MicroPrinciples
Principles of Microeconomics: Study Guide
Excel-based counterparts to all graphs in the chapters of Gwartney, Stroup, Sobel, and Macpherson Economics may be accessed below. For each chapter we provide an Excel workbook and a set of questions to guide users through the worksheets. The study guides are Word documents. The links to the individual workbooks and associated assignment sheets follow the chapter overviews below.
A similar set of exercises based on chapters from Mankiw, Economics, is available below.
Chapter 1. Appendix
This material follows the text quite closely, using Excel workbooks to illustrate the graphical analysis that the text develops. Click here for the Study Guide and here for the workbook.
Chapter 3. Supply, Demand, and the Market Process
The Study Guide covers three related topics: Demand, Supply, and Market Equilibrium. Each of those topics is treated in a separate workbook. Click here for the Study Guide.
The first workbook examines demand. It develops the concepts of the demand curve and consumer surplus. It examines the distinction between a change in demand and a change in the quantity demanded. It shows the distinction between an elastic demand curve and an inelastic demand curve. Finally, it examines some of the factors that shift a demand curve. Click here for the demand workbook.
The second workbook examines supply. It develops the concepts of the supply curve and producer surplus. It examines the distinction between a change in supply and a change in the quantity supplied. It shows the distinction between an elastic supply curve and an inelastic supply curve. Finally, it examines some of the factors that shift a supply curve. Click here for the supply workbook.
The third workbook examines market equilibrium. It shows how markets can result in an efficient quantity of a good being produced. It also examines the effect of changes in demand and supply on market equilibrium. Click here for the market equilibrium workbook.
Chapter 4. Supply and Demand: Applications and Extensions
This chapter extends the analysis of markets to consider the relationship between product markets and markets for resources used to produce those goods or services. It examines the market for loanable funds where the “price” is the interest rate, and the market for foreign exchange. It also examines the effects of policies designed to keep the price above or below the price that would result in market equilibrium. Finally, it applies the analysis to the impact of taxes. Click here for the Study Guide and here for the workbook.
Chapter 5. The Economic Role of Government
This chapter examines the economic roles played by government. Two of these roles are to address concerns in which markets lead to quantities that are not efficient, as defined in Chapter 3. One reason is less than perfect competition — “rigged” markets. The other is the existence of external costs or external benefits associated with the production and consumption of some goods. Click here for the Study Guide and here for the workbook.
Chapter 17. Gaining from International Trade
This chapter shows gains from exchange, based on the principle of Comparative Advantage. Shows gains and losses in specific domestic industries when those industries are open to international trade. Demonstrates the effects of imposing tariffs and quotas–who loses, who gains, and the reasons for a deadweight loss. Click here for the Study Guide and here for the workbook.
Chapter 18. International Finance and the Foreign Exchange Market
This chapter uses the demand/supply framework to analyze aspects of the market for foreign currencies. Click here for the workbook.
Chapter 20. Costs and the Supply of Goods
This chapter shows how a firm’s cost relates to its output. Begins with an overview of types of cost–fixed and variable. Introduces the production function, from which costs are derived. Develops the following cost-curve relations: total cost, total variable cost; average total cost, average variable cost, marginal cost, average fixed cost. Click here for the Study Guide and here for the workbook.
Chapter 21. Price Takers and the Competitive Process
This chapter shows how price taking firms act in order to maximize profits, and how firms’ behavior relates to that of the market in which the firms are located. Uses cost information (especially marginal cost) to develop the reasoning behind a price-taking firm’s supply curve. Analyzes the connection between the firm and market in the short run and in the long run, thus developing the logic of the short-run and long-run industry supply curves. Click here for the Study Guide and here for the workbook.
Chapter 22. Price-Searcher Markets with Low Entry Barriers
This chapter shows how price-searching (aka, price-making) firms act in order to maximize profits. Develops the concept of marginal revenue and shows how marginal revenue and marginal cost define the profit-maximizing output level. Develops the implications of free entry and exit (low barriers to entry). Introduces price discrimination. Click here for the Study Guide and here for the workbook.
Chapter 23. Price-Searcher Markets with High Entry Barriers
This chapter considers two cases. In the first, a monopoly (single seller) is the only firm in the market. In the second, a few firms are in the industry. In this case “few” means a small enough number that the effect of each firm’s decisions regarding price and quantity appreciably affect the other firms. Click here for the Study Guide and here for the workbook.
Chapter 24. The Supply of and Demand for Productive Resources
This chapter applies the basic market model to markets for productive resources. It shows some of the ways that the supply and/or demand for a specific type of resource resemble and differ from other markets. Click here for the Study Guide and here for the workbook.
Material for Mankiw’s Economics text, 2nd edition.
Excel-based counterparts to all graphs in selected chapters of Mankiw’s Economics may be accessed below. For each chapter we provide an Excel workbook and a set of questions to guide users through the worksheets. The study guides are Word documents. The links to the individual workbooks and associated assignment sheets follow the chapter overviews below. Obviously, this material is dated, but Mankiw does offer some useful insights that might warrant looking at these workbook.
Chapter 2. Appendix (Graphing: A Brief Review). The workbook follows the mathematical appendix. It offers Excel counterparts to the graphs that Mankiw develops.
2. Study Guide Click here
2. Workbook Click here
Chapter 4. Demand, Supply, and Market Equilibrium. The Study Guide covers Demand, Supply, and Market Equilibrium. Each of those topics is treated in a separate workbook.
4. Study Guide Click here
4. Demand workbook. This workbook examines demand. Click here
4. Supply workbook. This workbook examines supply.4. Click here
4. Market: Demand, Supply, and Equilibrium workbook. This workbook examines market equilibrium. Click here
Chapter 5. Elasticity and Its Application. Develops the concepts of price elasticity of demand and supply and of income elasticity of demand.
5. Workbook Click here
5. Study Guide Click here
Chapter 6. Supply, Demand, and Government Policies. The Study Guide covers both price controls and taxes. Each of those topics is treated in a separate workbook.
6. Study Guide. Click here
6. Controls workbook. Click here
6. Taxes workbook. Click here
Chapter 7. Consumers, Producers, and the Efficiency of Markets. Develops consumer surplus and producer surplus concepts. Shows how intersection of demand and supply can lead to maximum total (consumer plus producer) surplus.
7. Study Guide. Click here
7. Workbook. Click here
Chapter 8. Application: The Costs of Taxation. Develops the effects of taxation on economic efficiency.
8. Study Guide. Click here
8. Workbook. Click here
Chapter 9. International Trade. Shows gains and losses from international trade in specific industries, along with the effects of tariffs and quotas.
9. Study Guide. Click here
9. Workbook. Click here
Chapter 10. Externalities. Shows how the existence of externalities causes market solutions to be less than perfectly efficient. Shows how government policies might result in increased efficiency.
10. Study Guide. Click here
10. Workbook Click here
Chapter 13. The Costs of Production.
13. Study Guide. Click here
13. Workbook. Click here
Chapter 14. Firms in Competitive Markets.
14. Study Guide. Study Guide
14. Study Guide. Click here
Chapter 15. Monopoly.
15. Study Guide. Click here
15. Workbook. Click here
Chapter 18. The Markets for the Factors of Production.
18. Study Guide. Click here
18. Workbook. Click here
Chapter 30. A Macroeconomic Theory of the Open Economy.
30. Study Guide. Click here
30. Workbook. Click here