Microeconomics in Context provides a thorough introduction to the principles of microeconomics, updated and broadened to reflect the economic realities of the 21st century. The text builds upon the strengths of standard, neoclassical economics, but takes into account environmental, institutional, political, psychological, ethical, and social issues often neglected in other introductory Principles textbooks. The authors introduce students to the standard topics and tools taught in most introductory courses, and to a broader and richer set of topics and tools.

I. The Context for Economic Analysis 1. Economic Activity in Context Your Starting Point The Goals of Economic Activity The Issues That Define Economics Economic Tradeoffs The Three Spheres of Economic Activity Microeconomics in Context 2. Economic Actors and Organizations Thinking About Economic Actors and Organizations Motivation and Behavior The Nature of Economic Organizations Economics Actors in the Traditional Model II. Supply and Demand 3. Market Institutions The Meaning of Markets The Development and Expansion of Markets Institutional Requirements of Markets Markets and Well-Being Types of Markets 4. Supply and Demand Explaining Prices and Quantities The Theory of Supply The Theory of Demand The Theory of Market Adjustment Topics in Market Analysis Explaining Real World Prices and Quantities 5. Working with Supply and Demand How Much Money Will Sales Bring In? The Price Elasticity of Demand The Price Elasticity of Supply Income, Price, and Buyer Behavior Short-Run Versus Long-Run Elasticities III. Resource Maintenance, Production, Distribution, and Consumption 6. Capital Stocks and Resource Maintenance The Nature of Capital Stocks The Evolution of Capital Natural Capital Manufactured Capital Human Capital Social Capital Financial Capital Sustaining Capital Stocks 7. Production Costs The Production Process Economic Costs The Production Function Appendix: A Formal Model of Producer Costs 8. Production Decisions Goals and Decision Making Marginal Thinking Discrete Decision Making Financial Capital as an Input to Production Appendix: A Formal Theory of Producer Behavior with Convexity and Perfect Competition 9. Distribution: Exchange and Transfer Who Gets What, and How? Principles of Exchange Principles of Transfer Distribution Outcomes in the United States Appendix: A Formal Theory of Gains from Trade 10. Consumption and the Consumer Society Consumption: Final Use Consumer Behavior: The Marketing View Consumer Behavior: The Utility Theory View The Consumer Society Consumption and Well-Being Appendix: A Formal Theory of Consumer Behavior IV. A Closer Look at Markets 11. Markets Without Market Power Understanding Market Power and Competition Perfect Competition Efficiency and Equity in the Case of Perfect Competition A Final Note 12. Markets with Market Power The Traditional Models Pure Monopoly: One Seller Monopolistic Competition Oligopoly Summary and a Final Note Appendix: A Formal Analysis of Monopoly and Monopolistic Competition 13. Markets for Labor Thinking About Markets for Labor Individual Decisions and Paid Labor Supply Supply and Demand at the Market Level Explaining Variations in Wages Labor in the Traditional Neoclassical Model Appendix: A Formal Model of a Firm's Hiring Decision in Perfect Competition 14. Markets for Other Resources Valuing Capital Stocks Markets for Manufactured, Natural, and Social Capital Markets for Financial Capital V. A Closer Look at Economic Organizations 15. The Core Sphere: Households and Communities Households and Communities as Organizations The Core Sphere in Historical Perspective "Work/Family" Challenges Theories of Household Behavior 16. The Business Sphere: For-Profit Firms Businesses as Organizations The Goals of Firms The Evolution of Big Business Is Bigger Always Better? Globalization and the Information Revolution 17. The Public Purpose Sphere: Governments and Nonprofits Public Purpose Organizations and Their Functions Types of Public Purpose Organizations The Public Purpose Sphere in Historical Perspective Theories of Organizational Behavior VI. Economic Outcomes and Economic Ideology 18. The Variety of Economic Systems Comparing Economic Systems Varieties of Capitalism and Socialism Comparative Systems in Historical Perspective Comparing Economic Performance 19. Market Systems and Normative Claims Why Discuss Normative Claims? The Theory Behind the "Free Market" Argument Contextual Economics: Into the Future Last Words Glossary Index