Three unified principles lay the groundwork forunderstanding the economic way of thinking about the world Optimization. Economists believe that optimization explains most choices people make. When people fail to choose the best available option, economic reasoning can be used to analyze the mistake and to suggest a better course of action. Equilibrium. Economic systems tend toward equilibrium, wherein each economic actor feels that he or she cannot do any better by picking another course of action. This principle highlights the connections among economic actors and their choices. Empiricism. Economists use data to test economic theories, learn about the world, and speak to policymakers.
The emphasis on matching theories with real-world data to answer specific questions helps to show students the evidence behind the theory, making economics concrete, interesting, and fun. Applications provide meaningful practice in analyzing andinterpreting real-world economic data and questions NEW - End-of-chapter Evidence-Based Economic problems show how economists use data to answer the question posed in the opening paragraph of each chapter. These features let students get a real look at economics as it plays out in the world around them and gives them the skills to question systematically and evaluate what they read. New problems focus on: the opportunity cost of social media, higher education, and going to a movie (Chapter 1) the effectiveness of financial incentives to get people to quit smoking (Chapter 5) employment discrimination and the Democratic presidential nomination (Chapter 11) and the role of discrimination in wage differences across gender and ethnicity (Chapter 11) whether economic development is tied to climate (Chapter 22) the 2007-2009 recession and applying Okun''s law to the 2020 recession (Chapter 26) spending multipliers and the CARES act (Chapter 27) NEW - Evidence-Based Economics sections devote more discussion to real-world economic issues and events: wages and employment during the COVID-19 Pandemic (Chapter 9) causes of recessions (Chapter 26) NEW - Letting the Data Speak boxes are short, targeted explorations that analyze an economic question by using real data as the foundation of the discussion. Recent additions profile: how the price of crude oil temporarily fell below $0 per barrel (Chapter 4) the impact of tax and service charges on price elasticity (Chapter 5) the costs and benefits of government regulation and safety (Chapter 7) how companies can optimize apologies to their customer (Chapter 18) racial discrimination in the labor market (Chapter 23) the latest research on inflation expectations and past experiences (Chapter 25) NEW - Choice and Consequence exercises emphasize optimization by focusing on making the best decision. These features ask students to make an economic decision, or evaluate the consequences of past real decisions. The authors then explain how an economist might analyze the same decision. New questions discuss the Coronavirus vaccination, the future implications of AI on employment (Chapter 23) and recent changes in U.
S. trade policy and Brexit (Chapter 28). Comprehensive micro- and macroeconomic coverage shows theimportance of concepts in everyday life NEW - Practical coverage of micro- and macroeconomics helps students see how they can apply course content in their own decision-making New and relevant discussions related to the COVID-19 pandemic include: its impact on positive and normative economics related to unemployment and the stock market (Chapter 1) the trade-offs between health and economic output during the crisis (Chapter 1) how stay-at-home orders in 2020 impacted the demand for gasoline in developed countries (Chapter 4) the macroeconomic indicators related to, and savings rate and bank failures during, the COVID-19 Recession (Chapters 19 and 24) the government expenditure multiplier during the 2007-2009 and 2020 recessions (Chapter 27) UPDATED - An integrated approach to consumption and production. Chapters 5 and 6 show students that consumption and production are really two sides of the same coin, glued together by the idea of incentives. Upon grasping the commonalities and linkages between the processes of consumer and producer decisions, students can see and get a better understanding of the whole picture and how these concepts tie together. UPDATED - In-depth coverage of game theory that yields powerful insights. Chapter 13 is devoted entirely to game theory, which is a source of some very powerful economic insights. This chapter emphasizes that it helps us better understand the world when we place ourselves in the shoes of someone else.
In so doing, each student may develop a deeper understanding of how to choose a strategy that is a best response to the strategies of others. UPDATED - An innovative suite that extends the microeconomic toolbox. Chapters 15 to 17 help students see the relevance of the study of microeconomics, which is applicable to real-life topics such as how compound interest causes an investment''s value to grow over time. And the book comes to a close in an innovative fashion with Chapter 18 on social economics. Exploring the economics of charity, fairness, and revenge, this final chapter drives home the fact that economic principles can be extended to every corner of our world. PearsonMyLab® Economics is not included. Students, if Pearson MyLab Economics is arecommended/mandatory component of the course, please ask your instructor forthe correct ISBN. Pearson MyLab Economics should only be purchased whenrequired by an instructor.
Instructors, contact your Pearson representative formore information.