Page 22 - Krugmans Economics for AP Text Book_Neat

Contents

Equilibrium in the Imperfectly Competitive Labor Production, Consumption, and Externalities 736
Market 703 Private versus Social Benefits 736
Module 71 AP Review 704 Private versus Social Costs 739

Network Externalities 740
Module 72 The Cost-Minimizing Input Module 75 AP Review 741
Combination 706
Alternative Input Combinations 706
Module 76 Public Goods 743
Substitutes and Complements in Factor Markets 706
Private Goods—And Others 743
Determining the Optimal Input Mix 707
Characteristics of Goods 743
Cost Minimization 707
Why Markets Can Supply Only Private Goods
The Cost-Minimization Rule 708 Efficiently 744
Module 72 AP Review 709 Public Goods 745
Providing Public Goods 746
Module 73 Theories of Income Distribution 711
How Much of a Public Good Should Be Provided? 747
The Marginal Productivity Theory of Income Distribution 711 FYI: Voting as a Public Good 749
Marginal Productivity and Wage Inequality 711 Common Resources 749
Market Power 713 The Problem of Overuse 749
Efficiency Wages 714 The Efficient Use and Maintenance of a Common
Discrimination 714 Resource 750
Wage Disparities in Practice 715 Artificially Scarce Goods 751
FYI: The Economics of Apartheid 715 Module 76 AP Review 752
Is the Marginal Productivity Theory of Income Distribution
Really True? 716 Module 77 Public Policy to Promote Competition 754
So Does Marginal Productivity Theory Work? 717 Promoting Competition 754
Module 73 AP Review 717 Antitrust Policy 754
Section 13 Review 718 The Sherman Antitrust Act of 1860 755

The Clayton Antitrust Act of 1914 755
Section 14
The Federal Trade Commission Act of 1914 756
Market Failure and the Role of Government 723 Dealing with Natural Monopoly 756
FYI: Cable Dilemmas 758
Module 74 Introduction to Externalities 724 Module 77 AP Review 758
The Economics of Pollution 724
Costs and Benefits of Pollution 724 Module 78 Income Inequality and Income
Pollution: An External Cost 726 Distribution 761
FYI: Talking and Driving 727 The Problem of Poverty 761
The Inefficiency of Excess Pollution 727 Trends in Poverty 761
Private Solutions to Externalities 728 Who Are the Poor? 762
FYI: Thank You for Not Smoking 729 What Causes Poverty? 763
Module 74 AP Review 729 Consequences of Poverty 763
FYI: The Impeccable Economic Logic of Early Childhood
Module 75 Externalities and Public Policy 731 Intervention Programs 764
Policies Toward Pollution 731 Economic Inequality 764
Environmental Standards 731 Economic Insecurity 766
Emissions Taxes 732 FYI: Long-Term Trends in Income Inequality in the United
Tradable Emissions Permits 734 States 767
FYI: Cap and Trade 736

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