Microeconomics,, 16th Canadian Edition

idleness. For example, when the Canadian economy entered a major global recession in 2009, the federal and provincial government ...

1.2 The Complexity of Modern Economies If you want a litre of milk, you go to your local grocery store and buy it. When the groc ...

shipments include raw materials, such as iron ore, logs, and oil; parts, such as automobile engines, transistors, and circuit bo ...

A great insight of early economists was that an economy based on free-market transactions is self-organizing. A market economy i ...

Adam Smith wrote An Inquiry into the Nature and Causes of the Wealth of Nations in 1776. Now referred to by most people simply a ...

Instead it refers to the relatively efficient order that emerges spontaneously out of the many independent decisions made by tho ...

makes sense given their time and financial constraints. Similarly, they sell products, including their own labour services, in a ...

1600s. It contains brief discussions of many of these thinkers and places them in their historical context. 2 An Inquiry Into th ...

The Decision Makers and Their Choices Three types of decision makers operate in any economy. The first is consumers. Sometimes w ...

implement regulations that must be followed by consumers and producers. How Are Decisions Made? How do consumers, producers, and ...

Firms and consumers who are trying to maximize usually need to weigh the costs and benefits of their decisions at the margin. Fo ...

Figure 1-4 The Circular Flow of Income and Expenditure These are their incomes. Producers use the factor services they buy to ma ...

they spend this income buying goods and services, money flows through goods markets to generate income for producers. The prices ...

Production and Trade Individual producers decide which goods to produce and how to produce them. Production is a very complex pr ...

First, individual abilities differ, and specialization allows individuals to do what they can do relatively well while leaving e ...

specialized tasks by using specialized machinery and robotics. Each worker repeatedly does one or a few small tasks that represe ...

must find someone who has a hammer and wants wheat. A successful barter transaction thus requires what is called a double coinci ...

The revolution in shipping and in computer technology has drastically reduced communication and transportation costs. This reduc ...

possible to coordinate economic transactions around the world in ways that were difficult and costly 50 years ago and quite impo ...

1.3 Is There an Alternative to the Market Equilibrium In this chapter we have discussed the elements of an economy based on free ...