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 NINETEENTH
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Economics
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Roger LeRoy Miller

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 BRI EF CON TENT S

Preface xviii

PART 1 Introduction
1 The Nature of Economics 1
2 Scarcity and the World of Trade-Offs 27
3 Demand and Supply 49
4 Extensions of Demand and Supply Analysis 75
5 Public Spending and Public Choice 100
6 Funding the Public Sector 124

PART 5 Dimensions of Microeconomics

19 Demand and Supply Elasticity 416
20 Consumer Choice 437
21 Rents, Profits, and the Financial Environment of Business 465
PART 6 Market Structure, Resource Allocation, and Regulation
22 The Firm: Cost and Output Determination 486
23 Perfect Competition 510
24 Monopoly 535
25 Monopolistic Competition 559
26 Oligopoly and Strategic Behavior 578
27 Regulation and Antitrust Policy in a Globalized Economy 600

PART 7 Labor Resources and the Environment

28 The Labor Market: Demand, Supply, and Outsourcing 624
29 Unions and Labor Market Monopoly Power 648
30 Income, Poverty, and Health Care 668
31 Environmental Economics 692

PART 8 Global Economics

32 Comparative Advantage and the Open Economy 710
33 Exchange Rates and the Balance of Payments 732

ix

A01_MILL9255_19_SE_FM_Micro.indd 9 19/11/16 1:24 AM

 C O NTENTS
Preface xviii

PART 1 Introduction
EXAMPLE
Microeconomic and Macroeconomic
1 The Nature of Economics 1
Implications of the Gig Economy 3 The Power of Economic Analysis 2 • The Three Basic Economic Questions and Two
Getting Directions 8
Opposing Sets of Answers 4

INTERNATIONAL POLICY WHAT IF… the government increases pharmaceutical companies’ costs but prevents them
EXAMPLE from raising their prices? 5
Greece Discovers That Higher Tax Rates The Economic Approach: Systematic Decisions 6 • Economics as a Science 7
Encourage More Tax Evasion 6 • Positive versus Normative Economics 10
BEHAVIORAL EXAMPLE YOU ARE THERE The Incentive to Understand Chickens’ “Speech” 11
Why Doesn’t Higher Pay Persuade Some ISSUES & APPLICATIONS Why More Highly Educated Women Are Having More
Women to Avoid Traditional Gender Children 12
Roles? 7
Summary: What You Should Know/Where to Go to Practice 13 • Problems 14
• References 17
APPENDIX A Reading and Working with Graphs 18
Direct and Inverse Relationships 18 • Constructing a Graph 19 • Graphing Numbers
in a Table 20 • The Slope of a Line (A Linear Curve) 22 • Summary: What You
Should Know/Where to Go to Practice 25 • Problems 26

EXAMPLE 2 Scarcity and the World of Trade-Offs 27

The Airline Industry Confronts the Law Scarcity 28 • Opportunity Cost, Trade-Offs, and Choices 30 • The Economic
of Increasing Additional Cost 36 Choices a Nation’s People Face 33 • Economic Growth, Production Possibilities, and
POLICY EXAMPLE the Trade-Off between Present and Future 37
Why the “Free File” Tax Service Is Not WHAT IF… the U.S. government continues to ratchet up required production of health care
Really “Free” 30 services? 39
INTERNATIONAL EXAMPLE Specialization, Comparative Advantage, and Trade 39
The Substantial Trade-Off of Satisfying YOU ARE THERE Reducing the Opportunity Cost of Waiting in Gridlocked Traffic, at a
U.N. Development Goals 34 Price 42
BEHAVIORAL EXAMPLE ISSUES & APPLICATIONS The U.S. Navy Expands Production Possibilities via a New
An Economic Explanation for Technology 42
Monogamy 32
Summary: What You Should Know/Where to Go to Practice 44 • Problems 45
• References 48

EXAMPLE 3 Demand and Supply 49

The Law of Demand in the Market for Demand 50 • Shifts in Demand 55 • Supply 59 • Shifts in Supply 62 • Putting
Cable TV Subscriptions 51 Demand and Supply Together 65
Altered Tastes and Preferences
Generate Lower Demand for Chewing
WHAT IF… the government requires buyers to pay a price that is above the equilibrium
Gum 57 price? 68
Long Lines at Restaurants Special- YOU ARE THERE The Breakfast Cereal Industry Confronts Changing Tastes and Prefer-
izing in Barbecued Brisket Signal a ences 69
Shortage 67
ISSUES & APPLICATIONS The U.S. Oil Gusher Produces Shortages of Oil Storage
POLICY EXAMPLE
Space 70
Policies Generate Higher Water Input
Costs and Cut Agricultural Commodity
Supplies 64
Should Shortages in the Ticket Market
Be Solved by Scalpers? 68

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 CONTENTS xi
INTERNATIONAL EXAMPLE Summary: What You Should Know/Where to Go to Practice 71 • Problems 72
A Global Substitution from Coal to • References 74
Natural Gas as an Energy Source 57
An Increase in the Supply of Automo-
biles in China 64
BEHAVIORAL EXAMPLE
Tips and Quality-Adjusted Prices 52

EXAMPLE 4 Extensions of Demand and Supply Analysis 75

Dramatic Responses to Cities’ The Price System and Markets 76 • Changes in Demand and Supply 77 • The
Minimum Wage Hikes: “Zeroing Out” Rationing Function of Prices 80 • Price Ceilings 82
Employment 88
WHAT IF… the government requires apartment owners to set rents based on tenants’ in-
POLICY EXAMPLE comes? 85
Rationing Water 81
Price Floors and Quantity Restrictions 85
Regulating the Raisin Reserve 93
YOU ARE THERE Price Rationing via Changes in the Number of Items Sold in a Package 90
INTERNATIONAL EXAMPLE
Why Are Global Ship Rental Prices ISSUES & APPLICATIONS Online Middlemen: Customer Sales Reps Move to the Web 90
Dropping? 80 Summary: What You Should Know/Where to Go to Practice 91 • Problems 92
INTERNATIONAL POLICY • References 95
EXAMPLE APPENDIX B Consumer Surplus, Producer Surplus, and Gains from Trade within a Price
Looking for Hard-to-Find Items in Ven- System 96
ezuela? Ask for the Bachaqueros 83 Consumer Surplus 96 • Producer Surplus 97 • Gains from Trade within a Price
The European Union Decides That the System 98 • Price Controls and Gains from Trade 99
Costs of Milk Quotas Outweigh the
Benefits 89
BEHAVIORAL EXAMPLE
Online Dating Sites and Virtual
Roses 77

EXAMPLE 5 Public Spending and Public Choice 100

Medicare’s “1 Percent” 112 Market Failures and Externalities 101
POLICY EXAMPLE WHAT IF… the government engages in policies that force down the price of an item subject to
That Noisy Drone Hovering by Your external benefits while leaving its supply curve’s position unchanged? 105
House? Your Property Rights Are The Other Economic Functions of Government 105 • The Political Functions
Unclear 102
of Government 108 • Public Spending and Transfer Programs 109 • Collective
Mixed Public Choice Incentives and Decision Making: The Theory of Public Choice 114
Policies for School Lunches 115
YOU ARE THERE Addressing Rail-Freight Transportation Externalities 116
INTERNATIONAL POLICY
EXAMPLE ISSUES & APPLICATIONS The U.S. Measles Threat––Once Nearly Eliminated but Less So
Is Regulation the Solution for Today 117
an Expanding Cloud of Orbital Summary: What You Should Know/Where to Go to Practice 118 • Problems 119
Pollution? 104 • References 122
BEHAVIORAL EXAMPLE
Funding Public Goods: Differences in
Valuations versus Competencies 108

EXAMPLE 6 Funding the Public Sector 124

The Progressive U.S. Income Tax Paying for the Public Sector: Systems of Taxation 125
System 126
WHAT IF… borrowing to fund public expenditures was illegal? 125
POLICY EXAMPLE The Most Important Federal Taxes 127 • Tax Rates and Tax Revenues 131
Inducing Disability Insurance • Taxation from the Point of View of Producers and Consumers 134
Recipients Not to Work Causes
Payouts to Exceed Taxes 130 YOU ARE THERE Mergers Move U.S. Firms Abroad and Reduce the U.S. Income Tax Base 136
Are Vehicle User Fees an Inevitable ISSUES & APPLICATIONS Will Taxing “Remote Sales” Be a Salvation for Sinking State
Replacement for Gasoline Excise Budgets? 137
Taxes? 131
North Carolina Cuts Tax Rates and
Expands a Tax Base, and Its Revenue
Increase 133

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 xii CONTENTS

BEHAVIORAL EXAMPLE Summary: What You Should Know/Where to Go to Practice 138 • Problems 139
Trying to Boost Government Tax • References 141
Receipts by Making Tax Delinquents
Feel Bad 134

PART 5 Dimensions of Microeconomics

EXAMPLE 19 Demand and Supply Elasticity 416
The Price Elasticity of Demand for Price Elasticity 417 • Elasticity and Total Revenues 421 • Determinants of the Price
Cable TV Subscriptions 418 Elasticity of Demand 423 • The Cross Price and Income Elasticities of Demand 426
The Price Elasticity of Demand for WHAT IF… stronger enforcement of a ban on an illegal drug pushes up its market clearing price,
Movie Tickets 419
but its cross price elasticity with another illicit drug is highly positive? 427
BEHAVIORAL EXAMPLE Price Elasticity of Supply 428
Short-Term Stress and the Price
Elasticity of Demand for Alcohol 426
YOU ARE THERE Using Price Elasticity of Supply to Assess Effects of Rewards for Academic
Performance 430
ISSUES & APPLICATIONS Cotton Subsidies and the Price Elasticity of Cotton Supply in
Egypt 431
Summary: What You Should Know/Where to Go to Practice 432 • Problems 434
• References 435

EXAMPLE 20 Consumer Choice 437

Monitoring the Provision of Legal Utility Theory 438
Services to Ensure Attainment of a
Consumer Optimum 444 WHAT IF… consuming an additional unit of an item generates negative marginal utility?
Optimizing Consumption Choices 441 • How a Price Change Affects Consumer
INTERNATIONAL EXAMPLE
Optimum 444 • Behavioral Economics and Consumer Choice Theory 448
Why a Consumer Optimum Can
Include “Unlimited” Consumption in a YOU ARE THERE Confronting the Challenge of Comparing Levels of Disutility from Pain 449
Pay-by-the-Minute Cafe 442 ISSUES & APPLICATIONS Two Different Utility Issues Associated with a “Pacemaker for the
BEHAVIORAL EXAMPLE Stomach” 449
Do “Big Box” Discount Retailers Summary: What You Should Know/Where to Go to Practice 450 • Problems 452
Contribute to Higher Obesity Rates • References 454
among Consumers? 446
APPENDIX F More Advanced Consumer Choice Theory 455
On Being Indifferent 455 • The Budget Constraint and the Consumer Optimum 459
• Deriving the Demand Curve 461 • Summary: What You Should Know/Where to
Go to Practice 463 • Problems 463

EXAMPLE 21 Rents, Profits, and the Financial Environment of

Why the “Discount Rate” That Pension
Funds Use to Value Their Liabilities
Business 465
Matters 475
Economic Rent 466 • Firms and Profits 467 • Interest 473
Analyzing Tweets to Predict Stock- WHAT IF… the nominal interest rate is negative? 474
Market Swings 479 Corporate Financing Methods 477
POLICY EXAMPLE YOU ARE THERE China’s Government Learns That Stock Prices Can Drift Downward 480
Do Government Grants and Subsidies
ISSUES & APPLICATIONS Assessing Three Recent Changes in Stock Exchange Trading 480
Favor Corporations? 470
Summary: What You Should Know/Where to Go to Practice 482 • Problems 483
The Federal Reserve Allegedly––and
• References 485
Actually––Has Released Insider
Information 479
BEHAVIORAL EXAMPLE
Does Bounded Rationality Explain
Why Some People “Cash Out” of
Pensions? 477

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 CONTENTS xiii

PART 6 Market Structure, Resource Allocation, and Regulation

EXAMPLE 22 The Firm: Cost and Output Determination 486
Reducing Variable Costs by Initially Short Run Versus Long Run 487 • A Firm’s Production 488 • Short-Run Costs to
Keeping the Bubbles Out of Bubble the Firm 491
Wrap® 492
WHAT IF… adoption of a technological improvement caused a firm’s average product curve and
Tesla’s Initial Home-Battery Production
Scale Is Below the Minimum Efficient marginal product curve to shift upward? 499
Scale 503 Long-Run Cost Curves 500
INTERNATIONAL EXAMPLE YOU ARE THERE Wal-Mart Relearns How to Reduce “Shrink” Costs 504
Short-Run Average and Marginal Costs ISSUES & APPLICATIONS Cutting Per-Unit Costs of Making Drugs and Exploring Other Worlds
Increase at the World’s Ports 495 with 3D and Molecular Printers 504
INTERNATIONAL POLICY Summary: What You Should Know/Where to Go to Practice 506 • Problems 507
EXAMPLE • References 509
A Government Produces Solar Energy
on a Massive Scale––To Pump More
Oil 502
BEHAVIORAL EXAMPLE
Is a Firm’s Feasible Output Greater
with Individual- or Group-Structured
Tasks? 488

EXAMPLE 23 Perfect Competition 510

Characteristics of Perfect Competition Characteristics of a Perfectly Competitive Market Structure 511 • Profit-Maximizing
in the Propane-Distribution Choices of a Perfectly Competitive Firm 512 • Short-Run Supply Under Perfect
Market 512 Competition 517
INTERNATIONAL EXAMPLE WHAT IF… short-run shutdown prices differ across the firms that constitute a perfectly
Long-Run Supply Curves for “Rare competitive industry? 520
Earths” Turn Out Not to Slope Upward
After All 526
Price Determination Under Perfect Competition 523 • The Long-Run Industry
Situation: Exit and Entry 524
BEHAVIORAL EXAMPLE
YOU ARE THERE Lower Recycled-Plastics Prices Cause Short-Run Shutdowns––And Exits from
Do Competition and Bad Behavior
Necessarily Go Together? 515
That Industry 528
ISSUES & APPLICATIONS Just How Commonplace Are Entrances and Exits of U.S. Firms? 529
Summary: What You Should Know/Where to Go to Practice 530 • Problems 532
• References 534

EXAMPLE 24 Monopoly 535

Want to Raise Prices of Heart Drugs? Defining and Explaining the Existence of Monopoly 536
Create a Monopoly Seller 545
WHAT IF… a single company acquired rights to lands containing all known deposits of all the key
POLICY EXAMPLE minerals required to produce batteries used to power digital devices? 538
A Tombstone Law Is a Grave Barrier to The Demand Curve a Monopolist Faces 539 • Costs and Monopoly Profit
Entry in New Jersey 538
Maximization 542 • On Making Higher Profits: Price Discrimination 547 • The
BEHAVIORAL EXAMPLE Social Cost of Monopolies 548
Can Firms Use “Big Data” and YOU ARE THERE A Legal Barrier to Entry Prevents Lemonade Sales by Two Young Sisters 550
Complicated Pricing to “Gouge”
Consumers? 548 ISSUES & APPLICATIONS Why a French Dealer of Illegal Drugs Provides Loyalty Discount
Cards 550
Summary: What You Should Know/Where to Go to Practice 551 • Problems 553
• References 555
APPENDIX G Consumer Surplus and the Deadweight Loss Resulting from Monopoly 556
Consumer Surplus in a Perfectly Competitive Market 556 • How Society Loses From
Monopoly 557

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 xiv CONTENTS

EXAMPLE 25 Monopolistic Competition 559

When a Drink’s Taste Is Not Monopolistic Competition 560 • Price and Output for the Monopolistic
Sufficiently Distinguishable, Try a Competitor 563
Flavored Edible Straw 561
WHAT IF… the government decided that monopolistically competitive prices exceeding marginal
POLICY EXAMPLE costs constitutes social “waste” and banned such “waste” from occurring? 565
Want to Start a Kids’ TV Network?
Brand Names and Advertising 566 • Information Products and Monopolistic
Bring Back Old Cartoon
Characters 562
Competition 568

BEHAVIORAL EXAMPLE YOU ARE THERE A Soft Drink Company Faces Another Entry into an Already Crowded
Industry 572
Do Business Schools’ Uses of Their
Rankings Inform or Persuade? 568 ISSUES & APPLICATIONS Professional Service Firms Confront Easier Entry by New
Competitors 572
Summary: What You Should Know/Where to Go to Practice 573 • Problems 575
• References 577

EXAMPLE 26 Oligopoly and Strategic Behavior 578

The Four-Firm Concentration Ratio in Oligopoly 579 • Measuring Industry Concentration 581 • Strategic Behavior and
the U.S. Broadband Industry 581 Game Theory 583 • The Cooperative Game: A Collusive Cartel 587
New Online-Dating Platform Firms
Specialize in Limiting the Number of
WHAT IF… a number of firms that have agreed to restrain the output within a collusive cartel give
Matches 592 in to the temptation to boost their profits by increasing their output? 590
Network Effects and Two-Sided Markets 590
INTERNATIONAL EXAMPLE
The HHI for the Global Tablet-Device
YOU ARE THERE Free-Game Platform Firms Find Positive Market Feedback Harder to Find 594
Industry 583 ISSUES & APPLICATIONS The Ticket-Resale Industry––An Oligopoly with Many Firms 594
BEHAVIORAL EXAMPLE Summary: What You Should Know/Where to Go to Practice 596 • Problems 597
Why There Is a 50-50 Chance That
• References 599
Cheating on One’s Mate is a Dominant
Strategy 584

EXAMPLE 27 Regulation and Antitrust Policy in a Globalized

Mandated Energy Efficiencies Threaten
Power Companies––And Electricity
Economy 600
Buyers 605
Forms of Industry Regulation 601 • Regulating Natural Monopolies 603
• Regulating Nonmonopolistic Industries 606 • Incentives and Costs of
POLICY EXAMPLE Regulation 609 • Antitrust Policy 611
Lighting Up the Holidays Now
Requires Satisfying Eleven Pages of
WHAT IF… antitrust laws were altered to forbid all forms of product bundling? 617
Federal Rules 602 YOU ARE THERE A Feedback Effect of Truck Safety Regulations: Unsafe Truck Parking 617
INTERNATIONAL POLICY ISSUES & APPLICATIONS How Firms Engage in Conspiracies to Restrain Trade 618
EXAMPLE Summary: What You Should Know/Where to Go to Practice 619 • Problems 620
European Antitrust Authorities Charge • References 623
Hollywood with Restraining Film
Trade 614
BEHAVIORAL EXAMPLE
Does Bounded Rationality Strengthen
or Weaken the Argument for
Regulation? 611
INTERNATIONAL EXAMPLE
A U.S. Firm Asks French Antitrust
Authorities to Halt a Pricing
Conspiracy 613

A01_MILL9255_19_SE_FM_Micro.indd 14 19/11/16 1:24 AM

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 CONTENTS xv

PART 7 Labor Resources and the Environment

EXAMPLE 28 The Labor Market: Demand, Supply, and
A Rise in the Demand for Restau- Outsourcing 624
rants’ Food Services Shifts the Labor Labor Demand for a Perfectly Competitive Firm 625 • Market Labor Demand for
Demand Curve 632
and the Elasticity of Demand for Inputs 629 • Wage Determination in a Perfectly
INTERNATIONAL EXAMPLE Competitive Labor Market 631 • Labor Outsourcing, Wages, and Employment 634
Oil Prices Drop, and the Derived • Labor Demand of a Monopolist and Overall Input Utilization 637
Demand for Oil Workers Declines 629
WHAT IF… the government decided to forbid U.S. firms from outsourcing labor abroad and to
BEHAVIORAL EXAMPLE prevent foreign firms from using outsourced labor located in the United States? 637
Can Behavioral Nudges Induce YOU ARE THERE Robot Tailors Threaten Human Sewing Workers 642
Workers to Keep Labor Supply
Promises? 634 ISSUES & APPLICATIONS Effects of Minimum Wage Laws with Substitution of Capital for
“Mental Productivity” and the Hiring of Labor 642
Younger versus Older Workers 641 Summary: What You Should Know/Where to Go to Practice 644 • Problems 645
• References 647

POLICY EXAMPLE 29 Unions and Labor Market Monopoly Power 648

A Key Structural Change in Collective Industrialization and Labor Unions 649 • Union Goals and Strategies 652
Bargaining: “Micro-Unit”
Representation 652 WHAT IF… the government were to outlaw all union strikes? 653
A Constitutional Interpretation Alters Economic Effects of Labor Unions 656 • Monopsony: A Buyer’s Monopoly 658
Demands for Nonunion and Union YOU ARE THERE Chinese Buyers Act as Monopsony to Push Down Tobacco Prices in
Labor 656 Zimbabwe 662
BEHAVIORAL EXAMPLE ISSUES & APPLICATIONS A Strategy Regarding Minimum Wages Helps to Achieve Union
Should Firms That Can Set Wages Goals 663
Raise Workers’ Pay All at Once or in Summary: What You Should Know/Where to Go to Practice 664 • Problems 665
Stages? 660
• References 667

EXAMPLE 30 Income, Poverty, and Health Care 668

Pitfalls in Contemplating the Distribu- The Distribution of Income 669 • Determinants of Income Differences 674
tion of Households across Income • Poverty and Attempts to Eliminate It 677 • Health Care 680
Ranges 672
WHAT IF… the government were to reduce out-of-pocket payments by people with subsidized
POLICY EXAMPLE health insurance plans? 685
A Few Medications Account for
a Large Share of Medicare Drug YOU ARE THERE Choosing Not to Purchase Health Insurance 686
Spending 684 ISSUES & APPLICATIONS Do Antipoverty Programs Contribute to Poverty by Penalizing
BEHAVIORAL EXAMPLE Marriage? 687
Trying to Close the Parental “Word Summary: What You Should Know/Where to Go to Practice 688 • Problems 689
Gap” between Rich and Poor with • References 691
“Nudges” 676

POLICY EXAMPLE 31 Environmental Economics 692

The Environmental Protection Agency Private Versus Social Costs 693 • Pollution 696 • Reducing Humanity’s Carbon
Creates a Negative Externality 696 Footprint: Restraining Pollution-Causing Activities 698
INTERNATIONAL EXAMPLE WHAT IF… government estimates of resource savings from non-carbon-generated energy sources
How Trophy Hunting Might Help fail to acount for these sources’ reliance on carbon-based energy? 700
to Protect Dwindling Big-Game
Common Property and Wild Species 700
Species 702
YOU ARE THERE Companies in China Seek to Export Pollution Abroad 703
BEHAVIORAL EXAMPLE
How Behavioral Responses to Appeals ISSUES & APPLICATIONS Assessing the Economics of Global Plastic-Waste Pollution 703
to Conserve Energy Boost Carbon Summary: What You Should Know/Where to Go to Practice 705 • Problems 706
Emissions 694 • References 709

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 xvi CONTENTS

PART 8 Global Economics

POLICY EXAMPLE 32 Comparative Advantage and the Open Economy 710
Ending the U.S. Oil Export Ban 722 Why We Trade: Comparative Advantage and Mutual Gains from Exchange 711
INTERNATIONAL EXAMPLE • Arguments Against Free Trade 718 • Ways to Restrict Foreign Trade 721
How African Nations Are Developing • International Trade Organizations 724
Comparative Advantages in WHAT IF… joining a new regional trade bloc shifts existing trade to countries within that bloc and
Agriculture 716 away from countries in another regional trade bloc? 725
Why European Firms View
YOU ARE THERE Argentina Specializes in Oil Production to Protect Domestic Jobs 726
Chinese Tourists’ Parallel Imports
as a Threat 719 ISSUES & APPLICATIONS Drought Induces California Farmers to Double Down on a
Comparative Advantage 726
BEHAVIORAL EXAMPLE
Summary: What You Should Know/Where to Go to Practice 728 • Problems 729
Has Greater Financial Uncertainty
• References 731
Become an Impediment to Trade? 721

EXAMPLE 33 Exchange Rates and the Balance of Payments 732

Harley-Davidson’s Sales of The Balance of Payments and International Financial Flows 733 • Deriving the
Motorcycles Are Reduced by the Demand for and Supply of Foreign Exchange 738 • Determining Foreign Exchange
Strong Dollar 742 Rates 742 • Fixed Versus Floating Exchange Rates 745
BEHAVIORAL EXAMPLE WHAT IF… a central bank that fixes its nation’s exchange rate runs out of foreign exchange
Can Behavioral Economics Help reserves? 748
Nations Achieve Balanced Trade? 746
YOU ARE THERE Nigeria’s Central Bank Forces a Reduction in the Demand for Foreign
Exchange 749
ISSUES & APPLICATIONS A Year of an Appreciation, Lower Import Prices, and Higher Quantity
of Foreign Exchange Demanded 750
Summary: What You Should Know/Where to Go to Practice 751 • Problems 752
• References 754

Glossary G-1
Index I-1

A01_MILL9255_19_SE_FM_Micro.indd 16 19/11/16 1:24 AM

 PREFACE

How do we motivate students in economics? I believe that we should present them

with economic explanations for what is happening around them and throughout the
world. Theory may be the backbone of our discipline, but its application is the only
way we can help our students understand the importance of economics in their daily
lives and for their futures.

New and Increased Emphasis on Behavioral

Economics
The theory of bounded rationality forms the basis of behavioral economics. This
theory is expanded upon in the introductory chapter, and in many other chapters.
More importantly, in keeping with the desire to show the applicability of theory,
every single chapter in the 19th edition has a behavioral economics example.

New Additional End-of-Chapter Problems

In this 19th edition, you will find six to eight new problems at the end of each
chapter. Many are based on the interactive graphs within the chapter. They require
students to apply their critical thinking skills learned from the chapter.

New Questions in MyEconLab

With the 19th edition, we have added close to 500 new assignable questions
in MyEconLab, expanding the database of questions to an average of over 100
questions per chapter.

MyEconLab—Getting Better with Each Edition

• Figure Animations: Figure animations provide a step-by-step walk-through of
select figures. Seventy percent of all figures are animated. Figure animations have
been updated to reflect changes to the 19th edition.
• Concept Checks: Each section of each learning objective concludes with an on-
line Concept Check that contains one or two multiple-choice, true/false, or fill-in
questions. These checks act as “speed bumps” that encourage students to stop and
check their understanding of fundamental terms and concepts before moving on
to the next section. The goal of this digital resource is to help students assess their
progress on a section-by-section basis, so they can be better prepared for home-
work, quizzes, and exams.
• Graphs Updated with Real-Time Data from FRED®: Data graphs in the eText
are continually updated with the latest data from FRED®, which is a comprehen-
sive, up-to-date data set from the Federal Reserve Bank of St. Louis. Students can
display a pop-up graph that shows new data plotted in the graph. The goal of this
digital feature is to provide students with the most current macro data available
so that they can observe the changing impacts of these important variables on the
economy.
Assessments using current macro data help students understand changes in
economic variables and their impact on the economy. Real-time data analysis
exercises in MyEconLab also communicate directly with the Federal Reserve
Bank of St. Louis’s FRED® site and automatically update as new data are available.

xvii

A01_MILL9255_19_SE_FM_Micro.indd 17 19/11/16 1:24 AM

 xviii PREFACE

These exercises allow students to practice with data to better understand the current economic
environment.
42 PART 1 | INTRODUCTION
• Self Checks: Self Checks appear at the end of every Learning Objective section. Self Check ques-
tions allow students to check their understanding ofsomewhere else in the country,
the key concepts they just U.S.reademployment
beforewould moving decline. That has never
happened and never will.
on. All questions and answers are available in MyEconLab. When nations specialize in an area of comparative advantage and then trade with the
• Dynamic Study Modules: Dynamic Study Modules, restavailable
of the world,within MyEconLab,
the average standard of living continuously
in the world rises. In effect, interna-
SELF CHECK tional trade allows the world to move from inside the global production possibilities
assess student performance on key topics in real time, and provide additional and personalized
curve toward the curve itself, thereby improving worldwide economic efficiency. Thus,
Visit MyEconLab
practice content. Dynamic Study Modules exist for every chapter andinare
to practice
all countries that engage tradeavailable on all
can benefit from mobileadvantage, just as regions
comparative
problems and to get instant
devices for on-the-go studying.
feedback in your Study Plan.
in the United States benefit from interregional trade. MyEconLab Concept Check
MyEconLab Study Plan
• Digital Interactives: Digital Interactives are dynamic and engaging assessment activities that pro-
mote critical thinking and application of key economic principles. Each Digital Interactive has 3–5
progressive levels and requires
Y O Uapproximately
A R E T H E R E20 minutes to explore, apply, compare, and analyze
each topic. Many Digital Interactives include real-time data from FRED®, allowing professors and
Reducing the Opportunity Cost of Waiting in Gridlocked Traffic, at a Price
students to display, in graph and table form, up-to-the-minute data on key macro variables. Digital
Interactives can be assignedFourand graded
decades within
ago, Howard Becker,MyEconLab, or used
founder of Becker Automotive, Inc., as a lecture
including tool
clients, to encourage
personal assistants, or secretarial support staff.
started a Los Angeles business installing sound systems in homes Thus, buyers of Becker’s converted vans and limos can, while paying
engagement, classroom conversation, and group
and vehicles. His company work.
is still based in that area, but now it spe- chauffeurs to traverse the thick traffic, avoid sacrificing time that they
• Learning Catalytics®: Learning
cializes in Catalytics ® generates
reducing the opportunity cost of theclassroom discussion,
hours that people could devoteguides lectures,
to activities and
they otherwise would pursue at home or in an
spend traversing congested highways and surface roads. Becker’s office setting.
promotes peer-to-peer learning with real-time analytics. Now students can use any device to inter-
customers are individuals who had previously been among U.S. com-
act in the classroom, engage with
muters whocontent, and 7even
devote a combined billion draw
hours perand share graphs.
year self-driving CRITICAL THINKING QUESTIONS
• Enhanced eText for MyEconLab: The Pearson eText for MyEconLab1. gives
their vehicles slowly through nearly gridlocked traffic instead of pur- How muststudents access
the dollar values to
of the opportunity costs of time compare
suing other activities. for a typical purchaser of a vehicle converted by Becker Automotive,
their textbook anytime, anywhere.At prices In
that addition
typically start to note-taking,
at $150,000, Becker’s firmhighlighting,
converts Inc.,and
versusbookmarking, the them? Explain briefly.
commuters who do not purchase
Pearson eText offers interactive and sharing
chauffeur-driven features.
vans and limos into mobile offices or custom-built 2. Why do you suppose that economists have estimated the dollar value
homes away from home. Becker’s converted vehicles provide amenities of the combined opportunity costs of time that U.S. commuters spend
that include built-in touchscreen devices with remote access to cloud- in gridlocked traffic to be in excess of $150 billion per year? Explain
based information networks and home-film library systems, bathrooms, your reasoning.
and even exercise bicycles. Many vehicles provide sufficient seating—
Continuing Emphasis on Public Policy and, if desired, accessories and equipment—for several passengers, Sources are listed at the end of this chapter.

Public policy issues concern your students just as they concern everyone else. Much of the theory
throughout this text relates to exactly how changing public policies affect all of us.
• In Chapter 2, read-
ers will find out
why “free” tax-filing
ISSUES &
Specialist 2nd Class Kristopher Kirsop/Released

services from the IRS

really aren’t free.
APPLICATIONS
U.S. Navy photo by Mass Communication

• When water becomes

scarcer because of
droughts, how politi- The U.S. Navy Expands
cians respond affects
everyone, as your
Production Possibilities
students will read in via a New Technology
Chapter 4.
• Poorly defined prop- CONCEPTS APPLIED The U.S. Navy faces an on-going task of producing ship-borne weapons that
deliver explosive forces to remote targets. At the same time, the Navy is
erty rights to airspace Production Possibilities
seeking to expand its fleet of ships afloat. Consequently, the Navy faces an
occupied by drones is Production Possibilities economic problem involving production possibilities.
an issue addressed in Curve
Chapter 5 Technology

M02_MILL8777_19_SE_C02.indd 42 24/10/16 4:36 PM

A01_MILL9255_19_SE_FM_Micro.indd 18 19/11/16 1:24 AM

 THE CONTINUING QUEST TO KEEP
STUDENT INTEREST HIGH
From the very beginning, Economics Today was created to maintain high interest by its read-
ers. Many of the pedagogical devices developed in earlier editions have been perfected and
the content for this 19th edition is completely new. They include:
• A chapter-opening vignette about a serious application of each chapter’s theory
with a continuing Issues & Applications feature at the end of every chapter. All of
these are new to this edition.
• Learning Objectives accompany each major chapter section to help focus
6 Funding the Public Sector

student reading comprehension and allow for self-assessment to ensure that

students have grasped key concepts.
• A “grabber” Did You Know That … feature starts off every chapter. All of these
are new.

imageegami/Fotolia
A
few years ago, California began taxing remote
LEARNING OBJECTIVES
sales—revenues of firms based outside the
After reading this chapter, you should be state but with a sufficient physical presence
CHAPTER 32 | Comparative Advantage and the Open Economy 711 able to: within the state to permit taxation of their California
6.1 Distinguish between average tax rates and sales under federal law. Some forecasts had indicated
marginal tax rates that the state would bring in about $450 million in
DID YOU KNOW THAT… 6.2 Explain the structure of the U.S. income
tax system
additional sales tax revenues via taxation of remote
the Midwestern U.S. states are endowed with 80 percent of the fresh sales. In fact, the additional revenues generated by
6.3 Understand the key factors influencing the extending sales taxes to California-based revenues of
water available in the United States and with 20 percent of the fresh water in existence on the planet? In relationship between tax rates and the tax out-of-state firms amounted to closer to $100 million.
revenues governments collect
recent years, residents of these states have been developing techniques for transferring some of this water to 6.4 Explain how the taxes governments levy on
A number of other states recently have implemented
their own remote sales taxes. Many of these states are,
people residing in other U.S. states and even to residents of other nations. By specializing in water- purchases of goods and services affect
like California several years ago, anticipating signifi-
market prices and equilibrium quantities
redistribution technologies, these Midwestern residents hope to engage in trade of fresh water for other goods cant increases in tax collections. In this chapter, you

and services with people living in locations hundreds and even thousands of miles away.
MyEconLab helps you master each CHAPTER
objective and 3 | Demand
will learn whyand
mostSupply 51
economists predict that the states
study more efficiently. See end of chapter for details.
are overestimating gains in revenues from taxation of
The law of demand is supported by millions of observations of people’s behavior in remote sales.
the marketplace. Theoretically, it can be derived from an economic model based on
rational behavior, as was discussed in Chapter 1. Basically, 124if nothing else changes and
the price of a good falls, the lower price induces us to buy more because we can enjoy
Why We Trade: Comparative Advantage and 32.1 Explain
additional whythat
net gains
gain fromyou
nations
specializing
can
were unavailable at the higher price. If you examine your own
will see thatinit generally follows the law of demand.
Mutual Gains from Exchange
behavior,
production
How has aand engaging
change in
in the quantity of cable TV subscriptions in response to a change
M06_MILL8777_19_SE_C06.indd 124 24/10/16 4:56 PM

international
in tradesubscriptions accorded with the law of demand?
the price of these
• AYou
variety of examples
have already been introducedare provided:
to the concept of specialization and mutual gains
from trade in Chapter 2. These concepts are worth repeating because they are essen-
tial to understanding why the world is better off on net because of more international EXAMPLE
trade. First, however, let’s take a look at the growing volumes of international trade
The Law of Demand in the Market for Cable TV Subscriptions
undertaken by the world’s peoples in recent years.
DOMESTIC TOPICS AND EVENTS are presented Between 2000 and 2017, the inflation-adjusted average nationwide price FOR CRITICAL THINKING
through thought-provoking
The Worldwide Importance ofdiscussions, such as:
International Trade of a cable TV subscription rose from $30 per month to about $67 per month.
During the same period, the nationwide number of cable TV subscriptions
Is there an inverse relationship between the price of cable TV
subscriptions and the number of subscriptions that people purchase?
Look at panel (a) of Figure 32-1. Since 1960, world output of goods and services
• The Law
(world of Demand
real gross in the
domestic product, Market
or world real GDP)forhasCable
increasedTV
almost every
declined from more than 68 million to just over 50 million. Thus, consistent
with the law of demand, a significant reduction in the number of cable
Explain.

Subscriptions
year. It is now about 7 times what it was then. Look at the top line in panel (a) of
Figure 32-1. Even taking into account its recent dip, world trade has increased to
TV subscriptions has taken place in response to a substantial increase in
the inflation-adjusted price of cable TV subscriptions. Sources are listed at the end of this chapter.

• Analyzing
more than 16 Tweets toinPredict
times its level 1960. Stock Market Swings
The United States has figured prominently in this expansion of world trade relative MyEconLab Concept Check
52 PART 1 | INTRODUCTION
to GDP. In panel (b) of Figure 32-1, you see annual U.S. imports and exports expressed
The price of an item may also decrease simply because producers have reduced the item’s
as a percentage of the nation’s total annual yearly income (GDP). Whereas imports
amounted to barely 4 percent of annual U.S. GDP in 1950, today they account for64 Relative Prices versus Money Prices quality. Thus, when evaluating the effects of price changes, we must always compare
PART 1 | INTRODUCTION price per constant-quality unit.
more than 15 percent. International trade has become more important to the U.S. The relative price of any commodity is its price in terms of another commodity. The Relative price
Pprice
O L Ithat
C Y you
E XTABLE
A M P L
pay in3-1E
dollars and cents for any good or service at any point in time is The money price of one commodity divided
economy, and it may become even more so as other countries loosen their trade by the money price of another commodity;
called its moneyHigher
price.Water Input Costs and Cut Agricultural Commodity Supplies
restrictions. MyEconLab Concept Check Policies Generate
Money Price versus the number of units of one commodity that

IMPORTANT POLICY QUESTIONS help students Large aRelative Price upMoney Price the cost of this key input. must
As be
Relative sacrificed to purchase one unit of
aPrice
THE quantities
RELATIVEofPRICE
number OFofAagricultural
HOUSE You commodities
mightareheargrownfrom
each your
pushed considerably
grandparents, “My first new another consequence,
commodity.
The Output Gains from Specialization suppliesPrice
year The money whoprices of both 6-terabyte cloud large portions Price Price Price
carincost
California.
onlyFarmers
thirty-two
servers
reside in this
hundred
and 6-terabyte
state provide
dollars.” The implication, of
ofagricultural
course, commodities
is that thehave declined in California.
price
cotton,external hard Last Year This Year Last Year This Year
understand
The best way public debates,
to understand such
the gains from as:
trade among nations is first to understand
of the nation’s almonds,
of cars todaydrives
apples,
is outrageously
walnuts, and other commodities.
oranges,
high
have fallen. The relative
grapes, lemons, rice,
price ofbecause the average new car may cost $32,000.
Cloud FOR CRITICAL THINKING $300
Money price
The price$210
expressed in today’s dollars; also
That, however,
In recent years, both is
thenot
external
U.S. an
hard drives,accurate
however,
government
has comparison.
risen
andofthe servers What do$300
California govern- you suppose has $210
happened to $150 = 2.0of the supply curves
the positions = 1.50
in nominal price.
the output gains from specialization between individuals. Suppose that a creative called the absolute or
$140
• That Noisy Drone Hovering
up with twoby Your
of ad House?
copy (writtenYour
(or, conversely, the relative price cloud
ment What wasservers
have responded the price
to severe of the
droughts
has fallen).
averagelarge
by redirecting house during
volumes of that
the same
markets for year? Perhaps
commodities such asitalmonds,
was apples, cotton, oranges,
advertising specialist can come pages words) an hour only
water $19,000.
away from farmersByincomparison,
favor of city water then,
systems given
External
that
and to rivers the average
and grapes,$150 price
lemons, rice,of
andhouses
$140walnuts? today
$150 is $140
= 0.50 = 0.67
Property
or generate Rights Are Unclear
hard drives
one computerized art rendering per hour. At the same time, a computer closewith
streams to endangered
$190,000, theFarmers
fishes. current haveprice
had to payof much
a new car doesn’t sound so far out of
higher $300 line, $210

art specialist can write one page of ad copy per hour or complete one computerized art prices
doesto it?obtain water for their crops from private sources, which has Sources are listed at the end of this chapter.

• Ending
rendering the U.S.
per hour. HereOil
the adExport Ban
specialist can come up with more pages of ad copy per
COMPARING RELATIVE PRICES OF DIGITAL STORAGE DRIVES The point is that money prices
hour than the computer specialist and seemingly is just as good as the computer
specialist at doing computerized art renderings. Is there any reason for the ad specialist during different time periods PRICEdon’t tell Why
EXPECTATIONS youAischange
a tip often an essential part of an overall quality-adjusted price paid for a service?
much. You
in the have to calculate
expectation of a future relative
relative price of a product
prices. Consider an example can ofaffect a producer’s
the price current cloud
of 6-terabyte willingnessserversto supply,
versus just theaspriceprice expectations affect
and the computer specialist to “trade”? The answer is yes because such trading will B EHAVIO R AL adrives EXAMPLE
consumer’s current
of 6-terabyte external hard from last yearwillingness
and this year. to purchase.
In TableFor 3-1,example,
we showsuppliers of portable
lead to higher output. the moneyTips prices of powerservers
cloud banks may and withhold
external fromhard the drives
market for part two of their years current supply if they
and Quality-Adjusted Prices
anticipate higher prices in the future. The current amount supplied at each and
during which they have both gone down.
BEHAVIORAL EXAMPLES introduce behavioral
THE SITUATION WITH NO TRADE Consider the scenario of no trading. Assume that during This means Alongside
thatthe
the drives.
inexplicit
provision of
today’s
everythat
prices price will decrease.
dollarsconsumers
we have paytoforpay
services
outsuchlessasfor both
are willing
cloud to payservers
for servicesandprovided in a satisfactory way. Firms that al-
each eight-hour day, the ad specialist and the computer whiz devote half of their day external hard If food
we atlook,
restaurants,
though, drinksatatthebars,relative
and taxi services,
prices low employees
suchofaspeople
cloud who provide
servers tax, and
such services to accept tips typically employ
ex-
economics examples with provocative questions
to writing ad copy and half to computerized art rendering. The ad specialist would ternal hard payments—to
many consumers of such
drives, we those findwho
TAXES
that
AND SUBSIDIES
services
last year,
production
commonly extend
cloud
costs
deliver such services. and
Certain
servers
In manytherefore
taxes,
tips—additional
were
instances,reduce
a per-unit
twicetipping,
there- supply.
as expensive
If the
firms
are effectively
with hard-to-measure
asconsumers
supply
enable
exter-
curvetoispayS1a in
an addition
skills in providing
priceFigure
to By allowing
the services.
3-8,
consistent with the overall
nal hard drives, fore, thewhereas
overall pricesthis year they are only forone and itatohalf timesof theasservice
expensive.
such as:
create eight pages of ad copy (4 hours * 2) and four computerized art renderingsSubsidy
(4 * 1). Conversely,
A negative tax; a paymentiftowe
turn tocompare
a producer
out be higher than
a per-unit
that
Every
consumers
external
tax
hard
producer
the services’
endincrease
up paying
posteddrives
prices. to
would
wouldtheseshift
getcloud
services
a “gift” servers,
3. A
Squality
from the last
ensures
per-unit
year
government
subsidy
the price
for each
a quality-adjusted
woulddodo
they actually
of unit
price
the opposite.
receive.
produced.
that consumers
That is, tipping behavior
are This
willing to pay for a
from external
the government, usually
hard drives in the
What accountsform of
was for per-unit
50thepercent subsidy
of theofprice
observed behavior wouldofshift
consumers cloud
who theservers,
include curve S2. today
tips todelivered
but service.the price of
• Tips and Quality-Adjusted Prices
During that same period, the computer specialist would create four pages of ada cash grant per unit.
copy (4 hours * 1) and four computerized art renderings (4 * 1). Each day, the com-
external hard within overall is
drives prices
aboutfor many
67 services?
percentSome of observers
the price haveofsuggested
cloud servers. In the one-year
FOR
period, although three possible rationales:NUMBER
both prices(1)have attemptsOFbyFIRMS
declined IN
in THE
consumers
money INDUSTRY
to build In the
their own self-
terms, shortCRITICAL
the relative run, when
price ofTHINKING
firms can change only the
exter-
• Why Doesn’t Higher Pay Persuade Some
bined output for the ad specialist and the computer specialist would be 12 pages of ad nal hard drives has risen in relation
copy and eight computerized art renderings.
esteem by rewarding others, (2) altruistic motives of consumers,
number of employees they use, we hold the number
sense of obligation by consumers.
stant. In Theto
keythat
the
of explanation
economic
long run,
cloud servers.
the for
or (3) a How
tipping, of offirms
number
could
services?
laws that ban tips cause
of firms inathe
may change. If the number of firms
reduction in the quality
industry con-of the delivery
Sometimes relative price changes occur because the qualitysuchtheof a productcurve improves,
Women to Avoid Traditional Gender Roles? thereby bringing
however, starts with
as food atabout
restaurants,
the increases,
fact
a decrease
mixed
that consumers
If thedrinks,
number
supply
inor the
taxiof
who purchase
will
item’s
services
firmsknow
products
increase,
effective
and
how muchprice
decreases, they per
supply
supply
constant-quality
Sources
will
will shift outward to the right.
are listed at the end ofunit.
decrease, and the this chapter.
supply curve will shift
inward to the left.
MyEconLab
How has a change in the number of firms in China’s automobile industry affected
Concept Check
the market supply of vehicles?
The Demand Schedule
Let’s take a hypothetical demand situation to see how the inverse relationship be-
INTERNATIONAL EXAMPLE tween the price and the quantity demanded looks (holding other things equal). We xix
An Increase in the Supply of Automobiles in will consider the quantity of portable power banks—utilized with various digital
China
M32_MILL8777_19_SE_C32.indd 711 25/10/16 10:12devices—demanded
AM per year. Without stating the time dimension, we could not
M03_MILL8777_19_SE_C03.indd make plants
In 2010, there51were fewer than 100 automobile-manufacturing senseinout given
of this demand
price than wasrelationship
the case in 2010.because
Thus, therethe
hasnumbers wouldin be differ-
been an increase 24/10/16 4:35 PM

China. Since then, a number of new vehicle-producing firmsenthave

if we were talking
entered the supplyabout the quantity
of automobiles in China. demanded per month or the quantity
China’s auto market. The result has been an upsurge indemanded
the number ofper decade.
plants, which currently exceeds 140. The larger number of autoInmanufac-
addition toFOR
implicitly
CRITICAL or explicitly
THINKING stating a time dimension for a demand rela-
turers operating in China now produce about 5 million moretionship,
vehicles atwe
anyare also implicitly
Has the referring
market supply curve in to constant-quality
China shifted rightwardunits of theExplain.
or leftward? good or service
in question. Prices are always expressed in constant-quality units in order to avoid the
problem of comparing commodities that are in fact not truly Concept
MyEconLab comparable.Check
In panel (a) of Figure 3-1, we see that if the price is $1 apiece, 50 portable
power banks will be bought each year by our representative individual, but if the
A01_MILL9255_19_SE_FM_Micro.indd 19 Changes in Supply
price versusonly
is $5 apiece, Changes in Quantity
10 portable power banks Supplied
will be bought each year. This 19/11/16 1:24 AM
ref lects the law of demand. Panel (a) is also called simply demand, or a demand
We cannot overstress the importance of distinguishing between a movement along the
Exploring the Variety of Random
Documents with Different Content
the twelfth proposition. But we ask them: “Have you observed a
complete revolution of a millstone? Each point in the extreme
circumference of the stone describes a large circle in the very same
time in which a point nearer the centre describes a small circle; the
velocity of the outer circle is therefore greater than that of the inner
circle. You cannot say that the motion of the latter was interrupted
by more moments of rest; for the whole moving body, i.e., the
millstone, is one coherent body.” They reply, “During the circular
motion, the parts of the millstone separate from each other, and the
moments of rest interrupting the motion of the portions nearer the
centre are more than those which interrupt the motion of the outer
portions.” We ask again, “How is it that the millstone, which we
perceive as one body, and which cannot be easily broken, even with
a hammer, resolves into its atoms when it moves, and becomes
again one coherent body, returning to its previous state as soon as it
comes to rest, while no one is able to notice the breaking up [of the
stone]?” Again their reply is based on the twelfth proposition, which
is to the effect that the perception of the senses cannot be trusted,
and thus only the evidence of the intellect is admissible. Do not
imagine that you have seen in the foregoing example the most
absurd of the inferences which may be drawn from these three
propositions: the proposition relating to the existence of a vacuum
leads to more preposterous and extravagant conclusions. Nor must
you suppose that the aforegoing theory concerning motion is less
irrational than the proposition resulting from this theory, that the
diagonal of a square is equal to one of its sides, and some of the
Mutakallemim go so far as to declare that the square is not a thing
of real existence. In short, the adoption of the first proposition
would be tantamount to the rejection of all that has been proved in
Geometry. The propositions in Geometry would, in this respect, be
divided into two classes: some would be absolutely rejected; e.g.,
those which relate to properties of the incommensurability and the
commensurability of lines and planes, to rational and irrational lines,
and all other propositions contained in the tenth book of Euclid, and
in similar works. Other propositions would appear to be only partially
correct; e.g., the solution of the problem to divide a line into two
equal parts, if the line consists of an odd number of atoms;
according to the theory of the Mutakallemim such a line cannot be
bisected. Furthermore, in the well-known book of problems by the
sons of Shakir are contained more than a hundred problems, all
solved and practically demonstrated; but if there really were a
vacuum, not one of these problems could be solved, and many of
the waterworks [described in that book] could not have been
constructed. The refutation of such propositions is a mere waste of
time. I will now proceed to treat of the other propositions mentioned
above. [123]

Fourth Proposition.

“The accidents of things have real existence; they are elements

superadded to the substance itself, and no material thing can be
without them.” Had this proposition been left by the Mutakallemim in
this form it would have been correct, simple, dear, and indisputable.
They have, however, gone further, asserting that a substance which
has not the attribute of life, must necessarily have that of death; for
it must always have one of two contrasting properties. According to
their opinion, colour, taste, motion or rest, combination or
separation, etc., can be predicated of all substances, and, if a
substance have the attribute of life, it must at the same time
possess such other kinds of accidents, as wisdom or folly, freewill or
the reverse, power or weakness, perception or any of its opposites,
and, in short, the substance must have the one or the other of all
correlative accidents appertaining to a living being.

Fifth Proposition.
“The atom is fully provided with all these foregoing accidents, and
cannot exist if any be wanting.” The meaning of the proposition is
this: The Mutakallemim say that each of the atoms created by God
must have accidents, such as colour, smell, motion, or rest, except
the accident of quantity: for according to their opinion an atom has
no magnitude; and they do not designate quantity as an accident,
nor do they apply to it the laws of accidents. In accordance with this
proposition, they do not say, when an accident is noticed in a body,
that it is peculiar to the body as such, but that it exists in each of
the atoms which form the constituent elements of that body. E.g.,
take a heap of snow; the whiteness does not exist in that heap as a
whole, but each atom of the snow is white, and therefore the
aggregate of these atoms is likewise white. Similarly they say that
when a body moves each atom of it moves, and thus the whole body
is in motion. Life likewise exists, according to their view, in each
atom of a living body. The same is the case according to their
opinion with the senses; in each atom of the aggregate they notice
the faculty of perception. Life, sensation, intellect and wisdom are
considered by them as accidents, like blackness and whiteness, as
will be shown in the further discussion of their theory.

Concerning the soul, they do not agree. The view most predominant
among them is the following:—The soul is an accident existing in one
of the atoms of which, e.g., man is composed; the aggregate is
called a being endowed with a soul, in so far as it includes that
atom. Others are of opinion that the soul is composed of ethereal
atoms, which have a peculiar faculty by virtue of which they
constitute the soul, and that these atoms are mixed with the atoms
of the body. Consequently they maintain that the soul is an accident.

As to the intellect, I found that all of them agreed in considering it to

be an accident joined to one of the atoms which constitute the
whole of the intelligent being. But there is a confusion among them
about knowledge; they are uncertain whether it is an accident to
each of the atoms which form the knowing aggregate, or whether it
belongs only to one atom. Both views can be disproved by a reductio
ad absurdum, when the following facts are pointed out to them.
Generally metals and stones have a peculiar colour, [124]which is
strongly pronounced, but disappears when they are pulverised.
Vitriol, which is intensely green, becomes white dust when pounded;
this shows that that accident exists only in the aggregate, not in the
atoms. This fact is more striking in the following instance: when
parts of a living being are cut off they cease to live, a proof that the
accident [of life] belongs to the aggregate of the living being, not to
each atom. In order to meet this objection they say that the accident
is of no duration, but is constantly renewed. In discussing the next
proposition I shall explain their view on this subject.

Sixth Proposition.

“The accidents do not exist during two time-atoms.”—The sense of

the proposition is this: They believe that God creates a substance,
and simultaneously its accidents; that the Creator is incapable of
creating a substance devoid of an accident, for that is impossible;
that the essential characteristic of an accident is its incapability of
enduring for two periods, for two time-atoms; that immediately after
its creation it is utterly destroyed, and another accident of the same
kind is created; this again is destroyed and a third accident of the
same kind is created, and so on, so long as God is pleased to
preserve [in that substance] this kind of accident; but He can at His
will create in the same substance an accident of a different kind, and
if He were to discontinue the creation and not produce a new
accident, that substance would at once cease to exist. This is one of
the opinions held by the Mutakallemim; it has been accepted by
most of them, and it is the so-called “theory of the creation of the
accidents.” Some of them, however, and they belong to the sect of
the Muʻtazilah, say that there are accidents which endure for a
certain period, and other accidents which do not endure for two
atoms of time; they do not follow a fixed principle in deciding what
class of accidents has and what class has not a certain duration. The
object of this proposition is to oppose the theory that there exists a
natural force from which each body derives its peculiar properties.
They prefer to assume that God himself creates these properties
without the intervention of a natural force or of any other agency: a
theory which implies that no accident can have any duration. For
suppose that certain accidents could endure for a certain period and
then cease to exist, the question would naturally be asked, What is
the cause of that non-existence? They would not be satisfied with
the reply that God by His will brought about this non-existence, and
non-existence does not at all require any agens whatever; for as
soon as the agens leaves off acting, the product of the agens ceases
likewise to exist. This is true to some extent. Having thus chosen to
establish the theory that there does not exist any natural force upon
which the existence or non-existence of a thing depends, they were
compelled to assume that the properties of things were successively
renewed. When God desires to deprive a thing of its existence, He,
according to some of the Mutakallemim, discontinues the creation of
its accidents, and eo ipso the body ceases to exist. Others, however,
say that if it pleased the Almighty to destroy the world, He would
create the accident of destruction, which would be without any
substratum. The destruction of the Universe would be the correlative
accident to that of existence.—In accordance with this [sixth]
proposition they say, that the [125]cloth which according to our belief
we dyed red, has not been dyed by us at all, but God created that
colour in the cloth when it came into contact with the red pigment;
we believe that colour to have penetrated into the cloth, but they
assert that this is not the case. They say that God generally acts in
such a way, that, e.g., the black colour is not created unless the
cloth is brought into contact with indigo; but this blackness, which
God creates in the instant when the cloth touches the black pigment
is of no duration, and another creation of blackness then takes
place; they further say that after the blackness is gone, He does not
create a red or green colour, but again a black colour.

According to this principle, the knowledge which we have of certain

things to-day, is not the same which we had of them yesterday; that
knowledge is gone, and another like it has been created. They
positively believe that this does take place, knowledge being an
accident. In like manner it would follow that the soul, according to
those who believe that it is an accident, is renewed each moment in
every animated being, say a hundred thousand times; for, as you
know, time is composed of time-atoms. In accordance with this
principle they assert that when man is perceived to move a pen, it is
not he who has really moved it; the motion produced in the pen is
an accident which God has created in the pen; the apparent motion
of the hand which moves the pen is likewise an accident which God
has created in the moving hand; but the creative act of God is
performed in such a manner that the motion of the hand and the
motion of the pen follow each other closely; but the hand does not
act, and is not the cause of the pen’s motion; for, as they say, an
accident cannot pass from one thing to another. Some of the
Mutakallemim accordingly contend that this white cloth, which is
coloured when put into the vessel filled with indigo, has not been
blackened by the indigo; for blackness being an attribute of indigo,
does not pass from one object to another. There does not exist any
thing to which an action could be ascribed; the real agens is God,
and He has [in the foregoing instance] created the blackness in the
substance of the cloth when it came into contact with the indigo, for
this is the method adopted by Him. In short, most of the
Mutakallemim believe that it must never be said that one thing is the
cause of another; some of them who assumed causality were
blamed for doing so. As regards, however, the acts of man their
opinions are divided. Most of them, especially the sect of the
Asha’ariyah, assume that when the pen is set in motion God has
created four accidents, none of which is the cause of any of the rest,
they are only related to each other as regards the time of their co-
existence, and have no other relation to each other. The first
accident is man’s will to move the pen, the second is man’s power to
do so, the third is the bodily motion itself, i.e., the motion of the
hand, and the fourth is the motion of the pen. They believe that
when a man has the will to do a thing and, as he believes, does it,
the will has been created for him, then the power to conform to the
will, and lastly the act itself. The act is not accomplished by the
power created in man; for, in reality, no act can be ascribed to that
power. The Muʻtazilah contend that man acts by virtue of the power
which has been created in him. Some of the Asha’ariyah assert that
the power created in man participates in the act, and is connected
with it, an opinion which has been rejected by the majority of them.
The will and the [126]power created in man, according to the
concurrent belief of the Mutakallemim, together with the act created
in him, according to some of them, are accidents without duration.
In the instance of the pen, God continually creates one motion after
the other so long as the pen is in motion; it only then ceases to
move when God has created in it the accident of rest; and so long as
the pen is at rest, God continually renews in it that accident.
Consequently in every one of these moments, i.e., of the time-
atoms, God creates some accident in every existing individual, e.g.,
in the angels, in the spheres and in other things; this creation takes
place continually and without interruption. Such is, according to their
opinion, the right interpretation of the creed that God is the causa
efficiens. But I, together with all rational persons, apply to those
theories the words, “Will you mock at Him, as you mock at man?”
for their words are indeed nothing but mockery.

Seventh Proposition.
“The absence of a property is itself a property that exists in the
body, a something superadded to its substance, an actual accident,
which is constantly renewed; as soon as it is destroyed it is
reproduced.” The reason why they hold this opinion is this: they do
not understand that rest is the absence of motion; death the
absence of life; that blindness is the absence of sight, and that all
similar negative properties are the absence of the positive
correlatives. The relation between motion and rest is, according to
their theory, the same as the relation between heat and cold,
namely, as heat and cold are two accidents found in two objects
which have the properties of heat and cold, so motion is an accident
created in the thing which moves, and rest an accident created in
the thing which rests; it does not remain in existence during two
consecutive time-atoms, as we have stated in treating of the
previous proposition. Accordingly, when a body is at rest, God has
created the rest in each atom of that body, and so long as the body
remains at rest God continually renews that property. The same,
they believe, is the case with a man’s wisdom and ignorance; the
latter is considered by them as an actual accident, which is subject
to the constant changes of destruction and creation, so long as there
remains a thing of which such a man is ignorant. Death and life are
likewise accidents, and as the Mutakallemim distinctly state, life is
constantly destroyed and renewed during the whole existence of a
living being; when God decrees its death, He creates in it the
accident of death after the accident of life, which does not continue
during two time-atoms, has ceased to exist. All this they state
clearly.

The logical consequence of this proposition is that the accident of

death created by God instantly ceases to exist, and is replaced by
another death which again is created by God; otherwise death could
not continue. Death is thus continually created in the same manner
as life is renewed every moment. But I should wish to know how
long God continues to create death in a dead body. Does He do so
whilst the form remains, or whilst one of the atoms exists? For in
each of the atoms of the body the accident of death which God
creates is produced, and there are to be found teeth of persons who
died thousands of years ago; we see that those teeth have not been
deprived of existence, and therefore the accident of death has
during all these thousands of years been renewed, and according to
the opinion [127]prevailing amongst those theorists, death was
continually replaced by death. Some of the Muʻtazilah hold that there
are cases in which the absence of a physical property is not a real
property, that weariness is the absence of strength, and ignorance
the absence of knowledge; but this cannot be said in every case of
negative properties: it cannot be said that darkness is the mere
absence of light, or that rest is the absence of motion. Some
negative properties are thus considered by them as having a real
existence, while other negative properties are considered as non-
existing, just as suits their belief. Here they proceed in the same
manner as they proceed respecting the duration of accidents, and
they contend that some accidents exist a long time, and other
accidents do not last two time-atoms. Their sole object is to fashion
the Universe according to their peculiar opinions and beliefs.

Eighth Proposition.

“There exists nothing but substance and accident, and the physical
form of things belong to the class of accidents.” It is the object of
this proposition to show that all bodies are composed of similar
atoms, as we have pointed out in explaining the first proposition.
The difference of bodies from each other is caused by the accidents,
and by nothing else. Animality, humanity, sensibility, and speech, are
denoted as accidents like blackness, whiteness, bitterness, and
sweetness, and the difference between two individuals of two
classes is the same as the difference of two individuals of the same
class. Also the body of the heaven, the body of the angels, the body
of the Divine Throne—such as it is assumed to be—the body of
anything creeping on the earth, and the body of any plant, have one
and the same substance; they only differ in the peculiarity of the
accidents, and in nothing else; the substance of all things is made
up of equal atoms.

Ninth Proposition.

“None of the accidents form the substratum of another accident; it

cannot be said, This is an accident to a thing which is itself an
accident to a substance. All accidents are directly connected with the
substance.” The Mutakallemim deny the indirect relation of the
accident to the substance, because if such a relation were assumed
it would follow that the second accident could only exist in the
substance after another accident had preceded it, a conclusion to
which they would object even with regard to some special accidents;
they prefer to show that these accidents can exist in every possible
substance, although such substance is not determined by any other
accident; for they hold that all the accidents collectively determine
the thing. They advance also another proof [in support of this
proposition], namely: The substratum which is the bearer of certain
attributes must continue to exist for a certain time; how, then, could
the accident; which—according to their opinion—does not remain in
existence for two moments, become the substratum of something
else?

Tenth Proposition.

This proposition concerns the theory of “admissibility,” which is

mentioned by the Mutakallemim, and forms the principal support of
their doctrine. Mark its purport: they observe that everything
conceived by the [128]imagination is admitted by the intellect as
possible; e.g., that the terrestrial globe should become the all-
encompassing sphere, or that this sphere should become the
terrestrial globe; reason does not find here an impossibility; or that
the sphere of fire should move towards the centre, and the sphere
of earth towards the circumference. Human intellect does not
perceive any reason why a body should be in a certain place instead
of being in another. In the same manner they say that reason admits
the possibility that an existing being should be larger or smaller than
it really is, or that it should be different in form and position from
what it really is; e.g., a man might have the height of a mountain,
might have several heads, and fly in the air; or an elephant might be
as small as an insect, or an insect as huge as an elephant. This
method of admitting possibilities is applied to the whole Universe.
Whenever they affirm that a thing belongs to this class of admitted
possibilities, they say that it can have this form, and that it is also
possible that it be found differently, and that the one form is not
more possible than the other; but they do not ask whether the
reality confirms their assumption. They say that the thing which
exists with certain constant and permanent forms, dimensions, and
properties, only follows the direction of habit, just as the king
generally rides on horseback through the streets of the city, and is
never found departing from this habit; but reason does not find it
impossible that he should walk on foot through the place; there is no
doubt that he may do so, and this possibility is fully admitted by the
intellect. Similarly, earth moves towards the centre, fire turns away
from the centre; fire causes heat, water causes cold, in accordance
with a certain habit; but it is logically not impossible that a deviation
from this habit should occur, namely, that fire should cause cold,
move downward, and still be fire; that the water should cause heat,
move upward, and still be water. On this foundation their whole
fabric is constructed. They admit, however, the impossibility of two
opposite properties coexisting at the same time in one substance.
This is impossible; reason would not admit this possibility. Again,
reason does not admit the possibility of a substance existing without
an accident, or an accident existing without a substance, a possibility
admitted by some of the Mutakallemim. It is also impossible that a
substance should become an accident, that an accident should
become a substance, or that one substance should penetrate
another. They admit that reason rejects all these things as
impossible. It is perfectly true that no notion whatever can be
formed of those things which they describe as impossible; whilst a
notion can be formed of those things which they consider as
possible. The philosophers object to this method, and say, You call a
thing impossible because it cannot be imagined, or possible because
it can be imagined; and thus you consider as possible that which is
found possible by imagination, not by the intellect, consequently you
determine that a thing is necessary, possible, or impossible in some
instances, by the aid of the imagination—not by the intellect—and in
other instances by the ordinary common sense, as Abu Nasr says in
speaking of that which the Mutakallemim call intellect. It is clear that
they describe as possible that which can be imagined, whether the
reality correspond to it or not, and as impossible that which cannot
be imagined. This proposition can only be established by the nine
aforementioned propositions, and no doubt these were exclusively
required for the support of [129]this proposition. This you will see
clearly when I shall show and explain to you some important parts
of this theory, which I shall now introduce in the form of a discussion
supposed to have taken place between a Mutakallem and a
philosopher.

The Mutakallem said to the philosopher: What is the reason that we

find the substance of iron extremely hard and strong, with a dark
colour; the substance of cream, on the other hand, extremely soft
and white? The philosopher replied as follows: All physical bodies
have two kinds of accidents: those which concern their substance,
as, e.g., the health and the illness of a man; and those which
concern their form, as, e.g., the astonishment and laughter of a
man. The substances of compound bodies differ very much in their
ultimate form, according to the difference of the forms peculiar to
each component substance. Hence the substance of iron has
become in its properties the opposite of the substance of cream, and
this difference is attended by the difference of accidents. You notice,
therefore, hardness in the one, and softness in the other: two
accidents, whose difference results from the difference which exists
in the forms of the substances; while the darkness and the
whiteness are accidents whose divergence corresponds to that of the
two substances in their ultimate condition. The Mutakallem refuted
this reply by means of his propositions, as I am now going to state:
—There does not exist a form which, as you believe, modifies the
substance, and thus causes substances to be different from each
other; this difference is exclusively effected by the accidents—
according to the theory of the Kalâm, which we mentioned in
explaining the eighth proposition. He then continued thus: There is
no difference between the substance of iron and that of cream; all
things are composed of the same kind of atoms.—We explained the
view of the Mutakallemim on this point in treating of the first
proposition, the logical consequences of which are, as we have
shown, the second and the third propositions; they further require
the twelfth proposition, in order to establish the theory of atoms.
Nor do they admit that any accidents determine the nature of a
substance, or predispose it to receive certain other accidents; for,
according to their opinion, an accident cannot be the substratum of
another accident, as we have shown in explaining the ninth
proposition; nor can it have any duration, according to the sixth
proposition. When the Mutakallemim have established all that they
wish to infer from these propositions, they arrive at the conclusion
that the component atoms of cream and of iron are alike.—The
relation of each atom to each of the accidents is the same; one atom
is not more adapted than another to receive a certain accident; and
as a certain atom is not more fitted to move than to rest, so one
atom is not more apt than another to receive the accident of life, of
reason, of sensation. It is here of no moment whether a thing
contains a larger or smaller quantity of atoms, for, according to the
view of the Mutakallemim, which we explained in treating of the fifth
proposition, every accident [of a thing] exists in each of its atoms.
All these propositions lead to the conclusion that a human being is
not better constituted to become wise than the bat, and establish
the theory of admissibility expressed in this [tenth] proposition.
Every effort was made to demonstrate this proposition, because it is
the best means for proving anything they like, as will be explained.
[130]

Note.—Mark, O reader, that if you know the nature of the soul and
its properties, and if you have a correct notion of everything which
concerns the soul, you will observe that most animals possess
imagination. As to the higher class of animals, that is, those which
have a heart, it is obvious that they have imagination. Man’s
distinction does not consist in the possession of imagination, and the
action of imagination is not the same as the action of the intellect,
but the reverse of it. For the intellect analyses and divides the
component parts of things, it forms abstract ideas of them,
represents them in their true form as well as in their causal relations,
derives from one object a great many facts, which—for the intellect
—totally differ from each other, just as two human individuals appear
different to the imagination; it distinguishes that which is the
property of the genus from that which is peculiar to the individual,—
and no proof is correct, unless founded on the former; the intellect
further determines whether certain qualities of a thing are essential
or non-essential. Imagination has none of these functions. It only
perceives the individual, the compound in that aggregate condition
in which it presents itself to the senses; or it combines things which
exist separately, joins some of them together, and represents them
all as one body or as a force of the body. Hence it is that some
imagine a man with a horse’s head, with wings, etc. This is called a
fiction, a phantasm; it is a thing to which nothing in the actual world
corresponds. Nor can imagination in any way obtain a purely
immaterial image of an object, however abstract the form of the
image may be. Imagination yields therefore no test for the reality of
a thing.

Hear what profit we derive from the preliminary disciplines, and how
excellent the propositions are which we learn through them. Know
that there are certain things, which would appear impossible, if
tested by man’s imagination, being as inconceivable as the co-
existence of two opposite properties in one object; yet the existence
of those same things, which cannot be represented by imagination,
is nevertheless established by proof, and attested by their reality.
E.g., Imagine a large globe, of any magnitude you like, even as large
as the all-encompassing sphere; further an axis passing through the
centre, and two persons standing on the two extremities of the axis
in such a manner that their feet are in the same straight line with
the axis, which may be either in the plane of the horizon or not; in
the first case both persons would fall, in the second case one,
namely the one who stands on the lower extremity would fall, the
other would remain standing, as far as our imagination can perceive.
It has however, already been proved that the earth has the form of a
globe, that it is inhabited on both extremities of a certain diameter,
that both the inhabitants have their heads towards the heaven, and
their legs towards each other, and yet neither can possibly fall, nor
can it be imagined; for it is incorrect to say that the one extremity is
above, the other below; but the term “above” and “below” apply to
both of them as regards their relative position to each other.
Similarly it has been proved in the second chapter of the book on
Conic Sections, that two lines, which at first are at a certain distance
from each other, may approach each other in the same proportion as
they are produced further, and yet would never meet, even if they
were produced to infinity, although they are observed to be
constantly converging. This is a fact [131]which cannot easily be
conceived, and which does not come within the scope of
imagination. Of these two lines the one is straight, the other curved,
as stated in the aforementioned book. It has consequently been
proved that things which cannot be perceived or imagined, and
which would be found impossible if tested solely by imagination, are
nevertheless in real existence. The non-existence of things which are
represented by imagination as possible has likewise been established
by proof, e.g., the corporeality of God, and His existence as a force
residing in a body. Imagination perceives nothing except bodies, or
properties inherent in bodies.

It has thus been clearly shown that in man exists a certain faculty
which is entirely distinct from imagination, and by which the
necessary, the possible, and the impossible can be distinguished
from each other. This inquiry is most useful. It is of the greatest
profit to him who desires to guard himself against the errors of men
guided by imagination! Do not think that the Mutakallemim ignore
this altogether; to some extent they do take it into consideration;
they know it, and call that which can be imagined without having
reality—as, e.g., the corporeality of God—a phantom and a fancy;
they state frequently that such phantoms are not real. It is for this
reason that they advance the first nine propositions and establish on
them the proof of the tenth, according to which all those imaginable
things which they wish to admit as possible are really possible,
because of the similarity of all atoms and the equality of all accidents
as regards their accidentality, as we have explained.

Consider, O reader, and bear in mind that this requires deep

research. For there are certain notions which some believe to be
founded on reason, while others regard them as mere fictions. In
such cases it would be necessary to find something that could show
the difference between conceptions of the intellect and mere
imaginary fancies. When the philosopher, in his way of expressing
himself, contends, “Reality is my evidence; by its guidance I examine
whether a thing is necessary, possible, or impossible,” the religionist
replies, “This is exactly the difference between us; that which
actually exists, has, according to my view, been produced by the will
of the Creator, not by necessity; just as it has been created with that
special property, it might have been created with any other property,
unless the impossibility which you postulate be proved by a logical
demonstration.”

About this admissibility (of imaginable things) I shall have to say

more, and I shall return to it in various parts of this treatise; for it is
not a subject which should be rejected in haste and on the spur of
the moment.

Eleventh Proposition.

“The existence of the infinite is in every respect impossible.” The

following is an explanation of this proposition. The impossibility of
the existence of an infinite body has been clearly demonstrated; the
same can be said of an infinite number of bodies, though each of
them be finite, if these beings, infinite in number, exist at the same
time; equally impossible is the existence of an infinite series of
causes, namely, that a certain thing should be the cause of another
thing, but itself the effect of another cause, which again is the result
of another cause, and so on to infinity, or that things in an infinite
series, either bodies or ideals, should be in actual existence, and
[132]in causal relation to each other. This causal relation is the
essential order of nature, in which, as has been fully proved, the
infinite is impossible. As regards the virtual and the accidental
existence of the infinite, it has been established in some cases; it
has been proved, e.g., that a body can virtually be divided ad
infinitum, also that time can be divided ad infinitum; in other cases it
is still an open question, as, e.g., the existence of the infinite in
succession, which is called the accidental infinite, i.e., a series of
things in which one thing comes forth when the other is gone, and
this again in its turn succeeded a thing which had ceased to exist,
and so on ad infinitum. This subject requires deep research.

Those who boast that they have proved the eternity of the Universe
say that time is infinite; an assertion which is not necessarily
erroneous; for only when one atom has ceased to exist, the other
follows. Nor is it absolutely wrong, when they assert, that the
accidents of the substance succeed each other in an infinite series,
for these accidents do not co-exist, but come in succession one after
the other, and the impossibility of the infinite in that case has not
been proved. The Mutakallemim, however, make no difference
between the existence of an infinite body and the divisibility of a
body or of time ad infinitum, between the co-existence of an infinite
number of things, as e.g., the individual human beings who exist at
present, and the infinite number of beings successively existing, as,
e.g., Reuben the son of Jacob, and Jacob the son of Isaac, and Isaac
the son of Abraham, and so on to infinity. This is according to their
opinion as inadmissible as the first case; they believe these four
forms of the infinite to be quite equal. Some of the Mutakallemim
endeavour to establish their proposition concerning the last named
form of the infinite, and to demonstrate its impossibility by a method
which I shall explain in this treatise; others say that this impossibility
is a self-evident axiom and requires no further proof. But if it were
undoubtedly wrong to assume that an infinite number of things can
exist in succession, although that link of the series which exists at
present is finite, the inadmissibility of the eternity of the Universe
would be equally self-evident, and would not require for its proof
any other proposition. This, however, is not the place for
investigating the subject.
Twelfth Proposition.

“The senses are not always to be trusted.” For two reasons the
Mutakallemim find fault with the perception of the senses. First, the
senses are precluded from perceiving many objects, either on
account of the smallness of the objects—this is the case with the
atoms, as we have already stated—or on account of the remoteness
of the objects from the person who desires to perceive them; e.g.,
we cannot see, hear, or smell at a distance of many miles; nor do we
perceive the motion of the heavens. Secondly, the senses
misapprehend the objects of their perception: a large object appears
small from a distance; a small object immersed in water appears
larger; a crooked thing appears straight when partly placed in water,
and partly out of it; things appear yellow to a person suffering from
jaundice; sweet things are bitter to him whose tongue has imbibed
red gall; and they mention many other things of this kind. Therefore
they say, we cannot trust our senses so far as to establish any proof
on their perceptions. You must not believe [133]that the
Mutakallemim had no purpose in agreeing upon this proposition, or
as most of the later adherents of that school affirm, that the first
Mutakallemim had no ulterior object in endeavouring to prove the
existence of atoms. On the contrary, every proposition here
mentioned is indispensable; if one of these be rejected, the whole
theory falls to the ground. The last-mentioned proposition is of
particular importance; for when our senses perceive things by which
any of the foregoing propositions are confuted, the Mutakallemim
say that no notice should be taken of the perception of the senses
so long as the proposition is supported by the testimony of the
intellect, and established (as they believe) by proof. Thus they say
that the continuous motion is interrupted by moments of rest; that
the millstone in its motion is broken into atoms; that the white
colour of a garment ceases to exist, and another whiteness comes in
its stead. All these theories are contrary to what the eye perceives,
and many inferences are drawn from the assumed existence of a
vacuum, all of which are contradicted by the senses. The
Mutakallemim, however, meet these objections by saying, whenever
they can do so, that the perception of these things is withheld from
the senses; in other instances they maintain that the contradiction
has its source in the deceptive character of the senses. You know
that this theory is very ancient, and was the pride of the sophists,
who asserted that they themselves were its authors; this is stated by
Galenus in his treatise on natural forces; and you know well what he
says of those who will not admit the evidence of the senses.

Having discussed these propositions, I now proceed to explain the

theory of the Mutakallemim concerning the above-mentioned four
problems.
[Contents]
 CHAPTER LXXIV
In this chapter will be given an outline of the proofs by which the
Mutakallemim attempt to demonstrate that the universe is not
eternal. You must of course not expect that I shall quote their
lengthy arguments verbatim; I only intend to give an abstract of
each proof, to show in what way it helps to establish the theory of
the creatio ex nihilo or to confute the eternity of the universe, and
briefly to notice the propositions they employed in support of their
theory. If you were to read their well-known and voluminous
writings, you would not discover any arguments with which they
support their view left unnoticed in the present outline, but you
might find there greater copiousness of words combined with more
grace and elegance of style; frequently they employ rhyme, rhythm,
and poetical diction, and sometimes mysterious phrases which
perhaps are intended to startle persons listening to their discourses,
and to deter those who might otherwise criticize them. You would
also find many repetitions; questions propounded and, as they
believe, answered, and frequent attacks on those who differ from
their opinions.

The First Argument.

Some of the Mutakallemim thought that by proving the creation of

one thing, they demonstrated the creatio ex nihilo in reference to
the entire universe. E.g., Zaid, who from a small molecule had
gradually been brought [134]to a state of perfection, has undoubtedly
not effected this change and development by his own efforts, but
owes it to an external agency. It is therefore clear that an agent is
required for such organization and successive transmutation. A
palm-tree or any other object might equally be selected to illustrate
this idea. The whole universe, they argue, is analogous to these
instances. Thus you see how they believe that a law discovered in
one thing may equally be applied to everything.

The Second Argument.

This argument is likewise based on the belief that the proof by which
the creation of one thing is demonstrated, holds good for the creatio
ex nihilo in reference to the whole universe. E.g., a certain
individual, called Zaid, who one time was not yet in existence,
subsequently came into existence; and if it be assumed that Amr, his
father, was the cause of his existence, Amr himself must likewise
have passed from non-existence into existence; suppose then that
Zaid’s father unquestionably owed his origin to Khaled, Zaid’s
grandfather, it would be found that Khaled himself did not exist from
eternity, and the series of causes could thus be carried back to
infinity. But such an infinite series of beings is inadmissible according
to the theory of the Mutakallemim, as we have shown in our
discussion of the eleventh proposition. In continuing this species of
reasoning, you come to a first man, who had no parent, viz. Adam.
Then you will of course ask, whence came this first man? If, e.g., the
reply be given that he was made out of earth, you will again inquire,
“Whence came that earth?” “Out of water.” “Whence came the
water?” The inquiry would be carried on, either ad infinitum, which
is absurd, or until you meet with a something that came into
existence from absolute non-existence; in this latter case you would
arrive at the real truth; here the series of inquiries ends. This result
of the question proves, according to the opinion of the
Mutakallemim, that the whole universe came into existence from
absolute non-existence.

The Third Argument.

The atoms of things are necessarily either joined together or
separate, and even the same atoms may at one time be united at
another disunited. It is therefore evident that the nature of the
atoms does not necessitate either their combination or their
separation; for if they were separate by virtue of their nature they
would never join, and if they were joined by virtue of their nature,
they could never again be separated. Thus there is no reason why
atoms should rather be combined than separate, or vice versâ, why
rather in a state of separation than of combination. Seeing that
some atoms are joined, others separate, and again others subject to
change, they being combined at one time and separated at another,
the fact may therefore be taken as a proof that the atoms cannot
combine or separate without an agent. This argument, according to
the opinion of the Mutakallemim, establishes the theory that the
universe has been created from nothing. You have already been told,
that those who employ this argument rely on the first proposition of
the Mutakallemim with its corollaries. [135]

The Fourth Argument.

The whole Universe is composed of substance and accidents; every

substance must possess one accident or more, and since the
accidents are not eternal, the substance, the substratum of the
accidents, cannot be eternal; for that which is joined to transient
things and cannot exist without them is itself transient. Therefore
the whole Universe has had a beginning. To the objection, that the
substance may possibly be eternal while the accidents, though in
themselves transient, succeed each other in an infinite series, they
reply that, in this case, an infinite number of transient things would
be in existence, an eventuality which, according to their theory, is
impossible. This argument is considered by them the best and
safest, and has been accepted by many of them as a strict proof. Its
acceptance implies the admission of the following three propositions,
the object of which is well understood by philosophers. (1) An
infinite series of things, of which the one succeeds when the other
has ceased to exist, is impossible. (2) All accidents have a beginning.
—Our opponent, who defends the theory of the eternity of the
universe, can refute this proposition by pointing to one particular
accident, namely to the circular motion of the sphere; for it is held
by Aristotle that this circular motion is eternal, and, therefore, the
spheres which perform this motion are, according to his opinion,
likewise eternal. It is of no use to prove that all other accidents have
a beginning; for our opponent does not deny this; he says that
accidents may supervene an object which has existed from eternity,
and may follow each other in rotation. He contents himself with
maintaining that this particular accident, viz., circular motion, the
motion of the heavenly sphere, is eternal, and does not belong to
the class of transient accidents. It is therefore necessary to examine
this accident by itself, and to prove that it is not eternal. (3) The
next proposition which the author of this argument accepts is as
follows: Every material object consists of substance and accidents,
that is to say, of atoms and accidents in the sense in which the
Mutakallemim use the term. But if a material object were held to be
a combination of matter and form, as has been proved by our
opponent, it would be necessary to demonstrate that the primal
matter and the primal form are transient, and only then the proof of
the creatio ex nihilo would be complete.

The Fifth Argument.

This argument is based on the theory of Determination, and is made

much of by the Mutakallemim. It is the same as the theory which I
explained in discussing the tenth proposition. Namely, when they
treat either of the Universe in general, or of any of its parts, they
assume that it can have such properties and such dimensions as it
actually has; that it may receive such accidents as in reality are
noticed in it, and that it may exist in such a place and at such a time
as in fact is the case; but it may be larger or smaller, may receive
other properties and accidents, and come to existence at an earlier
or a later period, or in a different place. Consequently, the fact that a
thing has been determined in its composition, size, place, accident
and time—a variation in all these points being possible—is a proof
that a being exists which freely chooses and determines these divers
relations; and the circumstance [136]that the Universe or a part of it
requires a being able to make this selection, proves that the
Universe has been created ex nihilo. For there is no difference which
of the following expressions is used: to determine, to make, to
create, to produce, to originate, or to intend; these verbs have all
one and the same meaning. The Mutakallemim give a great many
examples, both of a general and a special character. They say it is
not more natural for earth to be under water than to be above
water; who then determined its actual position? Or, is it more natural
that the sun is round than that it should be square or triangular; for
all qualities have the same relation to a body capable of possessing
them. Who then determined one particular quality? In a similar way
they treat of every individual being; when, e.g., they notice flowers
of different colours, they are unable to explain the phenomenon, and
they take it as a strong proof in favour of their theory; they say,
“Behold, the earth is everywhere alike, the water is alike; why then
is this flower red and that one yellow?” Some being must have
determined the colour of each, and that being is God. A being must
therefore exist which determines everything, both as regards the
Universe generally, and each of its parts individually. All this is the
logical consequence of the tenth proposition. The theory of
determination is moreover adopted by some of those who assume
the eternity of the Universe, as will be explained below. In
conclusion, I consider this to be the best argument; and in another
part I shall more fully acquaint you with the opinion I have formed
concerning the theory of Determination.
The Sixth Argument.

One of the modern Mutakallemim thought that he had found a very

good argument, much better than any advanced hitherto, namely,
the argument based on the triumph of existence over non-existence.
He says that, according to the common belief, the existence of the
Universe is merely possible; for if it were necessary, the Universe
would be God—but he seems to forget that we are at issue with
those who, whilst they believe in the existence of God, admit at the
same time the eternity of the Universe.—The expression “A thing is
possible” denotes that the thing may either be in existence or not in
existence, and that there is not more reason why it should exist than
why it should not exist. The fact that a thing, the existence of which
is possible, actually does exist—although it bears the same relation
to the state of existence as to that of non-existence—proves that
there is a Being which gave the preference to existence over non-
existence. This argument is very forcible; it is a modified form of the
foregoing argument which is based on the theory of determination.
He only chose the term “preference” instead of “determination,” and
instead of applying it to the properties of the existing being he
applies it to “the existence of the being itself.” He either had the
intention to mislead, or he misunderstood the proposition, that the
existence of the Universe is possible. Our opponent who assumes
the eternity of the Universe, employs the term “possible,” and says,
“the existence of the Universe is possible” in a sense different from
that in which the Mutakallem applies it, as will be explained below.
Moreover it may be doubted whether the conclusion, that the
Universe owes its origin to a being which is able to give preference
to existence over non-existence, is correct. For [137]we may apply
the terms “preference” and “determination” to anything capable of
receiving either of two properties which are contrary or opposed to
each other; and when we find that the thing actually possesses one
property and not the other, we are convinced that there exists a
determining agent. E.g., you say that a piece of copper could just as
well be formed into a kettle as into a lamp; when we find that it is a
lamp or a kettle, we have no doubt that a deciding and determining
agent had advisedly chosen one of the two possible forms; for it is
clear that the substance of copper existed, and that before the
determination took place it had neither of the two possible forms
which have just been mentioned. When, however, it is the question
whether a certain existing object is eternal, or whether it has passed
from non-existence into existence, this argument is inadmissible; for
it cannot be asked who decided in favour of the existence of a thing,
and rejected its non-existence, except when it has been admitted
that it has passed from non-existence into existence; in the present
case this is just the point under discussion. If we were to take the
existence and the non-existence of a thing as mere objects of
imagination, we should have to apply the tenth proposition which
gives prominence to imagination and fiction, and ignores the things
which exist in reality, or are conceived by the intellect. Our
opponent, however, who believes in the eternity of the Universe, will
show that we can imagine the non-existence of the universe as well
as we can imagine any other impossibility. It is not my intention to
refute their doctrine of the creatio ex nihilo: I only wish to show the
incorrectness of their belief that this argument differs from the one
which precedes; since in fact the two arguments are identical, and
are founded on the well-known principle of determination.

The Seventh Argument.

One of the modern Mutakallemim says that he is able to prove the

creation of the Universe from the theory put forth by the
philosophers concerning the immortality of the soul. He argues thus:
If the world were eternal the number of the dead would necessarily
be infinite, and consequently an infinite number of souls would
coexist, but it has long since been shown that the coexistence of an
infinite number of things is positively impossible. This is indeed a
strange argument! One difficulty is explained by another which is still
greater! Here the saying, well known among the Arameans, may be
applied: “Your guarantee wants himself a guarantee.” He rests his
argument on the immortality of the soul, as though he understood
this immortality, in what respect the soul is immortal, or what the
thing is which is immortal! If, however, he only meant to controvert
the opinion of his opponent, who believed in the eternity of the
Universe, and also in the immortality of the soul, he accomplished
his task, provided the opponent admitted the correctness of the idea
which that Mutakallem formed of the philosopher’s view on the
immortality of the soul. Some of the later philosophers explained this
difficulty as follows: the immortal souls are not substances which
occupy a locality or a space, and their existence in an infinite
number is therefore not impossible. You must bear in mind that
those abstract beings which are neither bodies nor forces dwelling in
bodies, and which in fact are ideals—are altogether incapable of
being represented as a [138]plurality unless some ideals be the cause
of the existence of others, and can be distinguished from each other
by the specific difference that some are the efficient cause and
others the effect; but that which remains of Zaid [after his death] is
neither the cause nor the effect of that which is left of Amr, and
therefore the souls of all the departed form only one being as has
been explained by Ibn Bekr Ibn Al-zaig, and others who ventured to
speak on these profound subjects. In short, such intricate
disciplines, which our mind can scarcely comprehend, cannot furnish
any principles for the explanation of other subjects.—It should be
noted that whoever endeavours to prove or to disprove the eternity
of the Universe by these arguments of the Mutakallemim, must
necessarily rely on one of the two following propositions, or on both
of them; namely on the tenth proposition, according to which the
actual form of a thing is merely one of many equally possible forms,
and which implies that there must be a being capable of making the
special selection; or on the eleventh proposition which rejects the
existence of an infinite series of things coming successively into
existence. The last-named proposition is demonstrated in various
ways, e.g., they advert to a class of transient individuals, and to a
certain particular date. From the theory which asserts the eternity of
the Universe, it would follow that the individuals of that class up to
that particular date are infinite in number; a thousand years later the
individuals of that class are likewise infinite in number; the last
number must exceed the previous one by the number of the
individuals born in those thousand years, and consequently one
infinite number would be larger than another. The same argument is
applied to the revolutions of the heavenly sphere, and in like manner
it is shown that one infinite number of revolutions would be larger
than another; the same result is obtained when revolutions of one
sphere are compared with those of another moving more slowly; the
revolutions of both spheres [though unequal] would be infinite in
number. Similarly they proceed with all those accidents which are
subject to destruction and production; the individual accidents that
have passed into non-existence are counted and represented as
though they were still in existence, and as though they were things
with a definite beginning; this imaginary number is then either
increased or reduced. Yet all these things have no reality and are
mere fictions. Abunazar Alfarabi in criticizing this proposition, has
exposed all its weak points, as you will clearly perceive, when you
study his book on the changeable beings earnestly and
dispassionately. These are the principal arguments of the
Mutakallemim in seeking to establish the creatio ex nihilo. Having
thus proved that the Universe is not eternal, they necessarily infer
that there is an Agens who created it in accordance with His
intention, desire and will. They then proceed to prove the unity of
that Agens as I am going to point out in the next chapter.