This modern, Micro first book has a strong foundation in demand and supply. Its thoughtful coverage of change in demand vs. change in quantity demanded (also in supply coverage) enables readers to better visualize and truly understand the difference between these 2 fundamental concepts. #xA0; Its hallmark feature includes a focus on the 5 Key Principles of Economics: 1) Opportunity Cost, 2) The Marginal Principle (comparing marginal benefits and marginal costs), 3) Diminishing Returns, 4) The Spillover Principle (for externalities in production and consumption), and, 5) The Reality Principle (distinguishing real from nominal magnitudes). #xA0; For economists, financial analysts and other finance professionals.

ARTHUR O’SULLIVAN

is a professor of economics at Lewis and Clark College in Portland, Oregon. After receiving his B.S.

in economics at the University of Oregon, he spent two years in the Peace Corps, working with city

planners in the Philippines. He received his Ph.D. in economics from Princeton University in 1981

and has taught at the University of California, Davis, and Oregon State University, winning teaching

awards at both schools. He is the author of the best-selling textbook Urban Economics, currently in its

seventh edition.

Professor O’Sullivan’s research explores economic issues concerning urban land use, environmental

protection, and public policy. His articles have appeared in many economics journals, including the

Journal of Urban Economics, Journal of Environmental Economics and Management, National Tax Journal,

Journal of Public Economics, and Journal of Law and Economics.

Professor O’Sullivan lives with his family in Portland, Oregon. For recreation, he enjoys hiking,

kiteboarding, and squash.

 

STEVEN M. SHEFFRIN

is professor of economics and executive director of the Murphy Institute at Tulane University. Prior to

joining Tulane in 2010, he was a faculty member at the University of California, Davis, and served as

department chairman of economics and dean of social sciences. He has been a visiting professor at

Princeton University, Oxford University, London School of Economics, and Nanyang Technological

University, and he has served as a financial economist with the Office of Tax Analysis of the United

States Department of the Treasury. He received his B.A. from Wesleyan University and his Ph.D. in

economics from the Massachusetts Institute of Technology.

Professor Sheffrin is the author of 10 other books and monographs and over 100 articles in the

fields of macroeconomics, public finance, and international economics. His most recent books

include Rational Expectations (second edition) and Property Taxes and Tax Revolts: The Legacy of

Proposition 13 (with Arthur O’Sullivan and Terri Sexton).

Professor Sheffrin has taught macroeconomics and public finance at all levels, from general introduction

to principles classes (enrollments of 400) to graduate classes for doctoral students. He is the

recipient of the Thomas Mayer Distinguished Teaching Award in economics.

He lives with his wife Anjali (also an economist) in New Orleans, Louisiana, and has two daughters

who have studied economics. In addition to a passion for current affairs and travel, he plays a

tough game of tennis.

 

STEPHEN J. PEREZ

is a professor of economics and NCAA faculty athletics representative at California State University,

Sacramento. After receiving his B.A. in economics at the University of California, San Diego, he was

awarded his Ph.D. in economics from the University of California, Davis, in 1994. He taught economics

at Virginia Commonwealth University and Washington State University before coming to California

State University, Sacramento, in 2001. He teaches macroeconomics at all levels as well as econometrics,

sports economics, labor economics, and mathematics for economists.

Professor Perez’s research explores most macroeconomic topics. In particular, he is interested

in evaluating the ability of econometric techniques to discover the truth, issues of causality in

macroeconomics, and sports economics. His articles have appeared in many economics journals,

including the Journal of Monetary Economics; Econometrics Journal; Economics Letters; Journal of

Economic Methodology; Public Finance and Management; Journal of Economics and Business; Oxford

Bulletin of Economics and Statistics; Journal of Money, Credit, and Banking; Applied Economics; and

Journal of Macroeconomics.

 

PART 1 Introduction and Key Principles

1 Introduction: What Is Economics?

2 The Key Principles of Economics

3 Exchange and Markets

4 Demand, Supply, and Market Equilibrium

 

PART 2 The Basic Concepts in Macroeconomics

5 Measuring a Nation’s Production and Income

6 Unemployment and Inflation

 

PART 3 The Economy in the Long Run

7 The Economy at Full Employment

8 Why Do Economies Grow?

 

PART 4 Economic Fluctuations and Fiscal Policy

9 Aggregate Demand and Aggregate Supply

10 Fiscal Policy

11 The Income-Expenditure Model

12 Investment and Financial Markets

 

PART 5 Money, Banking, and Monetary Policy

13 Money and the Banking System

14 The Federal Reserve and Monetary Policy

 

PART 6 Inflation, Unemployment, and Economic Policy

15 Modern Macroeconomics: From the Short Run to the Long Run

16 The Dynamics of Inflation and Unemployment

17 Macroeconomic Policy Debates

 

PART 7 The International Economy

18 International Trade and Public Policy

19 The World of International Finance

 

PART 8 A Closer Look at Demand and Supply

20 Elasticity: A Measure of Responsiveness

21 Market Efficiency and Government Intervention

22 Consumer Choice Using Utility Theory

 

PART 9 Market Structures and Pricing

23 Production Technology and Cost

24 Perfect Competition

25 Monopoly and Price Discrimination

26 Market Entry and Monopolistic Competition

27 Oligopoly and Strategic Behavior

28 Controlling Market Power: Antitrust and Regulation

 

PART 10 Externalities and Information

29 Imperfect Information: Adverse Selection and Moral Hazard

30 Public Goods and Public Choice

31 External Costs and Environmental Policy

 

PART 11 The Labor Market and Income Distribution

32 The Labor Market, Income, and Poverty

33 Unions, Monopsony, and Imperfect Information