2. We want to introduce students to the major policy issues of the
day and to let them discover that few policy debates are as “black
and white” as they often appear in the press.Both goals reflect our view that students should see economics as relevant
and useful in helping us to understand and deal with the world around
us.
Structure and Coverage
To open Part 1, Chapter 1 begins with an informal presentation of six
major issues of the day. We then introduce scarcity and choice, and this
leads to a discussion of the market as a coordinating device. Finally, we
turn to alternative economic systems. Comparisons with command
economies help to establish what a market economy is by showing what it
is not. Chapter 2 makes the important distinction between positive and
normative inquiries and goes on to an introductory discussion of the
construction and testing of economic theories.
Part 2 deals with demand and supply. After introducing price
determination and elasticity in Chapters 3 and 4 , we apply these tools
in Chapter 5. The case studies are designed to provide practice in
applying the tools rather than to give full coverage of each case
presented. Chapter 5 also has an intuitive and thorough treatment of
economic value and market efficiency.