,Michael Parkin is Professor Emeritus in the Department of
ABOUT THE AUTHORS ◆
Economics at the University of Western Ontario, Canada. Professor Parkin has
held faculty appointments at Brown University, the University of Manchester,
the University of Essex, and Bond University. He is a past president of the
Canadian Economics Association and has served on the editorial boards of
the American Economic Review and the Journal of Monetary Economics and
as managing editor of the Canadian Journal of Economics. Professor Parkin’s
research on macroeconomics, monetary economics, and international
economics has resulted in over 160 publications in journals and edited
volumes, including the American Economic Review, the Journal of Political
Economy, the Review of Economic Studies, the Journal of Monetary Economics,
and the Journal of Money, Credit and Banking. He became most visible to the
public with his work on inflation that discredited the use of wage and price controls.
Michael Parkin also spearheaded the movement toward European monetary union.
Professor Parkin is an experienced and dedicated teacher of introductory economics.
Robin Bade earned degrees in mathematics and economics
at the University of Queensland and her Ph.D. at the Australian National
University. She has held faculty appointments at the University of Edinburgh
in Scotland, at Bond University in Australia, and at the Universities of
Manitoba, Toronto, and Western Ontario in Canada. Her research on
international capital flows appears in the International Economic Review
and the Economic Record.
Professor Parkin and Dr. Bade are the joint authors of Foundations of
Economics (Addison Wesley), Modern Macroeconomics (Pearson Education
Canada), an intermediate text, and have collaborated on many research and
textbook writing projects. They are both experienced and dedicated
teachers of introductory economics.
iii
,◆ PART ONE
BRIEF CONTENTS
CHAPTER 12 Monopoly 279
INTRODUCTION 1 CHAPTER 13 Monopolistic Competition 305
CHAPTER 1 What Is Economics? 1 CHAPTER 14 Oligopoly 325
CHAPTER 2 The Economic Problem 33
PART FIVE
PART TWO MARKET FAILURE AND GOVERNMENT 353
HOW MARKETS WORK 59 CHAPTER 15 Externalities 353
CHAPTER 3 Demand and Supply 59 CHAPTER 16 Public Goods and Common
CHAPTER 4 Elasticity 87 Resources 375
CHAPTER 5 Efficiency and Equity 109 PART SIX
CHAPTER 6 Government Actions in Markets 131 FACTOR MARKETS AND INEQUALITY 397
CHAPTER 7 Global Markets in Action 155
CHAPTER 17 Markets for Factors of Production 397
PART THREE CHAPTER 18 Economic Inequality 423
HOUSEHOLDS’ CHOICES 181
CHAPTER 8 Utility and Demand 181
CHAPTER 9 Possibilities, Preferences, and
Choices 205
PART FOUR
FIRMS AND MARKETS 227
CHAPTER 10 Output and Costs 227
CHAPTER 11 Perfect Competition 253
iv
, Flexibility
ALTERNATIVE PATHWAYS THROUGH THE CHAPTERS
◆
Chapter 1 Chapter 5 Chapter 6 Chapter 15
Externalities
What Is Economics? Efficiency and Equity Government Actions
in Markets
Chapter 2 Chapter 18 Chapter 7 Chapter 16
The Economic Problem Economic Inequality Global Markets Public Goods and
in Action Common Resources
Chapter 3 Chapter 4 Chapter 11
Demand and Supply Elasticity Perfect Competition
Chapter 12
Chapter 10 Monopoly
Output and Costs
Chapter 13
Chapter 8
Monopolistic
Competition
Utility and Demand
Chapter 9 Chapter 14
Possibilities, Oligopoly
Preferences, and
Choices
Chapter 17
Markets for Factors
of Production
Start here ... … then jump to … and jump to any of these after
any of these … doing the prerequisites indicated
v
ABOUT THE AUTHORS ◆
Economics at the University of Western Ontario, Canada. Professor Parkin has
held faculty appointments at Brown University, the University of Manchester,
the University of Essex, and Bond University. He is a past president of the
Canadian Economics Association and has served on the editorial boards of
the American Economic Review and the Journal of Monetary Economics and
as managing editor of the Canadian Journal of Economics. Professor Parkin’s
research on macroeconomics, monetary economics, and international
economics has resulted in over 160 publications in journals and edited
volumes, including the American Economic Review, the Journal of Political
Economy, the Review of Economic Studies, the Journal of Monetary Economics,
and the Journal of Money, Credit and Banking. He became most visible to the
public with his work on inflation that discredited the use of wage and price controls.
Michael Parkin also spearheaded the movement toward European monetary union.
Professor Parkin is an experienced and dedicated teacher of introductory economics.
Robin Bade earned degrees in mathematics and economics
at the University of Queensland and her Ph.D. at the Australian National
University. She has held faculty appointments at the University of Edinburgh
in Scotland, at Bond University in Australia, and at the Universities of
Manitoba, Toronto, and Western Ontario in Canada. Her research on
international capital flows appears in the International Economic Review
and the Economic Record.
Professor Parkin and Dr. Bade are the joint authors of Foundations of
Economics (Addison Wesley), Modern Macroeconomics (Pearson Education
Canada), an intermediate text, and have collaborated on many research and
textbook writing projects. They are both experienced and dedicated
teachers of introductory economics.
iii
,◆ PART ONE
BRIEF CONTENTS
CHAPTER 12 Monopoly 279
INTRODUCTION 1 CHAPTER 13 Monopolistic Competition 305
CHAPTER 1 What Is Economics? 1 CHAPTER 14 Oligopoly 325
CHAPTER 2 The Economic Problem 33
PART FIVE
PART TWO MARKET FAILURE AND GOVERNMENT 353
HOW MARKETS WORK 59 CHAPTER 15 Externalities 353
CHAPTER 3 Demand and Supply 59 CHAPTER 16 Public Goods and Common
CHAPTER 4 Elasticity 87 Resources 375
CHAPTER 5 Efficiency and Equity 109 PART SIX
CHAPTER 6 Government Actions in Markets 131 FACTOR MARKETS AND INEQUALITY 397
CHAPTER 7 Global Markets in Action 155
CHAPTER 17 Markets for Factors of Production 397
PART THREE CHAPTER 18 Economic Inequality 423
HOUSEHOLDS’ CHOICES 181
CHAPTER 8 Utility and Demand 181
CHAPTER 9 Possibilities, Preferences, and
Choices 205
PART FOUR
FIRMS AND MARKETS 227
CHAPTER 10 Output and Costs 227
CHAPTER 11 Perfect Competition 253
iv
, Flexibility
ALTERNATIVE PATHWAYS THROUGH THE CHAPTERS
◆
Chapter 1 Chapter 5 Chapter 6 Chapter 15
Externalities
What Is Economics? Efficiency and Equity Government Actions
in Markets
Chapter 2 Chapter 18 Chapter 7 Chapter 16
The Economic Problem Economic Inequality Global Markets Public Goods and
in Action Common Resources
Chapter 3 Chapter 4 Chapter 11
Demand and Supply Elasticity Perfect Competition
Chapter 12
Chapter 10 Monopoly
Output and Costs
Chapter 13
Chapter 8
Monopolistic
Competition
Utility and Demand
Chapter 9 Chapter 14
Possibilities, Oligopoly
Preferences, and
Choices
Chapter 17
Markets for Factors
of Production
Start here ... … then jump to … and jump to any of these after
any of these … doing the prerequisites indicated
v
