Microeconomics: Principles and Tools

For one-semester, freshman/sophomore level courses in Principles of Microeconomics. This modern principles text has a strong foundation in demand and supply, the most important topic in learning and teaching principles of economics. Its improved coverage of change in demand vs. change in quantity demanded (also in supply coverage) enables students to better visualize and truly understand the difference between these two fundamental concepts. Early coverage of comparative advantage and externalities reflects a more modern approach to teaching and understanding the underpinnings of microeconomics.* NEW-Ch. 4 Supply, Demand and Market Equilibrium-This chapter has improved and strengthened coverage of change in demand vs. change in quantity demanded. * Helps better explain the differences between these two concepts for students. The same is also used in the explanation of supply. * NEW-Ch. 6 Market Efficiency and Government Intervention-Carefully explains the concepts of consumer and producer surplus, and uses the concept to discuss the efficiency of competitive markets, the inefficiencies created by price controls, taxi medallions, and import restrictions. * Introduces externalities early in the Micro coverage by using spillovers and the use of a pollution tax as examples. * NEW-Ch. 12 Oligopoly and Strategic Behavior-Covers game theory more extensively by including a deeper discussion of guaranteed price matching, limit pricing and contestable markets. * Makes this usually complex topic very accessible to the first time student. * NEW-Ch. 13. Using Market Power: Price Discrimination and Advertising-Includes a fascinating discussion of price discrimination which students are readily drawn to, and also uses advertising as an example of the marginal principle to discuss profit maximization. * Provides sophisticated material made accessible for undergraduates. * NEW-Ch. 14 Controlling Market Power: Antitrust Policy and Deregulation-Discusses antitrust policy-blocking mergers and breaking up monopolies-using modern examples such as Microsoft, Staples and Office Depot. It discusses deregulation of airlines, telecommunications and in a brand-new section, the deregulation of electricity markets in California, New York, and Pennsylvania. * Uses modern, real world examples to help students grasp these interesting topics. * NEW-Ch. 15 Imperfect Information and Disappearing Markets-In this chapter the authors streamlined presentation has been purposefully written with a beginning economics student in mind. This timely and intriguing topic of imperfect information (the lemons problem) was one of the first to be introduced as a complete chapter in a principles course. Coverage also includes examples of asymmetric information and the notion of moral hazard. * Provides this topic in an accessible and easy to understand manner. Pedagogical Features * NEW-A focus on the 5 key principles of economics-1) Opportunity Cost, 2) The Marginal Principle (comparing marginal benefits and marginal costs), 3) Diminishing Returns, 4) The Spillover Principle (for externalities in production and consumption), 5) The Reality Principle (distinguishing real from nominal magnitudes). * Shows students the logic of economics reasoning an demystifies the tools of economics by returning to these 5 principles repeatedly throughout the text. * NEW-Integration of global material-Introduces global concepts early in the text and interweaves them throughout. * Highlights the globalization of the world economy. Active Learning Tools * NEW-Using the Tools Sections at the end of each chapter. Complete answers also appear at the end of each chapter. * Gives students opportunities to do their own economic analysis. * NEW-Economic experiments-Actively involve the student in role-playing as consumers, producers, and policy makers. * Stimulates students interest and are easy for professors to use and implement in a classroom of any size. * NEW-Applications questions-Ask students to creatively use the concepts presented in the book in real world situations. * Empowers students economic thinking. * NEW-Test Your Understanding questions and problems throughout each chapter. * Offers numerous and various methods to help students reinforce their understanding of the material as they encounter it, and to check their comprehension before they finish the chapter.

Table of Contents:
I. INTRODUCTION AND KEY PRINCIPLES. 1. Introduction: What Is Economics? 2. Key Principles of Economics. 3. Markets in the Global Economy. 4. Supply, Demand, and Market Equilibrium. II. A CLOSER LOOK AT SUPPLY AND DEMAND. 5. Elasticity: A Measure of Responsiveness. 6. Market Efficiency and Government Intervention. 7. Consumer Choice. III. MARKET STRUCTURES AND PRICING. 8. Production and Cost. 9. Perfect Competition: Short Run and Long Run. 10. Monopoly. 11. Entry and Monopolistic Competition. 12. Oligopoly and Strategic Behavior. 13. Using Market Power: Price Discrimination and Advertising. 14. Controlling Market Power: Antitrust Policy and Deregulation. IV. SPILLOVERS AND INFORMATION. 15. Imperfect Information and Disappearing Markets. 16. Public Goods, Taxes and Public Choice. 17. Environmental Policy. V. THE LABOR MARKET AND ECONOMIC CHALLENGES. 18. The Labor Market. 19. Economic Challenges: Poverty, Aging, Health Care. VI. THE INTERNATIONAL ECONOMY. 20. International Trade and Public Policy.