tax incidence (in Chapter 4 )
the effects of minimum wages and rent controls (in Chapter 5 )
economic regulation and competition policy (in Chapter 12 )
pay equity policy (in Chapter 13 )
environmental policies (in Chapter 17 )
the design of governments’ taxation and expenditure systems (in
Chapter 18 )The Concept
Economic growth, financial crisis and recession, globalization, and the
role of government are pressing issues of the day. Much of our study of
economic principles and the Canadian economy has been shaped by
these issues. In addition to specific coverage of growth and
internationally oriented topics, growth and globalization appear naturally
throughout the book in the treatment of many topics once thought to be
entirely “domestic.”
Most chapters of Microeconomics contain some discussion of economic
policy. We have two main goals in mind when we present these
discussions:
1. We aim to give students practice in using economic theory,
because applying theory is both a wonderfully effective teaching
method and a reliable test of students’ grasp of theory.