This title is a Pearson Global Edition. The Editorial team at Pearson has worked closely with educators around the world to include content which is especially relevant to students outside the United States. Teach economics through three unified themes: Three key principles -- optimization, equilibrium, and empiricism -- lie at the heart of the authors'' approach. 1. Optimization. The first principle -- that people try to choose the best available option -- is optimization. Economists believe that optimization explains most choices people make, including minor decisions like deciding whether to eat a cheeseburger, and major decisions like deciding whom to date or marry. When people fail to optimize perfectly, economic reasoning can be used to analyze the mistake and to suggest a better course of action.
2. 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. In a state of equilibrium, consumers and purveyors of goods and services are simultaneously optimizing, and their behaviors are consequently intertwined. 3. Empiricism. While the first two key principles are conceptual, the third is methodological.
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. Showcase empirical questions with engaging features: Evidence-Based Economics (EBE) features show how economists use data to answer the question posed in the opening paragraph of each chapter. The EBEs use actual data from field experiments, lab experiments, naturally occurring data, or government data, while highlighting major concepts in the chapter. These features let students get a real look at economics as it plays out in the world around them. Examples: * Why are you so much more prosperous than your great-great-grandparents were? * Are tropical and semitropical areas condemned to poverty by their geographies? * What caused the recession of 2007-2009? * Are companies like Nike harming workers in Vietnam? Letting the Data Speak features reinforce the theme of evidence behind the theory. These short, targeted explorations analyze an economic question by using real data as the foundation of the discussion. Among the many issues explored: * Income inequality in the United States * Life expectancy and innovation * Managing expectations Choice and Consequence features emphasize optimization -- one of the key themes in the book -- 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. Examples of choices investigated: * The power of growth * Foreign aid and corruption * Too big to fail Bring macroeconomics to life through clear, contemporary coverage: Contemporary coverage of macroeconomics via a clear framework helps students understand key concepts, and highlights the relevance of economics in their own lives. A comprehensive treatment of Growth and Development. Chapter 7, Economic Growth, shows how economic growth has transformed many countries over the past 200 years. A simplified version of the Solow Model is in an optional appendix for instructors who want a more in-depth treatment. Chapter 8 explores why the whole world isn''t economically developed and considers fundamental causes of prosperity. Three key markets that play a central role in macro analysis.
Chapter 9 begins with the labor market, competitive equilibrium, and how imperfectly flexible wages lead to unemployment. Chapter 10 extends the analysis by incorporating the credit market, and Chapter 11 introduces the monetary system and the market for bank reserves. A modern framework to analyze and explain short-run fluctuations. The authors'' approach is inclusive and integrative, utilizing the most relevant and useful insights from many different schools of economic thought. The labor market and unemployment are at the center of the analysis, as the authors believe that the labor market is the most informative lens through which beginning economics students can understand economic fluctuations. In this part of the book, the discussion extends to the role of financial markets and financial crises. Chapter 12 lays the foundation of the approach, showing how a wide range of economic shocks causes short-run fluctuations and how a model of fluctuations can be constructed using the labor market. Chapter 13 discusses the monetary and fiscal policies utilized to partially offset aggregate fluctuations.
A view of the global economy. Chapter 14 shows how international trade works using the concepts of specialization, comparative advantage, and opportunity cost. Chapter 15 studies how exchange rates are determined, how the foreign exchange market operates, and how changes in the real exchange rate impact the macroeconomy. Personalize learning with MyEconLab: This package includes MyEconLab , an online homework, tutorial, and assessment program designed to work with this text to personalize learning and improve results. With a wide range of interactive, engaging, and assignable activities, students are encouraged to actively learn and retain tough course concepts. The new Digital Interactives in Pearson''s MyEconLab are poised to change how students learn core economic concepts. Organized in progressive levels, each focusing on a core learning outcome, Digital Interactives immerse students in a fundamental economic principle, helping them to learn actively. They can be presented in class as visually stimulating, highly engaging lecture tools, and can also be assigned with assessment questions for grading.
Digital Interactives are designed for use in traditional, online, and hybrid courses, and many incorporate real-time data, as well as data display and analysis tools. Interactive Reading Assignments in MyEconLab enable educators to encourage core reading by providing an assessment incentive along the way. These short reading segments feature embedded exercises that prompt students to learn actively. And, they''re automatically graded, so educators can integrate assessment into reading assignments quickly and easily.