Now firmly established as one of the leading economics principles texts in the UK and Europe, this exciting, new fifth edition of Economics by N. Gregory Mankiw (Harvard University) and Mark P. Taylor (Washington University), has been fully updated. Much revered for its friendly and accessible approach, emphasis on active learning, and unrivalled support resources, this edition also has an improved structure to ensure the text aligns even more closely with the latest courses. The new edition incorporates additional coverage of a number of key topics including heterodox theories in economics such as complexity theory; institutional economics and feminist economics; different theories in international trade; game theory; different measures of poverty; the ‘flat Phillips curve’; and the future of the European Union. This title is available with MindTap, a flexible online learning solution that provides students with all the tools they need to succeed including an interactive eReader, engaging multimedia, practice questions, assessment materials, revision aids, and analytics to help you track their progress.
Author(s): Share N. Gregory Mankiw, Mark P. Taylor
Edition: 5
Publisher: Cengage Learning/EMEA
Year: 2020
Language: English
Commentary: TruePDF
Pages: 834
Tags: Economics; Economics: Textbooks
Cover
Brief Contents
Contents
About the Authors
Preface
Acknowledgements
Part 1: Introduction to Economics
Chapter 1: What Is Economics?
The Economy and Economic Systems
How People Make Decisions
How People Interact
How the Economy as a Whole Works
Summary
Questions for Review
Problems and Applications
Chapter 2: Thinking Like an Economist
Introduction
Economic Methodology
Schools of Thought
The Economist as Policy Advisor
Why Economists Disagree
Summary
Questions for Review
Problems and Applications
Part 2: The Theory of Competitive Markets
Chapter 3: The Market Forces of Supply and Demand
The Assumptions of the Competitive Market Model
Demand
Shifts versus Movements along the Demand Curve
Supply
Supply and Demand Together
Prices as Signals
Analyzing Changes in Equilibrium
Elasticity
The Price Elasticity of Demand
Other Demand Elasticities
Price Elasticity of Supply
Applications of Supply and Demand Elasticity
Summary
Questions for Review
Problems and Applications
Chapter 4: Background to Demand: Consumer Choices
The Standard Economic Model
The Budget Constraint: What the Consumer Can Afford
Preferences: What the Consumer Wants
Optimization: What the Consumer Chooses
Conclusion: Do People Really Behave This Way?
Behavioural Approaches to Consumer Behaviour
Summary
Questions for Review
Problems and Applications
Chapter 5: Background to Supply: Firms in Competitive Markets
The Costs of Production
Production and Costs
The Various Measures of Cost
Costs in the Short Run and in the Long Run
Summary
Returns to Scale
What Is a Competitive Market?
Profit Maximization and the Competitive Firm's Supply Curve
The Supply Curve in a Competitive Market
Conclusion: Behind the Supply Curve
Summary
Questions for Review
Problems and Applications
Chapter 6: Consumers, Producers and the Efficiency of Markets
Consumer Surplus
Producer Surplus
Market Efficiency
Summary
Questions for Review
Problems and Applications
Part 3: Interventions in Markets
Chapter 7: Supply, Demand and Government Policies
Controls on Prices
Taxes
Subsidies
The Tax System
The Deadweight Loss of Taxation
Administrative Burden
The Design of the Tax System
Taxes and Equity
Summary
Questions for Review
Problems and Applications
Chapter 8: Public Goods, Common Resources and Merit Goods
The Different Kinds of Goods
Public Goods
Common Resources
Merit Goods
Conclusion
Summary
Questions for Review
Problems and Applications
Chapter 9: Market Failure and Externalities
Market Failure
Externalities
Externalities and Market Inefficiency
Private Solutions to Externalities
Public Policies towards Externalities
Public/Private Policies towards Externalities
Government Failure
Conclusion
Summary
Questions for Review
Problems and Applications
Part 4: Firm Behaviour and Market Structures
Chapter 10: Firms' Production Decisions
Isoquants and Isocosts
The Least-Cost Input Combination
Conclusion
Summary
Questions for Review
Problems and Applications
Chapter 11: Market Structures I: Monopoly
Imperfect Competition
Why Monopolies Arise
How Monopolies Make Production and Pricing Decisions
The Welfare Cost of Monopoly
Price Discrimination
Public Policy towards Monopolies
Conclusion: The Prevalence of Monopoly
Summary
Questions for Review
Problems and Applications
Chapter 12: Market Structures II: Monopolistic Competition
Competition with Differentiated Products
Advertising and Branding
Conclusion
Summary
Questions for Review
Problems and Applications
Chapter 13: Market Structures III: Oligopoly
Characteristics of Oligopoly
Game Theory and the Economics of Cooperation
Entry Barriers in Oligopoly
Public Policy towards Oligopolies
Conclusion
Summary
Questions for Review
Problems and Applications
Chapter 14: Market Structures IV: Contestable Markets
The Nature of Contestable Markets
The Limitations of Contestability
Summary
Summary
Questions for Review
Problems and Applications
Part 5: Factor Markets
Chapter 15: The Economics of Factor Markets
The Marginal Product Theory of Distribution
The Demand for Labour
The Supply of Labour
Equilibrium in the Labour Market
Other Theories of the Labour Market
Marxist Labour Theory
Feminist Economics and the Labour Market
Monopsony
Wage Differentials
The Economics of Discrimination
The Other Factors of Production: Land and Capital
Economic Rent
Conclusion
Summary
Questions for Review
Problems and Applications
Part 6: Inequality
Chapter 16: Income Inequality and Poverty
The Measurement of Inequality
The Political Philosophy of Redistributing Income
Policies to Reduce Poverty
Conclusion
Summary
Questions for Review
Problems and Applications
Part 7: Trade
Chapter 17: Interdependence and the Gains from Trade
The Production Possibilities Frontier
International trade
The Principle of Comparative Advantage
The Determinants of Trade
The Winners and Losers from Trade
Restrictions on Trade
Criticisms of Comparative Advantage Theory
Other Theories of International Trade
Conclusion
Summary
Questions for Review
Problems and Applications
Part 8: Heterodox Economics
Chapter 18: Information and Behavioural Economics
Principal and Agent
Asymmetric Information
Behavioural Economics
Conclusion
Summary
Questions for Review
Problems and Applications
Chapter 19: Heterodox Theories in Economics
Introduction
Institutional Economics
Feminist Economics
Complexity Economics
Conclusion
Summary
Questions for Review
Problems and Applications
Part 9: The Data of Macroeconomics
Chapter 20: Measuring a Nation's Well-Being and the Price Level
Marxist Economics
The Austrian School
Keynesianism
Monetarism
The Nature of Macroeconomics
The Economy's Income and Expenditure
The Measurement of Gross Domestic Product
The Components of GDP
Real versus Nominal GDP
The Limitations of GDP as a Measure of Well-Being
International Differences in GDP and the Quality of Life
Measuring the Cost of Living
The Consumer Prices Index
Correcting Economic Variables for the Effects of Inflation
Conclusion
Summary
Questions for Review
Problems and Applications
Part 10: The Real Economy in the Long Run
Chapter 21: Production and Growth
Economic Growth around the World
Growth Theory
Productivity
The Determinants of Economic Growth
Causes of Growth
Endogenous Growth Theory
Economic Growth and Public Policy
Conclusion: The Importance of Long-Run Growth
Summary
Questions for Review
Problems and Applications
Chapter 22: Unemployment and the Labour Market
Identifying Unemployment
The Causes of Unemployment
The Natural Rate of Unemployment
Marx and the Reserve Army of the Unemployed
The Cost of Unemployment
Conclusion
Summary
Questions for Review
Problems and Applications
Part 11: Long-Run Macroeconomics
Chapter 23: Saving, Investment and the Financial System
Financial Institutions in the Economy
Present Value: Measuring the Time Value of Money
Managing Risk
Asset Valuation
Saving and Investment in the National Income Accounts
The Market for Loanable Funds
Summary
Questions for Review
Problems and Applications
Chapter 24: The Monetary System
The Meaning of Money
The Role of Central Banks
The European Central Bank and the Eurosystem
The Bank of England
Banks and the Money Supply
The Central Bank's Tools of Monetary Control
Money Growth and Inflation
What Is Inflation?
The Costs of Inflation
Deflation
Conclusion
Summary
Questions for Review
Problems and Applications
Chapter 25: Open-Economy Macroeconomics
The International Flows of Goods and Capital
The Prices for International Transactions: Real and Nominal Exchange Rates
A First Theory of Exchange Rate Determination: Purchasing Power Parity
A Macroeconomic Theory of the Open Economy
Supply and Demand for Loanable Funds and for Foreign Currency Exchange
Equilibrium in the Open Economy
How Policies and Events Affect an Open Economy
Conclusion
Summary
Questions for Review
Problems and Applications
Part 12: Short-Run Economic Fluctuations
Chapter 26: Business Cycles
Trend Growth Rates
Causes of Changes in the Business Cycle
Business Cycle Models
Macroeconomic Models of the Economy
Conclusion
Summary
Questions for Review
Problems and Applications
Chapter 27: Keynesian Economics and IS-LM Analysis
The Keynesian Cross
The Multiplier Effect
The IS and LM Curves
General Equilibrium Using the IS-LM Model
From IS-LM to Aggregate Demand
Conclusion
Summary
Questions for Review
Problems and Applications
Chapter 28: Aggregate Demand and Aggregate Supply
Three Key Facts about Economic Fluctuations
Explaining Short-Run Economic Fluctuations
The Aggregate Demand Curve
The Aggregate Supply Curve
Two Causes of Economic Fluctuations
New Keynesian Economics
Summary
Questions for Review
Problems and Applications
Chapter 29: The Influence of Monetary and Fiscal Policy on Aggregate Demand
How Monetary Policy Influences Aggregate Demand
How Fiscal Policy Influences Aggregate Demand
Using Policy to Stabilize the Economy
Conclusion
Summary
Questions for Review
Problems and Applications
Chapter 30: The Short-Run Trade-off between Inflation and Unemployment
The Relationship between Inflation and Unemployment
The Phillips Curve
Shifts in the Phillips Curve: The Role of Expectations
The Long-Run Vertical Phillips Curve as an Argument for Central Bank Independence
Shifts in the Phillips Curve: The Role of Supply Shocks
The Cost of Reducing Inflation
Inflation Targeting
Reflecting on the Phillips Curve
Conclusion
Summary
Questions for Review
Problems and Applications
Chapter 31: Supply-Side Policies
Shifts in the Aggregate Supply Curve
Types of Supply-Side Policies
Conclusion
Summary
Questions for Review
Problems and Applications
Part 13: International Macroeconomics
Chapter 32: The Causes and Aftermath of the Financial Crisis
The Causes of the Crisis
The Efficient Markets Hypothesis
The Financial Crisis and Sovereign Debt
The Sovereign Debt Crisis
Austerity Policies: Too Far Too Quickly?
The Productivity Puzzle
Summary
Questions for Review
Problems and Applications
Chapter 33: Common Currency Areas
The Euro
The Benefits and Costs of a Common Currency
The Theory of Optimum Currency Areas
Is Europe an Optimum Currency Area?
Fiscal Policy and Common Currency Areas
The Fiscal Compact
Conclusion
Summary
Questions for Review
Problems and Applications
Chapter 34: The Future of the European Union
The Euro
Italy
Brexit
Conclusion
Summary
Questions for Review
Problems and Applications
Glossary
Index
Credits
List of Formulae
