Engaging authors, unbiased presentations of essential ideas, and a knack for revealing the 'invisible hand' of economics at work inform the thoroughly updated new edition of Modern Principles, drawing on a wealth of captivating applications to show readers how economics shed light on business, politics, world affairs, and everyday life.
The Big Ideas The Power of Trade and Comparative Advantage PART I: SUPPLY AND DEMAND Supply and Demand Equilibrium: How Supply and Demand Determine Prices Elasticity and its Applications Appendix: Other Types of Elasticities Appendix: Elasticities with Excel Taxes and Subsidies PART II: THE PRICE SYSTEM The Price System: Signals, Speculation and Prediction Price Ceilings and Price Floors International Trade Externalities: When Prices Send the Wrong Signals PART III: FIRMS AND FACTOR MARKETS Costs Appendix: Using Excel to Graph Cost Curves Competition and the Invisible Hand Monopoly Price Discrimination Appendix: Solving Price Discrimination Problems with Excel Cartels, Oligopolies, and Monopolistic Competition The Economics of Network Goods: Competing for Monopoly Labor Markets PART IV: GOVERNMENT Public Goods and the Tragedy of the Commons Appendix: The Tragedy of the Commons: How Fast? Political Economy and Public Choice Economics, Ethics and Public Policy PART V: DECISION MAKING FOR BUSINESSES, INVESTORS, AND CONSUMERS Managing Incentives Stock Markets and Personal Finance Consumer Choice PART VI: ECONOMIC GROWTH GDP and The Measurement of Progress The Wealth of Nations and Economic Growth Appendix: The Magic of Compound Growth: Using a Spreadsheet Growth, Capital Accumulation and the Economics of Ideas: Catching Up vs. The Cutting Edge Appendix: Excellent Growth Savings, Investment, and the Financial System Appendix: Bond Pricing and Arbitrage PART VII: BUSINESS FLUCTUATIONS Unemployment and Labor Force Participation Inflation and the Quantity Theory of Money Appendix: Get Real! An Excellent Adventure Business Fluctuations: Aggregate Demand and Supply Transmission and Amplification Mechanisms Appendix: Business Fluctuations and the Solow Model PART VIII: MACROECONOMIC POLICY AND INSTITUTIONS The Federal Reserve System and Open Market Operations Appendix: The Money Multiplier Process in Detail Monetary Policy The Federal Budget: Taxes and Spending Fiscal Policy PART IX: INTERNATIONAL ECONOMICS International Finance