Principles of Economics

For the 2-semester freshman/sophomore course in Principles of Economics. These two highly-respected economists and educators have revised this best-selling MICRO FIRST book to include more current topics and events while maintaining its hallmark features. The Micro section now includes more modern topics. For further details, please see FEATURES below. The Macro section has a SHORT RUN FIRST organization with updated data and policy issues throughout. The AD/AS MODEL is placed late in the macro discussion. Hallmark features include: the authors use three levels of explanation: "Stories, Graphs, and Equations" to make economic concepts accessible and relevant to students with various learning styles (verbal, visual, and numerical); unified and logical structure that carefully reveals the workings of the economy for both microeconomics and macroeconomics; unparalleled supplements package, the text supports both the instructor and the student through this first, often challenging, economics course. Principles If you want to teach with a Micro-first principles text that brings out economic applications through real-world examples and news analysis articles then be sure to review Case and Fair's Principles of Economics 7/e. Microeconomics If you would like to complete perfect competition before moving on to imperfect competition, take a look at Case and Fair's coverage in Chapters 5-10 and then 12-16. When covering Comparative Advantage, if you prefer a brief introduction early in the course with in-depth analysis later, peruse Chapter 2 and then Section V of Case and Fair with it extensive Global coverage, as well. If you have looked at or used Case/Fair in the past, but wished it had more modern coverage of Economic Principles, be sure to check out the expanded game theory coverage in Chapter 13, a new Chapter (16) on Public Finance, and early coverage of Consumer and Producer Surplus in Chapter 4. If you like to deliver instruction on technical topics such as cost curves, isoquants, and/or indifference curves, be sure to examine Case and Fair's coverage of these topics in Chapters 7, 6, and the Appendix to Chapter 5, respectively. Macroeconomics If you prefer to introduce short run issues before long run issues, and fully develop the Keynesian Cross with integrated coverage between chapters before covering the AS/AD Model, examine Case and Fair's chapters 20-25. Do you want to engage your students with coverage of the booms and busts of the Stock Market? If so, review Case and Fair's all new Chapter on the Stock Market and the Economy (28). Expanded treatment of comparative advantage in Chapter 2, The Economic Problem: Scarcity and Choice. o This enables the students to see the connection between growth, trade, comparative advantage and the production possibilities frontier (PPF). Proven treatment of demand and supply in Chapter 3, Demand, Supply, and Market Equilibrium. o Change in demand versus change in quantity demanded is explained in 3 different formats (stories, graphs, equations) to help students understand and retain this difficult concept. Chapter 4, Demand and Supply Applications and Elasticity, is an extension of supply and demand and features applications including consumer and producer surplus, elasticity, and price ceilings. o New coverage of consumer surplus, producer surplus, deadweight loss and price floors has been added to provide a more balanced and complete treatment of modern demand and supply applications. The Foundation: Stories, graphs, equations -Presents the core concepts of economics in three ways: First, each major concept is presented in the context of a simple intuitive story or illustrative example in words followed by a numerical illustration or table. Second, the numerical example is presented graphically. And finally, where appropriate, equations are used. Presenting the material in different formats will convey the core principles of the discipline to a wide range of students. MICRO Unified, logical structure to Microeconomics -The perfectly competitive market is covered first, including coverage of how firms decide what to produce and how firms decide the number of people and type of technology to employ, before turning to noncompetitive markets such as monopoly. o When students understand how a simple competitive market system works (Chapters 5-10), they are ready to focus on problems of real-world markets such as monopoly power, other non-competitive market structures, public goods, externalities, and income distribution (see Chapters 12-15). Chapter 11, General Equilibrium and the Efficiency of Perfect Competition, makes the transition from competitive markets to non-competitive markets and the potential role for government in the economy. Other texts encourage students to think of economics as a series of disconnected alternative market models and overwhelm students with too many concepts at once. Expanded game theory coverage in Chapter 13, Monopolistic Competition and Oligopoly, provides a basic introduction to strategic interaction of firms. o An accessible presentation of a modern micro topic. Expanded coverage of the minimum wage in Chapter 15, Income Distribution and Poverty. o Minimum wage is now introduced in Chapter 4, Demand and Supply Applications, and covered thoroughly in Chapter 15. NEW - Chapter 16, Public Finance: The Economics of Taxation, covers basic taxation information, including Bush's recent tax changes and what this means for different segments of the economy. o Consumer surplus and producer surplus is revisited here to reinforce the principles discussed in Chapter 4, Demand and Supply Applications. NEW - NEW Chapter 34,Globalization, Growth and Development, examines the current trends, issues and debates surrounding the effect of globalization and trade on the developing world. o Issues such as the movement for and against globalization, trade agreements and barriers, the World Trade Organization, the environment, child labor, sovereignty, and the impact of AIDS on developing economies are discussed to show recent developments. Expanded coverage of price discrimination in Chapter 12, Monopoly and Antitrust. o Shows how and why a firm with market power charges different prices to different consumers. MACRO Unified and logical structure to Macroeconomics-The book slowly leads up to the Aggregate Demand/Aggregate Supply Model (AD/AS Model) after the development of the goods and money market. o By building up slowly to the Aggregate supply and Aggregate Demand Model (AD/AS Model), the authors help students understand that aggregate demand is NOT simply the sum of all demand and that aggregate supply is NOT simply the sum of all supply. See Chapters 20 and 21 (which cover the market for goods and services); Chapters 22 and 23 (which cover the money market); Chapter 24 (which links the goods and services market with the money market) and Chapter 25 (which covers the AD/AS Model). Chapter 18, Long Run & Short Run Concerns, includes expanded discussion of the CPI (consumer price index), including CPI bias. o Provides a more detailed analysis of how the government measures the price changes of the typical goods and services that consumers buy. NEW - More detailed discussion of Monetary and Fiscal Policy presented in Chapter 27, Macroeconomic Issues and Policy. o Includes a careful analysis of the nature of the economy in the 1990s and the role that policy played. NEW - Chapter 28, The Stock Market and the Economy, discusses the stock market and how it affects the economy o Recent changes in the economy are highlighted so the student will understand how these events actually affect investment decisions and policy. The 90's boom and the recent bust are examined. NEW - Chapter 34,Globalization, Growth and Development, examines the current trends, issues and debates surrounding the effect of globalization and trade on the developing world. o Issues such as the movement for and against globalization, trade agreements and barriers, the World Trade Organization, the environment, child labor, sovereignty, and the impact of AIDS on developing economies are discussed to show recent developments. CURRENCY: Data updated through the second quarter of 2003, further coverage of deflation, the effects of the war on Iraq and war on terrorism are included along with its impact on the national deficit. o Ensures students are up to date with the latest economic data and events.