Higher Education

Principles of Economics, 7th Edition

  • Fred M. Gottheil University of Illinois
  • ISBN-10: 1133962068  |  ISBN-13: 9781133962069
  • 904 Pages
  • Previous Editions: 2010, 2008, 2005
  • © 2014 | Published
  • College Bookstore Wholesale Price = $179.25
  *Why an online review copy?
  • It's the greener, leaner way to review! An online copy cuts down on paper and on time. Reduce the wait (and the weight) of printed texts. Your online copy arrives instantly, and you can review it anytime from your computer or favorite mobile device.

If you prefer a print copy to review, please contact your representative.



Bring the study of economics to life with PRINCIPLES OF ECONOMICS, 7TH EDITION. 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 seventh edition has been thoroughly revised to reflect the most relevant data and critical issues, such as how the rash of foreclosures that continues to plague our economy today is related to the repeal of the 1933 Glass-Steagall Act in 1999, as well as emerging issues such as the current research on the Economics of Happiness and its integration into utility analysis. The Keynesian concept of the liquidity trap is new to the text and is added to help explain the factors that undermine the effectiveness of current monetary policy. We invite you to see for yourself how Fred Gottheil’s approach will help to shorten the distance between students and the exciting study of economics. Available with InfoTrac® Student Collections http://gocengage.com/infotrac.

Features and Benefits

  • Perspectives Feature: “Perspectives” features found in each chapter are categorized to illustrate how economic applications can be found in many different contexts. For example, women now represent more than 50 percent of labor unions and the respective issues and interests that subsequently affect labor negotiations are analyzed.
  • Chapter Reviews: “End-of-Chapter Questions” test students’ understanding of qualitative concepts covered in each chapter, while new “Practice Problems” test their understanding of quantitative or graphical techniques. Self quizzes provide student 8-10 practice questions with answers provided in the appendices.
  • In-Chapter Self-Assessment: “Check Your Understanding” sections raise questions at key junctures in the text for students to assess their comprehension as they read. Arrows then point to the portion of the text that contains the explanation. More of these features are now included in each chapter.
  • Interactive Examples: “Your Turn” features in every chapter provide an example of a concept discussed in the text, then encourage students to visit the Gottheil Web site to post an example of their own, as well as to see what examples other students have come up with.
  • Graphing Problems: End-of-chapter Practice Problems include graphing problems which either ask the student to identify what is wrong with a graph that is intentionally drawn incorrectly, or to reproduce a key graphical model from the chapter.
  • Analytical Research Activities: “Economic Consultants” features place students in the role of the economist for a hypothetical economic research and analysis firm. These features require economic thinking and analysis, asking students to prepare a report for a client addressing the fundamental economic issues from the chapter. Useful Internet addresses are included to help with research and analysis.

Table of Contents

1. Introduction.
2. Production Possibilities and Opportunity Costs.
3. Demand and Supply.
4. Elasticity.
5. Happiness, Utility, and Consumer Choice.
6. Price Ceiling and Price Floors.
7. Entrepreneurship and Business Ownership.
8. Costs of Production.
9. Maximizing Profit.
10. Identifying Markets and Market Structure.
11. Price and Output in Monopoly, Monopolistic Competition, and Perfect Competition.
12. Price and Output Determination under Oligopoly.
13. Antitrust Regulation.
14. Externalities, Market Failure, and Public Choice.
15. Wage Rates in Competitive Labor Markets.
16. Wages and Employment: Monopsony and Labor Unions.
17. Interest, Rent, and Profit.
18. Income Distribution and Poverty.
19. Aggregate Demand and Aggregate Supply.
20. Gross Domestic Product Accounting.
21. Consumption and Investment.
22. Equilibrium National Income.
23. Fiscal Policy: Coping with Inflation and Unemployment.
24. Long-Run Economic Growth and Business Cycles.
25. Money.
26. Money Creation and the Banking System.
27. The Federal Reserve System and Monetary Policy.
28. Can Government Really Stabilize the Economy?.
29. Government Spending.
30. Financing Government: Taxes and Debt.
31. International Trade.
32. Exchange Rates, Balance of Payments, and International Debt.
33. The Economic Problems of Less-Developed Economies.
Practice Test Answer Key.

What's New

  • New Concepts: This seventh edition incorporates some new topics and expands on others already covered. For example, attention is given in this edition to the current research on the Economics of Happiness and this new research is integrated into utility analysis. As well, more attention is given in the principles of microeconomics to the role of entrepreneurship. In the principles of macroeconomics, this seventh edition analyzes the 1933 Glass-Steagall Act to show how its repeal in 1999 contributed to the rash of foreclosures that continues to plague our economy. The Keynesian concept of the liquidity trap is new to the text and is added to help explain the factors that undermine the effectiveness of monetary policy.
  • Updated Real Data: When appropriate, tables and graphs have been updated to emphasize and incorporate real 2012 data, which connects theory to the real world increasing student interest and comprehension.
  • Updated Supplement Package: The text’s proven supplement package has been revised to include current data, technology updates, and content changes within the text.
  • New Illustrations: Up-to-date illustrations have been classroom-tested in Gottheil’s own large economics lectures and show students the relevance of economic concepts to current events that are seemingly not related.
  • InfoTrac® Student Collections are specialized databases expertly drawn from the Gale Academic One library. Each InfoTrac® Student Collection enhances the student learning experience in the specific course area related to the product. These specialized databases allow access to hundreds of scholarly and popular publications - all reliable sources - including journals, encyclopedias, and academic reports. Learn more and access at: http://gocengage.com/infotrac.


All supplements have been updated in coordination with the main title. Select the main title's "About" tab, then select "What's New" for updates specific to title's edition.

For more information about these supplements, or to obtain them, contact your Learning Consultant.

Instructor Supplements

Study Guide  (ISBN-10: 1285064429 | ISBN-13: 9781285064420)

Printed Study Guide.

List Price = $114.95  | CengageBrain Price = $114.95  | College Bookstore Wholesale Price = $86.50

Student Supplements

Study Guide  (ISBN-10: 1285064429 | ISBN-13: 9781285064420)

This newly revised feature explains, reviews, and tests the important principles introduced in every chapter. Featured sections include Chapter in a Nutshell, Concept Check, Am I on the Right Track?, Graphing Tutorials, Graphing Pitfalls,True-False Questions, Multiple-Choice Questions, Fill-in-the-Blank Questions, and Discussion Questions. Available in a comprehensive version or in macroeconomics and microeconomics versions.

List Price = $114.95  | CengageBrain Price = $114.95  | College Bookstore Wholesale Price = $86.50

Aplia™, 1 term Instant Access  (ISBN-10: 1285858700 | ISBN-13: 9781285858708)

Succeed in your course with Aplia's interactive learning system--featuring practice problems with immediate feedback and tools developed specifically for PRINCIPLES OF ECONOMICS, 7th Edition, including step-by-step explanations that help you improve your reasoning and skills, interactive assignments that help you understand difficult or counterintuitive concepts, and more. Aplia has already helped more than a million students succeed in college classes.

List Price = $126.00  | CengageBrain Price = $126.00  | College Bookstore Wholesale Price = $126.00

Meet the Author

Author Bio

Fred M. Gottheil

Fred M. Gottheil is a professor of economics at the University of Illinois in Urbana-Champaign. He came to Illinois in 1960, planning to spend one year before returning to his native Canada. But he fell in love with the campus, the community, and the Midwest, and has been at Illinois ever since. He earned his undergraduate degree at McGill University in Montreal, Canada and his Ph.D. at Duke University. His primary teaching is the principles of economics, and on occasion, he has taught the history of economic thought, Marxian economics, and the economics of the Middle East. He is the author of "Marx's Economic Predictions" and numerous articles that have appeared in scholarly journals, among them the "American Economic Review", the "Canadian Journal of Economics", the "Journal of Post-Keynesian Economics" and the "Middle East Reviews." Although he enjoys research, his labor of love is teaching the principles course. His classes have been as large as 1,800 students. He has won a plethora of teaching from the university, the college, and department of economics. Aside from his research and publications as a professor of economics, Professor Gottheil is also on the university's medical faculty, co-teaching the College of Medicine's course on medicine and society. As well, he is director of the University of Illinois's Center of Economic Education. In this capacity, he organizes and team-teaches minicourses and workshops on the principles of economics. He was a White House consultant on the Middle East during the Carter Administration and offered expert testimony to several congressional committees. Professor Gottheil was a visiting professor at Northwestern University and at Hebrew University in Jerusalem, Israel. He has lectured at many universities in the United States, Canada, and abroad, including universities in Syria, Egypt, Israel, and Jordan.