With overwhelming support of reviewers, the first two chapters of the prior edition have been consolidated into a single chapter, "Limits, Alternatives, and Choices" (Chapter 1). This new chapter quickly and directly moves the student into the subject matter of economics, demonstrating its methodology. This consolidation has the additional benefit of reducing Part I (the common chapters in Microeconomics, and Macroeconomics) from four chapters to three.
Fundamentals of the Market System
Many economies throughout the world are making difficult transitions from planning to markets. The detailed description of the institutions and operation of the market system in Chapter 2 is even more relevant than before. McConnell pays particular attention to property rights, entrepreneurship, freedom of enterprise and choice, competition, and the role of profits because these concepts are often misunderstood by beginning students.
Consumer Surplus, Producer Surplus, and Deadweight Loss Analysis
The previous edition chapter on elasticity is now "Extensions of Demand and Supply Analysis and the Efficiency of Markets" (Chapter 4). Along with elasticity, this chapter now introduces consumer surplus, producer surplus, and deadweight loss. These topics appear again in the perfect competition and monopoly chapters. Knowing that some instructors do not want to cover deadweight loss analysis, we have taken care to present the ideas in a way that will allow instructors to skip these insertions.
Income and Substitution Effects
Responding to the needs of our users, McConnell has added a more in depth analysis of the income and substitution effects (Appendix, Chapter 5). This new addition will provide students with another tool to better understand the demand curve.
A New International Trade Chapter
At the request of our users, McConnell has added a condensed version of the "International Trade" chapter (Chapter 17), found in Macroeconomics. This new addition to Microeconomics will allow many of the topics in the text to be put in a global context.
Contemporary Discussions and Examples
The eleventh Canadian edition references and discusses many current topics. Examples include: Competition Bureau actions, farm subsidy programs, off shoring of Canadian jobs, the Kyoto Protocol and the Canadian economy, the Canadian health care system, global warming, WTO protests, and many more.
Stress on the Theory of the Firm and Technological Advance
Much attention has been given to microeconomics in general and to the theory of the firm in particular, for two reasons: First, the concepts of microeconomics are difficult for most beginning students; abbreviated expositions usually compound these difficulties by raising more questions than they answer. Second, McConnell couples analysis of the various market structures with a discussion of the impact of each market arrangement on price, output levels, resource allocation, and the rate of technological advance.
Focus on Economic Issues
For many students, the macro chapters on fiscal policy, monetary policy, and public debt and the micro chapters on competition policy, agriculture, income inequality, labour issues, and health care are where the action is. McConnell guides that action along logical lines through the application of appropriate analytical tools.
Integrated Text and Website
Microeconomics and the McConnell website are highly integrated through in text web icons for Worked Problems, See the Math, Origin of the Idea, web-based End-of-Chapter questions, bonus web chapters, multiple choice self-tests at the website, web newspaper articles, web math notes, and other features. The website is part and parcel of the student learning package, tied directly to the book.
Organizational Alternatives
Although instructors generally agree on the content of principles of economics courses, they sometimes differ as to how to arrange the material. Microeconomics includes four parts, and that provides considerable organizational flexibility. Some instructors will prefer to intersperse the microeconomics of Parts 2 and 3 with the chapters of Part 4. Chapter 16W on agriculture may follow Chapter 7 on perfect competition; Chapter 10 on competition policy and regulation may follow either Chapters 8 or 9 on imperfect competition models; Chapter 14 on income inequality may follow either Chapter 13 on distributive shares of national income.
New Internet Chapter
New bonus Web chapters are available for free at the website,
www.mcgrawhill.ca/olc/mcconnell "Natural Resource and Energy Economics" (Chapter 13W) covers topics such as the optimal rate of extraction, resource substitution, resource sustainability, and oil prices. The second Internet chapter, "Canadian Agriculture: Economics and Policy" (16W), is updated and available for instructors and students who have a special interest in that topic.
Microeconomics has always been student oriented. Economics is concerned with efficiency - accomplishing goals using the best methods. Therefore, McConnell offers the student some brief introductory comments on how to improve their efficiency and hence their grades.
In This Chapter You will Learn:
The Learning Objectives for the chapter are listed at the start of each chapter so that the chapter's main concepts can be easily recognized. The Learning Objectives have also been tied into each of the numbered headings in each chapter. In addition, the chapter summaries are now organized by number.
Terminology:
A significant portion of any introductory course is terminology. Key terms are highlighted in bold type the first time they appear in the text. Key terms are defined in the margin and a comprehensive list appears at the end of each chapter. A glossary of definitions can also be found at the end of the book and on the website.
Ten Key Concepts:
Ten key concepts have been identified to help students organize the main principles. The Ten Key Concepts are introduced in Chapter 1 and each one is reinforced throughout the textbook.
Data Updates
Data updates for selected graphs and tables can be found on the McConnell website at www.mcgrawhill.ca/olc/mcconnell
Graphics and Supporting Data:
Where possible we have provided data to support our graphs. In such cases a data table now appears in the same figure with the graph.
Key Graphs:
Graphs that have special relevance have been labeled as Key Graphs. Each Key Graph includes a quick quiz of four questions with answers provided. For selected Key Graphs, interactive graphs are available one the McConnell website www.mcgrawhill.ca/olc/mcconnell
Reviewing the Chapter:
Important things should be said more than once. There is a Chapter Summary at the conclusion of every chapter, as well as two or three Quick Reviews within each chapter. The End-of-Chapter summary is presented by numbered chapter sections. These review statements will help students to focus on the essential ideas of each chapter and to study for exams.
Global Perspective Boxes:
Each nation functions increasingly in a global economy. To help the student gain appreciation of this wider economic environment, McConnell provides Global Perspective features which compare Canada to other nations.
Consider This:
The feature highlights and emphasizes an important theoretical issue in each chapter and makes it interesting to students through examples and analogies. There is a list of "Consider This" boxes on the inside front cover of the text.
Last Word:
The Last Word features are lengthier applications and case studies aimed at reinforcing chapter material with topics of interest.
Appendix on Graphs:
Being comfortable with graphical analysis and related quantitative concepts will be a big advantage to students in understanding the principles of economics. The appendix to Chapter 1, which reviews graphing, slopes of lines, and linear equations, should not be skipped.
Study Questions:
A comprehensive list of questions is located at the end of each chapter. Use of these questions will enhance students' understanding. For each chapter, McConnell designates several as Key Questions and answers them in the Study Guide.
Internet Application Questions:
Students are presented with questions to explore on the Internet relevant to the topic discussed in the chapter. From the McConnell website, www.mcgrawhill.ca/olc/mcconnell students will find direct links to the websites included in these questions.
Σ-STAT is Statistics Canada's education resource that allows socioeconomic and demographic data to be reviewed in charts, graphs and maps. Access to Σ-STAT and the CANSIM II database is made available to purchasers of the text via the McConnell website by special agreement between McGraw-Hill Ryerson and Statistics Canada.
NEW Worked Problems
McConnell continues to integrate the text and website with in text web icons that direct readers to website content. Specifically, we have added a web icon which directs readers to a set of worked problems on the Online Learning Centre. These pieces consist of side by side computational questions and the computational procedures used to derive the answers. In essence, they extend the textbook's explanations involving computations- for example, of budget lines, marginal tax rates, marginal product, average cost, economic profit, and more. From a student perspective, they provide "cookbook" help for problem solving.
NEW See the Math icon,
through which students can explore the mathematical details of the theoretical concepts covered in the text. Icons direct students to the McConnell website.
Origin of the Idea icon
These brief histories, which can be found on the website, examine the origins of major ideas identified in the book. Students will find it interesting to learn about the person who first developed such ideas as opportunity cost, equilibrium price, the multiplier, comparative advantage, and elasticity.
2007 McGraw-Hill Higher Education