Built on the foundation of the course “Principles of Microeconomics”, this course provides a comprehensive treatment of microeconomics from the viewpoints of policy as well as theory. It aims at achieving, in a balanced manner, two equally important objectives: (1) serving as a satisfactory input to other more specialized courses within the major and (2) providing appropriate training to students taking the major, many of whom are expected to become executives in large enterprises and organizations, applied economic researchers, analysts and forecasters, business journalists and teachers, and who will therefore need a concrete understanding of as wide a range of theoretical and policy topics as possible. As the sequel to introductory microeconomics, this course will probe further into the rationality behind some standard theories and introduce recent development in economic theory.