Economics, Global Edition, 3rd edition

For courses in the principles of economics.

An evidence-based approach

Throughout Economics, 3rd Edition, authors Daron Acemoglu, David Laibson, and John List use real economic questions and data to help students learn about the world around them. Taking a fresh approach, they use the themes of optimization, equilibrium, and empiricism to not only illustrate the power of simple economic ideas, but also to explain and predict what’s happening in today’s society. As a result of the text’s practical emphasis, students learn to apply economic principles to guide the decisions they make in their own daily lives.

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 of North America.

Hallmark Features

• End-of-chapter Evidence-Based Economic problems show how economists use data to answer the question posed in the opening paragraph of each chapter. These features let students get a real look at economics as it plays out in the world around them and gives them the skills to question systematically and evaluate what they read.
• Evidence-Based Economics sections devote more discussion to real-world economic issues and events
• Letting the Data Speak boxes are short, targeted explorations that analyse an economic question by using real data as the foundation of the discussion.
• Choice and Consequence exercises emphasise optimisation by focusing on making the best decision. These features ask students to make an economic decision, or evaluate the consequences of past real decisions. The authors then explain how an economist might analyse the same decision. New questions discuss the Coronavirus vaccination, the future implications of AI on employment (Chapter 23) and recent changes in U.S. trade policy and Brexit (Chapter 28).
• Practical coverage of micro- and macroeconomics helps students see how they can apply course content in their own decision-making.
• New and relevant discussions related to the COVID-19.
• An integrated approach to consumption and production. Chapters 5 and 6 show students that consumption and production are really two sides of the same coin, glued together by the idea of incentives. Upon grasping the commonalities and linkages between the processes of consumer and producer decisions, students can see and get a better understanding of the whole picture and how these concepts tie together.
• In-depth coverage of game theory that yields powerful insights. Chapter 13 is devoted entirely to game theory, which is a source of some very powerful economic insights. This chapter emphasises that it helps us better understand the world when we place ourselves in the shoes of someone else. In so doing, each student may develop a deeper understanding of how to choose a strategy that is a best response to the strategies of others.
• An innovative suite that extends the microeconomic toolbox. Chapters 15 to 17 help students see the relevance of the study of microeconomics, which is applicable to real-life topics such as how compound interest causes an investment's value to grow over time. And the book comes to a close in an innovative fashion with Chapter 18 on social economics. Exploring the economics of charity, fairness, and revenge, this final chapter drives home the fact that economic principles can be extended to every corner of our world.

New to this Edition

• Examination of causality. By studying recent research that reports a positive correlation between expensive weddings and high rates of divorce, students will learn to determine the difference between correlation and causality, and better understand the role of omitted variables (Chapter 2).
• Revised! Coverage of the fracking revolution and its impact on oil and gas prices. Supply and demand come alive when students can see how the recent rightward shift in the oil supply curve--due to the development of fracking technologies--has played a role in halving the equilibrium price of oil (Chapter 4).
• Focus on the shared economy. The role of surge pricing in equilibrating Uber driver supply and rider demand is discussed, helping students to more deeply understand the markets that they personally use (Chapter 7).
• Emphasis on the role of microeconomics in examining prominent social issues. From natural disaster management to global inequality, students examine important social issues--such as how to reduce fracking-generated earthquakes by applying the concept of externalities, inequality in Scandinavia, broadband access, and more.
• Coverage describing the growth of economic inequality, and emphasizing that inequality is not measured in economic aggregates, such as GDP (Chapter 19).