Microeconomics: Canada in the Global Environment (Canadian Edition) 11th Edition TEST BANK.

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Test Bank for Microeconomics Canada in the Global Environment, 11th Edition, 11e by Michael Parkin,Robin Bade TEST BANK ISBN-13: 9780136691846 Full chapters included PART ONE INTRODUCTION CHAPTE... R 1 WHAT IS ECONOMICS? Definition of Economics Two Big Economic Questions What, How, and For Whom? Do Choices Made in the Pursuit of Self-Interest Also Promote the Social Interest? ECONOMICS IN THE NEWS AT ISSUE The Economic Way of Thinking A Choice Is a Tradeoff Making a Rational Choice Benefit: What You Gain Cost: What You Must Give Up How Much? Choosing at the Margin Choices Respond to Incentives Economics as Social Science and Policy Tool Economist as Social Scientist Economist as Policy Adviser Economists in the Economy Jobs for an Economics Major Will Jobs for Economics Majors Grow? Earnings of Economics Majors Skills Needed for Economics Jobs ECONOMICS IN THE NEWS APPENDIX Graphs in Economics Graphing Data Graphing Economic Data Scatter Diagrams Graphs Used in Economic Models Variables That Move in the Same Direction Variables That Move in Opposite Directions Variables That Have a Maximum or a Minimum Variables That Are Unrelated The Slope of a Relationship The Slope of a Straight Line The Slope of a Curved Line Graphing Relationships Among More Than Two Variables Ceteris Paribus When Other Things Change MATHEMATICAL NOTE Equations of Straight Lines CHAPTER 2 THE ECONOMIC PROBLEM Production Possibilities and Opportunity Cost Production Possibilities Frontier Production Efficiency Tradeoff Along the PPF Opportunity Cost ECONOMICS IN THE NEWS Using Resources Efficiently The PPF and Marginal Cost Preferences and Marginal Benefit Allocative Efficiency Gains from Trade Comparative Advantage and Absolute Advantage Achieving the Gains from Trade The Liz-Joe Economy and Its PPF Economic Growth The Cost of Economic Growth ECONOMICS IN ACTION A Nation's Economic Growth Changes in What We Produce Economic Coordination Firms Markets Property Rights Money Circular Flows Through Markets Coordinating Decisions ECONOMICS IN THE NEWS PART ONE WRAP-UP Understanding the Scope of Economics Your Economic Revolution Talking with Esther Duflo PART TWO HOW MARKETS WORK CHAPTER 3 DEMAND AND SUPPLY Markets and Prices Demand The Law of Demand Demand Curve and Demand Schedule A Change in Demand A Change in the Quantity Demanded Versus a Change in Demand Supply The Law of Supply Supply Curve and Supply Schedule A Change in Supply A Change in the Quantity Supplied Versus a Change in Supply Market Equilibrium Price as a Regulator Price Adjustments Predicting Changes in Price and Quantity An Increase in Demand A Decrease in Demand ECONOMICS IN THE NEWS An Increase in Supply A Decrease in Supply ECONOMICS IN THE NEWS Changes in Both Demand and Supply ECONOMICS IN THE NEWS MATHEMATICAL NOTE Demand, Supply, and Equilibrium CHAPTER 4 ELASTICITY Price Elasticity of Demand Calculating Price Elasticity of Demand Inelastic and Elastic Demand The Factors That Influence the Elasticity of Demand Elasticity Along a Linear Demand Curve Total Revenue and Elasticity ECONOMICS IN ACTION Your Expenditure and Your Elasticity More Elasticities of Demand Income Elasticity of Demand ECONOMICS IN ACTION Cross Elasticity of Demand ECONOMICS IN THE NEWS Elasticity of Supply Calculating the Elasticity of Supply The Factors That Influence the Elasticity of Supply ECONOMICS IN THE NEWS CHAPTER 5 EFFICIENCY AND EQUITY Resource Allocation Methods Market Price Command Majority Rule Contest First-Come, First-Served Lottery Personal Characteristics Force Benefit, Cost, and Surplus Demand, Willingness to Pay, and Value Individual Demand and Market Demand Consumer Surplus Supply and Marginal Cost Supply, Cost, and Minimum Supply-Price Individual Supply and Market Supply Producer Surplus Is the Competitive Market Efficient? Efficiency of Competitive Equilibrium ECONOMICS IN ACTION Market Failure Sources of Market Failure Alternatives to the Market Is the Competitive Market Fair? It's Not Fair if the Result Isn't Fair It's Not Fair if the Rules Aren't Fair Case Study: A Generator Shortage in a Natural Disaster AT ISSUE ECONOMICS IN THE NEWS CHAPTER 6 GOVERNMENT ACTIONS IN MARKETS A Housing Market with a Rent Ceiling A Housing Shortage Increased Search Activity A Black Market Inefficiency of a Rent Ceiling Are Rent Ceilings Fair? ECONOMICS IN ACTION A Labour Market with a Minimum Wage Minimum Wage Brings Unemployment Is the Minimum Wage Fair? Inefficiency of a Minimum Wage AT ISSUE Taxes Tax Incidence Equivalence of a Tax on Buyers and Sellers Taxes and Efficiency Tax Incidence and Elasticity of Demand Tax Incidence and Elasticity of Supply Taxes and Fairness The Big Tradeoff ECONOMICS IN ACTION Production Quotas and Subsidies Production Quotas Subsidies ECONOMICS IN ACTION Markets for Illegal Goods A Free Market for a Drug A Market for an Illegal Drug Legalizing and Taxing Drugs ECONOMICS IN THE NEWS CHAPTER 7 GLOBAL MARKETS IN ACTION How Global Markets Work International Trade Today What Drives International Trade? ECONOMICS IN ACTION Why Canada Imports T-Shirts Why Canada Exports Aircraft Winners, Losers, and the Net Gain from Trade Gains and Losses from Imports Gains and Losses from Exports Gains for All International Trade Restrictions Tariffs ECONOMICS IN ACTION Import Quotas ECONOMICS IN THE NEWS Other Import Barriers Export Subsidies ECONOMICS IN ACTION The Case Against Protection Helps an Infant Industry Grow Counteracts Dumping Saves Domestic Jobs Allows Us to Compete with Cheap Foreign Labour Penalizes Lax Environmental Standards Prevents Rich Countries from Exploiting Developing Countries Reduces Offshore Outsourcing That Sends Good Canadian Jobs to Other Countries AT ISSUE Avoiding Trade Wars Why Is International Trade Restricted? Compensating Losers ECONOMICS IN THE NEWS PART TWO WRAP-UP Understanding How Markets Work The Amazing Market Talking with Susan Athey PART THREE HOUSEHOLDS' CHOICES CHAPTER 8 UTILITY AND DEMAND Consumption Choices Consumption Possibilities Preferences Utility-Maximizing Choice A Spreadsheet Solution Choosing at the Margin The Power of Marginal Analysis Revealing Preferences Predictions of Marginal Utility Theory A Fall in the Price of a Movie A Rise in the Price of Cola A Rise in Income The Paradox of Value Temperature: An Analogy ECONOMICS IN ACTION New Ways of Explaining Consumer Choices Behavioural Economics Neuroeconomics Controversy ECONOMICS IN THE NEWS CHAPTER 9 POSSIBILITIES, PREFERENCES, AND CHOICES Consumption Possibilities Budget Equation Preferences and Indifference Curves Marginal Rate of Substitution Degree of Substitutability Predicting Consumer Choices Best Affordable Choice A Change in Price ECONOMICS IN ACTION A Change in Income Substitution Effect and Income Effect ECONOMICS IN THE NEWS PART THREE WRAP-UP Understanding Households' Choices Making the Most of Life Talking with Steven D. Levitt PART FOUR FIRMS AND MARKETS CHAPTER 10 OUTPUT AND COSTS Economic Cost and Profit The Firm's Goal Accounting Profit Economic Accounting A Firm's Opportunity Cost of Production Economic Accounting: A Summary Decisions Decision Timeframes Short-Run Technology Constraint Product Schedules Product Curves Total Product Curve Marginal Product Curve Average Product Curve ECONOMICS IN ACTION Short-Run Cost Total Cost Marginal Cost Average Cost Marginal Cost and Average Cost Why the Average Total Cost Curve Is U-Shaped Cost Curves and Product Curves ECONOMICS IN THE NEWS Shifts in the Cost Curves Long-Run Cost The Production Function Short-Run Cost and Long-Run Cost The Long-Run Average Cost Curve Economies and Diseconomies of Scale ECONOMICS IN ACTION ECONOMICS IN THE NEWS CHAPTER 11 PERFECT COMPETITION What Is Perfect Competition? How Perfect Competition Arises Price Takers Economic Profit and Revenue The Firm's Decisions The Firm's Output Decision Marginal Analysis and the Supply Decision Temporary Shutdown Decision The Firm's Supply Curve Output, Price, and Profit in the Short Run Market Supply in the Short Run Short-Run Equilibrium A Change in Demand Profits and Losses in the Short Run Three Possible Short-Run Outcomes ECONOMICS IN ACTION Output, Price, and Profit in the Long Run Entry and Exit A Closer Look at Entry A Closer Look at Exit ECONOMICS IN ACTION Long-Run Equilibrium Changes in Demand and Supply as Technology Advances A Decrease in Demand An Increase in Demand ECONOMICS IN THE NEWS Technological Advances Change Supply Competition and Efficiency Efficient Use of Resources Choices, Equilibrium, and Efficiency ECONOMICS IN THE NEWS CHAPTER 12 MONOPOLY Monopoly and How It Arises How Monopoly Arises ECONOMICS IN ACTION Monopoly Price-Setting Strategies A Single-Price Monopoly's Output and Price Decision Price and Marginal Revenue Marginal Revenue and Elasticity Price and Output Decision Single-Price Monopoly and Competition Compared Comparing Price and Output Efficiency Comparison Redistribution of Surpluses Rent Seeking Rent-Seeking Equilibrium Price Discrimination Two Ways of Price Discriminating Increasing Profit and Producer Surplus A Price-Discriminating Airline Efficiency and Rent Seeking with Price Discrimination ECONOMICS IN THE NEWS Monopoly Regulation Efficient Regulation of a Natural Monopoly Second-Best Regulation of a Natural Monopoly ECONOMICS IN THE NEWS CHAPTER 13 MONOPOLISTIC COMPETITION Monopolistic Competition and Other Market Structures What Is Monopolistic Competition? Identifying Monopolistic Competition Measures of Concentration Limitations of a Concentration Measure ECONOMICS IN ACTION Price and Output in Monopolistic Competition The Firm's Short-Run Output and Price Decision Profit Maximizing Might Be Loss Minimizing Long Run: Zero Economic Profit Monopolistic Competition and Perfect Competition Is Monopolistic Competition Efficient? Product Development and Marketing Product Development Advertising ECONOMICS IN ACTION Using Advertising to Signal Quality Brand Names Efficiency of Advertising and Brand Names ECONOMICS IN THE NEWS CHAPTER 14 OLIGOPOLY What Is Oligopoly? Barriers to Entry ECONOMICS IN ACTION Small Number of Firms Examples of Oligopoly Oligopoly Games What Is a Game? The Prisoners' Dilemma An Oligopoly Price-Fixing Game ECONOMICS IN ACTION A Game of Chicken Repeated Games and Sequential Games A Repeated Duopoly Game ECONOMICS IN THE NEWS A Sequential Entry Game in a Contestable Market Anti-Combine Law Canada's Anti-Combine Law Some Major Anti-Combine Cases ECONOMICS IN ACTION ECONOMICS IN ACTION ECONOMICS IN ACTION ECONOMICS IN ACTION ECONOMICS IN THE NEWS PART FOUR WRAP-UP Understanding Firms and Markets Managing Change and Limiting Market Power Talking with Thomas Hubbard PART FIVE MARKET FAILURE AND GOVERNMENT CHAPTER 15 EXTERNALITIES Externalities in Our Lives Negative Externalities Positive Externalities Infection Externalities ECONOMICS IN ACTION Negative Externality: Pollution Private, External, and Social Cost Establish Property Rights Mandate Clean Technology Tax or Cap and Price Pollution ECONOMICS IN ACTION AT ISSUE Coping with Global Externalities Positive Externality: Knowledge Private Benefits and Social Benefits Government Actions in the Face of External Benefits ECONOMICS IN ACTION ECONOMICS IN THE NEWS CHAPTER 16 PUBLIC GOODS AND COMMON RESOURCES Classifying Goods and Resources Excludable Rival A Fourfold Classification Public Goods The Free-Rider Problem Marginal Social Benefit of a Public Good Marginal Social Cost of a Public Good Efficient Quantity of a Public Good Inefficient Private Provision Efficient Public Provision Inefficient Public Overprovision ECONOMICS IN ACTION Two Types of Political Equilibrium Why Government Is Large and Growing Voters Strike Back Common Resources Sustainable Use of a Renewable Resource ECONOMICS IN ACTION ECONOMICS IN ACTION The Overuse of a Common Resource Achieving an Efficient Outcome ECONOMICS IN ACTION ECONOMICS IN THE NEWS PART FIVE WRAP-UP Understanding Market Failure and Government Making the Rules Talking with Caroline M. Hoxby PART SIX FACTOR MARKETS AND INEQUALITY CHAPTER 17 MARKETS FOR FACTORS OF PRODUCTION The Anatomy of Factor Markets Markets for Labour Services Markets for Capital Services Markets for Land Services and Natural Resources Entrepreneurship The Demand for a Factor of Production Value of Marginal Product A Firm's Demand for Labour A Firm's Demand for Labour Curve Changes in a Firm's Demand for Labour Labour Markets A Competitive Labour Market ECONOMICS IN ACTION Differences and Trends in Wage Rates A Labour Market with a Union AT ISSUE Capital and Natural Resource Markets Capital Rental Markets Land Rental Markets ECONOMICS IN THE NEWS Nonrenewable Natural Resource Markets ECONOMICS IN ACTION ECONOMICS IN THE NEWS MATHEMATICAL NOTE Present Value and Discounting CHAPTER 18 ECONOMIC INEQUALITY Measuring Economic Inequality The Distribution of Income The Income Lorenz Curve The Distribution of Wealth Wealth or Income? Annual or Lifetime Income and Wealth? ECONOMICS IN ACTION Trends in Inequality ECONOMICS IN ACTION Poverty ECONOMICS IN ACTION Inequality in the World Economy Income Distributions in Selected Countries Global Inequality and Its Trends The Sources of Economic Inequality Human Capital Discrimination Contests Among Superstars Unequal Wealth Income Redistribution Income Taxes Income Maintenance Programs Subsidized Services ECONOMICS IN ACTION The Big Tradeoff A Major Welfare Challenge ECONOMICS IN THE NEWS PART SIX WRAP-UP [Show More]

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