Economics: Principles, Applications, and Tools, Global Edition, 9th edition

For courses in the Principles of Economics

Introduces Students to the Basic Concepts of Economics with Timely, Engaging Stories and Applications

Students enter their first economics course hoping to gain a better understanding of the world around them, but often leave with their questions unanswered.

Economics: Principles, Applications, and Tools is built upon the author’s philosophy of using basic concepts of economics to explain a wide variety of timely, engaging, real-world economic applications. The Ninth Edition incorporates updated figures and data, while also emphasizing current topics of interest—including the severe economic downturn of recent years and the latest developments in economic thinking. It also includes newly refined Learning Objectives that introduce the concepts explored in each chapter, along with new applications and chapter-opening stories related to the most up-to-date developments in both macroeconomics and microeconomics.

Hallmark features of this title

An emphasis on core principles

• The text demystifies key concepts, making the course accessible to students of all majors and helping them understand the economics of the world around them.
• 5 key principles are used throughout (opportunity cost, the marginal principle, diminishing returns, voluntary exchange, and real-nominal principle), so students see how ideas connect.

Concepts that connect to students’ daily lives and careers

• Applying the Concept Questions and End-of-Chapter Application Exercises ask students to apply what they’ve just learned to real scenarios.
• Economic Experiments actively involve students in role-playing as consumers, producers and policy makers. They stimulate student interest and are easy for professors to use in classes of any size.

New to this Edition

Expanded Coverage to Reflect Economic Changes and Developments

• UPDATED! Incorporates and reflects the sweeping changes that global economies have experienced following a severe economic downturn.
• UPDATED! Reflects the latest exciting developments in economic thinking, making these developments accessible to new students of economics.
• Chapter 6 discusses whether the recent major recession permanently affected labor force participation.
• Chapter 8 discusses the position of pessimists who think that technological progress has slowed down, as well as influential controlled experiments in economic policy.
• Chapter 13 discusses the rationale and application of “stress tests” as a new tool for financial regulation.
• Chapter 14 introduces Janet Yellen, the new Chair of the Federal Reserve, including a discussion of her prior experience before assuming her current role.
• UPDATED! Revised and expanded discussion of the euro in Chapter 19 reflects the serious challenges now facing the European Monetary Union, particularly in the case of Greece.
• Several new applications and chapter-opening stories emphasize the widespread relevance of economic analysis, including discussion of:
  • Housing prices in Cuba (Chapter 1)
  • Property rights in urban slums (Chapter 3)
  • The effects of winds from the Sahara Desert on the price of chocolate (Chapter 4)
  • Links between unemployment and unemployment insurance (Chapter 6)
  • How the government promotes high levels of savings in Singapore (Chapter 7)
  • How Greek citizens hoarded euros as the talk of crisis grew (Chapter 13)
  • New research on “underwater” homeowners (Chapter 12)
  • The debate on secular stagnation (Chapter 15)
  • How accounting for “missing” international financial flows changes our thinking of global investment patterns (Chapter 19)
  • The market effects of a luxury tax (Chapter 21)
  • The neuroscience of the “cola wars” between Coke and Pepsi (Chapter 22)
  • The time path of blueberry prices triggered by publicity about the health benefits of eating blueberries (Chapter 24)
  • The new advertising program for dairy products, “Milk Life” (Chapter 27)
  • Genetic discrimination in insurance (Chapter 29)
  • Clearing space debris (Chapter 30)
  • Responding to climate change by washing carbon out of the air (Chapter 31)
  • Proposals to expand the earned income tax credit (Chapter 32)

Draw Students into the Material

• Carefully refined Learning Objectives at the beginning of each chapter match the contents of the chapter closely, providing students with a preview of what they will learn in each section of the chapter.

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

MyEconLab is an online homework, tutorial, and assessment program designed to work with this text to engage students and improve results. Within its structured environment, students practice what they learn, test their understanding, and pursue a personalized study plan that helps them better absorb course material and understand difficult concepts.

• UPDATED! HTML5 Player Enhancements. In addition to matching the Flash player’s support of Accessibility requirements, the HTML5 player has a new “Show Work” feature to allow students to enter text either from a keyboard or stylus and