The Economic Way of Thinking

by Heyne, Paul; Boettke, Peter J.; Prychitko, David L.

• ISBN13: 9780130608109
• ISBN10: 0130608106
• Edition: 10th
• Format: Paperback
• Copyright: 2003-01-01
• Publisher: Pearson College Div

Summary

The Economic Way of Thinking develops the basic principles of micro- and macroeconomic analysis, and rigorously employs them as tools rather than ends unto themselves. This book introduces readers to a method of reasoning; to think like an economist—teaching through example and application. It even teaches by showing learners how not to think, by exposing them to the errors implicit in much popular reasoning about economic events. Chapter topics include opportunity cost and the supply of goods, supply and demand, profit and loss, competition and monopoly, price searching, competition and government policy, the distribution of income, markets and government, the overall performance of economic systems, the supply of money, monetary and fiscal policies, national policies and international exchange, employment and unemployment, promoting economic growth, and the limitations of economics. For individuals seeking a deeper understanding of the effects of world events on the economy and vice versa.

Table of Contents

Preface	xiii
The Economic Way of Thinking	1	(16)
Questions for Discussion	14	(3)
Efficiency, Exchange, and Comparative Advantage	17	(20)
Questions for Discussion	3l	(29)
An Appendix: Calculating Comparative Advantage in the Harry and Gus Story	29	(8)
Substitutes Everywhere: The Concept of Demand	37	(28)
Questions for Discussion	57	(8)
Opportunity Cost and the Supply of Goods	65	(22)
Questions for Discussion	81	(6)
Supply and Demand: A Process of Cooperation	87	(26)
Questions for Discussion	108	(5)
Supply and Demand: Issues and Applications	113	(30)
Questions for Discussion	134
An Appendix: Framing Economic Questions Correctly	129	(14)
Information, Middlemen, and Speculators	143	(24)
Questions for Discussion	160
An Appendix: Commodity Speculators and Futures Markets	156	(11)
Profit and Loss	167	(38)
Questions for Discussion	197
An Appendix: Discounting and Present Values	190	(15)
Competition and Monopoly	205	(16)
Questions for Discussion	215	(6)
Price Searching	221	(24)
Questions for Discussion	236	(9)
Competition and Government Policy	245	(24)
Questions for Discussion	260	(9)
The Distribution of Income	269	(28)
Questions for Discussion	288	(9)
Externalities and Conflicting Rights	297	(26)
Questions for Discussion	313	(10)
Markets and Government	323	(28)
Questions for Discussion	343	(8)
The Overall Performance of Economic Systems	351	(20)
Questions for Discussion	367	(4)
The Supply of Money N	371	(22)
Questions for Discussion	388	(5)
Monetary and Fiscal Policies	393	(26)
Questions for Discussion	412	(7)
National Policies and International Exchange	419	(26)
Questions for Discussion	439	(6)
Employment and Unemployment	445	(24)
Questions for Discussion	462	(7)
Promoting Economic Growth	469	(20)
Questions for Discussion	484	(5)
Economic Performance and Political Economy	489	(22)
Questions for Discussion	505	(6)
The Limitations of Economics	511	(4)
Glossary	515	(2)
Index	517