New Chapter 2, The Power of Trade and Comparative Advantage appears before Supply and Demand. It makes extensive use of production-possibilities frontiers and features an all-new set of questions and problems.
New Microeconomics Coverage
• New chapter on Consumer Choice, which uses indifference curves
• New separate chapter on Taxes and Subsidies, with a new introduction and new coverage of wage subsidies
• Coverage of Costs (Ch. 11) and Competition (Ch. 12) split into separate chapters
• New separate chapter on The Economics of Network Goods (Ch. 16), including coverage of contestable markets
• Increased coverage of oligopolies and new coverage of monopolistic competition (Ch. 15, Cartels, Oligopolies, and Monopolistic Competition)
• New coverage of bubbles (Ch. 22, Stock Markets and Personal Finance)
New Macroeconomics Coverage
• New coverage of the Financial Crisis of 2007-2009 throughout, especially in chapters on Savings, Investment, and the Financial System; Unemployment; Transmission Mechanisms; Monetary Policy; and Fiscal Policy
• New section on GDP Deflator
• New coverage of the Industrial Revolution
• More accessible coverage of business fluctuations and the Dynamic AD/AS model
• Extensively updated chapter on the Federal budget