This third edition of the Australian adaptation of Frank and Bernanke's Principles of Microeconomics by Sarah Jennings takes a rigorous, theoretical treatment that is suitable for mid to high-level courses but is nonetheless easy to follow and logical. It is full of practical examples and in-chapter exercises that allow students to check their understanding of the important concepts as they work through the chapter. Background Briefing and Thinking as an Economist vignettes provide significant links between economic theory and the real world, and up-to-date data present students with a snapshot of the economy as it is right now. New to this edition: the chapters on competitive advantage and the open economy have been merged into a single chapter and the former chapter 1 has been moved online for a more streamlined text that covers all the important elements of introductory microeconomics. Indifference curve analysis has also been introduced for this edition. This text is for first-year students of economics or those taking it as a first subject in microeconomics. The authors take an active learning approach. Throughout this book you will find new ideas introduced with simple examples, followed by applications showing how they work in familiar settings. The features within each chapter are designed to both test and reinforce the understanding of these ideas.

Table of Contents

Part 1 Core principles of economics - 1. Thinking as an economist; Appendix to chapter 1: Economics and the market; 2. Comparative advantage: The basis for trade; 3. Supply and demand: An introduction. Part 2 Competition and the invisible hand - 4. Elasticity; Appendix to chapter 4: Elasticity and the midpoint formula; 5. Demand: The benefit side of the market; Appendix to chapter 5: Indifference curves, buyer behaviour and demand; 6. Perfectly competitive supply: The cost side of the market; 7. Efficiency and exchange; 8. International trade and trade policy; 9. The quest for profit and the invisible hand. Part 3 Imperfect competition -10. Monopoly and other forms of imperfect competition; 11. Thinking strategically. Part 4 Open economy macroeconomics - 12. Externalities, common resources and property rights; 13. Public goods and their financing; 14. The economics of information; 15. Labour markets, poverty and income distribution. Part 5 Concluding thoughts; 16. Thinking as an economist: revisited. Appendix: Answers to in-chapter exercises; Glossary; Index..