Microeconomics, 2nd Edition

Economics for a better world Built to focus on what matters to students in today’s high-tech, globalized world, Dean Karlan and Jonathan Morduch’s Microeconomics represents a new generation of products, optimized for digital delivery and available with best-in-class adaptive study resources in McGraw-Hill Connect.This text combines a familiar curriculum with material from new research and applied areas such as finance, behavioral economics, and the political economy. Students and faculty will find content that breaks down barriers between what takes place in the classroom and what happens in our nation and broader world, with applications that are driven by empirical evidence, data, and research. The second edition fulfills four fundamental commitments: • Shows students how economics connects to important ideas and issues in the world• Teaches principles as evidence-based tools for tackling real situations• Appeals to today’s globally-engaged and socially aware students• Provides a balanced, data-driven viewKarlan and Morduch show students that economics is a tool to better one’s own life and promote better public and business policies in the world. At the same time, this second edition challenges students to reach their own conclusions about what “better” really means.

Table of Contents

Part 1 The Power of Economics
Chapter 1 Economics and Life
Chapter 2 Specialization and Exchange
Appendix A Math Essentials: Understanding Graphs and Slope

Part 2 Supply and Demand
Chapter 3 Markets
Appendix B Math Essentials: Working with Linear Equations
Chapter 4 Elasticity
Appendix C Math Essentials: Calculating Percentage Change, Slope, and Elasticity
Chapter 5 Efficiency
Appendix D Math Essentials: The Area under a Linear Curve
Chapter 6 Government Intervention

Part 3 Individual Decisions
Chapter 7 Consumer Behavior
Appendix E Using Indifference Curves
Chapter 8 Behavioral Economics: A Closer Look at Decision Making
Chapter 9 Game Theory and Strategic Thinking
Chapter 10 Information
Chapter 11 Time and Uncertainty
Appendix F Math Essentials: Compounding

Part 4 Firm Decisions
Chapter 12 The Costs of Production
Chapter 13 Perfect Competition
Chapter 14 Monopoly
Chapter 15 Monopolistic Competition and Oligopoly
Chapter 16 The Factors of Production
Chapter 17 International Trade

Part 5 Public Economics
Chapter 18 Externalities
Chapter 19 Public Goods and Common Resources
Chapter 20 Taxation and the Public Budget
Chapter 21 Poverty, Inequality, and Discrimination
Chapter 22 Political Choices
Chapter 23 Public Policy and Choice Architecture