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Microeconomicsby Paul Krugman
Synopses & ReviewsPublisher Comments:The same unique voice that made Paul Krugman a widely read economist is evident on every page of Microeconomics. The product of the partnership of coauthors Krugman and Robin Wells, the book returns in a new edition. The new edition is informed and informative, solidly grounded in economic fundamentals yet focused on the realities of todays world and the lives of students. It maintains the signature Krugman/Wells story-driven approach while incorporating organizational changes, new content and features, and new media and supplements. Table of ContentsIntroduction The Ordinary Business of Life Any Given Sunday The Invisible Hand My Benefit, Your Cost Good Times, Bad Times Onward and Upward An Engine for Discovery Chapter 1 First Principles Common Ground Individual Choice: The Core of Economics For Inquiring Minds: Got a Penny? For Inquiring Minds: Pay for Grades? Economics in Action: A Womans Work Interaction: How Economies Work For Inquiring Minds: Choosing Sides Economics in Action: Restoring Equilibrium on the Freeways Economy-Wide Interactions Economics in Action: Adventures in Babysitting Chapter 2 Economic Models: Trade-offs and Trade Tunnel Vision Models in Economics: Some Important Examples For Inquiring Minds: Models for Money Pitfalls: Misunderstanding Comparative Advantage Global Comparison: Pajama Republics Economics in Action: Rich Nation, Poor Nation Using Models For Inquiring Minds: When Economists Agree Economics in Action: Economists in Government Chapter 2 Appendix: Graphs in Economics Getting the Picture Graphs, Variables, and Economic Models How Graphs Work A Key Concept: The Slope of a Curve Calculating the Area Below or Above a Curve Graphs That Depict Numerical Information Chapter 3 Supply and Demand Wake Up and Dont Smell the Coffee Supply and Demand: A Model of a Competitive Market The Demand Curve Global Comparison: Pay More, Pump Less Pitfalls: Demand versus Quantity Demanded Economics in Action: Beating the Traffic The Supply Curve Economics in Action: Only Creatures Small and Pampered Supply, Demand, and Equilibrium Pitfalls: Bought and Sold? Economics in Action: The Price of Admission Changes in Supply and Demand Pitfalls: Which Curve Is It, Anyway? For Inquiring Minds: Tribulations on the Runway Economics in Action: The Great Tortilla Crisis Competitive Markets—And Others Chapter 4 Consumer and Producer Surplus Making Gains by the Book Consumer Surplus and the Demand Curve For Inquiring Minds: A Matter of Life and Death Economics in Action: When Money Isnt Enough Producer Surplus and the Supply Curve Economics in Action: When the Corn Is High Consumer Surplus, Producer Surplus, and the Gains from Trade Economics in Action: eBay and Efficiency A Market Economy Economics in Action: A Great Leap—Backward Chapter 5 The Market Strikes Back Big City, Not-So-Bright Ideas Why Governments Control Prices Price Ceilings For Inquiring Minds: Winners, Losers, and Rent Control For Inquiring Minds: Rent Control, Mumbai Style Economics in Action: Hard Shopping in Caracas Price Floors For Inquiring Minds: Price Floors and School Lunches Pitfalls: Ceilings, Floors, and Quantities Global Comparison: Check Out Our Low, Low Wages! Economics in Action: "Black Labor" in Southern Europe Controlling Quantities Economics in Action: The Clams of New Jersey Chapter 6 Elasticity More Precious Than a Flu Shot Defining and Measuring Elasticity Economics in Action: Estimating Elasticities Interpreting the Price Elasticity of Demand Economics in Action: Responding to Your Tuition Bill Other Demand Elasticities For Inquiring Minds: Where Have All the Farmers Gone? Global Comparison: Foods Bite In World Budgets Economics in Action: Spending It The Price Elasticity of Supply Economics in Action: European Farm Surpluses An Elasticity Menagerie Chapter 7 Taxes A Tax Riot The Economics of Taxes: A Preliminary View Economics in Action: Who Pays the FICA? The Benefits and Costs of Taxation For Inquiring Minds: The Laffer Curve Economics in Action: Taxing the Marlboro Man Tax Fairness and Tax Efficiency For Inquiring Minds: Killing the Lawyers Economics in Action: Federal Tax Philosophy Understanding the Tax System Global Comparison: You Think You Pay High Taxes? For Inquiring Minds: Taxing Income versus Taxing Consumption Economics in Action: The Top Marginal Income Tax Rate Chapter 8 International Trade A Seafood Fight Comparative Advantage and International Trade Global Comparison: Productivity And Wages Around The World For Inquiring Minds: Increasing Returns and International Trade Economics in Action: Skill and Comparative Advantage Supply, Demand, and International Trade Economics in Action: Trade, Wages, and Land Prices in the Nineteenth Century The Effects of Trade Protection Economics in Action: Trade Protection in the United States The Political Economy of Trade Protection For Inquiring Minds: Chinese Pants Explosion Economics in Action: The Doha Deadlock Chapter 9 Making Decisions A Tale of Two Invasions Opportunity Cost and Decisions For Inquiring Minds: Famous College Dropouts Economics in Action: Farming in the Shadow of Suburbia Making "How Much" Decisions: The Role of Marginal Analysis Pitfalls: Total Cost versus Marginal Cost Global Comparison: Portion Sizes Pitfalls: Muddled at the Margin Economics in Action: The Cost of a Life Sunk Costs Economics in Action: A Billion Here, a Billion There . . . The Concept of Present Value Economics in Action: How Big Is That Jackpot, Anyway? Chapter 10 The Rational Consumer A Clam Too Far Utility: Getting Satisfaction For Inquiring Minds: Is Marginal Utility Really Diminishing? Economics in Action: Oysters versus Chicken Budgets and Optimal Consumption For Inquiring Minds: Food for Thought on Budget Constraints Economics in Action: The Consumption Possibilities of American Workers, 1895-2000 Spending the Marginal Dollar Pitfalls: The Right Marginal Comparison For Inquiring Minds: But Are Consumers Really Rational? Economics in Action: Buying Your Way Out of Temptation From Utility to the Demand Curve For Inquiring Minds: Giffin Goods Economics in Action: Mortgage Rates and Consumer Demand Chapter 11 Consumer Preferences and Consumer Choice A Tale of Two Cities Mapping the Utility Function For Inquiring Minds: Are Utils Useful? Indifference Curves and Consumer Choice Economics in Action: Rats and Rational Choice Using Indifference Curves: Substitutes and Complements Economics in Action: Publicity or Piracy? Prices, Income, and Demand Pitfalls: “Other Things Equal,” Revisited Economics in Action: How Much Housing? Chapter 12 Behind the Supply Curve: Inputs and Costs The Farmers Margin The Production Function Global Comparison: Wheat Yields Around The World Pitfalls: Whats a Unit? For Inquiring Minds: Was Malthus Right? Economics in Action: The Mythical Man-Month Two Key Concepts: Marginal Cost and Average Cost Economics in Action: Dont Put Out the Welcome Mat Short-Run versus Long-Run Costs Economics in Action: Theres No Business Like Snow Business Chapter 13 Perfect Competition and the Supply Curve Doing What Comes Naturally Perfect Competition For Inquiring Minds: Whats a Standardized Product? Economics in Action: The Pain of Competition Production and Profits Pitfalls: What If Marginal Revenue and Marginal Cost Arent Exactly Equal? Pitfalls: Economic Profit, Again Economics in Action: Prices Are Up . . . but So Are Costs The Industry Supply Curve Economics in Action: A Crushing Reversal Chapter 14 Monopoly Everybody Must Get Stones Types of Market Structure The Meaning of Monopoly Global Comparison: The Price We Pay Economics in Action: Low Supply and Soaring Demand: A Diamond Producers Best Friend How a Monopolist Maximizes Profit Pitfalls: Finding the Monopoly Price Pitfalls: Is There a Monopoly Supply Curve? For Inquiring Minds: Monopoly Behavior and the Price Elasticity of Demand Economics in Action: California Power Play Monopoly and Public Policy Economics in Action: Cable Dilemmas Price Discrimination Economics in Action: Sales, Factory Outlets, and Ghost Cities Chapter 15 Oligopoly Caught in the Act The Prevalence of Oligopoly Economics in Action: Is it an Oligopoly or Not? Understanding Oligopoly Global Comparison: Europe Levels The Playing Field for Coke and Pepsi Economics in Action: The Great Vitamin Conspiracy Games Oligopolists Play Pitfalls: Playing Fair in the Prisoners Dilemma For Inquiring Minds: Prisoners of the Arms Race Economics in Action: The Rise and Fall and Rise of OPEC Oligopoly in Practice For Inquiring Minds: The Art of Conspiracy Economics in Action: The Price Wars of Christmas How Important Is Oligopoly? Chapter 16 Monopolistic Competition and Product Differentiation Fast-Food Differentiation The Meaning of Monopolistic Competition Product Differentiation For Inquiring Minds: Cant Buy Love Economics in Action: Any Color, So Long as Its Black Understanding Monopolistic Competition For Inquiring Minds: Hits and Flops Economics in Action: The Last Stand of the 6-Percenters? Monopolistic Competition versus Perfect Competition Controversies about Product Differentiation Economics in Action: Absolut Irrationality Chapter 17 Externalities Wholl Stop the Rain? The Economics of Pollution Pitfalls: So How Do You Measure the Marginal Social Cost of Pollution? Pitfalls: So How Do You Measure the Marginal Social Benefit of Pollution? For Inquiring Minds: Talking and Driving Economics in Action: Thank You for Not Smoking Policies Toward Pollution Global Comparison: Economic Growth and Greenhouse Gases in Five Countries Economics in Action: Cap and Trade Production, Consumption, and Externalities Economics in Action: The Impeccable Economic Logic of Early Childhood Intervention Programs Network Externalities Economics in Action: The Microsoft Case Chapter 18 Public Goods and Common Resources The Great Stink Private Goods—and Others Pitfalls: Marginal Cost Of What Exactly? Economics in Action: A Policemans Lot Public Goods Global Comparison: Voting as a Public Good: The Global Perspective For Inquiring Minds: Voting as a Public Good Here at Home Economics in Action: Old Man River Common Resources For Inquiring Minds: A Water Fight in Maine Economics in Action: A Tale of Two Fisheries Artificially Scarce Goods Economics in Action: Blacked-Out Games Chapter 19 The Economics of the Welfare State Insuring Childrens Health Poverty, Inequality, and Public Policy For Inquiring Minds: Justice and the Welfare State Global Comparison: Poor People In Rich Countries Economics in Action: Long-Term Trends in Income Inequality The U.S. Welfare State Economics in Action: Britains War on Poverty The Economics of Health Care For Inquiring Minds: California Death Spiral Economics in Action: The Trouble with Medical Progress The Debate Over the Welfare State Economics in Action: French Family Values Chapter 20 Factor Markets and the Distribution of Income The Value of a Degree The Economys Factors of Production Pitfalls: What Is a Factor, Anyway? For Inquiring Minds: The Factor Distribution of Income and Social Change in the Industrial Revolution Economics in Action: The Factor Distribution of Income in the United States Marginal Productivity and Factor Demand Pitfalls: Getting Marginal Productivity Right Economics in Action: Help Wanted! Is the Marginal Productivity Theory of Income Distribution Really True? Economics in Action: The Economics of Apartheid The Supply of Labor For Inquiring Minds: Why You Cant Find a Cab When Its Raining Global Comparison: The Overworked American? Economics in Action: The Decline of the Summer Job 20 Appendix: Indifference Curve Analysis of Labor Supply The Time Allocation Budget Line The Effect of a Higher Wage Rate Indifference Curve Analysis Chapter 21 Uncertainty, Risk, and Private Information The Year of the Hurricane The Economics of Risk AversionFor Inquiring Minds: The Paradox of Gambling Pitfalls: Before the Fact versus After the Fact Economics in Action: Warranties Buying, Selling, and Reducing Risk For Inquiring Minds: Those Pesky Emotions Economics in Action: When Lloyds Almost Llost It Private Information: What You Dont Know Can Hurt You Economics in Action: Franchise Owners Try Harder
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