Economics: Theory and Practice, 7th Edition,9780470000281

Economics: Theory and Practice, 7th Edition

by ;
Edition: 7th
ISBN13: 9780470000281
ISBN10: 0470000287
Format: Paperback
Pub. Date: 2003-04-01
Publisher(s): Wiley
Upgraded Edition: Click here!
List Price: $114.82

Rent Textbook

Select for Price
Add to Cart
There was a problem. Please try again later.

New Textbook

We're Sorry
Sold Out

Used Textbook

We're Sorry
Sold Out

eTextbook

We're Sorry
Not Available

Buy from our Marketplace starting at $13.74

How Marketplace Works:

  • This item is offered by an independent seller and not shipped from our warehouse
  • Item details like edition and cover design may differ from our description; see seller's comments before ordering.
  • Sellers much confirm and ship within two business days; otherwise, the order will be cancelled and refunded.
  • Marketplace purchases cannot be returned to eCampus.com. Contact the seller directly for inquiries; if no response within two days, contact customer service.
  • Additional shipping costs apply to Marketplace purchases. Review shipping costs at checkout.

Summary

Newly updated, the Seventh Edition of Economics: Theory and Practice introduces students to basic economic concepts, institutions, relationships, and terminology. Covering a range of timely subjects and featuring engaging pedagogical tools, this book prepares students to use economic thinking in their classes, careers, and everyday lives. Through six editions, students have cited the text as exceptionally user-friendly and readable.

Table of Contents

Preface iii
PART ONE Introduction to Economics
xv
Introduction to Economics
1(32)
What Is Economics?
2(4)
Economics and Scarcity
3(1)
Scarcity and Choice
3(3)
The Cost of Holding a Job
6(1)
Efficiency and Equity
6(1)
Factors of Production
7(3)
Factors and Income
8(1)
Scarce Resources
9(1)
Why All the Grousing?
10(1)
Economic Theory and Policy
10(4)
Economic Theory
11(2)
Economic Policy
13(1)
Don't Panic
14(1)
Up for Debate: Should the City Council of Webster Groves, Missouri, Change Its Ordinances to Permit the Sale of Beer in Gasoline Stations?
15(1)
Tools of the Economist
16(1)
Words, Graphs, and Mathematical Equations
16(1)
Scarcity, Model Building, and Graphs
17(4)
Modeling Scarcity
17(2)
Interpreting the Model
19(2)
Test Your Understanding: Production Possibilities
21(1)
Macroeconomics and Microeconomics
21(5)
Critical Thinking Case 1: Rethinking Medical Care
26(2)
Appendix Graphing
28(5)
Economic Decision Making and Economic Systems
33(32)
Scarcity and Society's Basic Economic Decisions
34(1)
Economic Systems and the Three Basic Economic Decisions
35(1)
Traditional or Agrarian Economies
36(1)
Economic Decisions in a Traditional Economy
36(1)
Market Economies
37(1)
Up for Debate 2.1: Is Western-Style Development Appropriate for Other Cultures?
38(3)
The Operation of a Market Economy
39(1)
Economic Decisions in a Market Economy
40(1)
Missing the Market
41(5)
Evaluating Market Economies
42(2)
Government Intervention in a Market Economy: A Mixed Economy
44(2)
Planned Economies
46(2)
Economic Decisions in a Planned Economy
46(1)
Evaluating Planned Economies
47(1)
Mixed Economies
48(1)
Changing Economic Systems
49(1)
Test Your Understanding: Economic Decision Making and the Circular Flow
50(2)
The Realities of Economic Change
51(1)
Two Stories from Germany
52(1)
The U.S. Economic System
53(1)
The British Foundations of the U.S. Economy
53(1)
Historical Highlights in the Development of the U.S. Economy
54(1)
The Factory Girl's Last Day
55(7)
Critical Thinking Case 2: Privatization and Pollution
62(3)
Demand, Supply, and Price Determination
65(40)
Demand and Supply
66(4)
Demand: The Buyer's Side
66(2)
Supply: The Seller's Side
68(2)
Market Demand, Market Supply, and Price Setting
70(1)
Market Demand and Market Supply
70(1)
Markets and Price Setting
70(1)
The Laws of Demand and Supply
71(1)
Equilibrium Price and Equilibrium Quantity
72(3)
Changes in Quantity Demanded and Quantity Supplied
75(1)
Changes in Demand and Supply
75(5)
Changes in Quantity Demanded or Supplied versus Changes in Demand and Supply: A Crucial Distinction
75(2)
Changes in Demand
77(3)
Changes in Supply
80(2)
Are These Cows Mad?
82(1)
Changes in Equilibrium Price and Equilibrium Quantity
82(4)
Effect of an Increase in Demand
82(1)
Effect of a Decrease in Demand
83(1)
Effect of an Increase in Supply
84(1)
Effect of a Decrease in Supply
84(2)
Test Your Understanding: Changes in Demand and Supply
86(2)
Effect of Changes in Both Demand and Supply
86(2)
Limiting Price Movements
88(2)
Price Ceilings
88(1)
Price Floors
89(1)
Home Free
90(1)
Up for Debate: Is It a Mistake to Raise the Minimum Wage?
91(1)
Price Elasticity of Demand and Supply
91(3)
Price Elasticity of Demand
92(2)
Price Elasticity of Supply
94(1)
Supply and Demand in Practice
94(6)
Critical Thinking Case 3: Health Care---Where Supply and Demand Don't Work
100(2)
Appendix Measuring Price Elasticity
102(3)
PART TWO The Macroeconomy
105(182)
Goals and Problems of the Macroeconomy: Employment, Prices, and Production
107(38)
Unemployment and Full Employment
108(2)
Consequences of Unemployment
109(1)
Types of Unemployment
109(1)
What's at Stake When a Job Is Lost?
110(2)
Employment and Unemployment: Measures and Statistics
112(5)
The Goal of Full Employment
116(1)
Inflation and Stable Prices
117(10)
Consequences of Inflation
118(3)
Causes of Inflationary Pressure
121(2)
Measures of Inflation
123(4)
Deflation and Disinflation
127(1)
Deflation Disaster
127(1)
Production
128(6)
Full Production and Economic Growth
128(3)
Measures of Production
131(2)
Does GDP Tell the Whole Story?
133(1)
Test Your Understanding: Calculating Price Indexes and GDP
134(1)
The Ballad of Joe and Mary
135(1)
Up for Debate: Do Economic Statistics Tell Us How We Are Doing?
136(1)
Productivity
136(1)
A Possible Policy Problem
137(5)
Critical Thinking Case 4: Statistics and Decision Making
142(3)
Foundations of the Macroeconomy
145(32)
Changes in Macroeconomic Activity
146(4)
Business Cycles
146(3)
Causes of Economic Fluctuations
149(1)
Total Spending and Macroeconomic Activity
150(4)
The Household Sector
150(4)
Up for Debate: Is Saving a Healthy Habit?
154(2)
The Business Sector
154(2)
Interest Rates and Investment Spending
156(10)
The Government Sector
158(3)
The Foreign Sector
161(2)
Summary of Aggregate Spending, Leakages, and Injections
163(2)
The Multiplier Effect
165(1)
Economic Activity in the Headlines
166(3)
A Word about Inflation
168(1)
A Word about Expectations
168(1)
Ripples through the Economy
169(1)
Test Your Understanding: Changes in Economic Activity
170(1)
Macroeconomic Policies
170(4)
Critical Thinking Case 5: How Can You Tell a Recovery When You See One?
174(3)
The Role of Government in the Macroeconomy
177(30)
Government Expenditures and Revenues
179(5)
Government Expenditures
179(2)
Government Revenues
181(2)
Progressive, Proportional, and Regressive Taxes
183(1)
Up for Debate: Should the Federal Income Tax Be Changed to a Flat Tax?
184(2)
Tax Reform and Issues
185(1)
A Chronology of Federal Income Tax Policies
186(1)
Fiscal Policy
187(3)
The Mechanics of Fiscal Policy
187(1)
Discretionary and Automatic Fiscal Policy
188(2)
Government Budgets
190(4)
Types of Budgets
190(3)
The Budget and Fiscal Policy: Tying Them Together
193(1)
Will America Grow Up Before It Grows Old?
194(1)
Test Your Understanding: Government's Impact on the Macroeconomy
195(1)
The Realities of Fiscal Policy and the Federal Budget
195(1)
The National Debt
196(1)
Financing the National Debt
196(1)
U.S. Treasury Securities
197(7)
Size of the National Debt
198(1)
Assessing the Debt
198(3)
Crowding Out
201(3)
Critical Thinking Case 6: NIMBY (Not In My Back Yard)
204(3)
Money, Financial Institutions, and the Federal Reserve
207(26)
Money
208(2)
The Definition and Functions of Money
208(2)
Fixed Assets, Or: Why a Loan in Yap Is Hard to Roll Over
210(5)
The Money Supply
211(4)
Financial Depository Institutions
215(3)
Commercial Banks
215(2)
Other Financial Depository Institutions
217(1)
Extra Protection
218(1)
The Federal Reserve System
218(5)
Organization of the Federal Reserve System
219(1)
Functions of the Federal Reserve Banks
220(3)
Test Your Understanding: Changes in a Bank's Reserve Account
223(1)
Recent Trends in the Financial Institutions
223(2)
Legislative Changes
223(1)
Structural Changes
224(1)
Up for Debate: Do We Want Banks Moving into Nonbanking Activities?
225(2)
The Savings and Loan Crisis
226(1)
500 Billion Dollars
227(3)
Critical Thinking Case 7: Cigarette Money
230(3)
Money Creation, Monetary Theory, and Monetary Policy
233(28)
The Money Supply and the Level of Economic Activity
234(2)
The Equation of Exchange
235(1)
Money Creation
236(2)
The Process of Money Creation
236(2)
Questions and Answers about Reserves and Loans
238(3)
The Multiple Expansion of Money
238(3)
Excess Reserves, Interest Rates, and the Level of Spending
241(4)
Determining Interest Rates on Loans
242(3)
An Interest Rate Primer
245(1)
The Federal Reserve and Monetary Policy
245(5)
Monetary Policy Tools
246(4)
Test Your Understanding: Financial Depository Institution Calculations
250(1)
10 Greenspan Sentences
251(3)
Government Deficits and Monetary Policy
251(2)
Advantages and Disadvantages of Monetary Policy
253(1)
Up for Debate: Should the Federal Reserve Be Placed under the Direct Control of Congress?
254(5)
Critical Thinking Case 8: The Fed during the Great Depression
259(2)
Macroeconomic Viewpoints and Models
261(26)
Macroeconomic Model Building
262(1)
What Is ``Right'' Economics?
263(1)
Viewpoints and Models
264(1)
Classical Economics
264(1)
The Academic Scribblers
265(11)
Keynesian Economics
267(4)
New Classical Economics
271(3)
New Keynesian Economics
274(1)
Monetarism
275(1)
Supply-Side Economics
275(1)
Up for Debate: Should Government's Role in Influencing Economic Activity Be Reduced?
276(1)
Inflation and Unemployment
276(3)
The Phillips Curve
277(2)
A Final Word on Macroeconomic Viewpoints
279(1)
Test Your Understanding: Unemployment and Inflation
280(5)
Critical Thinking Case 9: Does Anyone Care What Economists Think?
285(2)
PART THREE The Microeconomy
287(184)
Households and Businesses: An Overview
289(22)
Overview of Households
290(5)
Household Income and Expenditures
290(2)
Goals and Decisions of Individuals in Households
292(3)
Can You ``Afford'' It?
295(1)
Overview of Business
295(1)
Second Thoughts on Having It All
296(4)
Legal Forms of Business
296(3)
Numbers and Sizes of Businesses
299(1)
Business Ownership of Business
299(1)
Test Your Understanding: The Price of Stock Shares
300(4)
Goals and Decisions of Business Firms
303(1)
You Better Watch Out
304(1)
Up for Debate: Should Profitable Businesses Be Expected to Actively Participate in Improving Their Communities?
305(3)
Critical Thinking Case 10: Time to Maximize
308(3)
Benefits, Costs, and Maximization
311(28)
Balancing Benefits and Costs: The Individual
312(7)
Defining Benefits and Costs
312(2)
Measuring Benefits and Costs
314(3)
Maximizing Satisfaction
317(2)
Anything Worth Doing Is Not Necessarily Worth Doing Well
319(2)
Graphing Costs, Benefits, and Net Benefit
319(2)
Balancing Benefits and Costs: The Business
321(6)
Defining Benefits and Costs
321(1)
Measuring Revenues and Costs
322(2)
Maximizing Profit
324(1)
Graphing Costs, Revenues, and Profit
325(2)
Test Your Understanding: Maximizing Profit
327(1)
Social Benefits and Costs
328(1)
Maximizing Society's Net Benefit
328(1)
The Cost of Smoking
328(3)
Up for Debate: Should States try to Attract Gambling Casinos?
331(1)
Public Choice
331(7)
Maximizing Behaviour and the Voting Process
332(6)
Critical Thinking Case 11: Clean Air---At Any Cost
338(1)
Production and the Costs of Production
339(30)
Production Basics
340(2)
Sectors and Industries
340(2)
Methods of Production
342(2)
Socks Are Odd: Made in America
344(1)
Economic Time, Production, and the Costs of Production
345(1)
Going the Way of the Victrola
346(7)
Short-Run Costs
347(2)
The Pattern of Short-Run Costs
349(3)
The Law of Diminishing Returns
352(1)
Test Your Understanding: Calculating Costs and Averages
353(1)
Up for Debate: Do ``Wellness'' Programs Lower Costs for Employers?
354(5)
Long-Run Costs
355(4)
A Distance-Ed Student Puts His Lessons to Work on a Farm
359(10)
Critical Thinking Case 12: College Degrees and Creative Destruction
363(1)
Appendix A Further Look at Short-Run Average and Marginal Costs
364(5)
Competition and Market Structures
369(42)
Defining a Market
370(2)
Defining the Boundaries of a Market: The NCAA Case
372(1)
The Market Structures
372(1)
Pure Competition
373(4)
Characteristics of Pure Competition
373(1)
Behavior of a Firm in Pure Competition
373(4)
Selling Corn and Beans
377(5)
Is There Pure Competition?
380(2)
Monopolistic Competition
382(4)
Characteristics of Monopolistic Competition
382(1)
Behavior of a Firm in Monopolistic Competition
383(3)
Up for Debate: Would We Be Better Off with Less Advertising?
386(1)
Oligopoly
387(3)
Characteristics of Oligopoly
387(1)
Behavior of a Firm in an Oligopolistic Market
388(2)
Pricing With One Eye on Your Rival
390(1)
Monopoly
391(4)
Characteristics of Monopoly
391(1)
Behavior of a Monopolist
392(3)
Market Structures, the Consumer, and Efficiency
395(6)
Critical Thinking Case 13: Finding the Market
401(1)
Appendix Determining the Profit-maximizing price and output for a firm
402(6)
Test Your Understanding: Maximizing Profit and Minimizing Loss
408(3)
Government and the Markets
411(28)
Antitrust Enforcement
412(4)
The Antitrust Laws
413(3)
Cases Involving the Sherman Act
416(4)
Cases Involving the Clayton Act and Its Amendments
420(1)
Price-fixing Settlement Suits Woman Just Fine
421(1)
Government Regulation
421(11)
The Structure of Regulation
422(4)
Industry Regulation
426(3)
Social Regulation
429(3)
Test Your Understanding: Government and Business
432(1)
Deregulation and the Performance of Regulation
433(1)
Up for Debate: Has Our Enthusiasm for Regulation Gone Too Far?
433(5)
Critical Thinking Case 14: Antitrust Enforcement in the Global Economy
438(1)
Labor Markets, Unions, and the Distribution of Income
439(32)
Labor Markets
439(7)
The Demand for Labor
441(3)
The Supply of Labor
444(2)
Test Your Understanding: A Small Business Determines Its Demand for Employees
446(2)
Changes in Labor Demand and Supply
446(2)
For Teenagers, Fast Food Is a Snack, Not a Job
448(1)
Last Stitches Sew Up Shroud
449(2)
Modifications of the Labor Demand and Supply Model
451(2)
Labor Unions
453(4)
Types of Unions and Union Membership
453(2)
Collective Bargaining and Strikes
455(1)
Collective Bargaining and the Law
456(1)
The Distribution of Income
457(5)
Differences in Income
458(1)
Poverty
459(3)
Michael Dodge
462(2)
Up for Debate: Should We Place More Demands on Those Seeking Public Assistance?
464(5)
Critical Thinking Case 15: What Is a Fair Distribution of Income?
469(2)
PART FOUR The International Economy
471(46)
International Trade
473(22)
An Overview of U.S. International Trade
474(4)
The Size and Composition of U.S. Trade
474(4)
Labor and Global Reality
478(1)
Comparative Advantage and International Trade
478(3)
Scarcity and Specialization
478(1)
The Principle of Comparative Advantage
479(2)
Test Your Understanding: Comparative Advantage
481(1)
Free Trade and Protectionism
481(5)
Trade-Restricting Policies
482(1)
Free-Trade Arguments
483(1)
Protectionist Arguments
484(1)
The Real World of International Trade
485(1)
Gloria Flunks the Professor
486(2)
Oil Price Winners
488(1)
Up for Debate: Should We Impose Sanctions on Products Made by Child Labor?
488(4)
Critical Thinking Case 16: A Petition (by Frederic Bastiat, 1801--1850)
492(3)
International Finance
495(22)
Exchanging Currencies
496(5)
Exchange Rates
496(1)
The Determination of Exchange Rates
497(3)
Understanding Foreign Exchange Markets
500(1)
Foreign Exchange Markets
501(1)
Was This Supposed to Happen?
502(2)
Test Your Understanding: Changes in Exchange Rates
504(1)
International Financial Transactions and Balances
505(3)
The Current Account
505(1)
The Capital Account
506(2)
Balancing the Accounts
508(1)
Challenges to the International Financial System
508(2)
The External Debt Crisis
508(2)
Mexico Feels Squeeze of Years of Austerity
510(2)
Monetary Integration in Europe
511(1)
Up for Debate: Euro-dreams
512(4)
Critical Thinking Case 17: Department of Voodoo Economics
516(1)
Glossary 517(8)
Answers to ``Test Your Understanding'' 525(6)
Credits 531(2)
Index 533

An electronic version of this book is available through VitalSource.

This book is viewable on PC, Mac, iPhone, iPad, iPod Touch, and most smartphones.

By purchasing, you will be able to view this book online, as well as download it, for the chosen number of days.

Digital License

You are licensing a digital product for a set duration. Durations are set forth in the product description, with "Lifetime" typically meaning five (5) years of online access and permanent download to a supported device. All licenses are non-transferable.

More details can be found here.

A downloadable version of this book is available through the eCampus Reader or compatible Adobe readers.

Applications are available on iOS, Android, PC, Mac, and Windows Mobile platforms.

Please view the compatibility matrix prior to purchase.