Author: Campbell R. McConnell
Publisher: McGraw-Hill Professional
ISBN: 9780072819359
Size: 61.38 MB
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McConnell-Brue's Principles of Economics, 16e is the best-selling Principles of Economics textbook and has been teaching students in a clear, unbiased way for 40 years. The 15th edition grew market share because of its clear and careful treatment of principles of economics concepts, its balanced coverage, and its patient explanations. More students have learned their principles of Economics from McConnell-Brue than any other text; 12 million of them. The 16th edition is a revision that delivers a tight and modern book. We are also pleased to introduce an exciting fully-integrated software system called DiscoverEcon featuring Paul Solman: DiscoverEcon software, brand-new videos that teach economic concepts in a fun and engaging way, and more, all in one convenient software package.


Author: Campbell R. McConnell
Publisher: Irwin/McGraw-Hill
Size: 67.33 MB
Format: PDF, ePub
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Economics Principles Problems And Policies 18th Ed Mcgraw Hill 2009

Author: McConnell-Flynn-Brue
Publisher: Bukupedia
Size: 77.69 MB
Format: PDF, Docs
View: 4695
Welcome to the eighteenth edition of Economics, the bestselling economics textbook in the world. An estimated 14 million students have used Economics or its companion editions, Macroeconomics and Microeconomics. Economics has been adapted into Australian and Canadian editions and translated into Italian, Russian, Chinese, French, Spanish, Portuguese, and other languages. We are pleased that Economics continues to meet the market test: nearly one out of four U.S. students in principles courses used the seventeenth edition. A Note about the Cover and New Coauthor In the tradition of the previous two covers, the cover for this edition includes a photograph of steps. The new edition’s cover is a metaphor for the step-by-step approach that we use to present basic economic principles. It also represents the simplicity, beauty, and power of basic economic models. We have chosen a highly modern photo to reflect the addition of our new coauthor, Sean M. Flynn, who has helped modernize the content of the book from cover to cover. Sean did his undergraduate work at USC, received his Ph.D. from U.C. Berkeley (in 2002), teaches principles at Vassar, and is the author of Economics for Dummies. We are greatly pleased to have Sean working on the text since he shares our commitment to present economics in a way that is understandable to all. Fundamental Objectives We have three main goals for Economics: • Help the beginning student master the principles essential for understanding the economizing problem, specific economic issues, and the policy alternatives. • Help the student understand and apply the economic perspective and reason accurately and objectively about economic matters. • Promote a lasting student interest in economics and the economy. What’s New and Improved? One of the benefits of writing a successful text is the opportunity to revise—to delete the outdated and install the new, to rewrite misleading or ambiguous statements, to introduce more relevant illustrations, to improve the organizational structure, and to enhance the learning aids. This is the most significant revision of Economics since the fourteenth edition. It has greatly benefited from the addition of our new coauthor. The more significant changes include the following. Micro First Organization Perhaps most noticeably, we changed the book’s organization to micro first in keeping with how contemporary economists view the direction of linkage between the two parts of the subject. All the new principles texts introduced during the past two decades have been organized as micro-first texts and colleges have increasingly changed their course numbering (sequencing) to micro first. As it relates to the actual principles course, however, this change in ordering is mainly symbolic. Micro and macro courses are still taught separately and independently, with no prerequisite on either. Also, students increasingly use the split micro and macro versions of our main text, even in schools that adopt our book for all sections of both micro and macro principles. We therefore think that most instructors will find it relatively easy to make the transition to the new ordering. Fully Updated, Totally Contemporary Macroeconomics We recast the entire macro analysis in terms of the modern, dominant paradigm of macroeconomics, using economic growth as the central backdrop and viewing business fluctuations as significant and costly variations in the rate of growth. In this paradigm, business cycles result from demand shocks (or, less often, supply shocks) in conjunction with inflexible short-run product prices and wages. The degree of price and wage stickiness decreases with time. In our models, the immediate short run is a period in which the price level and wages are not only sticky, but stuck; the short run is a period in which product prices are flexible and wages are not; and the long run is a period in which both prices and wages are fully flexible. Each of these three periods—and thus each of the models based on them—is relevant to understanding the actual macro economy and its occasional difficulties. New Chapter 23 introduces the macro framework in a lively, intuitive way, using an example of a hypothetical single-firm economy. It also makes a clear, critical distinction between the broader concept of financial investment and the narrower subset of investment called economic investment in a way that allows us to use both ideas. A chapter on the measurement of nominal and real GDP follows. With real GDP clearly defined and measured, we present a chapter on economic growth. This early placement of the growth chapter allows students to understand the importance of economic growth and the factors that drive it. This growth chapter is followed by a chapter that introduces business fluctuations along the economy’s growth path and the problems of unemployment and inflation that may result. Following this set of core beginning chapters, we immediately begin to build models of the economy for the immediate short run and the short run. Students are therefore quickly introduced to models in which recessions and inflation can occur. This approach allows us to use the short-run AD-AS model to address fiscal policy and monetary policy relatively earlier in the macro. Students are made fully aware from the start of the macro that the rate of economic growth is fundamentally important for standards of living. Yet, the quick introduction of sticky price models enables students to understand demand shocks, recession, stimulatory fiscal policy, Fed monetary policy actions, and other topics that dominate the news about the macro economy. Because Chapter 5 provides an early introduction to international trade and international finance, we are able to integrate the global economy from the start of the macro analysis. Then, after eventually developing the long-run AD-AS model, we directly link this long-run analysis back to our earlier discussions of growth. We finish the macro with two chapters that provide further analysis of international trade, balance of payments, exchange rates, and trade imbalances. The macro ends with a bonus Web chapter on the requisites for, and impediments to, economic growth in developing nations. Although the framework in which the macro is built is extensively revised, the revisions were made to preserve the main elements of the chapters in the previous edition. We simply have wrapped the macroeconomics analysis into a modern package of growth, expectations, shocks, price stickiness, time horizons, and international linkages. Our macro content is also fully modern in terms of its coverage of contemporary problems and policies. For example, we cover the mortgage debt crisis, the recent economic slowdown, the Fed’s reductions of the Federal funds rate, the Fed’s term auction facility, the stimulus tax package of 2008, and more. Four New Chapters Four chapters—two micro and two macro—are new to the print version of E conomics. Our common purpose for all four chapters is to incorporate contemporary analytical themes and address current economic issues. Chapter 15: Natural Resource and Energy Economics. This new micro chapter—brought from our Web site for the seventeenth edition—is now in Part 3 (Microeconomics of Resource Markets). This chapter addresses the question of whether the world is becoming overpopulated and rapidly running out of resources. It covers topics such as declining fertility rates, the optimal rate of resource extraction, resource substitution, resource sustainability, oil prices, and alternative energy sources. An understanding of the basic economic principles of natural resource economics will be critical to future voters and leaders. This micro treatment of natural resource and energy topics is particularly timely since many students are regularly exposed to alarmist views on these subjects. Chapter 22: Immigration. This new micro chapter covers the economics of immigration—both legal and illegal—in an analytical and balanced way. Students are highly interested in this subject, yet often lack the economic knowledge and tools to grasp the issues and debates. This chapter provides that basic economic understanding. The chapter also serves as a timely application of the economic principles developed in the prior chapters on resource markets. Chapter 23: An Introduction to Macroeconomics. As previously noted, this new chapter introduces the revised macroeconomic content in an interesting, concise way. It motivates the study of macroeconomics and establishes the analytical framework to the subject that we use throughout the macro portion of the book. Chapter 34: Financial Economics. This new macro chapter examines ideas such as compound interest, present value, arbitrage, risk, diversification, and the risk-return relationship. Students need a better grounding in such ideas to truly understand the modern economy. In view of the problems in the financial markets over the recent past, we think that integrating financial economics more directly in the macro principles course makes good sense. For many students, this course will be their only (classroom!) opportunity to learn that promises of high, unguaranteed returns reflect high, uninsured risk. Even if instructors cannot find time to assign and cover the entire chapter, they may want to discuss the beginning portion, which addresses the time value of money and provides easy-tounderstand real-world examples of present value. To make room for our four new chapters, we had to make certain accommodations. Specifically, we moved our micro chapter “Technology, R & D, and Efficiency” to the book’s Web site, where it joins the chapter “The Economics of Developing Countries.” Both chapters are available free to students for full-color viewing and can be printed for offcomputer study. Furthermore, these chapters are fully supported by all the supplementary materials such as the Study Guide and Test Banks. Instructors who wish to cover the R&D chapter, rather than, for example, the new resource chapter, can easily make the substitution. We also deleted the chapter “Labor Market Issues and Institutions: Unions, Discrimination, and Immigration.” The core of the union content is now is an appendix to the wage determination chapter; the discrimination material is consolidated and placed in the chapter “Income Inequality, Poverty, and Discrimination,” and the immigration content now is part of the full new chapter on this subject. Also, we deleted the mainly macro chapter on the balance of payments, exchanges rates, and trade deficits from the micro split version of E conomics. It continues to be in Economics and the macro split. Our explicit discussion of Keynesian versus Classical macroeconomics in the chapter on macro theories and issues has been deleted since we integrated the graphical analysis into earlier chapters. Finally, we have deleted the lengthy historical discussions of the gold standard and the Bretton Woods System from the chapter on exchange rates and placed it as supplemental material for the chapter at our Web site. Other, lesser deletions or abridgements have occurred throughout the book. Three New Appendixes Three additional chapter appendixes are available for optional assignment in this edition. All are supported by the supplementary materials. The concise new appendixes are: Chapter 3: Additional Examples of Supply and Demand. At the end of Chapter 3 we provide several additional examples of supply and demand, including concrete examples of simultaneous shifts in supply and demand curves. Products covered include lettuce, corn and ethanol, pink salmon, gasoline, and sushi. We also use the Olympic Games to illustrate examples of preset prices, shortages, and surpluses. Chapter 11: Additional Game Theory Applications. We placed several applications of game theory in a new appendix at the end of the micro chapter on monopolistic competition and oligopoly. Instructors who like to stress game theory in dealing with oligopoly now have strong backup support from the textbook for their efforts. The appendix discusses concepts such as dominant strategies, Nash equilibrium, repeated games, and first-mover advantages. Chapter 13: Labor Unions and Their Impacts. This compact appendix covers union membership, the decline of unions, collective bargaining, and the economic effects of unions. New (or Relocated) “Consider This” and “Last Word” Boxes Our “Consider This” boxes are used to provide analogies, examples, or stories that help drive home central economic ideas in a student-oriented, real-world manner. For instance, the idea of trade secrets is described with the legend of “cat gut” and violin strings, while McDonald’s “McHits” and “McMisses” demonstrate the idea of consumer sovereignty. These brief vignettes, each accompanied by a photo, illustrate key points in a lively, colorful, and easyto- remember way. New or relocated “Consider This” boxes include such disparate topics as an economic comparison of the two Koreas (Chapter 2), “buying American” (Chapter 5), the prisoner’s dilemma (Chapter 11), government policies and birth rates (Chapter 15), turning PREFACE CONSIDER THIS . . . Did Gates, Winfrey, and Rodriguez Make Bad Choices? Opportunity costs come into play in decisions well beyond simple buying decisions. Consider the different choices people make with respect to college. College graduates usually earn about 50 percent more during their lifetimes than persons with just high school diplomas. For most capable students, “Go to college, stay in college, and earn a degree” is very sound advice. Yet Microsoft cofounder Bill Gates and talk show host Oprah Winfrey * both dropped out of college, and baseball star Alex Rodriguez (“A-Rod”) never even bothered to start classes. What were they thinking? Unlike most students, Gates faced enormous opportunity costs for staying in college. He had a vision for his company, and his starting work young helped ensure Microsoft’s success. Similarly, Winfrey landed a spot in local television news when she was a teenager, eventually producing and starring in the Oprah Winfrey Show when she was 32 years old. Getting a degree in her twenties might have interrupted the string of successes that made her famous talk show possible. And Rodriguez knew that professional athletes have short careers. Therefore, going to college directly after high school would have taken away four years of his peak earning potential. So Gates, Winfrey, and Rodriguez understood opportunity costs and made their choices accordingly. The size of opportunity costs greatly matters in making individual decisions. *Winfrey eventually went back to school and earned a degree from Tennessee State University when she was in her thirties. mcc75691_ch01.indd Page 9 9/5/08 7:29:16 AM user entrails into oil (Chapter 15), putting corn in our gas tanks (Chapter 19), consumption inequality (Chapter 20), the cancer fight that is going nuclear (Chapter 21), the contributions of past immigrants to the U.S. economy (Chapter 22), patent reform in India (Chapter 25), and the relative returns on standard versus ethical investing (Chapter 34). Our “Last Word” pieces are lengthier applications and case studies located toward the end of chapters. New or relocated Last Words include those on fair trade products (Chapter 5); insights from behavioral economics (Chapter 7); the link between economic growth and environmental protection (Chapter 15); past and current, and proposed U.S. immigration laws (Chapter 22); the role of inventory management in moderating recessions (Chapter 23); the Fed’s response to the mortgage debt crisis (Chapter 33); the relative performance of index funds versus actively managed funds (Chapter 34); and Bastiat’s “Petition of the Candlemakers” (Chapter 37). Contemporary Discussions and Examples The eighteenth edition refers to and discusses many current topics. Examples include the cost of the war in Iraq; surpluses and shortages of tickets at the Olympics; the myriad impacts of ethanol subsides; offshoring of American jobs; trade adjustment assistance; the additions of countries to the European Union and to the euro zone; normal trade relations status; aspects of behavioral economics; game theory; the most rapidly expanding and disappearing U.S. jobs; oil and gasoline prices; climate change; The Food, Conservation, and Energy Act of 2008; consumption versus income inequality; prescription drug coverage under Medicare; Health Savings Accounts (HSAs); comprehensive immigration reform; China’s rapid growth rate; the business downturn of late 2007 and early 2008; the stimulus package of 2008; Federal budget deficits; the mortgage debt crisis; recent Fed monetary policy; the Fed’s new term auction facility; the Taylor rule; U.S. trade deficits; and many more. Distinguishing Features Comprehensive Explanations at an Appropriate Level Economics is comprehensive, analytical, and challenging yet fully accessible to a wide range of students. The thoroughness and accessibility enable instructors to select topics for special classroom emphasis with confidence that students can read and comprehend other independently assigned material in the book. Where needed, an extra sentence of explanation is provided. Brevity at the expense of clarity is false economy. Fundamentals of the Market System Many economies throughout the world are still making difficult transitions from planning to markets while a handful of other countries such as Venezuela seem to be trying to reestablish government-controlled, centrally planned economies. Our detailed description of the institutions and operation of the market system in Chapter 2 is therefore even more relevant than before. We pay particular attention to property rights, entrepreneurship, freedom of enterprise and choice, competition, and the role of profits because these concepts are often misunderstood by beginning students worldwide. Early and Full Integration of International Economics We give the principles and institutions of the global economy early treatment. Chapter 5 examines the growth of world trade and its major participants, specialization and comparative advantage, the foreign exchange market, tariffs and subsidies, and various trade agreements. This strong introduction to international economics permits “globalization” of later discussions in both the micro and the macro chapters. Then, we delve into the more difficult, graphical analysis of international trade and finance in Chapters 37 and 38. Early and Extensive Treatment of Government Government is an integral component of modern capitalism. This book introduces the economic functions of government early and accords them systematic treatment in Chapter 4. Chapter 16 examines public goods and externalities in further detail, and Chapter 17 looks at salient facets of public choice theory and taxation. Both the micro and the macro sections of the text include issue- and policy-oriented chapters. PREFACE Pitfalls to Sound Economic Reasoning Here are some common pitfalls to avoid in successfully applying the economic perspective. Biases Most people bring a bundle of biases and preconceptions to the field of economics. For example, some might think that corporate profits are excessive or that lending money is always superior to borrowing money. Others might believe that government is necessarily less efficient than businesses or that more government regulation is always better than less. Biases cloud thinking and interfere with objective analysis. All of us must be willing to shed biases and preconceptions that are not supported by facts. Loaded Terminology The economi minology media is sometimes emotionally biased, or loaded. The writer or spokesperson may have a cause to promote or an ax to grind and may slant comments accordingly. High profits may be labeled “obscene,” low wages may be called “exploitive,” or self-interested behavior may be “greed.” Government workers may be referred to as “mindless bureaucrats” and those favoring stronger government regulations may be called “socialists.” To objectively analyze economic issues, you must be prepared to reject or discount such terminology. Fallacy of Composition An - other pitfall in economic thinking is the assumption that what is true for one individual or part of a whole is necessarily true for a group of individuals or the whole. This is a logical fallacy called the fallacy of composition; the assumption is not correct. A statement that is valid for an individual or part is not necessarily valid for the larger group or whole. You may see the action better if you leap to your feet to l Because They Affect Us So Personally, We Often Have Diffi culty Thinking Accurately and Objectively About Economic Issues. LASTWord mcc75691_ch01.indd Page 16 9/5/08 7:37:50 AM user economic rminology used Stress on the Theory of the Firm We have given much attention to microeconomics in general and to the theory of the firm in particular, for two reasons. First, the concepts of microeconomics are difficult for most beginning students; abbreviated expositions usually compound these difficulties by raising more questions than they answer. Second, we wanted to couple analysis of the various market structures with a discussion of the impact of each market arrangement on price, output levels, resource allocation, and the rate of technological advance. Step-by-Step, Two-Path Macro As in the previous edition, our macro continues to be distinguished by a systematic step-by-step approach in developing ideas and building models. Explicit assumptions about price and wage stickiness are posited and then systematically peeled away, yielding new models and extensions, all in the broader context of growth, expectations, shocks, and degrees of price and wage stickiness over time. In crafting this step-by-step macro approach, we took care to preserve the “two-path macro” that many instructors appreciated. Instructors who so choose can bypass the immediate short-run model (Chapter 28) and can proceed without loss of continuity directly to the short-run AD-AS model (Chapter 29), fiscal policy, money and banking, monetary policy, and the long-run analysis. Emphasis on Technological Change and Economic Growth This edition continues to emphasize economic growth. Chapter 1 uses the production possibilities curve to show the basic ingredients of growth. Chapter 25 explains how growth is measured and presents the facts of growth. It also discusses the causes of growth, looks at productivity growth, and addresses some controversies surrounding economic growth. Chapter 25’s Last Word examines the rapid economic growth in China. Chapter 39Web focuses on developing countries and the growth obstacles they confront. Chapter 11Web provides an explicit and cohesive discussion of the microeconomics of technological advance, including topics such as invention, innovation, and diffusion; start-up firms; R&D decision making; market structure and R&D effort; and creative destruction. Focus on Economic Policy and Issues For many students, the micro chapters on antitrust, agriculture, income inequality, health care, and immigration, along with the macro chapters on fiscal policy and monetary policy, are where the action is centered. We guide that action along logical lines through the application of appropriate analytical tools. In the micro, we favor inclusiveness; instructors can effectively choose two or three chapters from Part 5. Integrated Text and Web Site Economics and its Web site are highly integrated through in-text Web buttons, Web-based end-of-chapter questions, bonus Web chapters, multiple-choice self-tests at the Web site, math notes, and other features. Our Web site is part and parcel of our student learning package, customized to the book. The in-text Web buttons (or indicators) merit special mention. Three differing colors of rectangular indicators appear throughout the book, informing readers that complementary content on a subject can be found at our Web site, w The indicator types are: Worked Problems Written by Norris Peterson of Pacifific Lutheran University (WA), these pieces consist of side-by-side computational questions and computational procedures used to derive the answers. In essence, they extend the textbook’s explanation involving computations—for example, of real GDP, real GDP per capita, the unemployment rate, the inflflation rate, per-unit production costs, economic profifit, and more. From a student’s perspective, they provide “cookbook” help for problem solving. Interactive Graphs These pieces (developed under the supervision of Norris Peterson) depict 30 major graphs and instruct students to shift the curves, observe the outcomes, and derive relevant generalizations. This hands-on graph work will greatly reinforce the graphs and their meaning. Origin of the Ideas These pieces, written by Randy Grant of Linfifi eld College (OR), are brief histories of 70 major ideas identififi ed in the book. They identify the particular economists who developed ideas such as opportunity costs, equilibrium price, the multiplier, comparative advantage, and elasticity. Organizational Alternatives Although instructors generally agree on the content of principles of economics courses, they sometimes differ on how to arrange the material. E conomics includes 10 parts, and thus provides considerable organizational flexibility

Political Economy And Contemporary Capitalism

Author: Ron P. Baiman
Publisher: Routledge
ISBN: 1317462688
Size: 58.51 MB
Format: PDF, Kindle
View: 4411
This volume covers the theoretical method, macroeconomics, microeconomics, international trade and finance, development, and policy of economic theory. It incorporates various alternative approaches as well as a broad spectrum of policy issues.

Macroeconomics Without The Errors Of Keynes

Author: James C. W. Ahiakpor
Publisher: Routledge
ISBN: 1317217845
Size: 15.59 MB
Format: PDF
View: 1870
Modern macroeconomics is in a stalemate, with seven schools of thought attempting to explain the workings of a monetary economy and to derive policies that promote economic growth with price-level stability. This book pinpoints as the source of this confusion errors made by Keynes in his reading of classical macroeconomics, in particular the classical Quantity Theory and the meaning of saving. It argues that if these misunderstandings are resolved, it will lead to economic policies consistent with promoting the employment and economic growth that Keynes was seeking. The book will be crucial reading for all scholars with an interest in the foundations of Keynes’s theories, and anyone seeking to understand current debates regarding macroeconomic policy-making.

Macroeconomic Policy And Islamic Finance In Malaysia

Author: Azura Othman
Publisher: Springer
ISBN: 1137531592
Size: 66.98 MB
Format: PDF, Mobi
View: 6908
This book offers an alternative framework for macroeconomic policy in Malaysia, derived from the universal principles of social justice espoused in the objectives of the Shariah. It attempts to holistically analyze issues related to public finance, which has been criticized for lack of transparency and justice in wealth distribution. This book explores these criticisms and discusses the principles of Islamic finance that may be applied to macroeconomic policymaking to create a better economy overall. It presents a case for a flat tax system, to make the economy more resilient to shocks, and financing methods that limit interest-rate-based debt contracts and allow greater risk sharing among the market participants on a broad scale. Using both qualitative and quantitative methods, this book models the Malaysian economy based on policies that apply the fundamental Islamic finance principle of risk sharing to demonstrate its benefits in spurring growth, promoting distributive justice, rendering the economy more stable, strengthening the potency of monetary policy, enhancing fiscal governance, and improving financial inclusion. The book will be of interest to students, policymakers, financial institutions, researchers, ministries of finance, central banks, securities commissions, and anyone interested in alternative economic paradigms.

Kaplan Ap Macroeconomics Microeconomics 2007 Edition

Author: Kaplan
Publisher: Kaplan Publishing
ISBN: 9781419550829
Size: 45.44 MB
Format: PDF
View: 6836
Provides basic strategies for taking the exam; questions and explanations pertaining to macroeconomics, microeconomics, and international economics; two practice tests; and a glossary of key terms.