PART I: INTRODUCTION TO ECONOMICS 1. The Principles and Practice of Economics 2. Economic Methods and Economic Questions 3. Optimization: Doing the Best You Can 4. Demand, Supply, and Equilibrium   PART II: FOUNDATIONS OF MICROECONOMICS 5. Consumers and Incentives 6. Sellers and Incentives 7. Perfect Competition and the Invisible Hand 8. Trade 9. Externalities and Public Goods 10. The Government in the Economy: Taxation and Regulation 11. Markets for Factors of Production   PART III: MARKET STRUCTURE 12. Monopoly 13. Game Theory and Strategic Play 14. Oligopoly and Monopolistic Competition   PART IV: EXTENDING THE MICROECONOMIC TOOLBOX 15. Trade-offs Involving Time and Risk 16. The Economics of Information 17. Auctions and Bargaining 18. Social Economics   PART V: INTRODUCTION TO MACROECONOMICS 19. The Wealth of Nations: Defining and Measuring Macroeconomic Aggregates 20. Aggregate Incomes   PART VI: LONG-RUN GROWTH AND DEVELOPMENT 21. Economic Growth 22. Why Isn’t the Whole World Developed?   PART VII: EQUILIBRIUM IN THE MACROECONOMY 23. Employment and Unemployment 24. Credit Markets 25. The Monetary System   PART VIII: SHORT-RUN FLUCTUATIONS AND MACROECONOMIC POLICY 26. Short-Run Fluctuations 27. Countercyclical Macroeconomic Policy   PART IX: MACROECONOMICS IN A GLOBAL ECONOMY 28. Macroeconomics and International Trade 29. Open Economy Macroeconomics   CHAPTERS ON THE WEB 1. Financial Decision Making 2. Economics of Life, Health, and the Environment 3. Political Economy

This title is a Pearson Global Edition. The Editorial team at Pearson has worked closely with educators around the world to include content which is especially relevant to students outside the United States.     About the book   Teach economics through three unified themes Three key principles--optimization, equilibrium, and empiricism--lie at the heart of the authors’ approach. Chapters 1 to 4 introduce these key themes, and lay the groundwork for understanding the economic way of thinking about the world. Optimization. The first principle—that people try to choose the best available option—is optimization. Economists believe that optimization explains most choices people make, including minor decisions like deciding whether to eat a cheeseburger, and major decisions like deciding whom to date or marry. When people fail to optimize perfectly, economic reasoning can be used to analyze the mistake and to suggest a better course of action. Equilibrium. Economic systems tend toward equilibrium, wherein each economic actor feels that he or she cannot do any better by picking another course of action. This principle highlights the connections among economic actors and their choices. In a state of equilibrium, consumers and purveyors of goods and services are simultaneously optimizing, and their behaviors are consequently intertwined. Empiricism. While the first two key principles are conceptual, the third is methodological. Economists use data to test economic theories, learn about the world, and speak to policymakers. The emphasis on matching theories with real-world data to answer specific questions helps to show students the evidence behind the theory, making economics concrete, interesting, and fun.   Showcase empirical questions with engaging features ·    Evidence-Based Economics (EBE) features show how economists use data to answer the question posed in the opening paragraph of each chapter. EBEs use actual data from field experiments, lab experiments, naturally occurring data, or government data, while highlighting major concepts in the chapter. These features let students get a real look at economics as it plays out in the world around them. Examples include: o Is Facebook free? o Why are you so much more prosperous than your great-great-grandparents were? o Is College worth it? o Are tropical and semitropical areas condemned to poverty by their geographies? o Will free trade cause you to lose your job? o What caused the recession of 2007-2009? o Is there value in putting yourself into someone else’s shoes? o Are companies like Nike harming workers in Vietnam? o What is the optimal size for government? ·    Letting the Data Speak features reinforce the theme of evidence behind the theory. These short, targeted explorations analyze an economic question by using real data as the foundation of the discussion. Among the many issues explored: o Should McDonald’s be interested in elasticities? o Income inequality in the United States o Fair trade products o Life expectancy and innovation o Do wages really go down if the labor supply increases? o Managing expectations o Why do some firms advertise and others don’t? ·    Choice and Consequence features emphasize optimization—one of the key themes in the book—by focusing on making the best decision. These features ask students to make an economic decision, or evaluate the consequences of past real decisions. The authors then explain how an economist might analyze the same decision. Examples of choices investigated: o Do people really optimize? o The

Real issues engage students with the content Examination of causality. By studyingrecent research that reports a positive correlation between expensive weddings and high rates of divorce, students will learn to determine the difference between correlation and causality, and better understand the role of omitted variables (Chapter 2). Coverage of the fracking revolution and its impact on oil and gas prices. Supply and demand come alive when students can see how the recent rightward shift in the oil supply curve--due to the development of fracking technologies--has played a role in halving the equilibrium price of oil (Chapter 4).    Focus on the shared economy. The role of surge pricing in equilibrating Uber driver supply and rider demand is discussed, helping students to more deeply understand the markets that they personally use (Chapter 7). Emphasis on the role of microeconomics in examining prominent social issues. From natural disaster management to global inequality, students examine important social issues–such as how to reduce fracking-generated earthquakes by applying the concept of externalities, inequality in Scandinavia, broadband access, and more. Coverage of the recent election to teach topics like probability. Students use analytic tools to understand how to interpret forecasts on the eve of the election (Chapter 15). Coverage describing the growth of economic inequality, and emphasizing that inequality is not measured in economic aggregates, such as GDP (Chapter 19).   An evidence based approach using real issues and data Evidence-Based Economics (EBE) features show how economists use data to answer the question posed in the opening paragraph of each chapter. EBEs use actual data from field experiments, lab experiments, and the government or naturally occurring data, while highlighting major concepts in the chapter. These features let students get a real look at economics as it plays out in the world around them, and gives them the skills to question systematically and evaluate what they read. Examples include: Uber and the invisible hand? What can the government do to lower earthquakes in Oklahoma? Letting the Data Speak features reinforce the theme of evidence behind the theory. These short, targeted explorations analyze an economic question by using real data as the foundation of the discussion. Among the many issues explored: Forecasts on the eve of the election The great productivity puzzle--discussing how we may be experiencing a slow-down of aggregate productivity despite the rapid introduction of a range of new technologies in the economy (Chapter 21) Democracy and growth, showing the positive impact of democratic political institutions on economic growth (Chapter 22) Financing start-ups (Chapter 24) The response of consumption to tax cuts (Chapter 27) Choice and Consequence features emphasize optimization--one of the key themes in the book--by focusing on making the best decision. These features ask students to make an economic decision, or evaluate the consequences of past real decisions. The authors then explain how an economist might analyze the same decision. Examples of choices investigated include: The societal consequences of the expulsion of Jewish faculty from universities in Nazi Germany (Chapter 20) Minimum wage laws and employment (Chapter 23) Luddite resistance to new technology and what this can teach us about the disruption that new and more productive robots are bringing to the economy today (Chapter 23) Obtaining reserves outside of the federal funds market (Chapter 25) The new administration’s fiscal policy proposals (Chapte