Economics in Two Lessons: Why Markets Work So Well, and Why They Can Fail So Badly, 1st Edition

  • John Quiggin
  • Published By:
  • ISBN-10: 0691186103
  • ISBN-13: 9780691186108
  • DDC: 330
  • 408 Pages | eBook
  • Original Copyright 2019 | Published/Released November 2019
  • This publication's content originally published in print form: 2019

  • Price:  Sign in for price



This book offers a masterful introduction to the key ideas behind the successes and failures of free-market economics. Since 1946, Henry Hazlitt’s bestselling Economics in One Lesson has popularized the belief that economics can be boiled down to one simple lesson: market prices represent the true cost of everything. But that tells only half the story. It explains why markets often work so well, but it can’t explain why they often fail so badly—or what we should do when they stumble. As Nobel Prize-winning economist Paul Samuelson quipped, When someone preaches ‘Economics in one lesson,’ I advise: Go back for the second lesson. In this book, the author teaches both lessons, offering a masterful introduction to the key ideas behind the successes and failures of free markets, and explains why market prices often fail to reflect the full cost of our choices to society as a whole. Brilliantly accessible, this title unlocks the essential issues at the heart of any economic question.

Table of Contents

Front Cover.
Half Title Page.
Title Page.
Copyright Page.
The Lesson.
1: Market Prices and Opportunity Costs.
2: Markets, Opportunity Cost, and Equilibrium.
3: Time, Information, and Uncertainty.
4: How Opportunity Cost Works in Markets.
5: Lesson One and Economic Policy.
6: The Opportunity Cost of Destruction.
Social Opportunity Costs.
7: Property Rights and Income Distribution.
8: Unemployment.
9: Monopoly and Market Failure.
10: Market Failure: Externalities and Pollution.
11: Market Failure: Information, Uncertainty, and Financial Markets.
Public Policy.
12: Income Distribution: Predistribution.
13: Income Distribution: Redistribution.
14: Policy for Full Employment.
15: Monopoly and the Mixed Economy.
16: Environmental Policy.