AP_Krugman_Textbook

Module 80Indifference Curves and Consumer

Choice 787

Mapping the Utility Function 787

Indifference Curves 787

FYI:Are Utils Useful? 790

Properties of Indifference Curves 790

Indifference Curves and Consumer Choice 792

The Role of the Exchange Rate

The Tangency Condition 795

The Slope of the Budget Line 796

Prices and the Marginal Rate of Substitution 797

Preferences and Choices 799

Module 80 AP Review 785

Section 14 Review 802

Solutions to AP Review Questions S-1

Glossary G-1

Index I-1

U.S. Antipoverty Programs 768

Means-Tested Programs 768

Social Security and Unemployment Insurance 769

The Effects of Programs on Poverty and Inequality 769

The Debate Over Income Redistribution 771

Problems with Income Redistribution 771

The Politics of Income Redistribution 772

Module 78 AP Review 772

Section 14 Review 773

Section 14 Appendix

Module 79The Economics of Information 782

Private Information: What You Don’t Know Can Hurt You 782

Adverse Selection: The Economics of Lemons 782

Moral Hazard 784

Module 79 AP Review 785

CONTENTS xxi