Test Bank for Microeconomics, 3rd Edition, Austan Goolsbee Steven Levitt Chad Syverson

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Product Details:

• ISBN-10 ‏ : ‎ 1319105564
• ISBN-13 ‏ : ‎ 978-1319105563
• Author:  Austan Goolsbee, Steven Levitt, Chad Syverson

Like no other text for the intermediate microeconomics course, Goolsbee, Levitt, and Syverson’s Microeconomics bridges the gap between today’s theory and practice. A strong empirical dimension tests theory and successfully applies it. With carefully crafted features and vivid examples, Goolsbee, Levitt, and Syverson’s text helps answer two critical questions students ask, “Do people and firms really act as theory suggests” and “How can someone use microeconomics in a practical way?”

The authors teach in economics departments and business schools and are active empirical microeconomics researchers. Their grounding in different areas of empirical research allows them to present the evidence developed in the last 20 years that has tested and refined the fundamental theories. Their teaching and professional experiences are reflected in an outstanding presentation of theories and applications.

 

Table of Content:

1. Part 1 Basic Concepts
2. Chapter 1 Adventures in Microeconomics
3. 1.1 Microeconomics (and What It Can Teach Us about Rosa and Lauren)
4. Learning the Tools of Microeconomics
5. Using the Tools of Microeconomics
6. 1.2 This Book (and How Rosa and Lauren Would See It)
7. Consumers’ and Producers’ Decisions
8. Market Supply
9. Beyond the Basics
10. Focus on Data
11. Let the Fun Begin!
12. Summary
13. Review Questions
14. Chapter 2 Supply and Demand
15. 2.1 Markets and Models
16. What Is a Market?
17. Key Assumptions of the Supply and Demand Model
18. 2.2 Demand
19. Factors That Influence Demand
20. Demand Curves
21. Shifts in Demand Curves
22. 2.3 Supply
23. Factors That Influence Supply
24. Supply Curves
25. Shifts in the Supply Curve
26. 2.4 Market Equilibrium
27. The Mathematics of Equilibrium
28. Why Markets Move toward Equilibrium
29. The Effects of Demand Shifts
30. The Effects of Supply Shifts
31. Summary of Effects
32. What Determines the Size of Price and Quantity Changes?
33. Changes in Market Equilibrium When Both Curves Shift
34. 2.5 Elasticity
35. Slope and Elasticity Are Not the Same
36. The Price Elasticities of Demand and Supply
37. Price Elasticities and Price Responsiveness
38. Elasticities and Linear Demand and Supply Curves
39. Perfectly Inelastic and Perfectly Elastic Demand and Supply
40. The Factors in “Everything Else”
41. 2.6 Conclusion
42. Summary
43. Review Questions
44. Problems
45. Chapter 3 Using Supply and Demand to Analyze Markets
46. 3.1 Consumer and Producer Surplus: Who Benefits in a Market?
47. Consumer Surplus
48. Producer Surplus
49. The Distribution of Gains and Losses from Changes in Market Conditions
50. 3.2 Price Regulations
51. Price Ceilings
52. Price Floors
53. 3.3 Quantity Regulations
54. Quotas
55. 3.4 Taxes
56. Tax Effects on Markets
57. Why Taxes Create a Deadweight Loss
58. Why a Big Tax Is Much Worse Than a Small Tax
59. The Incidence of Taxation: The Payer Doesn’t Matter
60. 3.5 Subsidies
61. 3.6 Conclusion
62. Summary
63. Review Questions
64. Problems
65. Part 2 Consumption and Production
66. Chapter 4 Consumer Behavior
67. 4.1 The Consumer’s Preferences and the Concept of Utility
68. Assumptions about Consumer Preferences
69. The Concept of Utility
70. Marginal Utility
71. Utility and Comparisons
72. 4.2 Indifference Curves
73. Characteristics of Indifference Curves
74. The Marginal Rate of Substitution
75. The Marginal Rate of Substitution and Marginal Utility
76. The Steepness of Indifference Curves
77. The Curvature of Indifference Curves: Substitutes and Complements
78. 4.3 The Consumer’s Income and the Budget Constraint
79. The Slope of the Budget Constraint
80. Factors That Affect the Budget Constraint
81. Nonstandard Budget Constraints
82. 4.4 Combining Utility, Income, and Prices: What Will the Consumer Consume?
83. Solving the Consumer’s Optimization Problem
84. Implications of Utility Maximization
85. A Special Case: Corner Solutions
86. 4.5 Conclusion
87. Summary
88. Review Questions
89. Problems
90. Chapter 4 Appendix: The Calculus of Utility Maximization and Expenditure Minimization
91. Consumer’s Optimization Problem
92. The Marginal Rate of Substitution and Marginal Utility
93. Utility Maximization
94. Utility Maximization Using the Lagrangian
95. Expenditure Minimization
96. Problems
97. Chapter 5 Individual and Market Demand
98. 5.1 How Income Changes Affect an Individual’s Consumption Choices
99. Normal and Inferior Goods
100. Income Elasticities and Types of Goods
101. The Income Expansion Path
102. The Engel Curve
103. 5.2 How Price Changes Affect Consumption Choices
104. Deriving a Demand Curve
105. Shifts in the Demand Curve
106. 5.3 Consumer Responses to Price Changes: Substitution and Income Effects
107. Isolating the Substitution Effect
108. Isolating the Income Effect
109. The Total Effects
110. What Determines the Size of the Substitution and Income Effects?
111. An Example of the Income and Substitution Effects with an Inferior Good
112. Giffen Goods
113. 5.4 The Impact of Changes in Another Good’s Price: Substitutes and Complements
114. A Change in the Price of a Substitute Good
115. Indifference Curve Shapes, Revisited
116. 5.5 Combining Individual Demand Curves to Obtain the Market Demand Curve
117. The Market Demand Curve
118. Using Algebra to Move from Individual to Market Demand
119. 5.6 Conclusion
120. Summary
121. Review Questions
122. Problems
123. Chapter 5 Appendix: The Calculus of Income and Substitution Effects
124. Problems
125. Chapter 6 Producer Behavior
126. 6.1 The Basics of Production
127. Simplifying Assumptions about Firms’ Production Behavior
128. Production Functions
129. 6.2 Production in the Short Run
130. Marginal Product
131. Average Product
132. 6.3 Production in the Long Run
133. The Long-Run Production Function
134. 6.4 The Firm’s Cost-Minimization Problem
135. Isoquants
136. Isocost Lines
137. Identifying Minimum Cost: Combining Isoquants and Isocost Lines
138. Input Price Changes
139. 6.5 Returns to Scale
140. Factors Affecting Returns to Scale
141. 6.6 Technological Change
142. 6.7 The Firm’s Expansion Path and Total Cost Curve
143. 6.8 Conclusion
144. Summary
145. Review Questions
146. Problems
147. Chapter 6 Appendix: The Calculus of Cost Minimization
148. Marginal Products of Inputs and Marginal Rate of Technical Substitution
149. Cost Minimization Using Calculus
150. The Firm’s Expansion Path
151. Problems
152. Chapter 7 Costs
153. 7.1 Costs That Matter for Decision Making: Opportunity Costs
154. 7.2 Costs That Do Not Matter for Decision Making: Sunk Costs
155. Sunk Costs and Decisions
156. 7.3 Costs and Cost Curves
157. Flexibility and Fixed versus Variable Costs
158. Time Horizon
159. Other Factors
160. Deriving Cost Curves
161. 7.4 Average and Marginal Costs
162. Average Cost Measures
163. Marginal Cost
164. Relationships between Average and Marginal Costs
165. 7.5 Short-Run and Long-Run Cost Curves
166. Short-Run Production and Total Cost Curves
167. Short-Run versus Long-Run Average Total Cost Curves
168. Short-Run versus Long-Run Marginal Cost Curves
169. 7.6 Economies in the Production Process
170. Economies of Scale
171. Economies of Scale versus Returns to Scale
172. Economies of Scope
173. Where Economies of Scope Come From
174. 7.7 Conclusion
175. Summary
176. Review Questions
177. Problems
178. Chapter 7 Appendix: The Calculus of a Firm’s Cost Structure
179. Problems
180. Part 3 Markets and Prices
181. Chapter 8 Supply in a Competitive Market
182. 8.1 Market Structures and Perfect Competition in the Short Run
183. Perfect Competition
184. Why Perfectly Competitive Markets Are Important to Study, Even if Rare in Real Life
185. The Demand Curve as Seen by a Price Taker
186. 8.2 Profit Maximization in a Perfectly Competitive Market
187. Total Revenue, Total Cost, and Profit Maximization
188. How a Perfectly Competitive Firm Maximizes Profit
189. Measuring a Firm’s Profit
190. If Profit Is Negative, Should a Firm Shut Down?
191. 8.3 Perfect Competition in the Short Run
192. A Firm’s Short-Run Supply Curve in a Perfectly Competitive Market
193. The Short-Run Supply Curve for a Perfectly Competitive Industry
194. The Short-Run Supply Curve: A Graphical Approach
195. Producer Surplus for a Competitive Firm in the Short Run
196. Producer Surplus and Profit
197. Producer Surplus for a Competitive Industry
198. 8.4 Perfectly Competitive Industries in the Long Run
199. Entry
200. Exit
201. Graphing the Industry Long-Run Supply Curve
202. Adjustments between Long-Run Equilibria
203. A Demand Increase
204. A Cost Decrease
205. Long-Run Supply in Constant-, Increasing-, and Decreasing-Cost Industries
206. 8.5 Producer Surplus, Economic Rents, and Economic Profits
207. Cost Differences and Economic Rent in Perfect Competition
208. Economic Profit Is Not the Same as Economic Rent
209. 8.6 Conclusion
210. Summary
211. Review Questions
212. Problems
213. Chapter 9 Market Power and Monopoly
214. 9.1 Sources of Market Power: Barriers to Entry
215. Extreme Scale Economies: Natural Monopoly
216. Switching Costs
217. Product Differentiation
218. Absolute Cost Advantages or Control of Key Inputs
219. Government Regulation
220. Where There’s a Will (and Producer Surplus), There’s a Way
221. 9.2 Market Power and Marginal Revenue
222. Market Power and Monopoly
223. Marginal Revenue
224. Why Does the Price Have to Fall for Every Unit the Firm Sells?
225. Marginal Revenue: A Graphical Approach
226. Marginal Revenue: A Mathematical Approach
227. 9.3 Profit Maximization for a Firm with Market Power
228. How to Maximize Profit
229. Profit Maximization with Market Power: A Graphical Approach
230. Profit Maximization with Market Power: A Mathematical Approach
231. A Markup Formula for Companies with Market Power: The Lerner Index
232. Measuring the Lerner Index
233. The Supply Relationship for a Firm with Market Power
234. 9.4 How a Firm with Market Power Reacts to Market Changes
235. Response to a Change in Marginal Cost
236. Response to a Change in Demand
237. The Big Difference: Changing the Price Sensitivity of Customers
238. 9.5 The Winners and Losers from Market Power
239. Consumer and Producer Surplus under Market Power
240. Consumer and Producer Surplus under Perfect Competition
241. The Deadweight Loss of Market Power
242. Differences in Producer Surplus for Different Firms
243. 9.6 Governments and Market Power: Regulation, Antitrust, and Innovation
244. Direct Price Regulation
245. Antitrust
246. Promoting Monopoly: Patents, Licenses, and Copyrights
247. 9.7 Conclusion
248. Summary
249. Review Questions
250. Problems
251. Chapter 9 Appendix: The Calculus of Profit Maximization
252. The Profit-Maximizing Condition
253. Marginal Revenue
254. Chapter 10 Pricing Strategies for Firms with Market Power
255. 10.1 The Basics of Pricing Strategy
256. When a Firm Can Use a Pricing Strategy with Different Prices
257. 10.2 Direct Price Discrimination I: Perfect (First-Degree) Price Discrimination
258. Examples of Perfect Price Discrimination
259. 10.3 Direct Price Discrimination II: Segmenting (Third-Degree Price Discrimination)
260. The Benefits of Segmenting: A Graphical Approach
261. The Benefits of Segmenting: A Mathematical Approach
262. How Much Should Each Segment Be Charged?
263. Ways to Directly Segment Customers
264. By Customer Characteristics
265. By Past Purchase Behavior
266. By Location
267. Over Time
268. 10.4 Indirect (Second-Degree) Price Discrimination
269. Indirect Price Discrimination through Quantity Discounts
270. Incentive Compatibility
271. Indirect Price Discrimination through Versioning
272. Versioning and Price-Cost Margins
273. 10.5 Bundling
274. Mixed Bundling
275. 10.6 Advanced Pricing Strategies
276. Block Pricing
277. Two-Part Tariffs
278. 10.7 Conclusion
279. Summary
280. Review Questions
281. Problems
282. Chapter 11 Imperfect Competition
283. 11.1 What Does Equilibrium Mean in an Oligopoly?
284. 11.2 Oligopoly with Identical Goods: Collusion and Cartels
285. The Instability of Collusion and Cartels
286. What Makes Collusion Easier?
287. 11.3 Oligopoly with Identical Goods: Bertrand Competition
288. Setting Up the Bertrand Model
289. Nash Equilibrium of a Bertrand Oligopoly
290. 11.4 Oligopoly with Identical Goods: Cournot Competition
291. Setting Up the Cournot Model
292. Equilibrium in a Cournot Oligopoly
293. Comparing Cournot to Collusion and to Bertrand Oligopoly
294. What Happens if There Are More Than Two Firms in a Cournot Oligopoly?
295. Cournot versus Bertrand: Extensions
296. 11.5 Oligopoly with Identical Goods but with a First-Mover: Stackelberg Competition
297. Stackelberg Competition and the First-Mover Advantage
298. 11.6 Oligopoly with Differentiated Goods: Bertrand Competition
299. Equilibrium in a Differentiated-Products Bertrand Market
300. 11.7 Monopolistic Competition
301. Equilibrium in Monopolistically Competitive Markets
302. 11.8 Conclusion
303. Summary
304. Review Questions
305. Problems
306. Chapter 12 Game Theory
307. 12.1 What Is a Game?
308. Dominant and Dominated Strategies
309. 12.2 Nash Equilibrium in Simultaneous Games
310. Multiple Equilibria
311. Mixed Strategies
312. What If My Opponent Is an Idiot? The Maximin Strategy
313. 12.3 Repeated Games
314. Finitely Repeated Games
315. Infinitely Repeated Games
316. 12.4 Sequential Games
317. Another Sequential Game
318. 12.5 Strategic Moves, Credibility, and Commitment
319. Side Payments
320. Commitment
321. Entry Deterrence: Credibility Applied
322. Reputation
323. 12.6 Conclusion
324. Summary
325. Review Questions
326. Problems
327. Chapter 13 Factor Markets
328. 13.1 Demand in a Perfectly Competitive Factor Market
329. The Firm’s Demand for Labor
330. The Firm’s Labor Demand: A Graphical Approach
331. Shifts in the Firm’s Labor Demand Curve
332. Market Labor Demand Curve
333. 13.2 Supply in a Perfectly Competitive Factor Market
334. Work, Leisure, and Individual Labor Supply
335. Income and Substitution Effects of a Change in Wages
336. Backward-Bending Supply Curves
337. Market-Level Labor Supply
338. 13.3 Labor Market Equilibrium
339. 13.4 The Labor Market in the Long Run
340. 13.5 Other Perfectly Competitive Factor Markets
341. Demand in Other Factor Markets
342. Supply in Other Factor Markets
343. 13.6 Imperfectly Competitive Factor Markets: Monopsony, a Monopoly in Factor Demand
344. Marginal Expenditure
345. Factor Demand with Monopsony Power
346. Equilibrium for a Monopsony
347. 13.7 Imperfectly Competitive Factor Markets: Monopoly in Factor Supply
348. Labor Markets and Unions
349. 13.8 Bilateral Monopoly
350. 13.9 Conclusion
351. Summary
352. Review Questions
353. Problems
354. Part 4 Beyond the Basics
355. Chapter 14 Investment, Time, and Insurance
356. 14.1 Present Discounted Value Analysis
357. Interest Rates
358. Present Discounted Value
359. 14.2 Evaluating Investment Choices
360. Net Present Value
361. The Key Role of Interest Rates in Determining NPV
362. NPVs versus Payback Periods
363. 14.3 The Correct Interest Rate to Use, and Capital Markets
364. Nominal versus Real Interest Rates
365. Using the Correct Rate
366. 14.4 Evaluating Risky Investments
367. NPV with Uncertainty: Expected Value
368. Risk and the Option Value of Waiting
369. 14.5 Uncertainty, Risk, and Insurance
370. Expected Income, Expected Utility, and the Risk Premium
371. Insurance Markets
372. The Degree of Risk Aversion
373. 14.6 Conclusion
374. Summary
375. Review Questions
376. Problems
377. Chapter 15 General Equilibrium
378. 15.1 General Equilibrium Effects in Action
379. An Overview of General Equilibrium Effects
380. Quantitative General Equilibrium: The Corn Example with Demand-Side Market Links
381. Quantitative General Equilibrium: The Corn Example with Supply-Side Market Links
382. 15.2 General Equilibrium: Equity and Efficiency
383. Standards for Measuring Market Performance: Social Welfare Functions
384. Standards for Measuring Market Performance: Pareto Efficiency
385. Looking for Pareto Efficiency in Markets
386. Efficiency in Markets — Three Requirements
387. 15.3 Efficiency in Markets: Exchange Efficiency
388. The Edgeworth Box
389. Gains from Trade in the Edgeworth Box
390. 15.4 Efficiency in Markets: Input Efficiency
391. The Production Possibilities Frontier
392. 15.5 Efficiency in Markets: Output Efficiency
393. The Marginal Rate of Transformation
394. 15.6 Markets, Efficiency, and the Welfare Theorems
395. 15.7 Conclusion
396. Summary
397. Review Questions
398. Problems
399. Chapter 16 Asymmetric Information
400. 16.1 The Lemons Problem and Adverse Selection
401. Observable Quality
402. Unobservable Quality
403. Adverse Selection
404. Other Examples of the Lemons Problem
405. Mechanisms That Mitigate Lemons Problems
406. Adverse Selection When the Buyer Has More Information: Insurance Markets
407. Mitigating Adverse Selection in Insurance
408. 16.2 Moral Hazard
409. An Extreme Example of Moral Hazard
410. Examples of Moral Hazard in Insurance Markets
411. Moral Hazard Outside Insurance Markets
412. Lessening Moral Hazard
413. 16.3 Asymmetric Information in Principal–Agent Relationships
414. Principal–Agent and Moral Hazard: An Example
415. More General Principal–Agent Relationships
416. 16.4 Signaling to Solve Asymmetric Information Problems
417. The Classic Signaling Example: Education
418. Other Signals
419. 16.5 Conclusion
420. Summary
421. Review Questions
422. Problems
423. Chapter 17 Externalities and Public Goods
424. 17.1 Externalities
425. Why Things Go Wrong: The Economic Inefficiencies from Externalities
426. Negative Externalities: Too Much of a Bad Thing
427. Positive Externalities: Not Enough of a Good Thing
428. 17.2 Correcting Externalities
429. The Efficient Level of Pollution
430. Using Prices to Correct Externalities
431. Pigouvian Taxes
432. Pigouvian Subsidy
433. Quantity Mechanisms to Correct Externalities
434. Quotas
435. Government Provision of a Good
436. Price-Based versus Quantity-Based Interventions with Uncertainty
437. A Market-Oriented Approach to Reducing Externalities: Tradable Permits Markets
438. 17.3 The Coase Theorem: Free Markets Addressing Externalities on Their Own
439. The Coase Theorem and Tradable Permits Markets
440. 17.4 Public Goods
441. The Optimal Level of Public Goods
442. Solving the Free-Rider Problem
443. The Tragedy of the Commons
444. Remedies for the Tragedy of the Commons
445. 17.5 Conclusion
446. Summary
447. Review Questions
448. Problems
449. Chapter 18 Behavioral and Experimental Economics
450. 18.1 When Human Beings Fail to Act the Way Economic Models Predict
451. Systematic Bias 1: Overconfidence
452. Systematic Bias 2: Self-Control Problems and Hyperbolic Discounting
453. Systematic Bias 3: Falling Prey to Framing
454. Systematic Bias 4: Paying Attention to Sunk Costs
455. Systematic Bias 5: Fairness and Generosity
456. 18.2 Does Behavioral Economics Mean Everything We’ve Learned Is Wrong?
457. 18.3 Testing Economic Theories with Data: Experimental Economics
458. Lab Experiments
459. Natural Experiments and Field Experiments
460. 18.4 Conclusions and the Future of Microeconomics
461. Summary
462. Review Questions
463. Problems
464. Math Review Appendix
465. Solutions to Review Questions
466. Solutions to Select End-of-Chapter Problems
467. Glossary
468. References
469. Notes
470. Index
471. Back Cover