Page 26 - Krugmans Economics for AP Text Book_Neat

Preface
Preface

maximization in Modules 52 and 53. Module 54 develops Topic Outline, these modules contain extensions of the
the production function. Modules 55 and 56 introduce material presented in AP courses. They provide enrichment
cost concepts, both short-run and long-run. The last materials for advanced students or for coverage after the AP
module provides an introduction to the market struc- exam. This material may also be considered for inclusion
tures covered in Sections 11 and 12. on the AP Topic Outline in the future. Module 79 presents
the economics of information, including adverse selection
and moral hazard. Module 80 discusses indifference curves
Section 11: Market Structures: Perfect
and consumer choice, an extension of the material in
Competition and Monopoly
Module 51.
Section 11 presents the perfect competition and monopoly
market structures. Modules 58-60 present perfect compe-
tition. Modules 58 and 59 develop the perfect competition The AP Edition: What’s Different?
model and graphs. Module 60 presents the long-run out-
Perhaps the most important feature of the AP adaptation
comes under perfect competition. Modules 61–63 present
of Economics is what has been left unchanged. We retain
the monopoly market structure. Module 61 develops the
Paul Krugman’s fresh voice and lively writing style, which
basic monopoly model. Module 62 presents public policies
AP students find easy to understand. We also adhere to the
toward monopoly and Module 63 explains the practice of
general approach of the parent book:
price discrimination.
“To achieve deeper levels of understanding of the real
Section 12: Market Structures: world through economics, students must learn to
Imperfect Competition appreciate the kinds of trade-offs and ambiguities
that economists and policy makers face when apply-
This section introduces the imperfectly competitive market
ing their models to real-world problems. We believe
structures: oligopoly and monopolistic competition.
this approach will make students more insightful and
Module 64 introduces oligopoly and Module 66 discusses
more effective participants in our common econom-
oligopoly market structures in the real world. Game theory
ic, social, and political lives.”
as it relates to oligopoly is given special attention in Module
65. Module 67 explains monopolistic competition. Module Finally, we have been careful to maintain the international
68 covers product differentiation under monopolistic com- focus and global coverage of issues from Economics, 2e.
petition with special focus on the role of advertising. However, we have made significant changes in the origi-
nal book to meet the specific needs of AP Economics teach-
Section 13: Factor Markets ers and students. Here are the major adaptations:
This section begins with Module 69, an introduction to
factor markets and factor demand. Modules 70 and 71 Close Adherence to the AP Topic Outline
present the markets for land, capital, and labor. Module 72 and Terminology
explains how to find the cost-minimizing combination of We have carefully followed the AP Topic Outlines for
inputs. The last module in the section discusses the mar- Macroeconomics and Microeconomics and included all of
ginal productivity theory of income distribution and vari- the material required for the course. The book covers the
ous sources of wage differentials. course material using the same terminology students will
see on the AP Economics Exam. When there is more than
Section 14: Market Failure and the Role one term that can be used in a particular situation, we have
of Government introduced students to each of the terms they might see on
the exam and made it clear that the terms are synonymous.
This section focuses on the conditions under which mar-
kets fail and explains public and private approaches to Because it closely conforms to the required course material
market failure. Modules 74 and 75 discuss externalities and introduces AP exam terminology, this book helps stu-
and the public policies and private remedies available to dents learn the material and terminology they will see on
address them. Module 76 covers public goods. Module 77 their AP Economics Exam.
presents the use of antitrust law and government regula-
tion to promote competition. Module 78 explains theories AP Course-friendly Organization
of income distribution and income inequality. This book is arranged by sections that correspond to the AP
The appendix to Section 14 provides enrichment mod- Topic Outline provided by the College Board. Each section
ules. While not currently part of the material on the AP is divided into 4–7 modules. Each module breaks the

xxiv PREFACE