[...]... help your students get the most from Microeconomics: Principles and Applications, fifth edition, and from your lectures Visit www.cengage.com/economics/econcentral and select Hall/Lieberman 5e to see the study options available! • Global Economic Watch A global economic crisis need not be a teaching crisis Students can now learn economic concepts through examples and applications using the most current... economists study and the different methods they use to analyze them MICROECONOMICS AND MACROECONOMICS The field of economics is divided into two major parts: microeconomics and macroeconomics Microeconomics comes from the Greek word mikros, meaning “small.” It takes a close-up view of the economy, as if looking through a microscope Microeconomics is concerned with the behavior of individual actors on... Markets (Chapter 13) This chapter focuses on the common theme of these subjects: the present value of future income Moreover, it provides simple, principles- level analyses of the stock and bond markets—something that students are hungry for but that many principles textbooks neglect Description versus Assessment (Chapters 9–11 and 14–15) In treating product market structures, most texts switch back... services, we would have to pull resources—land, labor, capital, FIGURE 1 Resources Resources and Production • Land (& natural resources) • Labor • Capital • Entrepreneurship Various Other Inputs • Raw Materials (such as cement, steel, plastic) • Transportation • Electricity • Etc Goods & Services • Food • Clothing • Health Care • Entertainment • Etc All goods and services come ultimately from the four... interesting applications (such as wage inequality) with less delay (Those who liked the prior approach to labor demand will find it in the appendix to that chapter.) Two other pedagogical changes we should note are the shift of the section on opportunity cost from Chapter 2 to Chapter 1 and an earlier introduction of international trade (within the discussion of comparative advantage in Chapter 2) NEW APPLICATIONS. .. on the principles of economic efficiency And doctors will need to understand how new technologies or changes in the structure of health insurance will affect their practices To Become an Economist Only a tiny minority of this book’s readers will decide to become economists This is welcome news to the authors, and after you have studied labor markets in your Chapter 1: What Is Economics? 11 microeconomics. .. the purpose for which the model is built In introductory economics, the purpose is entirely educational—to help you understand some simple, but powerful, principles about how the economy operates Keeping the models simple makes it easier to see these principles at work and remember them later ASSUMPTIONS AND CONCLUSIONS Simplifying assumption Any assumption that makes a model simpler without affecting... imply about efficient markets theory (Chapter 13), how information asymmetry affects the health insurance market (Chapter 15), and more Teaching and Learning Aids To help you present the most interesting principles courses possible, we have created an extensive set of supplementary items Many of them can be downloaded from the Hall/ Lieberman Web site www.cengage.com/economics/hall The list includes the... www.cengage.com/economics/hall features the essential resources for instructors, password-protected, in downloadable format: the Instructor’s Manual in Word, the test banks in Word, and PowerPoint lecture and exhibit slides • Microeconomics Test Bank The micro test bank is revised by Toni Weiss of Tulane University It contains more than 2,500 multiple-choice questions, arranged according to chapter headings and subheadings,... competition (horizontal demand curve, marginal revenue the same as price, etc.) This avoids confusion later on USING THE THEORY Monopolistic Competition and Oligopoly (Chapter 11) This text is full of applications that are woven throughout the narrative In addition, almost every chapter ends with an extended Two features of our treatment are worth noting First, we emphasize advertising, a key feature . Mexico • Singapore • Spain • United Kingdom • United States Microeconomics: Principles & Applications, 5th Edition Robert E. Hall Marc Lieberman Vice. 518 Glossary G-1 Index I-1 Preface ix PREFACE ix Microeconomics: Principles and Applications is about eco- nomic principles and how economists use them to understand