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Principles of Economics

Principles of Economics

In recent years, innovative texts in mathematics, science, foreign languages, and other fields have achieved dramatic pedagogical gains by abandoning the traditional encyclopedic approach in favor of teaching a shorter list of core principles in depth. Two well-respected writers and researchers, Bob Frank and Ben Bernanke, have shown that the less-is-more approach affords similar gains in introductory economics. The authors introduce a coherent short list of core principles and reinforce them by illustrating and applying each in numerous contexts. With engaging questions, explanations and exercises, the authors help students relate economic principles to a host of everyday experiences such as going to the ATM or purchasing airline tickets. Throughout this process, the authors encourage students to become “economic naturalists:” people who employ basic economic principles to understand and explain what they observe in the world around them.

Part 1: Introduction

Chapter 1. Thinking Like an Economist

Chapter 2. Comparative Advantage

Chapter 3. Supply and Demand

Part 2: Competition and the Invisible Hand

Chapter 4. Elasticity

Chapter 5. Demand

Chapter 6. Perfectly Competitive Supply

Chapter 7. Efficiency, Exchange, and the Invisible Hand in Action

Part 3: Market Imperfections

Chapter 8. Monopoly, Oligopoly, and Monopolistic Competition

Chapter 9. Games and Strategic Behavior

Chapter 10. An Introduction to Behavioral Economics

Chapter 11. Externalities, Property Rights, and the Environment

Part 4: Economics of Public Policy

Chapter 12. The Economics of Information

Chapter 13. Labor Markets, Poverty, and Income Distribution

Chapter 14. Public Goods and Tax Policy

Part 5: International Trade

Chapter 15. International Trade and Trade Policy

Part 6: Macroeconomic: Issues and Data

Chapter 16. Macroeconomics: The Bird’s-Eye View of the Economy

Chapter 17. Measuring Economic Activity: GDP and Unemployment

Chapter 18. Measuring the Price Level and Inflation

Part 7: The Economy in the Long Run

Chapter 19. Economic Growth, Productivity, and Living Standards

Chapter 20. The Labor Market: Workers, Wages, and Unemployment

Chapter 21. Saving and Capital Formation

Chapter 22. Money, Prices, and the Federal Reserve

Chapter 23. Financial Markets and International Capital Flows

Part 8: The Economy in the Short Run

Chapter 24. Short-Term Economic Fluctuations: An Introduction

Chapter 25. Spending and Output in the Short Run

Chapter 26. Stabilizing the Economy: The Role of the Fed

Chapter 27. Aggregate Demand, Aggregate Supply, and Inflation

Part 9: The International Economy

Chapter 28. Exchange Rates and the Open Economy


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