{"id":778,"date":"2018-05-01T14:10:13","date_gmt":"2018-05-01T14:10:13","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/suny-microeconomics2\/?post_type=front-matter&p=778"},"modified":"2018-05-01T14:10:13","modified_gmt":"2018-05-01T14:10:13","slug":"preface","status":"publish","type":"front-matter","link":"https:\/\/courses.lumenlearning.com\/suny-microeconomics2\/front-matter\/preface\/","title":{"raw":"Preface","rendered":"Preface"},"content":{"raw":"
\r\n

Learning Objectives<\/h3>\r\nPrinciples of Microeconomics is designed for a one-semester microeconomics introductory course. It is traditional in coverage, including introductory economics content, microeconomics, and international economics. At the same time, the book includes a number of innovative and interactive features designed to enhance student learning. Instructors can also customize the book, adapting it to the approach that works best in their classroom.\r\n\r\n<\/div>\r\n

Welcome to Principles of Microeconomics 2e<\/em> (2nd Edition), an OpenStax resource. This textbook was written to increase student access to high-quality learning materials, maintaining highest standards of academic rigor at little to no cost.<\/p>\r\n\r\n

\r\n

About OpenStax<\/h3>\r\n

OpenStax is a nonprofit based at Rice University, and it\u2019s our mission to improve student access to education. Our first openly licensed college textbook was published in 2012, and our library has since scaled to over 25 books for college and AP\u00ae<\/sup> courses used by hundreds of thousands of students. OpenStax Tutor, our low-cost personalized learning tool, is being used in college courses throughout the country. Through our partnerships with philanthropic foundations and our alliance with other educational resource organizations, OpenStax is breaking down the most common barriers to learning and empowering students and instructors to succeed.<\/p>\r\n\r\n<\/section>

\r\n

About OpenStax resources<\/h3>\r\n
\r\n

Customization<\/h4>\r\n

Principles of Microeconomics 2e<\/em> is licensed under a Creative Commons Attribution 4.0 International (CC BY) license, which means that you can distribute, remix, and build upon the content, as long as you provide attribution to OpenStax and its content contributors.<\/p>\r\n

Because our books are openly licensed, you are free to use the entire book or pick and choose the sections that are most relevant to the needs of your course. Feel free to remix the content by assigning your students certain chapters and sections in your syllabus, in the order that you prefer. You can even provide a direct link in your syllabus to the sections in the web view of your book.<\/p>\r\n

Instructors also have the option of creating a customized version of their OpenStax book. The custom version can be made available to students in low-cost print or digital form through their campus bookstore. Visit the Instructor Resources section of your book page on OpenStax.org for more information.<\/p>\r\n\r\n<\/section>

\r\n

Errata<\/h4>\r\n

All OpenStax textbooks undergo a rigorous review process. However, like any professional-grade textbook, errors sometimes occur. Since our books are web based, we can make updates periodically when deemed pedagogically necessary. If you have a correction to suggest, submit it through the link on your book page on OpenStax.org. Subject matter experts review all errata suggestions. OpenStax is committed to remaining transparent about all updates, so you will also find a list of past errata changes on your book page on OpenStax.org.<\/p>\r\n\r\n<\/section>

\r\n

Format<\/h4>\r\n

You can access this textbook for free in web view or PDF through OpenStax.org, and for a low cost in print.<\/p>\r\n\r\n<\/section><\/section>

\r\n

About Principles of Microeconomics 2e<\/em><\/h3>\r\n

Principles of Microeconomics 2e<\/em> (2nd edition) covers the scope and sequence of most introductory microeconomics courses. The text includes many current examples, which are handled in a politically equitable way. The outcome is a balanced approach to the theory and application of economics concepts. The second edition has been thoroughly revised to increase clarity, update data and current event impacts, and incorporate the feedback from many reviewers and adopters.<\/p>\r\n\r\n

\r\n

Coverage and scope<\/h4>\r\n

To develop the first edition of Principles of Microeconomics<\/em>, we acquired the rights to Timothy Taylor\u2019s Principles of Economics<\/em> and solicited ideas from economics instructors at all levels of higher education, from community colleges to PhD-granting universities. For the second edition, we received even more expansive and actionable feedback from hundreds of adopters who had used the book for several academic terms. These knowledgeable instructors informed the pedagogical courses, learning objective development and fulfillment, and the chapter arrangements. Faculty who taught from the material provided critical and detailed commentary.<\/p>\r\n

The result is a book that covers the breadth of economics topics and also provides the necessary depth to ensure the course is manageable for instructors and students alike. We strove to balance theory and application, as well as the amount of calculation and mathematical examples.<\/p>\r\n

The book is organized into five main parts:<\/p>\r\n\r\n

    \r\n \t
  • What is Economics?<\/strong> The first two chapters introduce students to the study of economics with a focus on making choices in a world of scarce resources.<\/li>\r\n \t
  • Supply and Demand<\/strong>, Chapters 3 and 4, introduces and explains the first analytical model in economics\u2013supply, demand, and equilibrium\u2013before showing applications in the markets for labor and finance.<\/li>\r\n \t
  • The Fundamentals of Microeconomic Theory<\/strong>, Chapters 5 through 10, begins the microeconomics portion of the text, presenting the theories of consumer behavior, production and costs, and the different models of market structure, including some simple game theory.<\/li>\r\n \t
  • Microeconomic Policy Issues<\/strong>, Chapters 11 through 18, covers the range of topics in applied micro, framed around the concepts of public goods and positive and negative externalities. Students explore competition and antitrust policies, environmental problems, poverty, income inequality, and other labor market issues. The text also covers information, risk and financial markets, and public economy.<\/li>\r\n \t
  • International Economics<\/strong>, Chapters 19 and 20, introduces the international dimensions of economics, including international trade and protectionism.<\/li>\r\n<\/ul>\r\n

    Alternate sequencing <\/span>Principles of Microeconomics 2e<\/em> was conceived and written to fit a particular topical sequence, but it can be used flexibly to accommodate other course structures. One such potential structure, which fits reasonably well with the textbook content, is provided. Please consider, however, that the chapters were not written to be completely independent, and that the proposed alternate sequence should be carefully considered for student preparation and textual consistency.<\/p>\r\n

    Chapter 1 Welcome to Economics!<\/p>\r\n\r\n

    <\/div>\r\nChapter 2 Choice in a World of Scarcity\r\n
    <\/div>\r\nChapter 3 Demand and Supply\r\n
    <\/div>\r\nChapter 4 Labor and Financial Markets\r\n
    <\/div>\r\nChapter 5 Elasticity\r\n
    <\/div>\r\nChapter 6 Consumer Choices\r\n
    <\/div>\r\nChapter 19 International Trade\r\n
    <\/div>\r\nChapter 7 Cost and Industry Structure\r\n
    <\/div>\r\nChapter 12 Environmental Protection and Negative Externalities\r\n
    <\/div>\r\nChapter 13 Positive Externalities and Public Goods\r\n
    <\/div>\r\nChapter 8 Perfect Competition\r\n
    <\/div>\r\nChapter 9 Monopoly\r\n
    <\/div>\r\nChapter 10 Monopolistic Competition and Oligopoly\r\n
    <\/div>\r\nChapter 11 Monopoly and Antitrust Policy\r\n
    <\/div>\r\nChapter 14 Labor Markets and Income\r\n
    <\/div>\r\nChapter 15 Poverty and Economic Inequality\r\n
    <\/div>\r\nChapter 16 Information, Risk, and Insurance\r\n
    <\/div>\r\nChapter 17 Financial Markets\r\n
    <\/div>\r\nChapter 18 Public Economy\r\n
    <\/div>\r\nChapter 20 Globalization and Protectionism\r\n
    <\/div>\r\n
    <\/div>\r\nAppendix A The Use of Mathematics in Principles of Economics\r\n
    <\/div>\r\nAppendix B Indifference Curves\r\n
    <\/div>\r\nAppendix C Present Discounted Value\r\n
    <\/div>\r\n<\/section>
    \r\n

    Changes to the second edition<\/h4>\r\n

    OpenStax only undertakes revisions when significant modifications to a text are necessary. In the case of Principles of Microeconomics<\/em>, we received a wealth of constructive feedback. Many of the book\u2019s users felt that consequential movement in economic data, coupled with the impacts of national and global events, warranted a full revision. We also took advantage of the opportunity to improve the writing and sequencing of the text, as well as many of the calculation examples. The major changes are summarized below.<\/p>\r\n\r\n

      \r\n \t
    • Augmented explanations in chapters one through four provide a more comprehensive and informative foundation for the book.<\/li>\r\n \t
    • A clearer explanation, using a numerical example, has been given for finding the utility maximizing combination of goods and services a consumer should choose.<\/li>\r\n \t
    • The labor markets chapter and the poverty and economic inequality chapter have been resequenced.<\/li>\r\n \t
    • Substantial revisions to the AD\/AS model in chapters 24-26 present the core concepts of macroeconomics in a clearer, more dynamic manner.<\/li>\r\n \t
    • Case studies and examples have been revised and, in some cases, replaced to provide more relevant and useful information for students.<\/li>\r\n \t
    • Economic data, tables, and graphs, as well as discussion and analysis around that data, have been thoroughly updated.<\/li>\r\n<\/ul>\r\n

      Wherever possible, data from the Federal Reserve Economic Database (FRED) was included and referenced. In most of these uses, links to the direct source of the FRED data are provided, and students are encouraged to explore the information and the overall FRED resources more thoroughly.<\/p>\r\n

      Additional updates and revisions appear throughout the book. They reflect changes to economic realities and policies regarding international trade, taxation, insurance, and other topics. For issues that may change in the months or years following the textbook's publication, the authors often provided a more open-ended explanation, but we will update the text annually to address further changes.<\/p>\r\n

      The revision of Principles of Microeconomics<\/em> was undertaken by Steven Greenlaw (University of Mary Washington) and David Shapiro (Pennsylvania State University), with significant input by lead reviewer Daniel MacDonald (California State University, San Bernardino).<\/p>\r\n\r\n<\/section>

      \r\n

      Pedagogical foundation<\/h4>\r\n

      Throughout Principles of Microeconomics 2e<\/em>, you will find features that engage the students in economic inquiry and support their learning. Our features include:<\/p>\r\n\r\n

        \r\n \t
      • Bring It Home.<\/strong> This feature presents a brief case study, specific to each chapter, which connects the chapter\u2019s main topic to the real world. It is broken up into two parts: the first at the beginning of the chapter (in the Intro module) and the second at chapter\u2019s end, when students have learned what\u2019s necessary to understand the case and \"bring home\" the chapter\u2019s core concepts.<\/li>\r\n \t
      • Work It Out.<\/strong> This feature asks students to work through a generally analytical or computational problem, and guides them step-by-step to find out how its solution is derived.<\/li>\r\n \t
      • Clear It Up.<\/strong> This feature addresses common student misconceptions about the content. Clear It Ups are usually deeper explanations of something in the main body of the text. Each CIU starts with a question. The rest of the feature explains the answer.<\/li>\r\n \t
      • Link It Up.<\/strong> This feature offers a very brief introduction to a website that is pertinent to students\u2019 understanding and enjoyment of the topic at hand.<\/li>\r\n<\/ul>\r\n<\/section>
        \r\n

        Questions for each level of learning<\/h4>\r\n

        Principles of Microeconomics 2e<\/em> offers four types of end-of-module questions for students.<\/p>\r\n\r\n

          \r\n \t
        • Self-Checks.<\/strong> These analytical self-assessment questions appear at the end of each module. They push the student to think beyond what is said in the text. Self-Check questions are designed for formative (rather than summative) assessment. The questions and answers are explained so that students feel like they are being walked through the problem.<\/li>\r\n \t
        • Review Questions.<\/strong> These are simple recall questions from the chapter and are in open-response format (not<\/u> multiple choice or true\/false). The answers can be looked up in the text.<\/li>\r\n \t
        • Critical Thinking Questions.<\/strong> These higher-level, conceptual questions ask students to demonstrate their understanding by applying<\/em> what they have learned in different contexts. They ask for outside-the-box thinking, for reasoning<\/em> about the concepts. They push the student to places they wouldn\u2019t have thought of going themselves.<\/li>\r\n \t
        • Problems.<\/strong> These exercises give students additional practice working with the analytic and computational concepts in the module.<\/li>\r\n<\/ul>\r\n<\/section>
          \r\n

          Updated art<\/h4>\r\n

          Principles of Microeconomics 2e<\/em> includes an updated art program to better inform today\u2019s student, providing the latest data on covered topics.<\/p>\r\n\r\n

          \r\n
          Cost Curves at the Clip Joint<\/div>\r\n\r\n\"sample<\/span><\/figure>\r\n
          \r\n
          Banks as Financial Intermediaries<\/div>\r\n\r\n\"sample<\/span><\/figure>\r\n
          \r\n
          Interest Rates on Six-Month, One-Year, and Five-Year Certificates of Deposit<\/div>\r\n\r\n\"sample<\/span><\/figure>\r\n<\/section><\/section>
          \r\n

          Additional resources<\/h3>\r\n
          \r\n

          Student and instructor resources<\/h4>\r\n

          We\u2019ve compiled additional resources for both students and instructors, including Getting Started Guides, an instructor solution manual, test bank, and PowerPoint slides. Instructor resources require a verified instructor account, which you can apply for when you log in or create your account on OpenStax.org. Take advantage of these resources to supplement your OpenStax book.<\/p>\r\n\r\n<\/section>

          \r\n

          Community Hubs<\/h4>\r\n\"OERCommons<\/span>\r\n

          OpenStax partners with the Institute for the Study of Knowledge Management in Education (ISKME) to offer Community Hubs on OER Commons \u2013 a platform for instructors to share community-created resources that support OpenStax books, free of charge. Through our Community Hubs, instructors can upload their own materials or download resources to use in their own courses, including additional ancillaries, teaching material, multimedia, and relevant course content. We encourage instructors to join the hubs for the subjects most relevant to your teaching and research as an opportunity both to enrich your courses and to engage with other faculty.<\/p>\r\n

          To reach the Community Hubs, visit www.oercommons.org\/hubs\/OpenStax.<\/p>\r\n\r\n<\/section>

          \r\n

          Technology partners<\/h4>\r\n

          As allies in making high-quality learning materials accessible, our technology partners offer optional low-cost tools that are integrated with OpenStax books. To access the technology options for your text, visit your book page on OpenStax.org.<\/p>\r\n\r\n<\/section><\/section>

          \r\n

          About the authors<\/h3>\r\n
          \r\n

          Senior contributing authors<\/h4>\r\n

          Steven A. Greenlaw, University of Mary Washington<\/strong><\/p>\r\n\r\n

          <\/div>\r\nSteven Greenlaw has been teaching principles of economics for more than 30 years. In 1999, he received the Grellet C. Simpson Award for Excellence in Undergraduate Teaching at the University of Mary Washington. He is the author of Doing Economics: A Guide to Doing and Understanding Economic Research<\/em>, as well as a variety of articles on economics pedagogy and instructional technology, published in the Journal of Economic Education<\/em>, the International Review of Economic Education<\/em>, and other outlets. He wrote the module on Quantitative Writing for Starting Point: Teaching and Learning Economics<\/em>, the web portal on best practices in teaching economics. Steven Greenlaw lives in Alexandria, Virginia with his wife Kathy and their three children.\r\n

          David Shapiro, Pennsylvania State University<\/strong><\/p>\r\n\r\n

          <\/div>\r\nDavid Shapiro is Professor Emeritus of Economics, Demography, and Women\u2019s, Gender, and Sexuality Studies at the Pennsylvania State University. He received a BA in Economics and Political Science from the University of Michigan, and an MA as well as a PhD in Economics from Princeton University. He began his academic career at Ohio State University in 1971, and moved to Penn State in 1980. His early research focused on women and youth in the United States labor market. Following a 1978-79 stint as a Fulbright professor at the University of Kinshasa in the Democratic Republic of the Congo, his research shifted focus to fertility in Kinshasa and more broadly, in sub-Saharan Africa. He has also received the top prize for teaching at both Ohio State and Penn State.\r\n

          Timothy Taylor, Macalester College<\/strong><\/p>\r\n\r\n

          <\/div>\r\nTimothy Taylor has been writing and teaching about economics for 30 years, and is the Managing Editor of the Journal of Economic Perspectives<\/em>, a post he\u2019s held since 1986. He has been a lecturer for The Teaching Company, the University of Minnesota, and the Hubert H. Humphrey Institute of Public Affairs, where students voted him Teacher of the Year in 1997. His writings include numerous pieces for journals such as the Milken Institute Review<\/em> and The Public Interest<\/em>, and he has been an editor on many projects, most notably for the Brookings Institution and the World Bank, where he was Chief Outside Editor for the World Development Report 1999\/2000, Entering the 21st Century: The Changing Development Landscape<\/em>. He also blogs four to five times per week at http:\/\/conversableeconomist.blogspot.com. Timothy Taylor lives near Minneapolis with his wife Kimberley and their three children.\r\n\r\n<\/section>\r\n

          Special thanks to Christian Potter from University of Mary Washington, who thoroughly researched and applied many of the data updates and provided the foundation for many new and revised illustrations.<\/p>\r\n\r\n

          \r\n

          Development editor<\/h4>\r\n

          Thomas Sigel<\/p>\r\n\r\n<\/section>

          \r\n

          Contributing authors<\/h4>\r\n

          Eric Dodge, Hanover College<\/p>\r\n\r\n

          <\/div>\r\nCynthia Gamez, University of Texas at El Paso\r\n
          <\/div>\r\nAndres Jauregui, Columbus State University\r\n
          <\/div>\r\nDiane Keenan, Cerritos College\r\n
          <\/div>\r\nDan MacDonald, California State University, San Bernardino\r\n
          <\/div>\r\nAmyaz Moledina, The College of Wooster\r\n
          <\/div>\r\nCraig Richardson, Winston-Salem State University\r\n
          <\/div>\r\nRalph Sonenshine, American University\r\n\r\n<\/section>
          \r\n

          Reviewers<\/h4>\r\n

          Bryan Aguiar, Northwest Arkansas Community College<\/p>\r\n\r\n

          <\/div>\r\nBasil Al Hashimi, Mesa Community College\r\n
          <\/div>\r\nJennifer Ball, Washburn University\r\n
          <\/div>\r\nEmil Berendt, Mount St. Mary's University\r\n
          <\/div>\r\nZena Buser, Adams State University\r\n
          <\/div>\r\nDouglas Campbell, The University of Memphis\r\n
          <\/div>\r\nSanjukta Chaudhuri, University of Wisconsin-Eau Claire\r\n
          <\/div>\r\nXueyu Cheng, Alabama State University\r\n
          <\/div>\r\nRobert Cunningham, Alma College\r\n
          <\/div>\r\nRosa Lea Danielson, College of DuPage\r\n
          <\/div>\r\nSteven Deloach, Elon University\r\n
          <\/div>\r\nDebbie Evercloud, University of Colorado Denver\r\n
          <\/div>\r\nSal Figueras, Hudson County Community College\r\n
          <\/div>\r\nReza Ghorashi, Richard Stockton College of New Jersey\r\n
          <\/div>\r\nRobert Gillette, University of Kentucky\r\n
          <\/div>\r\nGeorge Jones, University of Wisconsin-Rock County\r\n
          <\/div>\r\nCharles Kroncke, College of Mount St. Joseph\r\n
          <\/div>\r\nTeresa Laughlin, Palomar Community College\r\n
          <\/div>\r\nCarlos Liard-Muriente, Central Connecticut State University\r\n
          <\/div>\r\nHeather Luea, Kansas State University\r\n
          <\/div>\r\nCharles Meyrick, Housatonic Community College\r\n
          <\/div>\r\nWilliam Mosher, Nashua Community College\r\n
          <\/div>\r\nMichael Netta, Hudson County Community College\r\n
          <\/div>\r\nNick Noble, Miami University\r\n
          <\/div>\r\nJoe Nowakowski, Muskingum University\r\n
          <\/div>\r\nShawn Osell, University of Wisconsin, Superior\r\n
          <\/div>\r\nMark Owens, Middle Tennessee State University\r\n
          <\/div>\r\nSonia Pereira, Barnard College\r\n
          <\/div>\r\nBrian Peterson, Central College\r\n
          <\/div>\r\nJennifer Platania, Elon University\r\n
          <\/div>\r\nRobert Rycroft, University of Mary Washington\r\n
          <\/div>\r\nAdrienne Sachse, Florida State College at Jacksonville\r\n
          <\/div>\r\nHans Schumann, Texas A&M University\r\n
          <\/div>\r\nGina Shamshak, Goucher College\r\n
          <\/div>\r\nChris Warburton, John Jay College of Criminal Justice, CUNY\r\n
          <\/div>\r\nMark Witte, Northwestern University\r\n
          <\/div>\r\nChiou-nan Yeh, Alabama State University\r\n\r\n<\/section><\/section> ","rendered":"
          \n

          Learning Objectives<\/h3>\n

          Principles of Microeconomics is designed for a one-semester microeconomics introductory course. It is traditional in coverage, including introductory economics content, microeconomics, and international economics. At the same time, the book includes a number of innovative and interactive features designed to enhance student learning. Instructors can also customize the book, adapting it to the approach that works best in their classroom.<\/p>\n<\/div>\n

          Welcome to Principles of Microeconomics 2e<\/em> (2nd Edition), an OpenStax resource. This textbook was written to increase student access to high-quality learning materials, maintaining highest standards of academic rigor at little to no cost.<\/p>\n

          \n

          About OpenStax<\/h3>\n

          OpenStax is a nonprofit based at Rice University, and it\u2019s our mission to improve student access to education. Our first openly licensed college textbook was published in 2012, and our library has since scaled to over 25 books for college and AP\u00ae<\/sup> courses used by hundreds of thousands of students. OpenStax Tutor, our low-cost personalized learning tool, is being used in college courses throughout the country. Through our partnerships with philanthropic foundations and our alliance with other educational resource organizations, OpenStax is breaking down the most common barriers to learning and empowering students and instructors to succeed.<\/p>\n<\/section>\n

          \n

          About OpenStax resources<\/h3>\n
          \n

          Customization<\/h4>\n

          Principles of Microeconomics 2e<\/em> is licensed under a Creative Commons Attribution 4.0 International (CC BY) license, which means that you can distribute, remix, and build upon the content, as long as you provide attribution to OpenStax and its content contributors.<\/p>\n

          Because our books are openly licensed, you are free to use the entire book or pick and choose the sections that are most relevant to the needs of your course. Feel free to remix the content by assigning your students certain chapters and sections in your syllabus, in the order that you prefer. You can even provide a direct link in your syllabus to the sections in the web view of your book.<\/p>\n

          Instructors also have the option of creating a customized version of their OpenStax book. The custom version can be made available to students in low-cost print or digital form through their campus bookstore. Visit the Instructor Resources section of your book page on OpenStax.org for more information.<\/p>\n<\/section>\n

          \n

          Errata<\/h4>\n

          All OpenStax textbooks undergo a rigorous review process. However, like any professional-grade textbook, errors sometimes occur. Since our books are web based, we can make updates periodically when deemed pedagogically necessary. If you have a correction to suggest, submit it through the link on your book page on OpenStax.org. Subject matter experts review all errata suggestions. OpenStax is committed to remaining transparent about all updates, so you will also find a list of past errata changes on your book page on OpenStax.org.<\/p>\n<\/section>\n

          \n

          Format<\/h4>\n

          You can access this textbook for free in web view or PDF through OpenStax.org, and for a low cost in print.<\/p>\n<\/section>\n<\/section>\n

          \n

          About Principles of Microeconomics 2e<\/em><\/h3>\n

          Principles of Microeconomics 2e<\/em> (2nd edition) covers the scope and sequence of most introductory microeconomics courses. The text includes many current examples, which are handled in a politically equitable way. The outcome is a balanced approach to the theory and application of economics concepts. The second edition has been thoroughly revised to increase clarity, update data and current event impacts, and incorporate the feedback from many reviewers and adopters.<\/p>\n

          \n

          Coverage and scope<\/h4>\n

          To develop the first edition of Principles of Microeconomics<\/em>, we acquired the rights to Timothy Taylor\u2019s Principles of Economics<\/em> and solicited ideas from economics instructors at all levels of higher education, from community colleges to PhD-granting universities. For the second edition, we received even more expansive and actionable feedback from hundreds of adopters who had used the book for several academic terms. These knowledgeable instructors informed the pedagogical courses, learning objective development and fulfillment, and the chapter arrangements. Faculty who taught from the material provided critical and detailed commentary.<\/p>\n

          The result is a book that covers the breadth of economics topics and also provides the necessary depth to ensure the course is manageable for instructors and students alike. We strove to balance theory and application, as well as the amount of calculation and mathematical examples.<\/p>\n

          The book is organized into five main parts:<\/p>\n

            \n
          • What is Economics?<\/strong> The first two chapters introduce students to the study of economics with a focus on making choices in a world of scarce resources.<\/li>\n
          • Supply and Demand<\/strong>, Chapters 3 and 4, introduces and explains the first analytical model in economics\u2013supply, demand, and equilibrium\u2013before showing applications in the markets for labor and finance.<\/li>\n
          • The Fundamentals of Microeconomic Theory<\/strong>, Chapters 5 through 10, begins the microeconomics portion of the text, presenting the theories of consumer behavior, production and costs, and the different models of market structure, including some simple game theory.<\/li>\n
          • Microeconomic Policy Issues<\/strong>, Chapters 11 through 18, covers the range of topics in applied micro, framed around the concepts of public goods and positive and negative externalities. Students explore competition and antitrust policies, environmental problems, poverty, income inequality, and other labor market issues. The text also covers information, risk and financial markets, and public economy.<\/li>\n
          • International Economics<\/strong>, Chapters 19 and 20, introduces the international dimensions of economics, including international trade and protectionism.<\/li>\n<\/ul>\n

            Alternate sequencing <\/span>Principles of Microeconomics 2e<\/em> was conceived and written to fit a particular topical sequence, but it can be used flexibly to accommodate other course structures. One such potential structure, which fits reasonably well with the textbook content, is provided. Please consider, however, that the chapters were not written to be completely independent, and that the proposed alternate sequence should be carefully considered for student preparation and textual consistency.<\/p>\n

            Chapter 1 Welcome to Economics!<\/p>\n

            <\/div>\n

            Chapter 2 Choice in a World of Scarcity<\/p>\n

            <\/div>\n

            Chapter 3 Demand and Supply<\/p>\n

            <\/div>\n

            Chapter 4 Labor and Financial Markets<\/p>\n

            <\/div>\n

            Chapter 5 Elasticity<\/p>\n

            <\/div>\n

            Chapter 6 Consumer Choices<\/p>\n

            <\/div>\n

            Chapter 19 International Trade<\/p>\n

            <\/div>\n

            Chapter 7 Cost and Industry Structure<\/p>\n

            <\/div>\n

            Chapter 12 Environmental Protection and Negative Externalities<\/p>\n

            <\/div>\n

            Chapter 13 Positive Externalities and Public Goods<\/p>\n

            <\/div>\n

            Chapter 8 Perfect Competition<\/p>\n

            <\/div>\n

            Chapter 9 Monopoly<\/p>\n

            <\/div>\n

            Chapter 10 Monopolistic Competition and Oligopoly<\/p>\n

            <\/div>\n

            Chapter 11 Monopoly and Antitrust Policy<\/p>\n

            <\/div>\n

            Chapter 14 Labor Markets and Income<\/p>\n

            <\/div>\n

            Chapter 15 Poverty and Economic Inequality<\/p>\n

            <\/div>\n

            Chapter 16 Information, Risk, and Insurance<\/p>\n

            <\/div>\n

            Chapter 17 Financial Markets<\/p>\n

            <\/div>\n

            Chapter 18 Public Economy<\/p>\n

            <\/div>\n

            Chapter 20 Globalization and Protectionism<\/p>\n

            <\/div>\n
            <\/div>\n

            Appendix A The Use of Mathematics in Principles of Economics<\/p>\n

            <\/div>\n

            Appendix B Indifference Curves<\/p>\n

            <\/div>\n

            Appendix C Present Discounted Value<\/p>\n

            <\/div>\n<\/section>\n
            \n

            Changes to the second edition<\/h4>\n

            OpenStax only undertakes revisions when significant modifications to a text are necessary. In the case of Principles of Microeconomics<\/em>, we received a wealth of constructive feedback. Many of the book\u2019s users felt that consequential movement in economic data, coupled with the impacts of national and global events, warranted a full revision. We also took advantage of the opportunity to improve the writing and sequencing of the text, as well as many of the calculation examples. The major changes are summarized below.<\/p>\n

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            • Augmented explanations in chapters one through four provide a more comprehensive and informative foundation for the book.<\/li>\n
            • A clearer explanation, using a numerical example, has been given for finding the utility maximizing combination of goods and services a consumer should choose.<\/li>\n
            • The labor markets chapter and the poverty and economic inequality chapter have been resequenced.<\/li>\n
            • Substantial revisions to the AD\/AS model in chapters 24-26 present the core concepts of macroeconomics in a clearer, more dynamic manner.<\/li>\n
            • Case studies and examples have been revised and, in some cases, replaced to provide more relevant and useful information for students.<\/li>\n
            • Economic data, tables, and graphs, as well as discussion and analysis around that data, have been thoroughly updated.<\/li>\n<\/ul>\n

              Wherever possible, data from the Federal Reserve Economic Database (FRED) was included and referenced. In most of these uses, links to the direct source of the FRED data are provided, and students are encouraged to explore the information and the overall FRED resources more thoroughly.<\/p>\n

              Additional updates and revisions appear throughout the book. They reflect changes to economic realities and policies regarding international trade, taxation, insurance, and other topics. For issues that may change in the months or years following the textbook’s publication, the authors often provided a more open-ended explanation, but we will update the text annually to address further changes.<\/p>\n

              The revision of Principles of Microeconomics<\/em> was undertaken by Steven Greenlaw (University of Mary Washington) and David Shapiro (Pennsylvania State University), with significant input by lead reviewer Daniel MacDonald (California State University, San Bernardino).<\/p>\n<\/section>\n

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              Pedagogical foundation<\/h4>\n

              Throughout Principles of Microeconomics 2e<\/em>, you will find features that engage the students in economic inquiry and support their learning. Our features include:<\/p>\n