522 aggregate supply curve and, 537–538 commercial bank’s implementation of, 534 conducting, problems with, 533–534 contractionary, 526, 527 coordinating, problems with, 535–536 effectiveness of, 562–563 equation of exchange, 529–532 expansionary, 526, 558–559 global and nonbank institution’s implementation of, 535 imperfect information and, 536–537 interest rates and, 517–518, 521–524 money market and, 517, 519–521 in open economy, 527–528 overall problems with, 538–539 quantitative easing and, 534 tools for, summary of, 528 money, 477–478 See also Federal Reserve System (the Fed) AD/AS model and, 527 backing of, 483–485 bank failures and, 505–507 central bank and, 498 costs, 36 creation of, 486–492, 495 defined, 477 demand for, 517–519 Federal Reserve System and, 498–504 financial crisis of 2008 and, leverage and, 496 functions of, 477–478 as means of deferred payment, 478 measuring, 480–485 medium of exchange and, 477–478 multiple expansions of, 493–495 as store of value, 478 supply, 519, 521–523 as unit of account, 478 wealth and, 492 money market, 517, 519–521 money market mutual funds, 482 money multiplier, 495 Moody’s, 363 moral hazard, 231–232, 506 Morgan Stanley, 364 mortgage-backed security (MBS), 363 Mother Teresa, multiple expansion effect, 493–495 multiplier effect, 443–450 aggregate demand curve and, 446 defined, 444 imports and, 447–448 marginal propensity to consume and, 444–446 marginal propensity to save and, 444 saving and, 447–448 taxes and, 446–447 time lags and, 447–448 2008–2009 recession and, 448–449 at work, 444–445 mutual funds, as financial intermediaries, 351–352 Copyright 2016 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.freebookslides.com NASDAQ, 559 National Bureau of Economic Research (NBER) Business Cycle Dating Committee, 290 national debt, 463–468 balanced budget amendment and, 467 budget deficit and, 463–465 burden of, 465–468 government financing of, 463 national income accounting, 302–304 See also gross domestic product (GDP); saving and investment national income (NI), 310 national security, tariffs and, 597 natural rate hypothesis, 551 natural rate of output, 326 natural rate of unemployment, 271 natural resources, 331, 388 near money, 482 needs, wants vs., 34–35 negative externality, 213–215 See also externality negative incentive, 43–44 negative relationship, 26 net benefit, 41 net exports in aggregate demand, 375–376 as aggregate demand curve shifter, 381–382 aggregate expenditure model and, 421–423 net interest, 240–241 net investment income, current account and, 613–614 net national product (NNP), 309 net transfer payments, current account and, 613–614 new entrant, 264 new growth theory, 332 new outlet bias, 281–282 new product bias, 282 New York Federal Reserve Bank, 500, 501 New York Stock Exchange, 97, 482 nominal interest rate, 517–518 nominal interest rate, 285–286 nondurable goods, 305–306 nonlabor input prices, 389 nonlinear curve of slope, finding, 28 nonmarket transactions, GDP and, 315 non-money costs, 36 nontransaction deposits, 482 Index normal goods, 105–106 normative statement, 16 North, Douglass, 337 North American Free Trade Agreement (NAFTA), 585, 600 Obama, Barack, 439, 448–449 Office of Business Economics of the Department of Commerce, 280 oil prices, 177, 388, 396 open economy, 375, 378–379, 527–528, 620–622 open market operations, 501 opportunity cost, 35–37 Oracle, 388 Organization for Economic Co-operation and Development (OECD), 338 Organization of Petroleum Exporting Countries (OPEC), 147, 388, 396, 630 overallocation, 54 Paley, Mary, 193 pawn shops, 484 peak, 289 Peltzman, Sam, 41 percentage change, 156–159 perfectly elastic, 157, 165, 172, 173 perfectly inelastic, 157, 158, 165, 172, 173 personal identification number (PIN), 481–482 personal income (PI), 310 per-worker production function, 330–331 Phillips, A H., 547 Phillips curve, 547–555 aggregate supply and demand and, 548–549 financial crisis of 2008 and, 555 in 1960s, 551 short-run vs long-run, 551–553 slope of, 547–548 supply shocks and, 553–555 physical capital, productivity growth and, 330 pie chart, 24 piracy, 54 politicians, logrolling and, 252 pollution control, 219–222 costs and benefits of, 219–220 externalities and, measuring, 220 Copyright 2016 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it 661 www.freebookslides.com 662 Index pollution control (cont.) regulation and, 220–221 taxes and, 221 transferable pollution rights and, 221–222 pollution taxes, 214–215 population growth, 340–342 economic growth and, 340 Malthusian prediction and, 341–342 positive analysis, 15 positive externality, 213, 215–217 See also externality in consumption, 213–217 defined, 213 technology spillover as, 216–217 positive incentive, 43–44 positive relationship, 26 positive statement, 15, 16 potential money creation, 495 potential output, 271 preferences, autonomous spending and, 414 preferred stock, 349 present value, 371–372 price See price/pricing price ceiling, 144–145, 147–148, 200–201 price controls, 52, 144–149, 199–205 price-earnings ratio (PE), 351 price elasticity of demand, 156–167 calculating, 158–159 changes along a linear demand curve, 165–167 determinants of, 159–161 estimated, 161 total revenue and, 163–166 price elasticity of supply, 171–175 price floor, 144, 145–147, 202–204 price index, 279–282 See also consumer price index (CPI) calculating, 280–281 constructing, 280–281 defined, 279 producer price index and, 282 price level, 278, 282–284 aggregate expenditure model and, fixed, 412 demand for money and, 517–519 RGDP demanded and, 377 price-level index, 311 price/pricing critical role of, 120 equilibrium price and quantity, 120 of goods and services, changes in, 103–105 shortages and, 120–122 surpluses and, 120–121 Principles of Economics (Marshall), 193 private good, 225 producer goods, 306 producer price index, 282 producer surplus, 189–192, 591–594 production capital intensive, 73 circular flow model and, 303–304 complements in, 115–116 consumer sovereignty and, 72 distribution and, 73–74 GDP and, 302–310, 307–308 labor intensive, 73 negative externalities in, 213–214 per-worker production function and, 330–331 substitutes in, 115 production possibilities curve, 78–86, 581–583 defined, 78–79 economic growth and, 84–86 efficiency and, 80, 81 for food and housing, 79–80 for grades in economics and history, 79 increasing opportunity cost and, 81–82 inefficiency and, 80 summing up, 86 technological change and, 86 trade-offs and, 78–79, 81, 85 productivity, 60 See also production economic growth and, 328–332 human capital and, 331 natural resources and, 331 per-worker production function and, 330–331 physical capital and, 330 standard of living and, 328 technology and, 331–332 product markets, 76 products, 107 progressive tax, 242, 245–246 property rights Coase theorem and, 223–224 economic growth and, 336, 337 environment and, 223–224 legal system and, 53 proportional tax, 244, 245–246 Copyright 2016 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.freebookslides.com protectionism, 602 public choice, 249–252 individual consumption-payment link and, 250 logrolling and, 252 majority rule and median voters and, 250–251 scarcity and, 250 special interest groups and, 252 voters and rational ignorance and, 251–252 public choice theory, 249–250 public debt See national debt public finance, 239–247 discretionary spending and, 240–241 government revenue and, generating, 241–244 growth in government and, 239–241 mandatory spending and, 240–241 net interest and, 240–241 state and local government activities and, financing, 244 state and local spending and, 241 public good benefit–cost analysis and, 226–227 common resources and, 227–228 defined, 225–226 free rider problem and, 226 market failure and, 225–228 private good vs., 225 public policy, 219–222, 334–339 See also economic growth; environment public system See welfare; welfare effects purchasing power, 279 purchasing-power-parity theory, 626–627 PYNTE acronym, 103 quality bias, 281 quantitative easing, 534 quantity demanded, change in, vs change in demand, 103, 105, 108–109 equilibrium price and, 120 supplied, change in, vs change in supply, 114, 117, 118 quantity theory of money, 530–531 queuing, 71 race, unemployment and, 264 random walk, 350 Index rational behavior, rational decision making, 39 rational expectations theorists, 562 rational expectations theory, 557–560 rational ignorance, 251–252 Reagan, Ronald, 455, 464 real gross domestic product per capita, 312–313 real gross domestic product (RGDP) aggregate supply curve and, 384–386 calculating, 311–313 changes in, demand for money and, 519 defined, 259 demand curve and, 378–379 macroeconomic equilibrium and, 393–399 over time, price level and, 399 quantity of, price level and, 377 real interest rate, 285–286 real wealth, autonomous spending and, 413 recession, 290 recessionary gap adjusting to, 397 aggregate demand and, decrease in, 396–397 cost-push inflation and, 395–396 defined, 394–395 recognition lag, 459 Reconstruction Finance Corporation (RFC), 506 reentrant, 264 regional trading areas, 600 regressive tax, 242–243, 245–246 regulation, for correcting externalities, 214–215, 217, 220–221 relative price, 279, 385 rent controls, 144–145, 201–202 rent seeking, 599 representative household analysis, 413 reputation, asymmetric information and, 230 required reserve ratio, 489 research and development (R&D), 336, 453 reserve requirements, 487 resource allocation, 51, 71, 74 resources, retained earnings, 350 revenue, 241–244, 442 See also taxes Ricardian equivalence theorem, 458 Ricardo, David, 581, 584, 588 Robinson Crusoe, 74 Rockefeller, John D., 60 Copyright 2016 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it 663 www.freebookslides.com 664 Index Rodriguez, Alex, 36 Romer, Paul, 48, 332 Roosevelt, Franklin D., 505, 506 Rule of 70, 326–328 rule of law, 336 rule of rational choice, 40 Sam’s Club, 282 Sargent, Thomas, 557 saving, multiplier effect and, 447–448 saving and investment, 353–359 saving rates, 334–335, 358–359 savings accounts, 482, 483 savings and loan associations, 352, 487 scarcity, 3, 32–37 bads and, 34 choices and, 35 defined, 32 economic growth and, 85–86 economic questions and, 71–74 (See also production) effects of, 34 eradication of, 34 goods and, 33 introduction, 32 opportunity cost and, 35–37 public sector and, 250 resources and, 33 services and, 33 shortages and, 120–122 trade-offs and, 35 wants vs needs and, 34–35 Schneider, Friedrich, 317 scientific discovery expressed in stories, 10 scientific thinking, 13–14 See also theories and models screening, 230 Scrooge, Ebenezer, 335 seasonal economic fluctuations, 290–291 seasonal unemployment, 269 secondary reserves, 488 securities, 350 self-interest, 5–6 self-interest assumption, 250 services, 33 current account and, 613 defined, 306 GDP and, 302 prices of, changes in, 103–105 production of (See production) sex, unemployment and, 264 Shaheen, Jeanne, 602 Shaw, George Bernard, shifts in aggregate expenditure model, 424–426 shifts in supply curve, 114–118 change in quantity supplied vs change in supply, 114, 117, 118 principal factors in, SPENT acronym for remembering, 114–118 shifts in the demand curve, 103–109, 138, 139, 140 buyers and, changes in number of, 107 change in demand vs change in quantity demanded and, 103, 105, 108–109 defined, 103 expectations and, changes in, 107 income and, changes in, 105–106 prices of goods and services and, changes in, 103–105 principle factors in, PYNTE acronym for remembering, 103 tastes and, changes in, 107 shoe-leather cost, 285 shortage, 120–122 defined, 121 price and, 120–122 scarcity and, 122 short-run aggregate supply (SRAS) curve, 387–391 capital and, 388 defined, 384 entrepreneurship and, 388 expected future price level and, 389–390 government regulations and, 388–389 input prices and, 384–385, 389 labor force and, 388 land and, 388 menu costs and, 385 misperception effect and, 385 positively sloped, 384–385 shifting, 387–391 sticky prices and, 385 supply shocks and, 390 technology and, 388 wages and, 384–385, 389 short-run misperception, 385 short-run relationship, 384 Copyright 2016 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.freebookslides.com signals, asymmetric information and, 231 simple circular flow model, 77 Sims, Christopher, 557 slope, 27–28 Smith, Adam, 7, 51, 584 social policy of taxes, 247 Social Security, 240, 241, 242, 243, 463, 464–465 Sojatwala, Uttamchand K., 132 song swapping, 54 Sony, 376 S&P 500, 351–352, 363 special interest groups, 252 specializing, 46–49 absolute advantage and, 46–47 advantages of, 47–48 comparative advantage and, 46–47, 581–585 extent of, 47 reasons for, 46–47 wealth and prosperity and, 48–49 spending, autonomous factors that influence, 413–414 expectations, 414 household debt, 414 interest rate, 413 preferences, 414 real wealth, 413 tastes, 414 SPENT acronym, 114–118 changes in expectations (E), 116 changes in seller’s input prices (S), 114–115 changes in technology (T), 118 changes in the number of sellers (N), 117 changes in the prices of related goods and services (P), 115–116 spillover effect See externality S&P 500 index, 291 stagflation, 395 Standard and Poor’s See S&P 500 standardization, asymmetric information and, 230 standard of living, 60, 318, 328 Starry Night (Van Gogh), 173 state and local activities financing, 244 spending, 241 statistical discrepancy, 612, 615 sticky prices, 385, 398 sticky wages, 384–385, 398 sticky wage theory, 385 Index stock certificates, 306 stockholders, 349 stocks, 482 stock tables, reading, 350–351 structural unemployment, 269–270 subprime mortgages, financial crisis of 2008 and, 361–363 subsidies for correcting positive externalities, 217 economic impact of, 599 international trade and, 599 welfare effects of, 198–199 substitutes defined, 104 price elasticity of demand and, 160 in production, 115 substitution bias, 281 sugar quota, 601 Suicide Prevention Resource Center, 262 supply change in (See change in supply) of foreign currency, 619 individual supply curve and, 112 in international trade, 591–594 law of, 111 market economy and, 138–139 market supply curve and, 112, 113 price and quantity supplied, relationship between, 111–112 price elasticity of, 171–175 shifts, 115, 118, 138, 139, 140 (See also change in supply) supply curve for education, 140 for foreign currency, 620 individual, 112 market, 112, 113 perfectly elastic, 172, 173 perfectly inelastic, 172, 173 shifts, 114–118, 138, 139, 140 types of, 172–173 supply shocks, 390, 553–555, 563, 564 supply-side economics, 452–455 critics of, 453–454 defined, 452 Laffer curve and, 452–453 long-run aggregate supply and, 453 Copyright 2016 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it 665 www.freebookslides.com 666 Index supply-side economics (cont.) research and development and, 453 supply-side policies and, 452, 453 tax cuts and, 454–455 surplus, 120–121, 357–359 survey data, economists and, 12 tangible goods, 33 tariff, 595–602 arguments for, 596–597 defined, 595 domestic impact of, 595–596 dumping and, 597 national security and, 597 new industry growth and, 596 unemployment and, 596–597 tastes autonomous spending and, 414 demand and, 107 tax cuts multiplier effect and, 446–447 recessions and, 455 supply-side effects of, 454–455 taxes ability-to-pay principle and, 245–246 administration burden of, 247 benefits-received principle and, 246, 247 capital gains tax, inflation and, 287 consumption tax and, 247 corporate income taxes and, 247 cuts in (See tax cuts) deadweight loss from, 196–197 economic stability and, 461–462 efficiency and, 245–247 elasticities and, 173–175 equity and, 245–247 excise tax and, 243, 244 flat tax and, 244–245 global, 442 gross domestic product and, 442 increases in, reductions in government purchases and, 447 indirect business taxes, 309 investment spending and, 446 investment tax credit and, 356, 357 loanable funds and, 356, 357, 358–359 pollution, 214–215, 221 progressive tax and, 242, 245–246 proportional tax and, 244, 245–246 rates, marginal vs average, 243 regressive tax and, 242–242, 245–246 saving rate and, 358–359 social policy of, 247 vertical equity and, 245–246 welfare effects of, 195–198 Taylor, John, 565 Taylor rule, 565 technology aggregate supply curve and, 388 loanable funds and, 357 production possibilities curve and, 86 productivity growth and, 331–332 unemployment and, 276–277 technology spillover, 216–217 Temporary Assistance for Needy Families, 461 theories and models, 9–12 See also scientific thinking abstraction and, ceteris paribus and, 10–11 defined, empirical analysis and, 9–10 group level predictions and, 11–12 hypothesis and, 9–10 observation and, 11 prediction and, 11 (See also group-level predictions) scientific discovery expressed in stories and, 10 theory of rational expectations, 557–558 Thrift Bailout Bill, 507 time deposits, 482 price elasticity of demand and, 160 price elasticity of supply and, 173 time lags impact lag, 459 implementation lag, 459 in implementation of fiscal policy, 458–459 multiplier effect and, 447–448 recognition lag, 459 time-series graph, 24 total revenue (TR), 163–166 total welfare gains, 191 trade, 48–49 See also international trade trade-offs, 4, 16, 35, 78–79, 81, 85 trading partners, 579 Copyright 2016 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.freebookslides.com Tragedy of the Commons, 227–228 transaction costs, Coase theorem and, 224 transaction deposits, 481 transferable pollution rights, 221–222 transfer payments, 307, 461–462 traveler’s checks, 481 Treasury bills, 482, 518 trough, 289–290 2008, financial crisis of See financial crisis of 2008 2008–2009 recession and, 448–449 underallocation, 54, 216 underemployment, 265 underground economy, 315, 316–317 unemployment, 260–277 age and, 264 categories of unemployed workers and, 264 consequences of, 260 cyclical, 270, 271 duration of, 265–266 education and, 263 efficiency wage model and, 275 frictional, 268–269 global, 272 government policies and, 57–58 hopelessness and, 262 inflation and, 547 insurance, 275–276 labor force participation rate and, 266 labor underutilization and, 265 minimum-wage rate and, 274 natural rate of, 271 race and, 264 reasons for, 274–277 seasonal, 269 sex and, 264 statistics, accuracy of, 263 structural, 269–270 tariffs and, 596–597 technological progress and, 276–277 unavoidable, 270 unions and, 274–275 worst case of U.S., 261–262 unemployment rate, 261–265 unintended consequences, 148 United Nations, 340 U.S Department of Agriculture, 37 Index U.S Department of Commerce, 280, 291 U.S Department of Defense, 446 U.S Department of Justice, 54 U.S Department of Labor, 260, 280 unit elastic demand, 157 unplanned inventory investment, 422–423 value-added approach to measuring GDP, 307–308 value-added tax, 17 Van Gogh, Vincent, 173 variable, 24–26 velocity of money, 530 vertical equity, 245–246 voluntary exchange See trade voters, rational ignorance and, 251–252 wage and price inflexibility, 397 wages, 384–385, 398 Waldfogel, Joel, 198 Wall Street Journal, 350 wants, needs vs., 34–35 warranties, asymmetric information and, 231 wealth, 492, 588 wealth effect, aggregate demand curve and, 378 Wealth of Nations (Smith), 584 welfare, 186–205 consumer surplus and, 187–189, 190–192 market failure and, 192 producer surplus and, 189–192 welfare effects, 195–205 of price controls, 199–205 of subsidies, 198–199 of taxes, 195–198 Winfrey, Oprah, 36, 74 Wolff, Virginia, 429 Woods, Tiger, 36 World Bank, 599 World Trade Organization (WTO), 599–600 x-axis, 24 y-axis, 24 Yellen, Janet L., 498, 499 Copyright 2016 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it 667 www.freebookslides.com Copyright 2016 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.freebookslides.com Copyright 2016 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to 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eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.freebookslides.com Tap into the personalized teaching experience MindTap is a personalized teaching experience with relevant assignments that guide students to analyze, apply, and improve thinking, allowing you to measure skills and outcomes with ease Elevate Thinking Relevant readings, multimedia, and activities are designed to take students up the levels of learning, from basic knowledge to analysis and application Easily Set Your Course Personalized teaching becomes yours through a Learning Path built with key student objectives and your syllabus in mind Control what students see and when they see it Promote Better Outcomes Analytics and reports provide a snapshot of class progress, time in course, engagement and completion rates “We 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