
Introductory Microeconomics
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Introductory Microeconomics explains the basic principles of microeconomics, producer and consumer choices, resource markets, and government policies. The book describes the economics of exchange, such as the role of economic growth, factors that determine the amount and types of exchange, the supply and demand model of market operations, price setting, price changes, and the impact of one market on other markets. The text also explains market failures in terms of free market choice, externalities of failures, monopolies, as well as scarcity and choices leading to poverty. When economic policies are considered by the state, there are trade-offs that are necessary in the exchange. Before the government should make decisions, it always has to consider two opportunity costs, namely, 1) budget constraints, and 2) the opportunity cost of the funds spent in the private sector. For example (no. 1), if more money is spent on transfer payments, less will be left for education, national defense, infrastructure. Another example (no. 2) is when the government collects taxes, a direct loss in real income and utility among consumers will result. The book also presents real world economics in terms of the social security tax in the United States. The book can prove valuable for students of economics or business, sociologists, general readers interested in real-world economics, and policy makers involved in national economic development.
Table of Contents
Preface
Introduction
Part 1 The Economics of Exchange
Chapter 1 Scarcity and Choice
The Problem of Scarcity
Changing Trade-Offs
Scarcity and Choice for the Individual
Scarcity and Choice for the Business Firm
Scarcity and Choice for Society
Economic Growth
Real World Economics: Jim Daniels Has a Hangover?
Summary
Discussion Questions
Test Yourself
Chapter 2 Specialization and Exchange
A Barter Economy
The Theory of Comparative Advantage
Mutually Advantageous Exchange
The Gains from Trade
Specialization in the Real World
Comparative Advantage in the Real World
The Role of Money
Limits to Exchange
Distribution of the Gain
Other Reasons for Exchange
Real World Economics: Bullish on Wall Street
Summary
Discussion Questions
Test Yourself
Chapter 3 Demand and Supply. The Micro Side
The Role of the Market
How the Market Works
The Concept of Demand
The Demand Curve
The Concept of Supply
The Supply Curve
Changes in Supply
The Market at Work
Changing Markets
Summary of Market Actions
The Market's Verdict
Real World Economics: Apartment House Rents
Summary
Discussion Questions
Test Yourself
Chapter 4 Markets at Work
Real World Economics: Falling Calculator Prices
Real World Economics: Coffee and Tea
Real World Economics: Cut-Rate Air Fares
Real World Economics: Cigarette Taxes
Real World Economics: Rent Controls
Real World Economics: Price Floors
Appendix: More About Elasticity
Summary
Discussion Questions
Test Yourself
Part 2 Consumer and Producer Choice
Chapter 5 Consumer Choice
How Much To Buy?
Consumer Benefits: Utility
Maximizing Utility
Opportunity Cost
Consumer Equilibrium
Changing Consumer Choice
Changing Prices: Demand Curves
Substitutes, Complements, and Income Effects
Changing Preferences
Real World Economics: Gas Lines Grow Longer in Nation's Capital
Appendix: Indifference Curve Analysis
Summary
Discussion Questions
Test Yourself
Chapter 6 Production and Cost
Who Are the Producers?
Motives of the Firm
Production and Costs
Different Views of Production Costs
Costs in the Long Run
Real World Economics: Toys and Games
Appendix: Production Theory
Summary
Discussion Questions
Test Yourself
Chapter 7 Producer Choice: Monopoly
What Is a Monopoly?
Monopoly Revenues
The Monopoly Production Decision
Monopoly Pricing
Changing Costs
Technological Advances
Monopoly in the Real World
Real World Economics: A Money-Losing Monopoly
Summary
Discussion Questions
Test Yourself
Chapter 8 Producers in competitive Markets
Perfect Competition
Price Takers
Maximizing Profits
Supply Curves
Equilibrium for the Industry
Changing Costs for the Firm
Supply in the Long Run
Real World Economics: A Monopoly Versus a Competitive Market
Summary
Discussion Questions
Test Yourself
Chapter 9 Imperfect Competition
Product Differentiation
Price Discrimination
Benefits of Price Discrimination
Cartels
Oligopolies
Government Regulation
Real World Economics: Automotive Oligopoly
Summary
Discussion Questions
Test Yourself
Part 3 Resource Markets
Chapter 10 Labor Markets
The Supply of Labor
The Demand for Labor
Changes in Labor Demand
The Labor Demand Curve
Wage Rate Differentials
Labor Unions
Government Labor Policies
Real World Economics: Cost-of-Living Clauses
Summary
Discussion Questions
Test Yourself
Chapter 11 Capital and Natural Resource Markets
The Demand for Inputs
Investment: The Demand for Capital
Input Supplies: Natural Resources
The Impact of Price Expectations
The Problem of Property Rights
Unstable Prices
Real World Economics: Training and Education Programs
Summary
Discussion Questions
Test Yourself
Chapter 12 Energy Markets
Energy and Economic Development
Price, Quantity, and Substitution Effects
Energy Supplies
Energy Price Controls
OPEC and the Supply of Oil
Managing the Energy Problem
The Paradox of Net Energy
Energy and the Environment
Real World Economics: The Price of Energy
Summary
Discussion Questions
Test Yourself
Part 4 Market Failures
Chapter 13 Free Market Choice
The Free Market Economy
The Invisible Hand
Bureaucratic Choice
Self-Interest and the Invisible Hand
The Economic Properties of Demand
Total Benefits and Consumers' Surplus
The Economic Properties of Supply
Market Equilibrium: Net Benefits
Taxes and Net Benefits
Government Subsidies
Democratic Choice
Voting: What Does the Public Want?
The Role of Government: Market Failures
Real World Economics: Ticket Scalping
Summary
Discussion Questions
Test Yourself
Chapter 14 Market Failures: Externalities
Private Versus Social Costs and Benefits
External Benefits
External Costs
Optimal Pollution
Externality Policy Options
Limits to Government Actions
Public Goods
Real World Economics: Free Market or Democratic Choice
Summary
Discussion Questions
Test Yourself
Chapter 15 Market Failures: Monopolies
Monopoly Problems
Government Monopoly Policy
Antitrust Regulation
Trade-Off: Patent Monopolies
Cost and Benefits of Monopoly Regulation
Natural Monopolies
Pricing of Natural Monopolies
Real World Economics: U.S. Postal Service
Summary
Discussion Questions
Test Yourself
Chapter 16 Scarcity and Choice: The Poverty Problem
Fighting Poverty: The Record
Who Are the Poor?
Causes of Poverty
Transfer Payments
What Kind of Transfers?
Minimum Wages
Job Training and Education
Public Employment Programs
Costs of Government Action
Real World Economics: The Social Security Tax
Summary
Discussion Questions
Test Yourself
Suggestions for Further Reading
Glossary
Answers to "Test Yourself"
Index
Product details
- No. of pages: 376
- Language: English
- Copyright: © Academic Press 1981
- Published: January 1, 1981
- Imprint: Academic Press
- eBook ISBN: 9781483258348