Identifies sources of ambiguity in economics textbooks' discussion of the condition for efficient output mix. Points out that diverse statements without accompanying explanations create confusion among students. Argues that conflicting views concerning the concept of Pareto optimality as one source of ambiguity. Suggests clarifying additions to…

Investigates factors that influence the short-run and long-run effects of supply-side shocks on aggregate income and tax revenues. Concludes that the long-run relationship between tax revenues and the tax rate is completely independent of price-level elasticity. (CFR)

Contends that the traditional approach to the economics of pollution deals only with the special case of damage coming from the per-period flow of the pollutant. Examines the limitations of the traditional flow approach. Summarizes fundamental advances in the economic theory of stock pollutants using graphical descriptions. (CFR)

Maintains that the equal marginal value principle may not be optimal in the analysis of the cost-effectiveness of policies to reduce auto emissions, the economics of garbage disposal, and the economics of pollution abatement. Argues that examining these exceptions can help students understand the equal marginal value principle. (MJP)

Maintains that it is generally assumed that rent control redistributes wealth from landlords to consumers of housing. Presents data and graphs to illustrate how rent control can benefit landlords and increase housing availability. Asserts that this exercise is effective for students studying microeconomic theory. (CFR)

Reconsiders Uriel Spiegel's analysis of the Giffen phenomenon, a utility function that yields an inferior good with an upward-sloping demand curve. Extends this to include similar utility functions that yield inferiority. Discusses the earlier work of related theorists including Liebhafsky, Vandermeulen, and Wold and Jureen. (MJP)

Reexamines Spiegel's analysis of the Giffen phenomenon, a utility function that yields an inferior good with an upward-sloping demand curve and incorporates Christian Weber's criticism into the model. Disagrees with Weber on some points but agrees that as income decreases the likelihood of the Giffen product decreases. (MJP)

Praises and summarizes James Bernard Murphy's "The Moral Economy of Labor: Aristotelian Themes in Economic Theory." Linking economic theories from Adam Smith to Karl Marx, Murphy criticizes traditional economic and social thinking regarding the division of labor. He proposes an integration of conceptualization and execution to humanize…

Presents the results of a study suggesting that economic knowledge, whether measured by a general score or knowledge of a particular issue, is the most consistent and influential factor affecting public opinion. Surveyed a broad range of participants concerning five complex issues of economic policy. Includes questions, tables, and statistics.…

Compares and contrasts Joseph Schumpeter's 1942 classic of economic thought, "Capitalism, Socialism, and Democracy," with Edward Bellamy's 1888 utopian novel, "Looking Backward." Both works criticize capitalism and arrive at socialist solutions. Bellamy's entertaining novel provides a useful benchmark for students analyzing…

Describes an undergraduate economics course experiment designed to teach the concepts of comparative advantage and opportunity costs. Students have a limited number of labor hours and can chose to produce either wheat or steel. As the project progresses, the students trade commodities in an attempt to maximize use of their labor hours. (MJP)

Presents a relatively simple costs/benefits analysis problem perfectly suited for an introductory economics course. Reveals that neither the health insurer (which bears only the hospitalization costs of acute care) nor the patient (who incurs lost earnings and psychological costs) has an adequate incentive to pay for preventive care. (MJP)

Utilizes Federal Open Market Committee (FOMC) transcripts to reveal how the Federal Reserve shapes monetary policy. Analysis of the documents shows the Committee examining a wide variety of indicators and approaches in an attempt to determine the appropriate time for a policy change. Inflationary pressures were a preeminent concern. (MJP)

Maintains that most graduate-level economics textbooks rarely mention the need for consumers to be above their minimum wealth position as a condition for market equilibrium. Argues that this omission leaves students with a mistaken sense about the range of circumstances under which market equilibria can exist. (MJP)

Charts the changes in student opinions, regarding the fairness of pricing and profits, from beginning to end of a first-year college economics course. Students answered morally ambiguous questions involving product markets and prices. Student belief in the fairness of free market pricing increased dramatically. (MJP)