California University of Business and Technology
School of Management Studies

BA 360
Principles of Microeconomics

Table of Contents

Chapter 1 Ten Principles of Economics 3
Chapter 2 Thinking Like an Economist 7
Chapter 3 Interdependence and the Gains from Trade 10
Chapter 4 The Market Forces of Supply and Demand 13
Chapter 5 Elasticity and Its Application 20
Chapter 6 Supply, Demand, and Government Policies 26
Chapter 7 Consumers, Producers, and Efficiency of Market 31
Chapter 8 Application: The Costs of Taxation 35
Chapter 9 Application: International Trade 39
Chapter 10 Externalities 42
Chapter 11 Public Goods and Common Resources 45
Chapter 12 The Design of the Tax System 47
Chapter 13 The Costs of Production 49
Chapter 14 Firms in Competitive Markets 53
Chapter 15 Monopoly 57
Chapter 16 Monopolistic Competition 61
Chapter 17 Oligopoly 64
Chapter 18 The Markets for the Factors of Production 68
Chapter 19 Earnings and Discrimination 73
Chapter 20 Income Inequality and Poverty 76
Chapter 21 The Theory of Consumer Choice 79
Chapter 22 Frontiers of Microeconomics 82
Chapter 1
Ten Principles of Economics

I. Significance * How people make decisions * How people interact * How the economy as a whole works

II. Highlights The word economy comes from the Greek word oikonomos, which means "one who manages a household." A household faces many decisions, which means he/or she must allocate its scarce resources among its various members taking into account each member's abilities, efforts, and desires. No matter a household, or an economic, they have much in common. Economy permeates everywhere in our daily lift. Before study economics, there is a very important point; a society's resource is limited. Economics is the study of how society manages