Economics, Global Edition, 6th edition

For two-semester courses in Principles of Economics.

The Relevance of Economics Through Real-world Business Examples

One of the challenges of teaching Principles of Economics is fostering interest in concepts that may not seem applicable to students’ lives. Economics makes economics relevant by demonstrating how real businesses use economics to make decisions every day. And with an ever-changing U.S. and world economy, the Sixth Edition, Global Edition, has been updated with the latest developments using new real-world business and policy examples. Regardless of their future career path—opening an art studio, trading on Wall Street, or bartending at the local pub—students will benefit from understanding the economic forces behind their work.

MyLabTM Economics not included. Students, if MyLab Economics is a recommended/mandatory component of the course, please ask your instructor for the correct ISBN and course ID. MyLab Economics should only be purchased when required by an instructor. Instructors, contact your Pearson representative for more information.

This title is a Pearson Global Edition. The Editorial team at Pearson has worked closely with educators around the world to include content, which is especially relevant to students outside the United States.

About the Book

Show Students How Economics is Relevant

• NEW! Real-world business chapter-opening cases have been updated with new companies or the latest information. They set a context for learning while also sparking students' interest and providing a unifying theme for the chapter by showing how the economic concepts presented impact a real business.
• A Personal Dimension: Economics in Your Life feature in each chapter opener helps students relate to the material. Students are prompted to think about questions posed in this feature as they work through the chapter. At the end of the chapter, the authors provide answers to these questions.
• An Inside Look feature at the end of chapters 1-4 helps students apply economic thinking to current events and policy debates, and have all been updated for the sixth edition. These features consist of newspaper articles that illustrate how key principles have been used by the company featured in the chapter-opening case to make a business decision. The authors provide an analysis of the article, corresponding graph(s), and Thinking Critically exercises. Additional articles and analysis are updated weekly on MyEconLab.
• NEW! 38 Making the Connection features help students tie economic concepts to current events and policy issues by revealing how the information they are learning has been used in actual situations.
• NEW! and UPDATED! Figures and tables have been added and/or updated to present information in an easy-to-read format.
• UPDATED! End-of-chapter problems have been either replaced or updated and some include graphs for students to analyze.
• UPDATED! Real-Time Data Exercises. Easy to assign and automatically graded, Real-Time Data Analysis exercises use up-to-the-minute, real-time Macroeconomic data. These exercises communicate directly with the Federal Reserve Bank of St. Louis’s FRED site, so every time FRED posts new data, students see new data. As a result, Real-Time Data Analysis exercises offer a no-fuss solution for instructors who want to make the most recent data a central part of their macro course.

NEW! and UPDATED! Content Changes by Chapter

• Chapter 1:
  • New discussion of whether smart devices will revolutionize health care, along with analysis of how Google is adding to its growing list of technological innovations by partnering with Swiss pharmaceutical company Novartis to develop smart contact lenses to help patients manage diabetes, have been added.
  • A new Solved Problem examines how managers at medical technology firm OraSure use marginal analysis to make an advertising decision.
  • A new Making the Connection examines how opportunity costs can help us understand why many students have stopped attending college football games.
• Chapter 2:
  • New discussion of the manufacturing decisions managers at Tesla Motors face, has been added.
  • An Inside Look discusses the resources Apple has assembled to meet an aggressive plan to develop and produce an electric vehicle as early as 2020.
  • A new Making the Connection uses Sir Arthur Conan Doyle’s legendary character Sherlock Holmes to illustrate copyright laws for books and movies.
• Chapter 3:
  • New discussion of the market for smartwatches is included.
  • An Inside Look examines how the Apple smartwatch is inspiring the development of other wearable devices.
  • Three new Making the Connections: “Are Smartw

About the Book

Show Students How Economics is Relevant

• Real-world business chapter-opening cases have been updated with new companies or the latest information. They set a context for learning while also sparking students' interest and providing a unifying theme for the chapter by showing how the economic concepts presented impact a real business.
• 38 Making the Connection features help students tie economic concepts to current events and policy issues by revealing how the information they are learning has been used in actual situations.
• UPDATED! Figures and tables have been added and/or updated to present information in an easy-to-read format.
• UPDATED! End-of-chapter problems have been either replaced or updated and some include graphs for students to analyze.
• UPDATED! Real-Time Data Exercises. Easy to assign and automatically graded, Real-Time Data Analysis exercises use up-to-the-minute, real-time Macroeconomic data. These exercises communicate directly with the Federal Reserve Bank of St. Louis’s FRED site, so every time FRED posts new data, students see new data. As a result, Real-Time Data Analysis exercises offer a no-fuss solution for instructors who want to make the most recent data a central part of their macro course.

NEW! and UPDATED! Content Changes by Chapter

• Chapter 1:
  • New discussion of whether smart devices will revolutionize health care, along with analysis of how Google is adding to its growing list of technological innovations by partnering with Swiss pharmaceutical company Novartis to develop smart contact lenses to help patients manage diabetes, have been added.
  • A new Solved Problem examines how managers at medical technology firm OraSure use marginal analysis to make an advertising decision.
  • A new Making the Connection examines how opportunity costs can help us understand why many students have stopped attending college football games.
• Chapter 2:
  • New discussion of the manufacturing decisions managers at Tesla Motors face, has been added.
  • An Inside Look discusses the resources Apple has assembled to meet an aggressive plan to develop and produce an electric vehicle as early as 2020.
  • A new Making the Connection uses Sir Arthur Conan Doyle’s legendary character Sherlock Holmes to illustrate copyright laws for books and movies.
• Chapter 3:
  • New discussion of the market for smartwatches is included.
  • An Inside Look examines how the Apple smartwatch is inspiring the development of other wearable devices.
  • Three new Making the Connections: “Are Smartwatches Substitutes for Smartphones?,” “Tough Times for Big Macs and Golf,” and “Demand and Supply Trashes Plastic Recycling” have been added.
• Chapter 4:
  • An updated discussion of how Airbnb and the sharing economy affects rent control policy in San Francisco is included.
  • An Inside Look examines why government officials in Malibu, California imposed a tax on short-term rentals of apartments booked through Airbnb.
  • A new Making the Connection looks at why investors expect Uber to be very profitable.
• Chapter 5:
  • New discussion of President Obama’s Clean Power Plan has been added.
  • A new Making the Connection uses the frequent conflicts between passengers over reclining airline seats to illustrate property rights.
• Chapter 6:
  • Now has a revised and updated discussion of the price elasticity of gasoline.
  • A new Making the Connection discusses why Amazon cares about price elasticity.
• Chapter 7:
  • N