PREFACE

This book is an introductory microeconomics text that addresses itself to many of the economic problems facing Canada and Canadians today, and the policy choices confronting governments in dealing with these issues. It is not oriented toward rigorous, abstract or elegant economic theory, nor to a mathematical approach to economics — students of introductory economics neither want nor need these. Rather, its approach tends to be practical and pragmatic, introducing theory only insofar as it contributes to an understanding of the problems being discussed.
Following an examination of the structure of the Canadian economy, the text examines the basic tools of microeconomics — supply and demand — and how these interact to determine prices under a variety of conditions, ranging from highly competitive to monopolistic industries. Consideration is given to many economic problems and policy issues, including corporate concentration, labor unions, the growth of government, rent controls, oil and energy policy, the environment, and agricultural policy, with the emphasis in each case placed upon the basic economic principles involved.
Many economists believe that, until recently, economic progress occurred so readily that some of these "basics" of economics were forgotten or ignored by Canadians and their governments. Now, however, that the economic situation has become much more challenging, it is more important than ever that "the basics" be remembered and emphasized: only by doing this can Canada achieve its tremendous economic potential. The relationship between government economic policy and the public's understanding of economic issues is fundamentally important here. If political necessity dictate that government policy must be framed to appeal to the public, the present economic situation makes it vital that the public understand economic realities, issues and policies. ...