Microeconomics, 3rd edition
Published by Pearson (January 1, 2021) © 2022
- Daron Acemoglu Massachusetts Institute of Technology
- David Laibson Harvard University
- John List University of Chicago
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For principles of microeconomics courses.
An evidence-based approach to economics
Microeconomics presents real economic questions and data to help students learn about the world around them. The text uses themes of optimization, equilibrium, and empiricism to illustrate the power of simple economic ideas and explain and predict what's happening in today's society.
In the 3rd Edition, each chapter begins with an empirical question that is relevant to the life of a student. This is later answered using data in the Evidence-Based Economics feature. As a result of the text's practical emphasis, students learn to apply economic principles to guide the decisions they make in their own daily lives.
Hallmark features of this title
3 themes get students thinking economically about the world
- Optimization. When people fail to choose the best available option, economic reasoning can be used to analyze the mistake and suggest a better course of action.
- Equilibrium. Economic systems tend toward equilibrium. As such, the connections between economic actors and their choices are examined.
- Empiricism. An emphasis on matching theories with real-world data to answer specific questions shows students the evidence behind the ideology.
New and updated features of this title
Practice analyzing
- NEW: Evidence-Based Economic problems show how economists use data to answer questions. New problems focus on discrimination in wage differences across gender and ethnicity (Ch. 11).
- NEW: Letting the Data Speak boxes analyze economic questions by using real data as the foundation of their discussion. New boxes profile the costs and benefits of government regulation and safety (Ch. 7).
- NEW: Choice and Consequence exercises ask students to make an economic decision and then explain how an economist might analyze the same decision. New questions discuss the Coronavirus vaccination.
Concepts that connect to real life
- NEW: Practical coverage of microeconomics shows students how they can apply course content in their own decision-making. New material includes COVID-19's impact on unemployment and the stock market (Ch. 1).
- UPDATED: An integrated approach to consumption and production shows students that these activities are two sides of the same coin, held together by the idea of incentives (Chs. 5 & 6).
- UPDATED: An in-depth discussion of game theory emphasizes that we can better understand the world when we place ourselves in the shoes of someone else (Ch. 13).
Highlights of the DIGITAL UPDATE for MyLab Economics (available for Fall 2022 classes)
Instructors, contact your sales rep to ensure you have the most recent version of the course.
- 27 NEW: Inclusive Economics Videos focus on topics related to diversity, equity and inclusion in economics, including the gender and racial wealth gap, inequality in the housing market, and the effect of inequality on the economy. They encourage students to critically think about models and data.
- NEW: Learning Catalytics questions help students see economics through a lens of diversity, equity, and inclusion and focus on growth, diverse markets, policy, etc.
- NEW: An Algorithmic testbank is built against principles of economics topics. It offers unlimited versions of questions to keep your tests fresh and secure for both paper and online delivery.
Features of MyLab Economics for the 3rd Edition; published 2021
- Animated graphs accompany key graphs and figures. They help students grasp shifts in curves, movements along curves and changes in equilibrium.
- Real-Time Data Analysis Exercises use up-to-the-minute, real-time macro data from the Federal Reserve Bank of St. Louis' FRED™ site to test students' knowledge. 
- NEW: With Podcast Exercises, students listen to a podcast and then answer questions about related economic principles.
Features of Pearson eText for the 3rd Edition
- Engage learners with compelling media. Videos and animations bring key concepts to life, helping students place what they are reading into context.
- Key graphs and figures in the text are replaced by interactive figures, updated with real-time data from FRED.
- Conceptual videos replace static figures and provide an animated walkthrough of key graphs and concepts.
PART 1: INTRODUCTION TO ECONOMICS
- The Principles and Practice of Economics
- Economic Science: Using Data and Models to Understand the World
- Optimization: Trying to Do the Best You Can
- Demand, Supply, and Equilibrium
PART 2: FOUNDATIONS OF MICROECONOMICS
- Consumers and Incentives
- Sellers and Incentives
- Perfect Competition and the Invisible Hand
- Trade
- Externalities and Public Goods
- The Government in the Economy: Taxation and Regulation
- Markets for Factors of Production
PART 3: MARKET STRUCTURE
- Monopoly
- Game Theory and Strategic Play
- Oligopoly and Monopolistic Competition
PART 4: EXTENDING THE MICROECONOMIC TOOLBOX
- Trade-offs Involving Time and Risk
- The Economics of Information
- Auctions and Bargaining
- Social Economics
About our authors
Daron Acemoglu is the Elizabeth and James Killian Professor of Economics in the Department of Economics at the Massachusetts Institute of Technology. He has received a BA in economics from the University of York, an MSc in mathematical economics and econometrics from the London School of Economics, and a PhD in economics from the London School of Economics.
He is an elected fellow of the National Academy of Sciences, the American Academy of Arts and Sciences, the Econometric Society, the European Economic Association, and the Society of Labor Economists. He has received numerous awards and fellowships, including the inaugural T. W. Schultz Prize from the University of Chicago in 2004, the inaugural Sherwin Rosen Award for outstanding contribution to labor economics in 2004, the Distinguished Science Award from the Turkish Sciences Association in 2006, and the John von Neumann Award, Rajk College, Budapest, in 2007.
He was also the recipient of the John Bates Clark Medal in 2005, awarded every 2 years to the best economist in the US under the age of 40 by the American Economic Association, and the Erwin Plein Nemmers Prize, awarded every 2 years for work of lasting significance in economics. He holds honorary doctorates from the University of Utrecht and Bosporus University.
His research interests include political economy, economic development and growth, human capital theory, growth theory, innovation, search theory, network economics, and learning.
His books include Economic Origins of Dictatorship and Democracy (jointly with James A. Robinson), which was awarded the Woodrow Wilson and the William Riker prizes, Introduction to Modern Economic Growth, and Why Nations Fail: The Origins of Power, Prosperity, and Poverty (jointly with James A. Robinson), which has become a New York Times bestseller.
David Laibson is the Chair of the Harvard Economics Department and the Robert I. Goldman Professor of Economics at Harvard University. He holds degrees from Harvard University (AB in economics), the London School of Economics (MSc in econometrics and mathematical economics), and the Massachusetts Institute of Technology (PhD in economics).
He is also a member of the National Bureau of Economic Research, where he is Research Associate in the Asset Pricing, Economic Fluctuations, and Aging Working Groups. His research focuses on the topics of behavioral economics, intertemporal choice, macroeconomics, and household finance, and he leads Harvard University's Foundations of Human Behavior Initiative.
He serves on several editorial boards, as well as the Pension Research Council (Wharton), Harvard's Pension Investment Committee, and the Board of the Russell Sage Foundation. He has previously served on the boards of the Health and Retirement Study (National Institutes of Health) and the Academic Research Council of the Consumer Financial Protection Bureau.
He is a recipient of a Marshall Scholarship and a Fellow of the Econometric Society and the American Academy of Arts and Sciences. He is also a recipient of the T. W. Schultz Prize from the University of Chicago and the TIAA-CREF Paul A. Samuelson Award for Outstanding Scholarly Writing on Lifelong Financial Security. In recognition of his teaching excellence, he has been awarded Harvard's Phi Beta Kappa Prize and a Harvard College Professorship.
John A. List is the Kenneth C. Griffin Distinguished Service Professor in Economics at the University of Chicago, and Chairman of the Department of Economics. He received his BS in economics from the University of Wisconsin–Stevens Point and his PhD in economics from the University of Wyoming. Before joining the University of Chicago in 2005, he was a professor at the University of Central Florida, University of Arizona, and University of Maryland. He also served in the White House on the Council of Economic Advisers from 2002 to 2003, and is a Research Associate at the NBER.
List was elected a Member of the American Academy of Arts and Sciences in 2011, and a Fellow of the Econometric Society in 2015. He also received the Arrow Prize for Senior Economists in 2008, the Kenneth Galbraith Award in 2010, the Yrjo Jahnsson Lecture Prize in 2012, and the Klein Lecture Prize in 2016. He received an honorary doctorate from Tilburg University in 2014 and from the University of Ottawa in 2017. In addition, List was named a Top 50 Innovator in the Non-Profit Times for 2015 and 2016 for his work on charitable giving.
His research focuses on questions in microeconomics, with a particular emphasis on using field experiments to address both positive and normative issues. For decades his field experimental research has focused on issues related to the inner workings of markets, the effects of various incentive schemes on market equilibria and allocations, and how behavioral economics can augment the standard economic model. This includes research into why inner city schools fail, why people discriminate, why people give to charity, why firms fail, why women make less money than men in labor markets, and why people generally do what they do.
His research includes over 200 peer-reviewed journal articles and several published books, including the 2013 international best-seller, The Why Axis: Hidden Motives and the Undiscovered Economics of Everyday Life (with Uri Gneezy).
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