Microeconomics

by Hubbard, Glenn; O'Brien, Anthony P.

• ISBN13: 9780130348265
• ISBN10: 0130348260
• Edition: 2nd
• Format: Paperback
• Copyright: 2008-01-01
• Publisher: Pearson College Div

Summary

Where are you headed? & No matter what your career, you will need to understand how economic forces affect you and your work. & Hubbard/O& rs" Brien, Microeconomics 1/e gives you the motivation and the tools to understand those forces. & You& rs" re on your way. &

Table of Contents

Preface	p. iv
Acknowledgments	p. xvii
Introduction
Economics: Foundations and Models
What Happens When U.S.Firms Move to China?
Building a Foundation: Economics and Individual Decisions
People Are Rational
People Respond to Economic Incentives
Optimal Decisions Are Made at the Margin
Solved Problem 1-1: Apple Computer Makes a Decision at the Margin
The Economic Problem That Every Society Must Solve
What Goods and Services Will Be Produced?
How Will the Goods and Services Be Produced?
Who Will Receive the Goods and Services Produced?
Centrally Planned Economies versus Market Economies
The Modern Mixed Economy
Efficiency and Equity
Economic Models
The Role of Assumptions in Economic Models
Forming and Testing Hypotheses in Economic Models
Making the Connection 1-1: When Economists Disagree: A Debate over Outsourcing
Normative and Positive Analysis
Microeconomics and Macroeconomics
Dont Let This Happen To You! Dont Confuse Positive Analysis with Normative Analysis
A Preview of Important Economic Terms
Conclusion
An Inside Look: How Does Economic Growth in China Affect Other Countries?
Summary
Key Terms
Review Questions
Problems and Applications
End-of-chapter resource materials repeat in all chapters
Appendix Using Graphs and Formulas
Graphs of One Variable 22 Graphs of Two Variables
Slopes of Lines
Taking Into Account More Than Two Variables on a Graph
Positive and Negative Relationships
Slopes of Nonlinear Curves
Formulas
Formula for a Percentage Change
Formulas for the Areas of a Rectangle and a Triangle
Summary of Using Formulas
Problems and Applications
Trade-offs, Comparative Advantage, and the Market System
Managers Making Choices at BMW
Production Possibilities Frontiers and Real-World Trade-offs
Graphing the Production Possibilities Frontier
Solved Problem 2-1: Drawing a Production Possibilities Frontier for Rosies Boston Bakery
Making the Connection 2-1: Trade-offs and Tsunami Relief
Increasing Marginal Opportunity Costs
Economic Growth
Trade
Specialization and Gains from Trade
Absolute Advantage versus Comparative Advantage
Dont Let This Happen To You! Dont Confuse Absolute Advantage and Comparative Advantage
Comparative Advantage and the Gains from Trade
Solved Problem 2-2: Comparative Advantage and the Gains from Trade
The Market System
The Circular Flow of Income
The Gains from Free Markets
The Market Mechanism
Making the Connection 2-2: Story of the Market System in Action: I, Pencil
The Role of the Entrepreneur
The Legal Basis of a Successful Market System
Making the Connection 2-3: Property Rights in Cyberspace: Napster, Kazaa, and iTunes
Conclusion
An Inside Look: Choosing the Production Mix at BMW
Where Prices Come From: The Interaction of Demand and Supply
How Hewlett-Packard Manages the Demand for Printers
The Demand Side of the Market
The Demand of an Individual Buyer
Demand Schedules and Demand Curves
Individua
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