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Krugman nytimes blog

28/03/2021 Client: saad24vbs Deadline: 2 Day

“No science in the world is more elevated, more necessary, and more useful than economics.”

—CARL LINNAEUS, Swedish naturalist

Prefaces Pages (EL rev 2013) 9/9/13 10:35 AM Page vii

Prefaces Pages (EL rev 2013) 9/9/13 10:35 AM Page viii

Acknowledgements

PART I: OVERVIEW

Introduction Page

1. What Is Economics? 7 Influential Economist: Adam Smith

2. The Fundamentals of Economic Behavior 27 Influential Economist: Ludwig von Mises

3. Production, Exchange and Consumption: 49 The Structure of Economic Activity Influential Economist: Carl Menger

PART II: MICROECONOMICS

4. The Theory of the Firm: The Role of Profit and Loss 73 Influential Economist: Edward Deming

5. Determining Prices and Output: The Law of Demand 109 Influential Economist: Alfred Marshall

6. Supply and Demand 123 Influential Economist: Gary S. Becker

7. How Costs Affect Prices 151 Influential Economist: William Stanley Jevons

8. Monopoly and Competition 171 Influential Economist: George J. Stigler

9. The Factors of Production: Land, Rent and Natural Resources 191 Influential Economists: Thomas Malthus and David Ricardo

10. The Factors of Production: Wages, Employment and the Productivity of Labor 209 Influential Economist: John Bates Clark

11. The Factors of Production: Capital and Interest 253 Influential Economist: Eugen Böhm-Bawerk

12. The Factors of Production: The Role of Entrepreneurship 275 Influential Economist: Peter F. Drucker

13. Financing Capitalism: Stock and Bond Markets 289 Influential Economist: Harry Markowitz

CONTENTS

Prefaces Pages (EL rev 2013) 9/9/13 10:35 AM Page ix

PART III: MACROECONOMICS Page

14. Understanding the Macro Economy 327 Influential Economist: Wassily Leontief

15. Measures of Economic Activity, Income and Wealth 343 Influential Economist: Simon Kuznets

16. Price Inflation and the Purchasing Power of Money 365 Influential Economist: Irving Fisher

17. Economic Growth: 379 The Role of Saving, Investment, and Technology Influential Economists: J. B. Say and Robert Solow

18. Money and the Commercial Banking System 405 Influential Economist: Murray Rothbard

PART IV: GOVERNMENT POLICY

19. Inflation, Central Banking and Monetary Policy 423 Influential Economist: Milton Friedman

20. Fiscal Policy and the Role of Government 457 Influential Economists: James Buchanan and Gordon Tullock

21. Government Revenues and Tax Policy 485 Influential Economists: A. C. Piguo and Arthur B. Laffer

22. Deficit Spending and the National Debt 517 Influential Economist: John Maynard Keynes

23. Government Regulations and Controls 549 Influential Economist: Ronald Coase

24. Environmental Economics 575 Influential Economist: Julian L. Simon

25. Expansion and Contraction: Economics of the Business Cycle 591 Influential Economist: Friedrich Hayek

26. Globalization, Protectionism and Free Trade 619 Influential Economist: Robert Mundell

27. Development Economics: Capitalism, Socialism and Democracy 645 Influential Economists: Karl Marx and Muhammad Yunus

AFTERWORD:

28. What Do Economists Do? 669

Glossary of Economic Terms 681

Index 697

About the Author 709

Prefaces Pages (EL rev 2013) 9/9/13 10:35 AM Page x

Thanks especially to economics professor Jeffrey Zucker of McMaster University for editing and updating the Fourth Edition of Economic Logic, both for micro and macro editions. Every chapter has been revised and updated, and with the addition of a glossary, is 30 pages longer than the third edition. I also thank Jim Cox at Georgia Perimeter College for preparing the test bank. For a copy of the test bank, instructors should contact Jim Cox at jcox@gpc.edu. I’d also like to thank the following economists, colleagues, and friends who have reviewed, edited, or made suggestions for Economic Logic over the various editions. While their advice has been invaluable, none can be held responsible for the final product. I would especially like to thank my wife, Jo Ann, for her editing skills. Her suggestions and changes were invaluable. In addition, I’d like to thank the following for their assistance in this and past editions:

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