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CONTENTS IN BRIEF
Assurance of learning and AACSB statement
How to use this book
E-student
E-instructor
About the Australian author
About the US authors
Acknowledgments
Preface
PART 1 INTRODUCTION
Chapter 1 Thinking as an
economist
Appendix to Chapter 1
Working with equations, graphs
and tables
Chapter 2 Comparative advantage: the
basis for trade
Chapter 3 Supply and demand: an
introduction
PART 1 INTRODUCTION
CHAPTER 1 Thinking as an economist
Chapter focus
Learning objectives
Introduction
1.1 Economics: the study of choice in a
world of scarcity
1.2 Economic choice and the cost–benefit
principle
1.3 Learning to think as an economist
1.3.1 Economic surplus
1.3.2 Opportunity cost
1.3.3 The Importance of incentives
1.3.4 The cost–benefit principle as an
economic model
1.4 Important decision-making pitfalls
1.4.1 Failing to correctly identify all relevant
costs and benefits
1.4.2 Failing to correctly measure all
relevant costs and benefits
1.4.3 Important decision-making pitfalls
revisited
1.5 Thinking as an economist—getting
started
1.6 The approach of this text
Summary
Key terms
Review questions
Problems
References
Appendix to chapter 1: working with
equations, graphs and tables
Using a verbal description to construct
an equation
Graphing the equation of a straight line
Deriving the equation of a straight line
from its graph
Changes in the vertical intercept and
slope
Constructing equations and graphs
from tables