Principles of Economics

by Marshall, Alfred

• ISBN13: 9780230249295
• ISBN10: 0230249299
• Edition: 8th
• Format: Paperback
• Copyright: 2014-01-07
• Publisher: Palgrave Macmillan

Summary

Originally published in 1890, Principles of Economics was the first text to bring together the theories of supply and demand, marginal utility, and cost of production  into a coherent whole. It introduced a number of new concepts which have formed the building blocks of modern microeconomics and underpin  modern-day  business strategy. Explored  concepts include: elasticity of demand—how  consumer demand for a good or service is affected by a change in its price; consumer surplus—the difference between the maximum price a consumer is willing to pay and the price that they actually pay; and quasi-rent—the  profit made in the short-term from a product/innovation due to a reduction  in supply. The book also unveils the theory of supply and demand, emphasizing that the price and output of goods are determined by the intersection of supply and demand curves which  act like scissor blades, and not by the theory of value. In this classic work, Marshall builds on the works of other great thinkers in the Classical School such as Adam Smith, David Ricardo, Thomas Robert Malthus, and John Stuart Mill, but shifts the emphasis, for the first time, away from the market to the individual and the study of human behavior. This re-issued classic contains a new introduction by Professor Peter Groenewegen who explores the profound impact that this critical work has had on economic and business thinking.

Author Biography

Alfred Marshall (1842-1924), widely regarded as the doyen of modern economics and the founder of the Neo-Classical School of Economics, is best known for revolutionizing the way economics is taught. Marshall’s magnus opus Principles of Economics was first published in 1890 to world-wide acclaim and it cemented his reputation as one of the leading economists of his time.

Table of Contents

BOOK I: PRELIMINARY SURVEY
1. Introduction
2. The Substance of Economics
3. Economic Generalizations or Laws
4. The Order and Aims of Economic Studies
BOOK II: SOME FUNDAMENTAL NOTIONS
1. Introductory
2. Wealth
3. Production, Consumption, Labour, Necessaries
4. Income. Capital.
BOOK III: ON WANTS AND THEIR SATISFACTION
1. Introductory
2. Wants in Relation to Activities
3. Gradations of consumers' demand
4. The elasticity of wants
5. Choice between different uses of the same thing. Immediate and deferred uses.
6. Value and utility
BOOK IV: THE AGENTS OF PRODUCTION. LAND, LABOUR, CAPITAL AND ORGANIZATION T
1. Introductory
2. The Fertility of Land
3. The Fertility of Land, continued. The Tendency to Diminishing Return.
4. The Growth of Population
5. The Health and Strength of the Population
6. Industrial Training.
7. The Growth of Wealth
8. Industrial Organization
9. Industrial Organization, continued. Division of Labour. The Influence of Machinery
10. Industrial Organization, continued. The Concentration of the Specialized Industries in Particular Localities.
11. Industrial Organization, continued. Production on a Large Scale
12. Industrial Organization, continued. Business Management.
13. Conclusion. Correlation of the Tendencies to Increasing and to Diminishing Return
BOOK V: GENERAL RELATIONS OF DEMAND, SUPPLY, AND VALUE
1. Introductory. On Markets.
2. Temporary Equilibrium of Demand and Supply
3. Equilibrium of Normal Demand and Supply
4. The Investment and Distribution of Resources
5. Equilibrium of Normal Demand and Supply, continued, with reference to long and short periods
6. Joint and Composite Demand. Joint and Composite Supply
7. Prime and total cost in relation to joint products. Cost of marketing. Insurance against risk. Cost of Reproduction.
8. Marginal costs in relation to values. General Principles.
9. Marginal costs in relation to values. General Principles, continued
10. Marginal costs in relation to agricultural values
11. Marginal costs in relation to urban values
12. Equilibrium of normal demand and supply, continued, with reference to the law of increasing return
13. Theory of changes of normal demand and supply, in relation to the doctrine of maximum satisfaction
14. The theory of monopolies
15. Summary of the general theory of equilibrium of demand and supply
BOOK VI: THE DISTRIBUTION OF THE NATIONAL INCOME
1. Preliminary survey of distribution
2. Preliminary survey of distribution, continued
3. Earnings of labour
4. Earnings of labour, continued
5. Earnings of labour, continued
6. Interest of capital
7. Profits of capital and business power
8. Profits of capital and business power, continued
9. Rent of land
10. Land tenure
11. General view of distribution
12. General influences of progress on value
13. Progress in relation to standards of life