PRINCIPLES OF MICROECONOMICS 7TH EDITION- N. Gregory Mankiw

Read Ch. 7 of Principles of Microeconomics:

· 7-1 Consumer Surplus, pp. 136-140

· 7-2 Producer Surplus, pp. 141-144

· 7-3 Market Efficiency, pp. 144-150

· 7-4 Conclusion: Market Efficiency and Market Failure, pp. 150-151 

SUBSTANTIVE POST- 75 WORDS EACH

1. Consider the term "welfare economics," and apply it to the allocation of resources and its effects on today's society.

2. Consider the benefits buyers and sellers receive from engaging in market transactions.

3. Consider how society can make these benefits as large as possible.

4. Consider the following statement: in any market, the equilibrium of supply and demand maximizes the total benefits received by all buyers and sellers combined.

Read Ch. 10 of Principles of Microeconomics:

· 10-1 Externalities and Market Inefficiency, pp. 197-202 

SUBSTANTIVE POST- 75 WORDS EACH

1. Consider why markets sometimes fail to allocate resources efficiently, how government policies can potentially improve the market's allocation, and what kinds of policies are likely to work best.

2. Consider the term externalities and how it relates to the consumer.

3. Consider the term negative externality and how it relates to the consumer.

4. Consider the term positive externality and how it relates to the consumer.