The Economics Book, 1st Edition

  • Published By:
  • ISBN-10: 1465407774
  • ISBN-13: 9781465407771
  • DDC: 330
  • Grade Level Range: 4th Grade - 6th Grade
  • 352 Pages | eBook
  • Original Copyright 2012 | Published/Released October 2013
  • This publication's content originally published in print form: 2012

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The Economics Book makes sense of historically important and emerging ideas in a field of science that so often confuses newcomers to the subject. DK's clear visual approach has already been applied effectively to the areas of philosophy and psychology; economics is the natural successor in the series. With the use of easy-to-follow graphics, succinct quotations, and thoroughly accessible text, this book throws light on the theoretical and experimental foundations, as well as the practical applications-of economics, making abstract concepts concrete by relating them to everyday concerns. From Aristotle and Thomas Aquinas to so-called "father of modern economics" Adam Smith, John Maynard Keynes, and the top economic thinkers of today, this book will take you on a journey through centuries of thought, elucidating even the most complex of concepts. The Economics Book is the essential reference for students and for anyone with an interest in how economies work. This book is organized as a history of economics. Within each chapter, the big ideas and the economists who first voiced them are placed chronologically and are cross-referenced to earlier and later theories and their proponents. The book is completed with a directory of economists, along with a comprehensive glossary.

Table of Contents

Front Cover.
Half Title Page.
Other Frontmatter.
Copyright Page.
1: Let Trading Begin: 400 BCE–1770 CE.
2: Property should be Private: Property Rights.
3: What is a Just Price?: Markets and Morality.
4: You don’t Need to Barter when You have Coins: The Function of Money.
5: Make Money from Money: Financial Services.
6: Money Causes Inflation: The Quantity Theory of Money.
7: Protect Us from Foreign Goods: Protectionism and Trade.
8: The Economy can be Counted: Measuring Wealth.
9: Let Firms be Traded: Public Companies.
10: Wealth Comes from the Land: Agriculture in the Economy.
11: Money and Goods Flow between Producers and Consumers: The Circular Flow of the Economy.
12: Private Individuals Never Pay for Street Lights: Provision of Public Goods and Services.
13: The Age of Reason: 1770–1820.
14: Man is a Cold, Rational Calculator: Economic Man.
15: The Invisible Hand of the Market Brings Order: Free Market Economics.
16: The Last Worker Adds Less to Output than the First: Diminishing Returns.
17: Why do Diamonds Cost More than Water?: The Paradox of Value.
18: Make Taxes Fair and Efficient: The Tax Burden.
19: Divide Up Pin Production, and You Get More Pins: The Division of Labor.
20: Population Growth Keeps Us Poor: Demographics and Economics.
21: Meetings of Merchants End in Conspiracies to Raise Prices: Cartels and Collusion.
22: Supply Creates Its Own Demand: Gluts in Markets.
23: Borrow Now, Tax Later: Borrowing and Debt.
24: The Economy is a Yo-Yo: Boom and Bust.
25: Trade is Beneficial for All: Comparative Advantage.
26: Industrial and Economic Revolutions: 1820–1929.
27: How Much should I Produce, Given the Competition?: Effects of Limited Competition.
28: Phone Calls Cost More without Competition: Monopolies.
29: Crowds Breed Collective Insanity: Economic Bubbles.
30: Let the Ruling Classes Tremble at a Communist Revolution: Marxist Economics.
31: The Value of a Product Comes from the Effort Needed to Make It: The Labor Theory of Value.
32: Prices Come from Supply and Demand: Supply and Demand.
33: You Enjoy the Last Chocolate Less than the First: Utility and Satisfaction.
34: When the Price Goes Up, Some People Buy More: Spending Paradoxes.
35: A System of Free Markets is Stable: Economic Equilibrium.
36: If You Get a Pay Raise, Buy Caviar Not Bread: Elasticity of Demand.
37: Companies are Price Takers Not Price Makers: The Competitive Market.
38: Make One Person Better Off without Hurting the Others: Efficiency and Fairness.
39: The Bigger the Factory, the Lower the Cost: Economies of Scale.
40: The Cost of Going to the Movies is the Fun You’d have had at the Ice Rink: Opportunity Cost.
41: Workers Must Improve Their Lot Together: Collective Bargaining.
42: People Consume to be Noticed: Conspicuous Consumption.
43: Make the Polluter Pay: External Costs.
44: Protestantism has Made Us Rich: Religion and the Economy.
45: The Poor are Unlucky, Not Bad: The Poverty Problem.
46: Socialism is the Abolition of Rational Economy: Central Planning.
47: Capitalism Destroys the Old and Creates the New: Creative Destruction.
48: War and Depressions: 1929–1945.
49: Unemployment is Not a Choice: Depressions and Unemployment.
50: Some People Love Risk, Others Avoid It: Risk and Uncertainty.
51: Government Spending Boosts the Economy by More than what is Spent: The Keynesian Multiplier.
52: Economies are Embedded in Culture: Economics and Tradition.
53: Managers Go for Perks, Not Their Company’s Profits: Corporate Governance.
54: The Economy is a Predictable Machine: Testing Economic Theories.
55: Economics is the Science of Scarce Resources: Definitions of Economics.
56: We Wish to Preserve a Free Society: Economic Liberalism.
57: Industrialization Creates Sustained Growth: The Emergence of Modern Economies.
58: Different Prices to Different People: Price Discrimination.
59: Post-War Economics 1945–1970.
60: In the Wake of War and Depression, Nations Must Cooperate: International Trade and Bretton Woods.
61: All Poor Countries Need is a Big Push: Development Economics.
62: People are Influenced by Irrelevant Alternatives: Irrational Decision Making.
63: Governments should do Nothing but Control the Money Supply: Monetarist Policy.
64: The More People at Work, the Higher Their Bills: Inflation and Unemployement.
65: People Smooth Consumption over Their Life Spans: Saving to Spend.
66: Institutions Matter: Institutions In Economics.
67: People will Avoid Work if They can: Market Information and Incentives.
68: Theories about Market Efficiency Require Many Assumptions: Markets and Social Outcomes.
69: There is No Perfect Voting System: Social Choice Theory.
70: The Aim is to Maximize Happiness, Not Income: The Economics of Happiness.
71: Policies to Correct Markets can Make Things Worse: The Theory of the Second Best.
72: Make Markets Fair: The Social Market Economy.
73: Over Time, All Countries will be Rich: Economic Growth Theories.
74: Globalization is Not Inevitable: Market Integration.
75: Socialism Leads to Empty Shops: Shortages in Planned Economies.
76: What does the Other Man Think I am Going to Do?: Game Theory.
77: Rich Countries Impoverish the Poor: Dependency Theory.
78: You can’t Fool the People: Rational Expectations.
79: People Don’t Care about Probability when They Choose: Paradoxes in Decision Making.
80: Similar Economies can Benefit from a Single Currency: Exchange Rates and Currencies.
81: Famine can Happen in Good Harvests: Entitlement Theory.
82: Contemporary Economics: 1970–Present.
83: It is Possible to Invest without Risk: Financial Engineering.
84: People are Not 100 Percent Rational: Behavioral Economics.
85: Tax Cuts can Increase the Tax Take: Taxation and Economic Incentives.
86: Prices Tell You Everything: Efficient Markets.
87: Over Time, Even the Selfish Cooperate with Others: Competition and Cooperation.
88: Most Cars Traded will be Lemons: Market Uncertainty.
89: The Government’s Promises are Incredible: Independent Central Banks.
90: The Economy is Chaotic Even when Individuals are Not: Complexity and Chaos.
91: Social Networks are a Kind of Capital: Social Capital.
92: Education is Only a Signal of Ability: Signaling and Screening.
93: The East Asian State Governs the Market: Asian Tiger Economies.
94: Beliefs can Trigger Currency Crises: Speculation and Currency Devaluation.
95: Auction Winners Pay over the Odds: The Winner’s Curse.
96: Stable Economies Contain the Seeds of Instability: Financial Crises.
97: Businesses Pay More than the Market Wage: Incentives and Wages.
98: Real Wages Rise during a Recession: Sticky Wages.
99: Finding a Job is Like Finding a Partner or a House: Searching and Matching.
100: The Biggest Challenge for Collective Action is Climate Change: Economics and the Environment.
101: GDP Ignores Women: Gender and Economics.
102: Comparative Advantage is an Accident: Trade and Geography.
103: Like Steam, Computers have Revolutionized Economies: Technological Leaps.
104: We can Kick-Start Poor Economies by Writing Off Debt: International Debt Relief.
105: Pessimism can Destroy Healthy Banks: Bank Runs.
106: Savings Gluts Abroad Fuel Speculation at Home: Global Savings Imbalances.
107: More Equal Societies Grow Faster: Inequality and Growth.
108: Even Beneficial Economic Reforms can Fail: Resisting Economic Change.
109: The Housing Market Mirrors Boom and Bust: Housing and the Economic Cycle.