Publisher's Synopsis
This text takes a modern, market-oriented approach to micro- and macroeconomics. It focuses on the importance of individual choice and how markets work. The micro section of the book is organized around the concept of efficiency and its relationship to the maximization of net benefits. The macro portion is based on microeconomic analysis throughout - a microfoundations approach. Real world data and examples are used to show the relevance of economic theory to practice, and to test competing explanations and models. Highlighted boxes throughout the text illustrate why economists disagree on specific economic policies and how economic theory, applied properly, can explain what appears to be illogical behaviour. The theories of cost, revenue and profit maximization are presented in a single chapter to show that the rule for profit maximization is independent of the structure of the market in which it operates.
