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 CONTENTS vii

Demand 64
The Demand Curve 65
Determinants of Demand 66
Shifts in the Demand Curve 69
Supply 71
The Supply Curve 71
Determinants of Supply 71
Shifts in the Supply Curve 74
Market Equilibrium 75
Reaching Equilibrium 77
Changes in Equi librium 78
Conclusion 84

APPENDIX B Math Essentials: Working with Linear Equations 92

Interpreting the Equation of a Line 92

1\1rning a Graph into an Equation 93
1\1rning an Equation into a Graph 94
Equations With x and y Reversed 96
Shifts and Pivots 97
Solving for Equilibrium JOO

Chapter 4 Elasticity 106

Canada's Everyday Drink 106
What Is Elasticity? 107
Price Ela~ticity of Demand 107
Calculating Price Elasticity of Demand 108
Using the Mid-Point Method 109
Determinants of Price Elasticity of Demand 11 1
Using Price Elasticity of Demand 112
Price Ela~ticity of Supply 119
Calculating Price Elasticity of Supply 120
Determinants of Price Elasticity of Supply 121
Other Elasticities 122
Cross-Pr ice Elasticity of Demand 122
Income Elasticity of Demand 123
Conclusion 125

APPENDIX C Math Essentials: Calculating Percentage Change, Slope, and Elasticity 131

Percentage Change 131

Slope and Elastic ity 132
X Over Y, or Y Over X? 134
Elasticity Changes Along Lines with Constant Slope 135

Chapter 5 Efficiency 139

A Broken Laser Pointer Starts an Internet Revolution 139

Willingness to Pay and Sell 140
Willingness to Pay and the Demand Curve 141
Willingness to Sell and the Supply Curve 142
Measuring Surplus 144
Consumer Surplus 145
Producer Surplus 147
Total Surplus 148
viii CONTENTS

Using Surplus to Compare Alternatives 150

Market Equilibrium and Efficiency 150
Changing the Distribution of Total Surplus 152
Deadweight Loss 153
Missing Markets 154
Conclusion 155

APPENDIX D Math Essentials: The Area Under a Linear Cur ve 165

The Area Under a Linear Curve 165

Chapter 6 Government Intervention 168

Feeding the \'Vorld, One Price Contr ol at a Time 168
Why Intervene? 169
Three Reasons to Intervene 169
Four Real-World Interventions 170
Price Controls 171
Price Ceil ings 171
Price Floors 175
Truces and Subsidies 178
Truces 178
Subsidies 185
Evaluating Government Interventions 188
How Big is the Effect of a Tax or Subsidy? 188
Long-Run versus Short-Run Impact 191
Conclusion 193

PART3
Individual Decisions 200
Chapter 7 Consumer Behaviour 202

The Gift Card Buy and Sell 202

The Basic Idea of Utility 203
Utility and Decision Making 203
Revealed Preference 204
Utility Functions 206
Marginal Utility 206
Maximizing Utility Within Constraints 208
Responding to Changes in Income and Prices 212
Changes in Income 212
Changes in Pr ices 213
Utility and Society 215
Utility and Stanis 216
Utility and Altruism 218
Utility and Reciprocity 219
Conclusion 220

APPENDIX E Using Indifference Curves 226

Representing Preferences Graphical ly 226

Consumption Bundles and Indifference Curves 226
Properties of Indifference Curves 228
Perfect Substitutes and Perfect Complements 228
 CONTENTS ix

Understanding Consumer Choice 230

Equal izing the Marginal Util ity of the Last Purchase 230
Finding the Highest Indifference Curve 232
How Consumers Respond to Change 234
Responding to a Change in Income 234
Responding to a Change in Price 235
Deriving the Demand Curve Using Indifference Curves 237
Conclusion 238

Chapter 8 Behavioural Economics: A Closer Look at Decision Making 242

When Is $20 Not Quite $20? 242

Dealing with Temptation and Procrastination 243
Time Inconsistency, Competing Selves, and Commitment 244
Thinking Irrationally About Costs 247
The Sunk-Cost Fal lacy 247
Undervaluing Opportunity Costs 248
Forgetting About Fungibility 249
Creating Mental Categories for Money 249
Conclusion 251

Chapter 9 Game Theory and Strategic Thinking 255

Litter bugs Beware 255

Games and Strategic Behaviour 256
Rules, Strategies, and Payoffs 256
One-Time Games and the Pr isoners' Dilemma 257
Finding the Dominant Strategy 260
Reaching Equilibrium 261
Avoiding Competition Through Commitment 262
Promoting Competition in the Public Interest 262
Repeated Play in the Prisoners' Dilemma 264
The Tit-for-Tat Strategy 264
Sequential Games 266
Think Forward, Work Back,vard 266
Deterring Market Entry: A Sequential Game 267
First-Mover Advantage in Sequential Games 269
Repeated Sequential Games 270
Commitment in Sequential Games 270
Conclusion 273

Chapter 10 Infor mation 284

Use of Genetic Information for Health Insurance 284

Information: Knowledge Is Power 285
Information Asymmetry 285
Adverse Selection and the Problem of Lemons 286
Princ ipal-Agent Problems and Moral Hazard 287
Moral Hazard and Adverse Selection-Avoiding Confusion 288
Solving Information Problems 288
Screening 289
Signal ling 289
Reputation 291
Statistical Discrimination 291
Regulation and Education 293
Conclusion 294
x CONTENTS

Chapter 11 Time and Uncertainty 299

ls College or University \\'or th It? 299

Value Over Time 300
Timing Matters 300
Interest Rates 301
Compounding 302
Present Value 303
Risk and Uncertai nty 304
What Is Risk? 305
Expected Value 305
Propensity for Risk 306
Insurance and Managing Risk 307
The Market for Insurance 307
Pooling and Diversifying Risk 308
Problems with Insurance 310
Conclusion 312

PART4
Firm Decisions 317

Chapter 12 T he Costs of Prod uction 319

Wh at Are You Paying For in Tha t Pr escription? 319

The Building Blocks of Business: Revenues, Costs, and Profits 320
Profit Is Revenue Minus Costs 320
Fixed and Variable Costs 321
Expl icit and Impl icit Costs 323
Economic and Accounting Profit 323
Production Function 325
Marginal Product 325
Cost Curves 329
Total, Average, and Marginal Costs 329
Production in the Short Run and the Long Run 335
Costs in the Long Run 335
Ren1rns to Scale 336
Conclusion 340

Chapter 13 Perfect Comp etition 348

Trainside Var iety 348
A Competitive Market 349
Characteristics of a Competitive Market 349
Revenues in a Perfectly Competitive Market 351
Profits and Production Decisions 353
Deciding How Much to Produce 353
Deciding When to Operate 356
Behind the Supply Curve 359
Short-Run Supply 359
Long-Run Supply 360
Why the Long-Run Market Supply Curve Shouldn't Slope Upward, but Does 363
Responding to Shift~ in Demand 365
Conclusion 367
 CONTENTS x1

Chapter 14 Monopoly 379

Diamonds Weren't Ahvays Forever 379

Why Do Monopolies Exist? 380
Barriers to Entry 381
How Monopolies Work 383
Monopolists and the Demand CW'Ve 383
Monopoly Revenue 385
Problems with Monopoly and Public Policy Solutions 390
The Welfare Costs of Monopoly 390
Public Policy Responses 392
Market Power and Price Discrimination 396
What Is Price Discrimination? 396
Conclusion 401

Chapter 15 Oligopoly an d Monopolistic Competition 410

Which One of 'f hese ls Just Like the Oth ers? 410
What Sort of Market? 411
Oligopoly and Monopolistic Competition 412
Ol igopoly 413
Oligopolies in Competition 413
Compete or Collude? 416
Oligopoly and Public Policy 418
Monopolistic Competition 419
Monopolistic Competition in the Short Run 419
Monopolistic Competition in the Long Run 421
The Welfare Costs of Monopolistic Competition 423
Product Differentiation, Advertising, and Branding 424
Conclusion 428

Chapter 16 T he Factors of Production 436

Pay Gap in Sports 436

The Factors of Production: Land, Labour, and Capital 437
Derived Demand 438
Marginal Productivity 438
Picking the Right Combination of Inputs 439
Labour Markets and Wages 440
Demand for Labour 440
Supply of Labour 442
Reaching Equilibrium 446
Shifts in Supply and Demand 447
Determinants of Labour Demand and Supply 450
What's Missing? Human Capital 452
Land and Capital 454
Capitalists: Who Are They? 454
Markets for Land and Capital 454
The Factor Distribution of Income 456
Real-World Labour Markets 458
Minimum Wages and Efficiency Wages 458
Company Towns, Unions, and Labour Laws 460
Changing Demographics 461
Conclusion 462
xii CONTENTS

Chapter 17 International Trade 473

Ma de in Lesoth o 473
Why Trade? A Review 474
Comparative Advantage 474
Gains from Trade 474
The Roots of Comparative Advantage 475
Incomplete Specialization 476
From Autarky to Free Trade 477
Becoming a Net Importer 478
Becoming a Net Exporter 480
Big Economy, Small Economy 482
Restrictions on Trade 484
Why Restrict Trade? 485
Tariffs 485
Quotas 487
Trade Agreements 489
International Labour and Capital 489
The WTO and Trade Mediation 490
Labour and Environmental Standards 491
Embargoes: Trade as Foreign Policy 493
Conclusion 494

PARTS
Public Economics 502

Chapter 18 Exter nalities 504

The Costs of Car Culture 504

What Are Externalities? 505
External Costs and Benefits 505
Negative Externalities and the Problem of Too Much 506
Positive Externalities and the Problem of Too Lillle 510
Dealing with Externalities 514
Private Remedies 514
Taxes and Subsidies 516
Quotas and Regulations 518
Tradable Allowances 520
Targeting Externalities with Public Policy 522
Conclusion 522

Chapter 19 Public Goods a nd Common Resources 535

A New 1'ragedy of the Commons 535

Characteristics of Goods 536
Excludable Goods 536
Rival-in-Consumption Goods 537
Four Categories of Goods 537
The Problems with Public Goods and Common Resources 538
The Free-Rider Problem 539
The Tragedy of the Commons 541
Dealing with Public Goods and Common Resources 541
Social Norms 542
Bans, Quotas, and Government Provision 542
Property Rights 546
Conclusion 548
 CONTENTS x 111

Chapter 20 Taxation a nd the Pu blic Budget 553

Happy to Pay 1'axes? 553

Why Tax? 554
Princ iples of Taxation 556
Efficiency: How Much (Extra) Wi ll the Tax Cost? 556
Revenue: How Much Money Will the Tax Raise? 559
Incidence: Who Ultimately Pays the Tax? 561
A Taxonomy of Taxes 563
Personal Income Tax 564
Payroll Tax 566
Corporate Income Tax 566
Other Taxes 566
The Publ ic Budget 568
Expenditures 569
Balancing the Budget 570
Conclusion 573

Chapter 21 Poverty, Ineq uality, and Discrimination 581

Str iking It Richer 581

Poverty 582
Measuring Poverty 583
Why Are People Poor? 588
Inequal ity 590
Measuring Inequality 590
Inequal ity in Canada and Around the World 593
Inequal ity versus Mobility 595
Policies to Reduce Poverty and Inequality 597
Publ ic Pol icy Goals 597
The Welfare State 598
Trade-offs Bet,veen Equity and Efficiency 600
Discrimination 600
Measuring Discrimination in the Labour Market 601
Do Free Markets Reduce Discrimination? 603
Long-Term Effects of Discrimination 603
Conclusion 605

Glossary G L-1
Endnotes EN-I
Index IN-I
XIV

PREFACE
We offer this text, Microeconomics, as a resource for professors who want to keep their students engaged in local and global
applications of 1nicroecono1nic principles and who have been seeking to deliver core microeconomic concepts along with an
introduction to important new ideas that are emerging from experimental economics and globalization. We designed the text
to help students see economics a~ a common thread that enables us to understand, analyze, and solve problems in our local
communities and around the world.

Why Do We Teach Economics?

Economics helps us solve problems.
Economic principles can help students understand and respond to everyday situations. Economic ideas are also helping us
tackle many other challenges, such as expanding international trade and reducing poverty and inequality. We show students how
economic ideas are shaping their world, and we provide them with a wide-ranging set of practical insights to help develop their
economic intuition.
Engagement with real-world problems is built into the fabric of our chapters, and throughout the text we present economic
thinking as a common thread to help solve these. This compelling, problem-solving focus simplifies and streamlines the teaching
of basic economic concepts by approaching topics intuitively and in a way that is useful to students. T he text imparts to students
the immediacy of how what they're learning really matters. As they read, faculty and students wi ll find content that breaks down
barriers bet,veen what goes on in the classroom and what is going on in our nation and around the world.
By providing a concrete, intuitive approach to introductory concepts, and by keeping the discussion always down-to-earth and
lively, we make the learning materials easier to use in the classroom. The chapters are organized around a familiar curriculum
while adding empirical context for ideas that students often find overly abstract or too simpl ified. The innovative, empirical
orientation of the book enables us to incorporate intriguing findings from recent studies as well as to address material from such
areas as game theory, finance, behavioural economics, and political economy. This approach connects concepts in introductory
economics to important new developments in economic research, while placing a premium on easy-to-understand explanations.
In every chapter we fulfill three fundamental commitments:
• To sho,v how economics can solve r eal-life problems. This text will engage students by approaching economics as a way of
explaining real people and their decisions, and by providing a set of tools that serve to solve many different types of problems.
We show students that economics can make the world a bet/er place, while challenging them to reach their own conclusions
about what "better" really means.
• To teach princip les as analytic tools for dealing with real situations. The text is centred on examples and issues that
resonate with students' experience. Applications come first, reinforcing the relevance of the tools that students acquire.
Engaging empirical cases are interspersed throughout the content. The applications open up puzzles, anomalies, and
possibilities that basic economic principles help explain. The aim is, first and foremost, to ensure that students gain an
intuitive grasp of basic ideas.
• To focus on what matters to studen ts. Students live in a digital, global ized world. We recognize that they are knowledgeable
and care about both local and international issues. Microecono,nics takes a global perspective, with Canada as a leading
example. We remain faithful to the core principles of economics, but we seek to share with students some of the ways that
new ideas are expanding the "basics" of economic theory. We recognize and explain the rise of game theory, behavioural
economics, and experimental and empirical approaches, in ways that matter to students.
We are excited to offer standalone chapters that dig into some of the new topics in economics, a~ part of our commitment to
teaching economics as a way to help solve important problems. We've watched as topics like pol itical economy, game theory,
behavioural economics, and inequality figure more and more prominently in undergraduate curricula with each passing year, and
we felt it was important to provide teachers ways to share new ideas and evidence with their students-important concepts that
most non-majors would usually miss. We know how selective teachers must be in choosing which material to cover during the
limited time available. In light of this, we've been especial ly glad to have the guidance we've received from many teachers in
finding ways to expose students to some of the newer, and most exciting, parts of economics today.
We promise you will find the discussion and writing style of Microecono,nics clear, concise, accessible, easy to teach from,
and fun to read. We hope that this book will inspire students to continue their studies in economics, and we promise that
Microecono,nics will give them something useful to take away even if they choose other areas of study.
 PREFACE xv

Motivation
Who are we?
Microecono111ics draws on our own experiences as academic economists, teachers, and policy advisors. We are a team of authors
based at both large research universities and small teaching universities, offering advice to NGOs, governments, international
agencies, donors, and private firms as well a~ providing learning experiences for sn1dents in small classrooms. Much of our
research involves figuring out how to improve the way real markets function. Working with partners in Canada and on six
continents, we are involved in testing new economic ideas. We are also involved in new teaching practices with real-life
connections. Microeconomics draws on the spirit of that work, as well as similar research, taking students through the process of
engaging with real problems, using analytical tools to devise solutions, and ultimately showing what works and why.

Why have we written this text?

One of the best parts of writing this text has been getting to spend time with instructors across the country. We've been inspired
by their creativity and passion and have learned from their pedagogical ideas. One of the questions we often ask is why the
instructors originally became interested in economics. A common response, which we share, is an attraction to the logic and power
of economics as a social science. We also often hear instructors describe something slightly different: the way that economics
appealed to them as a tool for making sense of life's complexities, whether in business, politics, or daily life. We wrote this book
to give instructors a way to share with the ir students both of those ways that economics matters.
Comprehensive and engaging, Microecono111ics will provide students a sol id foundation for considering important issues that they
wi ll confront in life. We hope that, in ways small and large, the tools they learn in these pages wi ll help them to think critically
about their environment and to live better lives.

Dean Karlan Jonathan Morduch

Yale University New York University

Rafat Alam Andrew Wong

MacEwan University University of Alberta
XVI

ECONOMICS AS A COMMON THREAD

This text demonstrates how students can use basic economic principles to understand, analyze, and solve problems in their
communities and around the world. Several basic pedagogical principles guide the organization of the content and support the
implementation of the approach:
• Uses the concrete to teach the a bstra ct. Interesting questions ,notivate the learning of core principles by showing how they
are relevant to students. As often as possible, examples and ca~es lead into theory.
• Explores current ideas and media. The text provides students a view of what is actually going on in the world and in
economics right now. It is current in its content, method, and media.
• Takes a p roblem ·solving approach. This text shows economics as a way to explain real people and their decisions, and
provides tools that can be used to solve many different types of problems. To complement this problem-solving approach,
the authors have taken spec ial care to offer high-quality end-oj'.chapter problem sets that engage students with real istic
questions. Smoothly integrated with the chapter text, there are at least t,vo review questions and t,vo problems for each
learning objective. Four additional problems for each learning objective also are available in Connect.

Four Questions About How Economists Think

The text's discussion is framed by four questions that economists ask to break down a new challenge and analyze it methodical ly.
These four questions are explored and then carried throughout Microeconomics as a consistent problem-solving approach to a
wide variety of examples and case studies so as to demonstrate how they can be used to address real issues. By teaching the right
questions to ask, the text provides students with a method for working through decisions they' ll face as consumers, employees,
entrepreneurs, and voters.
Question 1: What are the ,vants and constraints of those involved? This question introduces the concept of scarcity. It
asks students to think critical ly about the preferences and resources driving decision making in a given situation. It links
into discussions of uti lity functions, budget constraints, strategic behaviour, and new ideas that expand our thinking about
rationality and behavioural economics.
Question 2: W hat are the trade-offs? This question focuses on opportunity cost. It asks students to understand trade-offs
when considering any decision, including factors that might go beyond the immediate financial costs and benefits.
Consideration of trade-offs takes us to discussions of marginal decision making, sunk costs, non-monetary costs, and
discounting.
Question 3: Ho,v will others respon d? This question asks students to focus on incentives, both their incentives and the
incentives of others. Students consider how individual choices aggregate in both expected and unexpected ways, and what
happens when incentives change. The question links into understanding supply and demand, elasticity, competition, taxation,
game theory, and monetary and fiscal policy.
Question 4: W hy isn't everyone already doing it? This question relates to efficiency. It asks students to start from an
assumption that markets work to provide desired goods and services, and then to think carefully about why something that
seems like a good idea isn' t already being done. We encourage students to revisit their answers to the previous three questions
and see if they missed something about the trade-offs, incentives, or other forces at work, or whether they are looking at a
genuine market failure. This question ties in with a range of topics, including publ ic goods, externalities, information gaps,
monopoly, arbitrage, and how the economy operates in the Jong run versus the short run.

New to the First Canadian Edition

The first Canadian edition of Microeconomics presents the core principles of economics, but also seeks to share with students
some of the ways that new ideas are expanding the basics of economic theory. The sequence of chapters follows a fairly traditional
route through the core principles. By thinking first about the choices faced by individuals, students can engage with ideas that
more closely relate to their own experiences. In this way, the organization of the text makes core economic ideas more immediately
intuitive and better prepares students to eventually understand the choices of firms, groups, and governments. The text proceeds
step-by-step from the personal to the public, allowing students to build toward an understanding of aggregate decisions on a solid
foundation of individual decision making.
The uniqueness of the first US edition is its application of global and international contexts in understanding microeconomic
concepts. The first Canadian edition of Microecono,nics emulates this design, but from a Canadian perspective. The first Canadian
 ECONOMICS AS A COMMON THREAD xv11

edition includes real-life examples and case studies from developing economies around the world, but reflects upon how they can
be understood from within a Canadian context, as well as a global context. This is a new approach for a first-year microeconomics
textbook. In addition to global examples, we have included Canadian examples and ca~e studies that Canadian students will be
able to relate to their everyday lives.
Beyond its basic coverage of microeconomic principles, the first Canadian edition of Microeconomics offers content that connects
the core curriculum to today's microeconomic concerns:
Chapter 1 aims to explain normative and positive economic analysis using the cost of Canadian education.
Chapter 2 explains absolute and comparative advantages using Canada-China trade scenarios. Canadian hockey players are used
as an example to illustrate comparative advantage.
Chapter 3 explains supply and demand and how markets work. It uses a few Canadian examples, for example, the Canadian IT
market, to explain market operations.
Chapter 4 provides the examples of Tim Hortons pricing decisions as well as Parks Canada entrance fees to explain ela~ticity.
Chapter 5 uses the sale of Canadian airwaves to discuss efficiency.

Chapter 6 explores the impact of drug price control on R & D and the Canadian economy, the Canadian supply management
system in the dairy industry and its impact, as well as the unintended consequences of biofuel subsidies.
Chapter 7 starts with an example of the gif t card mismatch among consumers and how new services are solving the mismatch. It
then focuses on the explanation of how individual preferences and choices are constructed.
Chapter 8 adds newer concepts from experimental economics. It defines time inconsistency and explains how it accounts for
procrastination and other problems with self-control. The chapter identifies the types of opportunity costs that people often
undervalue and explains why undervaluing them distorts decision making. It also explains how fungibility matters in financial
decision making.
Chapter 9 explores the use of game theory and strategic thinking in problem solving and analysis using Canadian political and
business examples.
Chapter 10 focuses on information asymmetry and its application in economic decision making. The chapter also explains the
concepts of moral hazard, screening, and signalling. The chapter also discusses how statistical discrimination, reputations, and the
uses of education and regulation can overcome information asymmetry problems.
Chapter 11 introduces the concepts of present value, expected value, uncertainty, and risk in decision making. It explains how
risk aversion makes a market for insurance possible, the importance of pooling and diversification for managing risk, and the
chal lenges that adverse selection and moral hazard pose for insurance.
Chapter 12 explains how cost is constructed and profit is maximized for a firm.
Chapter 13 describes the characteristics, operation and decision-making process of a competitive firm and market in the short
run and long run.
Chapter 14 discusses the characteristics, operation, profit maximization, and price discrimination practices of a monopoly
market. It explains the social welfare loss of monopoly and the publ ic policies used to control monopoly.
Chapter 15 explains the characteristics and operation of monopolistical ly competitive and ol igopoly markets. The chapter also
explains product differentiation, branding, and the role of advertising. It ends with a welfare comparison of different types of
markets.
Chapter 16 explains factor markets and their equilibrium. It goes further into detail about the definition of human capital and
its importance in the labour market, identifies two reasons a wage might rise above the market equilibrium, and describes their
effects on the labour market. Final ly, it describes several causes of imperfectly competitive labour markets and their effects on
workers and employers.
Chapter 17 defines comparative advantage and lists some root causes of comparative advantage on a national level. It explains
the effect of a tariff or quota on quantity, price, and the distribution of surplus. It ends with a discussion of the challenges of
establishing environmental or labour standards in international markets.
Chapter 18 explains the impact of externalities on the market and discusses the pol icy solutions for the externality problem.
Chapter 19 discusses public goods and common resources, related efficiency losses, and policy solutions.
xviii ECONOMICS AS A COMMON THREAD

Chapter 20 discusses taxation and its impact, and fiscal policy.

Chapter 21 explains the definition and mea~urement of poverty and inequality. It presents the poverty scenario in Canada and
ruscusses pol icy solutions.
The text's most important commitment is to make sure that students understand the basic analytical tools of economics. Because
students sometimes need reinforcement with the math requirements, Microecono,nics also contains five unique math appenruxes
that explain math topics important to understanding economics:
APPEND IX A Math Essentials: Understanding Graphs and Slope
APPENDIX B Math Essentials: Working with Linear Equations
APPEND IXC Math Essentials: Calculating Percentage Change, Slope, and Elasticity
APPENDIX D Math Essentials: The Area Under a Linear Curve
APPENDIX E Using Indifference Curves
 XIX

MODERN TEACHING APPROACH

In addition to the regular chapter features found in almost every textbook, this text includes several unique features that support a
modern teaching approach.

Interesting Examples Open Each Chapter

These chapter-opening stories feature issues that consumers, voters, businesspeople, and family members face, and they are
presented in an engaging, joW11alistic style. The examples then take students through relevant principles that can help frame and
solve the economic problem at hand. Here is a sample of the chapter-opening features:
Making an Impact with Small Loans
The Origins of a T-Shirt
Mobiles Go Global
Canada's Everyday Drink
A Broken Laser Pointer Starts an Internet Revolution
Feeding the World, One Price Control at a Time
The Gift Card Buy and Sell
When is $20 Not Quite $20?
Litterbugs Beware
Is College or University Worth It?
Trainside Variety
The Costs of Car Culture
A New Tragedy of the Commons
Happy to Pay Taxes?
Striking It Richer

Special Features Build Interest

• Real Life-Describes a short case or pol icy question, findings from history or REAL LIFE
academic studies, and anecdotes from the field.
Comparative Advantage: The Good,
t he Bad, and t he Ugly
• From An other Angle-Shows a different way of looking at an economic concept. 'ibu may h - nobced lhot when you call lhc c:uslOmier
SCMCC line b m11ny l11rgc oomplWl~S. you 11rc likely t o
This feature can be a different way of thinking about a situation, a humorous story, Cfld up sp:11bl9 'Mth sorneoroe 1n Indio 01 lhe Philippn~
Thirty ~ ago. lhlll w11s not !he case-ail centres b
or sometimes just an unusual appl ication of a standard idea. Can.adian customeo: w-
11tnost 1111 b:.oted 1n Car,oda.

Car.ad11 h11.s not become worse 111 ru,wiing coll centr~ kl

• What Do You Think?-Offers a longer case study, with implications for publ ic
policy and student-related issues. This feature offers relevant data or historical
evidence and asks students to employ both economic analysis and normative
arguments to defend a position. We leave the student with open-ended questions,
which professors can a~sign as homework or use for classroom discussion.
r«t. it m11y sl:!9 haYc 11n 11bsol1.Cc 11clvarit11gc 11t it
FROM ANOTHER
ANGLE
Story of Multi-Talented Athletes
Two of the moei:t f.ilmous multMalcnted otl'*tH JI
Can.ad111n sports h11rtory 11rc M11rvcy Pulford 11nc:I Lionel
Con11Cttc1. They botn wor, notio~I ch11mp1or,sh1ps. si
Ca1~ch11n l'ootbal. hockey, bolUl'lg, 11nc:I bcrosw, 11nc:I
Coru1cttc1's n11me 11pf)Hrs 1n !he halls of fame of lour
dlffcretit sports. E11ch could c11.sily h- become one of
lhe bes1 fooi~II pl11ycrs or bolOC'fs 01 lnaosse pl11ycrs of
hlS giencm,iion.but bO!tl e11ded a., 11s tlockey ple)'CfS, Fr°"'
II prlld1c11I po1rt of v ~ lhey col.Cl nOI piny m1,l 11ple
sports profcs5'0nnty kif a long 11me. so tney ~cl to m11kc
II ct'Oicc. Although both h«t 11n atisolu~ lldvo11n111gie ot
xx MODERN TEACHING APPROACH

• Where Can It Take You?- Directs students to cla~ses, resources, or jobs related
to the topic at hand. This feature shows students how they might apply what they
learn in careers and as consumers.
Is Self-Sufficiency a Virtu e?
Why s.hol*f Canoda ltade wtlh olh~ COIJl'IIIIH? tr CVCty
othcf COU...I)' in the workl were 10 dlsoppe11r tomorrow,
• Potentially Confusing and Hints-Offer additional explanation of a concept or Canada woijd probobty mar.age to 61:nd for il,self. It hos
ph:nty of fcr11lc IM'ld. naturol resources, peopie, 11nd
use of terminology that students may find confusing. Rather than smoothing over 1T111nuf.actunr,g copooty.

confusing ideas and language, the text calls attention to common

Bas«! on whllt you now knotN obol.C spec111!ii11ucw1 and the
misunderstandings and gives students the support they need to understand giiira. from !llldc. whllt do you lhir* llbout the wlue of

economic language and reasoning on a deeper level.

POTENTtALLY CONAJSl NG

In Ch11pte'1, "M,:,tltets,," we dlstrl~ishod b etween o

• Concept Check-Provides an opportunity at the e nd of each chapter section for c.uive shtfbng IO the lcfi o r rlgtrt ~ mo~Mt oton9 the
Hmc cuive. A shift rep rescnti o fund11mNttlll change in
students to quiz themselves on the preceding material before reading on. The the quontity demanded or supplied 111: ony ~ n ptlcc: o

Concept Check questions are keyed to related learning objectives, providing mOYemcrrt ~ l:hc same c...w 5*nply shoWs II s,,wiletl
t o II ~ M qu«rt!ty M d ptlcc poSIL Does II lltX ci,,use O
students with a built-in review tool and study device. shllr ol the dCf'lllllnd or s~ly ci.mvc or 1t mo~Mt Obtlg
thc!ci.sw?

CONCEPT CHECK
O Could o pCt'SOfl or c o ~ CYC!t' produe. 11 oombWl11iOfl
of goods lh:lt lies outsiclo !hie! product.on possibilities
front!C!I'? Vltry or why no!? [LO 2.1]

O Wo.Ad "" ~re""" In procluaMry ai 11 ,cs._. ol l!I now

ICChnolOgf stffi lll ptoduc..11on possibll11es (r,ont.;c,1
kl w.d °' oulW-lltd?(LO 2.1)

Strong Materials Support Learning

The chapters contain most of the standard end-of-chapter features to help students solidify and test their understanding of the
concepts presented, as well as a few new ideas that expand on those concepts. The authors have taken particular care with student
review and instructor materials to guide high-qual ity homework and test questions.
• Summary-Highlights and emphasizes the essential takeaways from the chapter.
• Key 1'errns-Lists the most important terms from the chapter.
• Revie,v Questions-Guide students through review and application of the concepts covered in the chapter. The review
questions range from straightforward questions about theories or formulas to more open-ended narrative questions.
• Problems and Applications-Can be assigned as homework, typically quantitative. All problems and applications are fully
integrated with Connect, enabl ing online assignments and grading.
 XXI

MARKET LEADING TECHNOLOGY

Learn Without Limits

McGraw-Hill Connect® is an award-winning digital teaching and learning platform that gives students the means to better connect
with their coursework, with their instructors, and with the important concepts that they will need to know for success now and
in the future. With Connect, instructors can take advantage of McGraw-Hill's trusted content to seamlessly del iver assignments,
quizzes and tests online. McGraw-Hill Connect is a learning platform that continual ly adapts to each student, delivering precisely
what they need, when they need it, so class time is more engaging and effective. Connect makes teaching and learning personal,
easy, and proven.

Connect Key Features

SmartBook®
As the first and only adaptive reading experience, SmartBook is changing the way students read and learn. SmartBook creates a
personalized reading experience by highlighting the most important concepts a student needs to learn at that moment in time. As a
student engages with SmartBook, the reading experience continuously adapts by highlighting content based on what each student
knows and doesn't know. This ensures that he or she is focused on the content needed to close spec ific knowledge gaps, while it
simultaneously promotes long-term learning.

Connect Insight®
Connect Insight is Connect's new one-of-a-kind visual analytics dashboard-now available for instructors-that provides
at-a-glance information regarding student performance, which is immediately actionable. By presenting assignment, assessment,
and topical performance results together with a time metric that is easily visible for aggregate or individual results, Connect Insight
gives instructors the ability to take a just-in-time approach to teaching and learning, which was never before available. Connect
Insight presents data that helps instructors improve class performance in a way that is efficient and effective.

Simple Assignment Management

With Connect, creating assignments is easier than ever, so instructors can spend more time teaching and Jess time managing.

• Assign SmartBook learning modules.

• Instructors can edit existing questions and create their own questions.
• Draw from a variety of text specific questions, resources, and test bank material to a~sign onl ine.
• Streamline lesson planning, student progress reporting, and assignment grading to make cla~sroom management more
efficient than ever.

Smart Grading
When it comes to studying, time is precious. Connect helps students learn more efficiently by providing feedback and practice
material when they need it, where they need it.
• Automatically score assignments, giving students immediate feedback on their work and comparisons with correct answers.
• Access and review each response; manually change grades or leave comments for students to review.
• Track individual student performance-by question, assignment, or in relation to the class overall-with detailed grade
reports.
• Reinforce classroom concepts with practice tests and instant quizzes.
• Integrate grade reports easily with Learning Management Systems including Blackboard, D2L, and Moodie.
xxii MARKET LEADING TECHNOLOGY

Instructor Library
The Connect Instructor Library is a repository for additional resources to improve student engagement in and out of the class. It
provides all the critical resources instructors need to build their course.

• Access Instructor resources.

• View a~signments and resources created for past sections.
• Post your own resources for students to use.

Instructor Resources
• Instructor's Manual
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• Computerized Test Bank
• Microsoft® PowerPoint® Lecture Slides

Superior Learning Solutions and Support

The McGraw-Hill Education team is ready to help instructors assess and integrate any of our products, technology, and services
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Consultant today to learn how to maximize al l of McGraw-Hill Education's resources.
For more information, plea~e vis it us online: http://,vw,v.mheducation.ca/he/solutions
 XXlll

ACKNOWLEDGMENTS
We could not have completed this text without the help of others. In particular, Andrew Wong would like to thank Sandi, Shannon,
Katie, and Aidan for their support and patience, as well as their understanding and encouragement throughout the research and
writing process.
Additionally, Dr. Alam would like to thank his parents, Mr. Nurul Alam and Mrs. Nazmun Nahar; his wife, Nusrat Aireen; and his
children, Nibras and Arisa.
A special thanks to the many talented staff and freelance members at McGraw-Hill Education: Kevin O' Hearn, Product Manager;
Tammy Mavroudi and Melissa Hudson, Product Developers; Jeanette McCurdy, Supervising Editor; Judy Sturrup, Copy Editor;
and Derek Capitaine, Permissions Editor, for their trust in us and helping to ensure the timely completion of our manuscript.
We gratefully acknowledge feedback and constructive criticism from colleagues across Canada.

Thank You!
This text has gone through a lengthy development process spanning several years, and it wouldn't be the same without the valuable
feedback. The authors and McGraw-Hill thank you for sharing your insights and recommendations.

Hussein Alzoud David Gray

Athabasca University University of Ottawa

Gordon Lee Michael Leonard

University of Alberta Kwant/en Polytechnic University

Michael Ma~chek Leigh MacDonald

University of the Fraser Valley Western University

David Murrell Eric Moon

University of New Brunswick University ofToronto

Fiona T. Rahman Mark Raymond

University of Waterloo Saint Mary's University

Cheryl Roberts Claude Theoret

University of British Co/u111bia University of Ottawa

Angela Trimarchi Peter Wyl ie

Wilfrid laurier University UBC Okanagan

We are gra teful to you all for helping shape our ideas a bou t teaching economics today and for helping tum those ideas into
the text you ' re reading.

Dean Karlan J ona than Morduch

Yale University New York University

RafatAlam Andre,v Wong

MacEwan University University of Alberta
PART ONE
The Power of Economics
The two chapters in Part 1 will introduce you to •••

the tools and intuition essential to the study of economics.

Chapter 1 presents four questions that introduce the fundamental concepts of economic problem solving. We
also describe how economists think ab out data and analyze policies, typically separating how people want the
world to look (normative analysis) from how the world actually works (positive analysis).

Chapter 2 presents the ideas of absolute and comparative advantage to explain how people (and countries)
can most effectively use the ir resources and talents. Should you hire a plumber or fix the p ipes you rself?
Should you become a pop star or an economist? We develop these ideas to show how t rade can make
everyone better off, on both a personal and a national level.

This is just a start. Throughout the book, we'l l use these tools to gain a deep er understanding of how people
interact and manage their resources, which in turn gives insight into tough problems of all sorts. Economic
ideas weave a common thread through many su bjects, from t he purely economic to political, environmental,
and cu ltural issues, as well as personal decisions encountered in everyday life. Economics is much more
than just the study of money, and we hope you'll find that what you learn here sheds light far beyond your
economics classes.
Another random document with
no related content on Scribd:
 The Project Gutenberg eBook of Motion
pictures, January-June 1974 : Catalog of
copyright entries, third series, volume 28,
parts 12-13, number 1
This ebook is for the use of anyone anywhere in the United States
and most other parts of the world at no cost and with almost no
restrictions whatsoever. You may copy it, give it away or re-use it
under the terms of the Project Gutenberg License included with this
ebook or online at www.gutenberg.org. If you are not located in the
United States, you will have to check the laws of the country where
you are located before using this eBook.

Title: Motion pictures, January-June 1974 : Catalog of copyright

entries, third series, volume 28, parts 12-13, number 1

Author: Library of Congress. Copyright Office

Release date: November 6, 2023 [eBook #72054]

Language: English

Original publication: Washington: Library of Congress. Copyright

Office, 1971

Credits: Richard Tonsing and the Online Distributed Proofreading

Team at https://www.pgdp.net (This file was produced from
images generously made available by The Internet Archive)

*** START OF THE PROJECT GUTENBERG EBOOK MOTION

PICTURES, JANUARY-JUNE 1974 : CATALOG OF COPYRIGHT
ENTRIES, THIRD SERIES, VOLUME 28, PARTS 12-13, NUMBER 1
***
Transcriber’s Note:
New original cover art included with this eBook is
granted to the public domain.
Catalog of Copyright Entries

Third Series
 ISSN 0090–8371
Catalog of Copyright Entries: Third Series

Volume 28, Parts 12–13, Number 1

 Motion Pictures

January-June

1974

COPYRIGHT OFFICE · THE LIBRARY OF CONGRESS

WASHINGTON: 1974
 Library of Congress card no. 6–35347.
This number identifies the Library of Congress printed card for
the complete series of the Catalog of Copyright Entries.
ISSN 0090–8371 Key title: Catalog of copyright entries. Third
series. Parts 12–13. Motion pictures.
For sale by the Superintendent of Documents, U.S. Government
Printing Office, Washington, D.C. 20402. Price of this part is given
on page vi.
 Preface

The CATALOG OF COPYRIGHT ENTRIES is published by

authority of sections 210 and 211 of Title 17 of the United States
Code. Section 210 provides in part: “The current catalog of copyright
entries and the index volumes herein provided for shall be admitted
in any court as prima facie evidence of the facts stated therein as
regards any copyright registration.”
Orders, payable in advance, for all parts of the Catalog of
Copyright Entries should be sent to the Superintendent of
Documents, U.S. Government Printing Office, Washington, D.C.
20402. Orders may be placed for individual issues, as subscriptions
for one or more parts, or for the complete Catalog, for periods of
one, two, or three years. All orders should state clearly the title and
the inclusive dates of the part wanted; checks or money orders
should be made payable to the Superintendent of Documents.
The Copyright Office welcomes inquiries, suggestions, and
comments on the content and organization of the Catalog. Such
communications should be addressed to the Chief of the Cataloging
Division, Copyright Office, Library of Congress, Washington D.C.
20559.
The record of each copyright registration listed in the Catalog
includes a description of the work copyrighted and data relating to
the copyright claim (the name of the copyright claimant as given in
the application for registration, the copyright date, the copyright
registration number, etc.). For each registration listed, except for
renewals, there has been deposited a copy or copies of the work in
accordance with the provisions contained in sections 12, 13, 14, or
215 of Title 17 of the United States Code.
Each part listed in the following table records registrations in the
class or classes indicated by the alphabetical symbols. The second
and third letters, if any, that follow the initial letter are added by the
Copyright Office for the purpose of statistical analysis. Their
significance is as follows:

F Published foreign works. In the case of books and periodicals, it

designates works manufactured outside the United States
(except those registered for ad interim copyright). In all other
classes to which it applies, it designates works first published
outside the United States, the authors of which are neither
citizens nor domiciliaries of the United States. (AF, EF)
I Books and periodicals registered for ad interim copyright. (AI, BI)
O Published works of foreign origin registered under the waiver-of-
fee provision (section 215 of Title 17 of the United States Code).
(BIO, GFO)
P Domestic published works in classes for which registration is
possible for either published or unpublished works. (EP, JP)
U Unpublished works in classes for which registration is possible for
either published or unpublished works. (DU, EU)
 Price per
semiannual
issue
Part Books and Pamphlets, Including Serials and
1 Contributions to Periodicals $10.00
A Books
BB Contributions to periodicals
R Renewal registrations

Part Periodicals (Annual issue)

2 6.00
B Periodicals
R Renewal registrations

Parts Dramas and Works Prepared for Oral Delivery

3–4 3.00
C Lectures and other works prepared for oral delivery
D Dramatic or dramatico-musical works
R Renewal registrations

Part Music
5 10.00
E Musical compositions
R Renewal registrations

Part Maps and Atlases

6 3.00
F Maps
R Renewal registrations

Parts Works of Art, Reproductions of Works of Art, Scientific

7– and Technical Drawings, Photographic Works, Prints
11A and Pictorial Illustrations $3.00
G Works of art and models or designs for works of art
H Reproductions of works of art
I Drawings or sculptural works of a scientific or technical
character
J Photographs
 K Prints and pictorial illustrations
R Renewal registrations

Part Commercial Prints and Labels (Annual issue)

11B 5.00
KK Commercial prints and labels
R Renewal registrations

Parts Motion Pictures

12–
13 3.00
L Motion-picture photoplays
M Motion pictures other than photoplays
R Renewal registrations

Part Sound recordings

14 5.00
N Sound recordings

Subscription price: Complete Catalog for the year $75.00;

$18.75 additional for foreign mailing. Orders, accompanied by
remittances, should be addressed to the Superintendent of
Documents, U.S. Government Printing Office, Washington,
D.C. 20402.
Table of Contents

Page
Index 1
Current Registrations 35
Renewal Registrations 81
 Introduction

Parts 12–13 list all registrations made in classes L and M for the
period covered by this issue. An index of names and titles associated
with the work is followed by the main entries, listed in order by
registration number. Filing of the index is letter by letter, except in
the case of inverted names which are filed up to the comma or
parenthesis, after which letter by letter filing is resumed.
The main entries include, when applicable, the following
information derived from the work and application.

1) Title, followed by subtitle and/or descriptive statements. The

authorship of the work is included in this statement, with
the nature of authorship (if available).
2) Edition statement.
3) Country of publication for works registered as foreign or as ad
interim works.
4) Label name and number for registered sound recordings.
5) Physical description of the deposit.
6) Series statement.
7) Additional titles associated with the registered work such as
variant titles, alternative titles, translated titles, etc.
8) Notes; information is given here which serves to supplement
the data that is given elsewhere in the entry in order to
describe a work more accurately or identify it more
explicitly.
9) Statement that the registered work is published in or as part of
another work, or is bound with another independent work.
 10) Names of authors given in the application which do not appear
elsewhere in the entry.
11) Statement of those materials contained in the registered work
on which copyright is not claimed, when so stated in the
application.
12) Information contained in the application which relates to the
registration of an earlier version of the work.
13) Brief statement of the new matter on which copyright is
claimed when so stated in the application.
14) Copyright symbol © or Ⓟ.
15) A statement of limitation of claim if the application or notice
on the work explicitly limits the claim.
16) Name of the copyright claimant.
17) Date of publication for published works; for unpublished
works the date on which the last of all items required to
complete registration
was received in the Copyright Office.
18) Registration number.
For published works, whenever it is necessary to indicate a
variation between the information given in the application and in the
copy of the work with respect to the claimant’s name or the date of
publication, the data from the application is given first, followed by
the phrase “in notice” and the data given in the work; e.g., © John
Doe; 11Jan74 (in notice: 1973).
For renewal registrations the original date of publication and
registration number precede the name of the claimant of the renewal
registration. Following the name of the renewal claimant is a
statement in parentheses, usually abbreviated, giving the basis of the
renewal claim as supplied by the application; e.g., “John Doe (A)”
indicates that John Doe has made renewal claim as author.
Works deposited in connection with current copyright
registrations may be selected for inclusion in the collections of the
Library of Congress. Library of Congress printed cards are available
for many of the published works so selected. Orders for such cards or
inquiries concerning them should be addressed to the Card Division,
Building No. 159, Navy Yard Annex, Washington, D.C. 20541.
 Registrations January-June 1974

Class L— Domestic published motion-picture photoplays 704

Foreign published motion-picture photoplays 34
Unpublished motion-picture photoplays 11
Class M— Domestic published motion pictures other than photoplays 777
Unpublished motion pictures other than photoplays 155

Total 1,681
Renewals: Classes L and M 532

These figures represent the number of registrations for motion

pictures for January-June 1974, but do not necessarily represent the
exact number of entries in this issue of the Catalog of Copyright
Entries. Registration figures for other classes of material may be
found in the respective parts.
 Abbreviations and Symbols

The following list includes abbreviations and symbols used in this

catalog with specific copyright or bibliographic meanings.

(A) author(s)
a.a.d.o. accepted alternative designation of
a.k.a. also known as
acc. accompaniment
Adm.c.t.a. Administrator(s) cum testamento annexo
Adm.d.b.n.c.t.a. Administrator(s) de bonis non cum testamento
annexo
appl. application
approx. approximate, approximately
arr. arranged, arrangement, arranged by
Aufl. Auflage
augm. augmented
Ausg. Ausgabe
b&w black and white
Bd. Band (German)
bearb. bearbeitet
© copyright symbol
(C) child or children of the deceased author
ca. circa
chap. chapter(s)
col. colored
comp. compiler
d.b.a. doing business as
(E) executor(s) of the author
ed. edition, editor
enl. enlarged
fr. frames
ft. feet
hrsg. herausgegeben
illus. illustration(s)
m music, music by
min. minutes
mm. millimeters
(NK) next of kin of the deceased author
NM new matter
no. number(s)
nouv. nouveau, nouvelle
op. opus
p. page(s)
(PCB) proprietor of copyright in a work copyrighted by
a corporate body otherwise than as assignee or
licensee of the individual author
(PCW) proprietor of copyright in a composite work
(PPW) proprietor of copyright in a posthumous work
(PWH) proprietor of copyright in a work made for hire
prev. previous, previously