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Changes Made for the Fourth Edition of
Boyes/Melvin Economics

Changes to the Basic Organization

If you are familiar with the Third Edition of Economics, you will find this guide detailing the changes made for the Fourth Edition a helpful tool as you prepare to teach your micro or macro course, using the revised text. A quick summary of the major changes includes:

  • The number of chapters is reduced from 40 to 37.
  • The four factors of production are narrowed to three with the elimination of "entrepreneurial ability."
  • The elimination of Chapter 27, "Product Market Applications," causing the renumbering of Chapters 28 through 30.
  • Chapter 32 in the Third Edition, "Capital, Land, and Entrepreneurial Ability" is divided into two chapters: Chapter 31, "Capital and Technological Change" which incorporates a discussion of the role technological change plays in the economy and the valuation of stocks and bonds; and Chapter 32, "Natural Resources and Environmental Policy" which includes the discussions of Externalities and Market Failure found in Chapter 35 in the former edition. The discussion of Entrepreneurial Ability is removed. Chapter 35 is deleted.
  • Chapter 33 is renamed "Aging, Social Security, and Health Care" and includes additional discussion of solutions to the current Social Security problems.
  • Chapter 37, "World Trade Equilibrium" is renumbered Chapter 35.
  • Chapter 36, "Government and Public Policy" has been deleted and the material woven throughout several chapters - Chapter 5, Chapter 27, and Chapter 32 in particular.
  • Chapter 38, "Commercial Policy" is renamed and renumbered Chapter 36, "International Trade Restrictions."
  • Chapter 39, "Exchange-Rate Systems and Practices is renumbered Chapter 37.
  • Chapter 40, "The Transition from Socialism to Capitalism" is eliminated. A discussion of the problems of countries in the transition from socialism to capitalism is now included in Chapter 19, "Development Economics."
  • The Cooperative Learning Exercises have been moved from the text to the Instructor's Resource Manual and renamed Active Learning Exercises. Many of these exercises have been revised and solutions are provided where appropriate.
  • The addition of Internet Exercises to each chapter. These exercises provide opportunities for current, active research via access of some of the most interesting Internet sites available for economic analysis. Where appropriate, solutions are provided in the Instructor's Resource Manual.

Changes Within Selected Chapters of Economics

The following is a detailed description of chapter-by-chapter changes made for the Fourth Edition of Economics. Chapter numbers for the complete book are given, in addition to micro and macro split numberings where those numbers differ from the complete book.

Chapter 1
Economics: The World Around You
  • The fundamental question, "What are the principles of economics?" is eliminated. Resources are reduced to three with the removal of "entrepreneurial ability."
  • The discussion of positive and normative analysis is shortened.
  • The Economic Insight Box entitled "Puzzles and Mysteries" is removed.
  • The new Internet Exercise asks students to explore statistics on education attainment.
  • The new Active Learning Exercise has students construct a productions possibilities curve.
Chapter 2
Choice, Opportunity Costs, and Specialization
  • The Economic Insight Box entitled "The Opportunity Cost of Waiting" is removed.
  • The new Internet Exercise asks students to graph imports and exports.
  • The new Active Learning Exercise has students construct a production possibilities curve.
  • A new Economically Speaking article and Commentary discuss unemployment and free trade.
Chapter 3
Markets, Demand and Supply, and the Price System
  • A new introduction requiring student participation replaces the former introduction.
  • Figure 1 is eliminated and subsequent figures renumbered.
  • A new section addressing international effects is included.
  • Exercise 9 is eliminated and subsequent exercises are renumbered.
  • The new Internet Exercise explores supply and demand for the Coca-Cola Company.
  • The new Active Learning Exercise considers demand for Coke.
  • A new Economically Speaking article discusses rent control.
Chapter 4
The Market System and the Private Sector
  • The new Internet Exercise asks students to obtain statistics on international trade.
  • A new Economically Speaking article explores consumer desires in the market system.
Chapter 5
The Public Sector
  • The new Internet Exercise requires students to graph data on Federal and state and local finances.
  • A new Economically Speaking article discusses Internet technology.
Chapter 6
National Income Accounting
  • The term "implicit GDP deflator" is replaced with "GDP price index."
  • The new Internet Exercise explores price indexes.
Chapter 7
An Introduction to the Foreign Exchange Market and the Balance of Payments
  • The Economic Insight Box entitled "The World's Largest Debtor Nation" is removed.
  • Exercise 9 is eliminated and subsequent exercises renumbered.
  • The new Internet Exercise asks students to determine exchange rates.
  • A new Economically Speaking article and Commentary discuss trading between the U.S. and Mexico
Chapter 8
Unemployment and Inflation
  • The new Internet Exercise asks students to determine real rates of interest.
Chapter 9
Macroeconomic Equilibrium: Aggregate Demand and Supply
  • The new Internet Exercise requires students obtain statistics regarding business cycles.
Chapter 10
Aggregate Expenditures
  • Figures 5, 8, and 11 are removed and remaining figures renumbered.
  • The new Internet Exercise explores net exports.
  • A new Economically Speaking article discusses the U.S. trade deficit.
Chapter 11
Income and Expenditures Equilibrium
  • Table 2 is deleted and subsequent tables renumbered.
  • The new Internet Exercise asks students to rank countries based on exports to the U.S.
Chapter 12
Fiscal Policy
  • The new Internet Exercise explores the sources of revenue for the U.S. government.
Chapter 13
Money and Banking
  • The Economic Insight Box "Yap Island Money" is deleted.
  • Overnight repurchase agreements and Eurodollar deposits are moved from M2 money supply to M3. Money market deposit accounts are deleted from M2.
  • Table 3 is deleted and subsequent tables renumbered.
  • Exercise 14 is deleted and subsequent exercises renumbered.
  • The new Internet Exercise explores bank failures.
Chapter 14
Monetary Policy
  • Table 2 is deleted and subsequent tables renumbered.
  • The Economic Insight Box "An FOMC Directive" is deleted.
  • The new Internet Exercise requires students to access the minutes of an FOMC meeting.
Chapter 15
Macroeconomic Policy: Tradeoffs, Expectations, Credibility, and Sources of Business Cycles
  • The Economic Insight Box "Ending Hyperinflation without a Recession" is deleted.
  • The new Internet Exercise requires students to develop and understanding of the NAIRU.
Chapter 16
Macroeconomic Viewpoints: New Keynesian, Monetarist, and New Classical
  • The new Internet Exercise explores money growth and real GDP in the Philippines.
Chapter 17
Macroeconomic Links Between Countries
  • The Economic Insight Box "The OECD" is deleted and replaced with a new Internet Exercise which requires students to explore the OECD.
Chapter 18
Economic Growth
  • Projected growth is deleted from Figure 3.
  • The Economic Insight Box "Culture and Productivity in Japan" is deleted.
  • The new Internet Exercise looks at corruption in government and business.
Chapter 19
Development Economics
  • Includes a discussion of the development problems of countries in the transition from socialism to capitalism formerly found in Chapter 40.
  • Quality-of-life index is replaced with Human Development Index.
  • Includes a discussion of corruption.
  • Figure 2 on timing of marriage and births is deleted.
  • The Economic Insight Box "Four Asian Tigers" is deleted.
  • Figure 3 on Foreign Aid Commitment is deleted.
  • The new Internet Exercise asks students to rank countries on various measures of development.
Chapter 20
(Micro split Ch. 6)
Elasticity: Demand and Supply
  • A new introduction discusses price setting for fast food restaurants.
  • Figure 1 is deleted and subsequent figures renumbered.
  • The new Internet Exercise requires students research substitutes for pharmaceuticals.
  • A new Economically Speaking article and Commentary discuss equal pricing.
Chapter 21
(Micro split Ch. 7)
Consumer Choice
  • Deletes Fundamental Questions 1 and 2 and the related discussions.
  • Section 4, "Utility Maximization and Consumer Behavior" has been deleted.
  • The new Internet Exercise asks students to explore Disney's pricing strategies.
Chapter 22
(Micro split Ch. 8)
Supply: The Costs of Doing Business
  • The introduction is shortened.
  • The new Internet Exercise explores actual costs for IBM Corporation.
  • A new Active Learning Exercise requires students to construct a production possibilities curve.
Chapter 23
(Micro split Ch. 9)
An Overview of Product Markets and Profit Maximization
  • Section 1, Profit Maximization, is revised to include a more thorough discussion of profit measurement.
  • Figures 1 and 2 are eliminated and subsequent figures renumbered.
  • The Economic Insight Box "Taste Tests" is deleted.
  • New key terms, debt, equity, and negative economic profit, are added.
  • Exercise 3 is replaced with an exercise requiring the calculation of accounting and economic profit.
  • The new Internet Exercise explores the calculation of economic profit.
  • A new Active Learning Exercise incorporates the auction process to determine profit maximization.
Chapter 24
(Micro split Ch. 10)
Perfect Competition
  • Eliminates Fundamental Question 9 and related discussion on the long-run market supply curve.
  • The discussion, related figures, and key terms regarding Constant-, Increasing-, and Decreasing-Cost Industries are deleted.
  • The Economic Insight Box "Focus on Terminology" is deleted.
  • The new Internet Exercise explores market power and perfect competition.
  • A new Active Learning Exercise auctions 5 one-dollar bills.
Chapter 25
(Micro split Ch. 11)
Monopoly
  • The introduction is shortened.
  • The new Internet Exercise explores changing market structures and stranded costs.
  • A new Active Learning Exercise determines profit maximization through test marketing.
  • A new Economically Speaking article and Commentary discuss the deregulation of the telecommunications industry.
Chapter 26
(Micro split Ch. 12)
Monopolistic Competition and Oligopoly
  • The introduction is shortened.
  • The Economic Insight Box "Paying for Options" is deleted.
  • The new Internet Exercise requires students to examine issues facing oligopolies and monopolistically competitive firms.
  • A new Active Learning Exercise explores impacts on profit maximization from collusion.
Chapter 27 (formerly Chapter 28)
Micro split Ch. 13
Government Policy Toward Business
  • Introduction is revised to include a discussion of recent issues involving Microsoft and the telecommunications industry.
  • The Economic Insight Box "The Microsoft Settlement?" is deleted.
  • The discussion of industrial policy is eliminated.
  • Section 3 includes discussions of the deregulation of the long distance telephone market and the World Trade Organization.
  • The new Internet Exercise researches the WTO.
  • A new Active Learning Exercise explores profit maximization under government intervention.
  • A new Economically Speaking article and Commentary discusses the cost of complying with emissions regulations.
Chapter 28 (formerly Ch. 29)
Micro split Ch. 14
An Overview of Resource Markets
  • A new introduction questions students with issues involving resource markets.
  • The Economic Insight "Labor Regulations and Employment" is deleted.
  • The new Internet Exercise explores the uses of uranium.
  • A new Active Learning Exercise requires students to determine the prices of resources in their local area.
  • A new Economically Speaking article and Commentary discuss the impact of the Asian financial market crisis on domestic resources.
Chapter 29 (formerly Chapter 30)
Micro split Ch. 15
The Labor Market: Wage Differentials and Personnel Practices
  • The section "Wage Differentials That Do Not Fit Neatly Into the Labor Market Model" is deleted.
  • The new Internet Exercise requires students to determine statistics relative to the labor market.
  • A new Economically Speaking article and Commentary discuss the role of education in determining wages.
Chapter 30 (formerly Chapter 31)
Micro split Ch. 16
Wage Differentials: Race, Gender, Age, and Unionization
  • The Economic Insight Box "South Africa's Labor Policy" is deleted.
  • The section on the Family and Medical Leave Act is deleted.
  • The new Internet Exercise explores the EEOC's role in discrimination.
  • A new Active Learning Exercise shows the impact of minimum wages on profits.
Chapter 31 (formerly Chapter 32)
Micro split Ch. 17
Capital and Technological Change
  • This chapter along with the next chapter is part of a significant revision of Chapter 32 in the Third Edition.
  • The section on Land and Natural Resources is moved to Chapter 32.
  • The section on Entrepreneurial Ability is deleted.
  • A new section on Technological Change deals with the role of technology in the capital market.
  • A new section on Financial Capital includes a discussion of the financial markets and their role in financing the acquisition of physical capital.
  • New key terms and exercises applicable to sections 2 and 3 are introduced.
  • The new Internet Exercise explores patents as an indication of technological change.
  • A new Economically Speaking article and Commentary discusses digital video.
Chapter 32
Micro split Ch. 18
Natural Resources and Environmental Policy
  • This chapter along with the previous chapter is part of a significant revision of Chapter 32 in the Third Edition.
  • Section 1 on Capital is moved to Chapter 31.
  • The section on Conservation is deleted.
  • A new section on Environmental Problems incorporates a great majority of the material on externalities formerly found in Chapter 35, Market Failure and Environmental Policy.
  • Fundamental questions, key terms, and exercises are revised to include relevant material on environmental policy formerly found in Chapter 35.
  • The new Internet Exercise researches the Sierra Club.
  • A new Active Learning Exercise explores the issue of private property rights using paper clips.
  • The Economically Speaking article and Commentary are moved from Chapter 35.
Chapter 33
Micro split Ch. 19
Aging, Social Security, and Health Care
  • The chapter is re-titled.
  • A new section on Solutions to the Social Security problem is added.
  • References to the Clinton administration health care reform are deleted.
  • The new Internet Exercise requires students to research income and poverty for several countries.
Chapter 34
Micro split Ch. 20
Income Distribution, Poverty, and Government Policy
  • The section on Welfare Reform is deleted.
  • Exercise 13 is deleted and subsequent exercises renumbered.
  • Workfare is deleted as a key term.
  • The new Internet Exercise requires students to create Lorenz curves for two nations.
Chapter 35 (formerly Chapter 37)
Micro split Ch. 21
World Trade Equilibrium
  • The new Internet Exercise explores top exports and imports.
Chapter 36 (formerly Chapter 38)
Micro split Ch. 22
International Trade Restrictions
  • The chapter is re-titled.
  • The Economic Insight Box "The GATT" is deleted and additional discussion of the WTO is included in the text.
  • The new Internet Exercise researches the WTO.
Chapter 37 (formerly Chapter 39)
Micro split Ch. 23
Exchange-Rate Systems and Practices
  • Table 4, Countries with Multiple Exchange Rates, is deleted.
  • The new Internet Exercise researches currencies and exchange rates.
  • A new Economically Speaking article and revised Commentary discuss a European common currency.
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