Economic Issues and Policy

Significantly revised to reflect the sweeping changes in today's economy and government, the 6th edition of ECONOMIC ISSUES AND POLICY provides you with a solid, practical understanding of basic economic tools as you analyze important economic issues and related policy perspectives. This edition presents economic theory within a simple, market-oriented framework at a level of technicality that is deliberately appropriate for a basic first course in economics. Complex topics are excluded or presented within appendices. The book effectively balances liberal and conservative economic viewpoints while analyzing contemporary economic situations and the implications of emerging policies. Global and multicultural features and discussion questions encourage you to become involved in the economic issues being discussed. Brief Contents Contents Preface to the Instructor Preface to the Student: Please Read This! Acknowledgments About the Author Part I: Introduction to Economics, Scarcity, Public Goods, and Spillovers Ch 1: Introduction Economics and Scarcity Economics and Distribution Efficiency and Equity Market Failures and a Glimpse of the Future Some Final Comments to Students You, the Student Summary Discussion and Action Questions Note Appendix 1-1: Increasing Opportunity Costs Ch 2: Crime and Drugs Crime Prevention Cost-Benefit Analysis of the Death Penalty White-Collar Crime Diversity and Crime Global Dimensions of Crime Should Drugs Be Legalized? The Economics of Prohibition or Legalization The Legalization of Other Victimless Crimes You, the Student Summary Discussion and Action Questions Notes Appendix 2-1: Elasticity Ch 3: The Environment The Problem of Pollution U.S. Environmental Policies and Politics The Proper Level of Government for Pollution Control Methods of Regulation Global Aspects of Pollution Evaluation of Environmental Policies Conservation and Recycling The Effects of Environmental Policy on the U.S. Economy International Aspects of Pollution Control You, the Student Summary Discussion and Action Questions Notes Appendix 3-1: History of Federal Efforts to Limit U.S. Pollution Appendix 3-2: The Effects of a Negative Externality on Society in the Case of a Single Market Ch 4: Education Education's Spillover Benefits Global Comparisons of Educational Inputs and Outputs Educational Attainment in the United States Kindergarten through Grade 12 (K-12) Education Higher Education A Final Note You, the Student Summary Discussion and Action Questions Notes Appendix 4-1: Cost-Benefit Analysis of Higher Education as an Investment in Human Capital Appendix 4-2: Differential Tuition Part II: The Economics of Social Issues Ch 5: Discrimination The Diversity of the U.S. Population What is a Minority? Earnings and Income Some Explanations of Discrimination Effects of Labor Market Discrimination Problems in Measuring Labor Market Discrimination Policies to Eliminate Labor Market Discrimination Other Forms of Discrimination Affirmative Action in Education A Final Note You, the Student Summary Discussion and Action Questions Notes Ch 6: U.S. Poverty Relative Poverty Absolute Poverty Causes of Poverty Solutions to Poverty Welfare Reform The Role of Economic Growth versus Government Programs Complexity of Poverty You, the Student Summary Discussion and Action Questions Notes Appendix 6-1: Graphing the Data on Income Distribution Appendix 6-2: Measurement Problems with the Poverty Line Ch 7: Housing Homeownership: The American Dream Rental Housing for Low-Income Families Homelessness in the United States Housing and Segregation You, the Student Summary Discussion and Action Questions Notes Appendix 7-1: Traditional Mortgage Lending Appendix 7-2: Price Ceilings Ch 8: Health Care U.S. Health Care Expenditures and Outcomes U.S. Health Care Problems The Affordable Health Care Act Other Options for Health Care in the United States Compromise? You, the Student Summary Discussion and Action Questions Notes Appendix 8-1: Private Insurance Ch 9: Social Security Social Security: A Social Insurance Program Social Security Taxes and Benefits The Problem and the Response Other Issues and Problems What Does the Future Hold for the Social Security System? You, the Student Summary Discussion and Action Questions Notes Part III: Global Poverty, Agriculture, and Trade Ch 10: World Poverty GNI per Capita Economic Growth Problems in Measuring Well-Being Economic Development and Standards of Living Issues in Economic Development Agricultural Development The Millennium Development Goals A People-Oriented Strategy You, the Student Summary Discussion and Action Questions Notes Ch 11: Global Agriculture U.S. Agriculture Characteristics of the Rural Sector Characteristics of Agriculture U.S. Government Policy toward Agriculture Recent Farm Bills An Evaluation of U.S. Farm Policy Harmful Environmental Effects Global Agriculture and World Hunger The Politics of Agricultural Policy A Final Note You, the Student Summary Discussion and Action Questions Notes Appendix 11-1: Target Prices with Deficiency Payments Ch 12: International Trade The Importance of Trade The Distribution of Benefits Restrictions to Free Trade The Rest of the Controversy A Final Comment You, the Student Summary Discussion and Action Questions Notes Appendix 12-1: International Finance Part IV: Efficiency and Stability Issues Ch 13: Market Power Competition Monopoly and Oligopoly Measuring Concentration Implications of Market Power Forces That Decrease Market Power The Extent of Market Power Local Aspects of Market Power International Aspects of Market Power Too Big to Fail? A Final Note You, the Student Summary Discussion and Action Questions Notes Appendix 13-1: Market Power and Elasticity Ch 14: Unemployment and Inflation The Macroeconomy Unemployment Inflation Which Problem is More Serious: Unemployment or Inflation? Global Unemployment and Inflation Hyperinflation around the World You, the Student Summary Discussion and Action Questions Notes Appendix 14-1: Construction of the Consumer Price Index Ch 15: Government Macroeconomic Policy Graphing the Macroeconomy Gross Domestic Product Aggregate Demand and Supply Inflation Revisited Government Macro Policy The Trade-Off between Unemployment and Inflation Supply-Side Policy The Post-Great Recession Economy You, the Student Summary Discussion and Action Questions Notes Appendix 15-1: The Slopes of the Aggregate Demand and Aggregate Supply Curves Appendix 15-2: Supply Side Economics Ch 16: Taxes, Borrowing, and the National Debt Government Taxes Government Borrowing The National Debt Proposals to Require a Balanced Budget You, the Student Summary Discussion and Action Questions Notes Appendix 16-1: The Impact of Excise Taxes with Perfectly Inelastic Demand and Supply Appendix 16-2: Effect of Government Borrowing on Interest Rates Part V: You and the World around You Ch 17: Globally Free Markets for the Twenty-First Century? Markets The Western Industrialized World: Economic Growth The Eastern Industrialized World: Economic Transition The Developing World: Economic Reform You, the Student Summary Discussion and Action Questions Notes Epilogue: You and the World around You Note Glossary Index Significantly revised to reflect the sweeping changes in today's economy and government, this book provides your students with a solid, practical understanding of basic economic tools as readers analyze important economic issues and related policy perspectives