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Economics: Theory and Practice, 10th Edition


This book provides information about fundamental institutions and relationships that affect quality of life, and provides a framework for thinking through and understanding the process of decision making. Furthermore, the text is designed as a primary text for an introduction to basic economics or principles of economics and offers a balanced presentation of macroeconomics and microeconomics.

PART ONE Introduction to Economics 1

CHAPTER 1 Introduction to Economics 3

CHAPTER 2 Economic Decision Making and Economic Systems 35

CHAPTER 3 Demand, Supply, and Price Determination 63

PART TWO The Macroeconomy 101

CHAPTER 4 Goals and Problems of the Macroeconomy: Employment, Prices, and Production 103

CHAPTER 5 Foundations of the Macroeconomy 141

CHAPTER 6 The Role of Government in the Macroeconomy 173

CHAPTER 7 Money, Financial Institutions, and the Federal Reserve 203

CHAPTER 8 Money Creation, Monetary Theory, and Monetary Policy 231

CHAPTER 9 Macroeconomic Viewpoints and Models 259

PART THREE The Microeconomy 283

CHAPTER 10 Households and Businesses: An Overview 285

CHAPTER 11 Benefits, Costs, and Maximization 305

CHAPTER 12 Production and the Costs of Production 335

CHAPTER 13 Competition and Market Structures 365

CHAPTER 14 Government and the Markets 405

CHAPTER 15 Labor Markets, Unions, and the Distribution of Income 431

PART FOUR The International Economy 461

CHAPTER 16 International Trade 463

CHAPTER 17 International Finance 485

Glossary 507

Answers to “Test Your Understanding” 517

Index 525