Principles of Microeconomics
Published on 1. March 1995
Book
Paperback/Softback
560 pages
978-0-13-103714-4 (ISBN)
Description
Appropriate for one-semester courses in undergraduate-MBA level Principles of Microeconomics.
This text is an uncluttered approach to economics with a strong emphasis on simple, social science methodology. All examples and analyses flow from a few basic assumptions, such as diminishing marginal values, the law of diminishing marginal product and comparative advantage. Many nontraditional examples are used such as adoption markets, political markets and changes in smoking habits.
This text is an uncluttered approach to economics with a strong emphasis on simple, social science methodology. All examples and analyses flow from a few basic assumptions, such as diminishing marginal values, the law of diminishing marginal product and comparative advantage. Many nontraditional examples are used such as adoption markets, political markets and changes in smoking habits.
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Content
1. But Will It Work In Theory?
Introduction. The Economic Paradigm. Demand and Supply. Applications.
2. The Postulates Of Behavior.
Axioms of Choice. Marginal Values and Demand Curves. The Law of Demand. Consumption Over Time. The Diamond-Water Paradox.
3. The Theory Of Demand.
Relative Versus Absolute Prices. Market Demand Curves. Elasticity of Demand. The "Second Law of Demand." Applications of the Law of Demand. Shipping the Good Apples Out.
4. Exchange and Supply.
The Gains From Exchange. Supply Curves. Seller's Rents. Economic Efficiency. The Formation of Organized Markets. The Role of "Middlemen." The Use of Money for Exchange. Political Exchange.
5. Supply and Demand.
Change in Demand vs. Change in the Quantity Demanded. Analysis of Interrelated Markets. Who Pays the Tax?
6. Cost and Production.
The Gains from Specialization. Comparative Advantage. Marginal Cost and Supply. Increasing Costs at the Extensive Margin. Supply Curves and Rents. Rents and Quasi-Rents. Economic Efficiency. The Division of Labor is Limited by the Extent of the Market.
7. The Law of Diminishing Returns.
Inputs and Outputs, Marginal Product. Profit Maximization and Factor Demand. Applications. The Behavior of Firms Under Different Rules of Ownership: The Effects of Property Rights on Resource Allocation.
8. Supply In Competitive Markets.
Competitive Markets. Diminishing Marginal Product and Rising Marginal Cost. The Objectives of the Firm. Marginal Cost and Supply: An Example. The Cost Curves and Supply. The Intensive and Extensive Margins Combined. Shortages and Surpluses.
9. Property Rights and Transactions Costs.
Introduction. The "Coase Theorem." Highway Congestion. Public Goods. The Prisoner's Dilemma. Signals. The Nature of the Firm.
10. Interest Rates And Capital Values.
Consumption Over Time. The Price of Present Consumption. Present and Future Values. Determination of the Interest Rate. Real Versus Nominal Interest Rates. The Fisher Separation Theorem. Stocks and Flows.
11. Monopoly.
Monopoly Versus Competition. Monopolistic Pricing. Monopoly and Efficiency. Price Discrimination.
12. Imperfect Competition.
Monopolistic Competition. Cartels and Collusion. Antitrust Policy.
13. Labor Markets.
The Supply of Labor. Families: The "New Home Economics." The Demand for labor. The Market for Labor. Labor Unions. Labor Market Discrimination.
14. The Macro Economy.
The Aggregate Economy: Concepts. Measurement of the Economy. The Central Problem of Macroeconomics. The Role of Money in the Macro Economy. Monetary Policy: How the Fed Affects the Economy. Fiscal Policy. Policy Issues.
Introduction. The Economic Paradigm. Demand and Supply. Applications.
2. The Postulates Of Behavior.
Axioms of Choice. Marginal Values and Demand Curves. The Law of Demand. Consumption Over Time. The Diamond-Water Paradox.
3. The Theory Of Demand.
Relative Versus Absolute Prices. Market Demand Curves. Elasticity of Demand. The "Second Law of Demand." Applications of the Law of Demand. Shipping the Good Apples Out.
4. Exchange and Supply.
The Gains From Exchange. Supply Curves. Seller's Rents. Economic Efficiency. The Formation of Organized Markets. The Role of "Middlemen." The Use of Money for Exchange. Political Exchange.
5. Supply and Demand.
Change in Demand vs. Change in the Quantity Demanded. Analysis of Interrelated Markets. Who Pays the Tax?
6. Cost and Production.
The Gains from Specialization. Comparative Advantage. Marginal Cost and Supply. Increasing Costs at the Extensive Margin. Supply Curves and Rents. Rents and Quasi-Rents. Economic Efficiency. The Division of Labor is Limited by the Extent of the Market.
7. The Law of Diminishing Returns.
Inputs and Outputs, Marginal Product. Profit Maximization and Factor Demand. Applications. The Behavior of Firms Under Different Rules of Ownership: The Effects of Property Rights on Resource Allocation.
8. Supply In Competitive Markets.
Competitive Markets. Diminishing Marginal Product and Rising Marginal Cost. The Objectives of the Firm. Marginal Cost and Supply: An Example. The Cost Curves and Supply. The Intensive and Extensive Margins Combined. Shortages and Surpluses.
9. Property Rights and Transactions Costs.
Introduction. The "Coase Theorem." Highway Congestion. Public Goods. The Prisoner's Dilemma. Signals. The Nature of the Firm.
10. Interest Rates And Capital Values.
Consumption Over Time. The Price of Present Consumption. Present and Future Values. Determination of the Interest Rate. Real Versus Nominal Interest Rates. The Fisher Separation Theorem. Stocks and Flows.
11. Monopoly.
Monopoly Versus Competition. Monopolistic Pricing. Monopoly and Efficiency. Price Discrimination.
12. Imperfect Competition.
Monopolistic Competition. Cartels and Collusion. Antitrust Policy.
13. Labor Markets.
The Supply of Labor. Families: The "New Home Economics." The Demand for labor. The Market for Labor. Labor Unions. Labor Market Discrimination.
14. The Macro Economy.
The Aggregate Economy: Concepts. Measurement of the Economy. The Central Problem of Macroeconomics. The Role of Money in the Macro Economy. Monetary Policy: How the Fed Affects the Economy. Fiscal Policy. Policy Issues.