Book by Mankiw N Gregory
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In writing this textbook, Mankiw tried to put himself in the position of someone coming to economics for the first time. His plan worked. Receiving such applause as "the most talked about economics text of our time" and "a long overdue accessible introduction to modern economics" it is no wonder that Mankiw's prize project has quickly become one of the most successful books ever to publish in the college marketplace. The author's conversational writing style is superb for presenting the politics and science of economic theories to tomorrow's decision-makers. Because Mankiw wrote it for students, the book stands out among all other principles of economics texts by intriguing students to apply an economic way of thinking in their daily lives. Features: * Chapter 1 introduces students to the ten most important principles - these are then thoroughly incorporated in discussions throughout the text. * Chapter 3 contains an early and accessible introductory discussion of one of economics most powerful and universal insights: how people gain from trade. This coverage enables instructors to include international applications at the beginning of the course. * In Chapter 6, the tools of supply and demand are used to examine the effects of various government policies. * Chapters 7, 8, and 9 discuss why the equilibrium of supply and demand is desirable for society as a whole. The concepts of consumer and producer surplus explain the efficiency of markets, the costs of taxation, and the benefits of international trade. * Introducing Externalities in Chapter 10 and Public Goods and Common Resources in Chapter 11, allows discussion of why market outcomes are not always efficient, and looks at how governments can sometimes remedy market failure. * Chapter 21 provides a rigorous analysis of indifference curves as a tool to examine consumer theory. This chapter is optional. * Chapters 24-26 describe the forces that determine key real variables (including GDP, saving, investment, real interest rates, and unemployment) in the long run. * The monetary system, crucial in determining the long-run behaviour of the price level, inflation rate and other nominal variables, is discussed in Chapters 27 and 28. * Chapter 34 - one of Mankiw's favourite chapters to write - presents both sides of five major debates over economic policy. * "Most refreshing, though, is the book's even-handedness. Mr Mankiw seems to revel in setting out how different schools of thought have contributed to economists' current state of knowledge."(The Economist Sep/1997) Praise of the first edition applies to the second also. * This is a great way to end the course. New to this edition: * Mankiw has refined the coverage and pedagogy of the second edition following feedback from users of the first edition. All changes that were made were evaluated in the light of the benefits and brevity. * Throughout the text design efforts improve comprehensibility of tables with clearer layouts and labelling. * A clarified discussion of circular flow in Chapter 2 has been described as being less abstract and more concrete. * New tables in Chapter 4 provide a heavier emphasis on the "special role of price" and the fact that a change in price results in a move along a given curve, while a change in another variable results in a shift of the curve. * Coverage of cross-price elasticity of demand is new to Chapter 5. The discussions of the midpoint formula for elasticity and elasticity along a linear demand curve now form part of the text. * In Chapter 13, the section on "rising marginal costs" now explicitly makes the connection between marginal product and marginal cost. The sections on costs in the short run and long run have also been expanded. * Chapter 18 includes new sections on "What Causes the Labour Demand Curve to Shift?" and "The Supply of Labour". * Chapter 19 now includes a section on "Above Equilibrium Wages: Minimum Wage Laws, Unions, and Efficiency Wages". * The terms "structural" and "frictional" unemployment are now introduced in Chapter 26. Compelling information on the effects of the Internet on job searching and unemployment has been updated. * An improved presentation of classical dichotomy is in Chapter 28. * In Chapter 30, the section on capital flight has been expanded to include Asia and Russia. * The most significant revision was given to short-run coverage in Chapters 31 and 32. Sections on why the aggregate-demand and aggregate-supply curves might shift are recast and expanded to more clearly identify sources of shifts. Sources for AD and AS shifts are also summarised in tables.
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