The text aims to provide a rigorous introduction to models and concepts, keeping the use of calculus simple and clear, and offering numerous graphs and diagrams to help bring the text to life. Focusing on the key issues, the book explains why economic activity exists; what are the best ways to carry out economic activity; how certain factors may affect the efficiency of economic activity; what might be done to improve its efficiency; how one can predict the effect of changes of various kinds; and why might government intervention into economic activity be beneficial. The author’s extensive teaching experience is imparted in a lively and accessible style, which helps students to understand ideas, manipulate models and apply economics to the real world.
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Chapter 1: Introduction
Part 1: Economies without Production
Chapter 2: Gains from exchange
Chapter 3: Discrete Goods: Reservation Prices, Demand and Supply and Surpluses
Chapter 4: Continuous Goods: Demand and Supply, and Surpluses
Chapter 5: Preferences
Chapter 6: Demand and Supply with Income in the Form of Endowments
Chapter 7: Demand with Income in the Form of Money
Chapter 8: Exchange
Chapter 9: Welfare
Part 2: Economies with Production
Chapter 10: Firms and Technology
Chapter 11: Cost Minimization and the Demand for Factors
Chapter 12: Cost Curves
Chapter 13: Firm Supply and Producer Surplus
Chapter 14: Production Possibility Frontiers
Chapter 15: Production and Exchange
Interlude
Chapter 16: Empirical Evidence on Demand, Supply and Surpluses
Part 3: Applications and Implications of the Basic Tools
Chapter 17: Aggregation
Chapter 18: Revealed Preference and Revealed Profitability
Chapter 19: Compensating and Equivalent Variations
Chapter 20: Inter-temporal Choice
Chapter 21: The Discounted Utility Model
Chapter 22: Exchange in Capital Markets
Chapter 23: Choice under Risk
Chapter 24: The Expected Utility Model
Chapter 25: Exchange in Insurance Markets
Chapter 26: The Labour Market
Part 4: Market Inefficiencies of Various Types
Chapter 27: Taxation
Chapter 28: Monopoly and Monopsony
Chapter 29: Natural Monopoly and Discrimination
Chapter 30: Game Theory
Chapter 31: Duopoly
Chapter 32: Externalities
Chapter 33: Public Goods
Chapter 34: Asymmetric Information
Examination Questions
Index
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