Share your thoughts with other customers. Each chapter in the sixth edition has been thoroughly revised to reflect the most relevant data and also emerging and critical issues such as economic bubbles, the sub-prime housing fiasco, immigration, and the failed economies of the bottom billion of our world population. The text focuses on the key questions and presents the basic concepts-developing economic analysis step-by-step. The item may have some signs of cosmetic wear, but is fully operational and functions as intended.
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Understand Your World. Nobel laureate Vernon Smith put it this way: At the heart of economics is a scientific mystery… a scientific mystery as deep, fundamental and inspiring as that of the expanding universe or the forces that bind matter… How is order produced from freedom of choice? We want students to be inspired by this mystery and by how economists have begun to solve it.
Thus, we show how markets interconnect and respond in surprising ways to changes in resources and preferences. Consider, for example, how markets respond to a reduction in the supply of oil. Of course, the price of oil increases giving consumers an incentive to use less and suppliers an incentive to discover more.
But an increase in the price of oil also encourages Brazilian sugar cane farmers to devote more of their production to ethanol and less to sugar thereby driving up the price of sugar. An increase in the price of sugar means a reduction in the quantity of candy demanded.
So one way the market responds to a reduction in the supply of oil is by encouraging consumers to eat less candy! In analyses like this, we teach students to see the invisible hand and in so doing to understand their world.
Similarly, we offer a unique and simple proof of the amazing invisible hand theorem that without any central direction competitive markets allocate production across firms in a way that minimizes aggregate costs!
To understand their world students must understand when self-interest promotes the social interest and when it does not. Thus, Modern Principles has in-depth analyses of externalities, public goods, and ethical issues with market incomes and trade.
Moreover, we always discuss economic theory in the context of real world problems such as the decline of the ocean fisheries, climate change, and the shortage of human organs for transplant.
ISBN 13: 9781424068739
Award-winning educator and author Fred Gottheil speaks directly to student experience through a conversational writing style and narrative that uses stories, familiar examples, engaging scenarios, and relevant examples from literature emphasizing that economic principles can be found in all aspects of modern life. The text focuses on the key questions and presents the basic concepts-developing economic analysis step-by-step. The result is a more interactive and enjoyable learning experience when compared to the pedantic approaches often found in texts. Each chapter in the sixth edition has been thoroughly revised to reflect the most relevant data and also emerging and critical issues such as economic bubbles, the sub-prime housing fiasco, immigration, and the failed economies of the bottom billion of our world population. About the Author: Fred M. Gottheil is a professor of economics at the University of Illinois in Urbana-Champaign. He came to Illinois in , planning to spend one year before returning to his native Canada.
Principles of Macroeconomics
Biography Professor Fred Monroe Gottheil died at home in Urbana on April 17, after a several month-long battle with pancreatic cancer. Fred was a Professor of Economics at the University of Illinois, joining the faculty in He became Professor Emeritus in but he continued to teach and do research and fully intended to do so for another 54 years, at least. He fell in love with the subject of economics at McGill University where he earned his B. A and Ph. He intended to return to Canada but accepted a professorship at the University of Illinois in order to see more of the U. What was to be a one-year venture turned out to be over 54 years on the faculty doing what he loved most, studying, writing about, and teaching economics.