Microeconomics: Definition, Meaning and Scope

I have not found any cultural insensitive issues or examples that would have improper cultural relevance. I did not find any inconsistency in terms of terminology and framework. The book is relevant today and I believe it will be relevant long term. As mentioned above the only complaint I have is the presentation of the graphs. Content is up- to-date on most part but Table 1.2 and many other tables could be updated. The text is written in such away that necessary updates will be relatively easy and straight forward to implement.

Table of Contents

I didn’t find any grammatical errors, but there are quite a few typos. The text is easily and readily divisible into smaller reading sections that can be assigned at different points within the course. During this Depression, both Europe and America suffered along with their colonies in various parts of the world. There was an accumulation of unsold stock, closure of production units and widespread unemployment; both employers and employees were affected. So far as modern Macro-economic (as distinct from Classical Economics, which was macro in character), started with John Maynard Keynes after the Great Depression of the 1930s.

Personally, in my many years of teaching, I almost never followed any book with the exact chapter sequence that was originally published. Notice the difference that total utility and marginal utility create. The authors use a story telling format that is easy to read and comprehend. The content is up to date and should constantly be up dated to truly connect the student to the learning objectives as they effect the global economies of today. Generally the text will not become obsolete in a short period of time yet the authors will need to either update the data within the text or provide updated links to the already numerous web sites referred to within the text. It can compete on an equal footing with textbooks offered by traditional commercial publishers.

Microeconomics and Macroeconomics: Meaning, Scope, and Interdependence

It is at this point that economists make the technical assumption that preferences are locally non-satiated. Without the assumption of LNS (local non-satiation) there is no 100% guarantee but there would be a rational rise citation neededin individual utility. With the necessary tools and assumptions in place the utility maximization problem (UMP) is developed. The technical assumption that preference relations are continuous is needed to ensure the existence of a utility function. Although microeconomic theory can continue without this assumption, it would make comparative statics impossible since there is no guarantee that the resulting utility function would be differentiable.

Examples from labor and financial markets reinforce supply and demand analysis before proceedings to elasticity and consumer choice. The next section of the book discusses industry structure and includes antitrust policy. The text then introduces externalities in the context of environmental protection and public goods. Finally, issues such as poverty, labor market issues, information, public economics are covered.

Neoclassicals believe in constructing measurable hypotheses about economic events and then using empirical evidence to determine which hypotheses work best. So far as undergraduate and even post-graduate studies are concerned, it is essential for students first to grasp the concepts of Microeconomics and then go over to those of Macroeconomics. For example, the concept of the `margin’ is first learnt through Marginal Utility, Marginal Rate of Substitution, Marginal Productivity etc. and only subsequently used through Marginal Propensities to Consume and Save. The concept of Consumer Equilibrium has to be learnt prior to its application in the box diagrams used, say, in the Heckscher-Ohlin Theorem of International Trade Theory. But even if the epithet `science’ is given to Economics, it remains a Social Science.

Chapter 10: Market Equilibrium under Perfect Competition

In the second half of the 18th century, there emerged economic thoughts that go by the name Physiocracy. It emphasized the role of land and agriculture in ensuring a country’s prosperity. The Mercantilists focused on trade and commerce and the accumulation of gold and silver. The Physiocrats focused on productive work, leading to the generation of agricultural surplus. To understand what Microeconomics is, one must know what Economics is.

Because the hunger decreases with each additional slice, the marginal utility—the utility of each additional slice—decreases. The textbook breaks the topics up in an appropriate matter that makes it easy for the instructor to “bounce” around the textbook as they see fit. The textbook also mentions how the material to be covered in a particular section may relate to other topics within the book. I think the text is written with very clear language with some technical terminology that is necessary for better and clear understanding of economics. After reading the textbook I could not find any errors or lack of accuracy in the textbook. Great link and updated stories attached in the body of the textbook.

Microeconomics provides a more detailed understanding of individuals, firms, and markets. The writing is overall clear, easy to understand, and it follows steps of logic. Economics can be very technical and hard to understand with specific jargon. I liked the way authors explained concepts with relevant examples and in appropriate contexts. This text is based on Canada, therefore, the readers should be prepared to see, for instance “labour” instead of “labor” etc. By nature, Microeconomics textbooks stay relevant for longer periods of time in terms of theories and concept.

The concentration scope of micro economics of microeconomics is on the working of the individual components and macroeconomics studies the economy in general. Also, microeconomics is concerned with the aggregate structure and macroeconomics is concerned with the aggregates themselves. Therefore, both microeconomics and macroeconomics are supplementary to each other, and the superiority of one approach over the other cannot be claimed. Microeconomics helps in contemplating the attributes of different economic decision-makers like individuals, enterprises, and households. In simple terms, microeconomics helps in understanding why and how different goods have different values, how individuals make certain decisions, and how they cooperate.

1. Within chapters the content is well-organized, has a clear logical flow and hard-to-digest concepts are properly built and presented.
2. Download the textbook online is easy and the hyperlinks and QR codes in “Link It Up” section work well.
3. The books gave facts and introduced methods of analysis without betraying a bias.
4. Some economists define production broadly as all economic activity other than consumption.

I think this text would be best suited for a course designed to teach economics majors the basics of economics. I’m just not sure that a student taking one economics course would find a reaction function useful in their everyday understanding of economics. The text is free of significant interface issues, including navigation problems, distortion of images/charts, and any other display features that may distract or confuse the reader.