PRINCIPLES OF MICROECONOMICS:
G U I D E D
T O U R
PART ONE: INTRODUCTION Chapter 1 Chapter 2 Chapter 3
Ten Principles of Economics Thinking Like an Economist Interdependence and the Gains from Trade The study of economics is guided by a few big ideas. Economists view the world as both scientists and policymakers. The theory of comparative advantage explains how people benefit from economic interdependence.
PART TWO: SUPPLY AND DEMAND I: HOW MARKETS WORK Chapter 4
The Market Forces of Supply and Demand Elasticity and Its Application Supply, Demand, and Government Policies How does the economy coordinate interdependent economic actors? Through the market forces of supply and demand. The tools of supply and demand are put to work to examine the effects of various government policies.
Chapter 5 Chapter 6
PART THREE: SUPPLY AND DEMAND II: MARKETS AND WELFARE Chapter 7 Chapter 8 Chapter 9 Consumers, Producers, and the Efficiency of Markets Application: The Costs of Taxation Application: International Trade Why is the equilibrium of supply and demand desirable for society as a whole? The concepts of consumer and producer and surplus explain the efficiency of markets, the costs of taxation, and the benefits of international trade.
PART FOUR: THE ECONOMICS OF THE PUBLIC SECTOR Chapter 10 Chapter 11 Chapter 12 Externalities Public Goods and Common Resources The Design of the Tax System Market outcomes are not always efficient, and governments can sometimes remedy market failure. To fund programs, governments raise revenue through their tax systems, which are designed with an eye toward balancing efficiency and equity.
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