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Principles of Economics
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Table of Contents

Part I: Introduction
1. Ten lessons from economics
2. Thinking like an economist
3. Interdependence and the gains from trade
Part II: Supply and demand I: How markets work
4. The market forces of supply and demand
5. Elasticity and its application
6. Supply, demand and government policies
Part III: Supply and demand II: Markets and welfare
7. Consumers, producers and the efficiency of markets
8. Application: the costs of taxation
9. Application: international trade
Part IV: The economics of the public sector
10. Externalities
11. Public goods and common resources
12. The design of the tax system
Part V: Firm behaviour and the organisation of industry
13. The costs of production
14. Firms in competitive markets
15. Monopoly
16. Business strategy
17. Competition policy
18. Monopolistic competition
Part VI: The economics of labour markets
19. The markets for the factors of production
20. Earnings, unions and discrimination
21. Income inequality and poverty
Part VII: Topics for further study
22. The theory of consumer choice
23. Frontiers of microeconomics
Part VIII: The data of macroeconomics
24. Measuring a nation���s income
25. Measuring the cost of living
Part IX: The real economy in the long run
26. Production and growth
27. Saving, investment and the financial system
28. The natural rate of unemployment
Part X: Money and prices in the long run
29. The monetary system
30. Inflation: its causes and costs
Part XI: The macroeconomics of open economies
31. Open-economy macroeconomics: basic concepts
32. A macroeconomic theory of the open economy
Part XII: Short-run economic fluctuations
33. Aggregate demand and aggregate supply
34. The influence of monetary and fiscal policy on aggregate demand
35. The short-run trade-off between inflation and unemployment
36. Global Financial Crisis 2008 and beyond NEW
Part XIII: Final thoughts
37. Five debates over macroeconomic policy

About the Author

Stephen King is a Commissioner with Australia�s Productivity Commission and a Professor of Economics at Monash University. He has previously been Dean of Business and Economics at Monash University, a member of the Economic Regulation Authority of Western Australia, a member of the National Competition Council and a Commissioner at the Australian Competition and Consumer Commission. Stephen has taught a variety of courses, including introductory economics for 11 years at Harvard University, Monash University and the University of Melbourne. Professor King has researched and published in a wide range of areas, including law and economics, game theory, corporate finance, and industrial economics. Stephen regularly provides advice to government, private firms and the courts on a range of issues relating to regulation and competition policy. He is a Lay Member of the High Court of New Zealand and a Fellow of the Academy of Social Sciences in Australia. Stephen King is a Commissioner with Australia�s Productivity Commission and a Professor of Economics at Monash University. He has previously been Dean of Business and Economics at Monash University, a member of the Economic Regulation Authority of Western Australia, a member of the National Competition Council and a Commissioner at the Australian Competition and Consumer Commission. Stephen has taught a variety of courses, including introductory economics for 11 years at Harvard University, Monash University and the University of Melbourne. Professor King has researched and published in a wide range of areas, including law and economics, game theory, corporate finance, and industrial economics. Stephen regularly provides advice to government, private firms and the courts on a range of issues relating to regulation and competition policy. He is a Lay Member of the High Court of New Zealand and a Fellow of the Academy of Social Sciences in Australia. Joshua Gans holds the Skoll Chair in Innovation and Entrepreneurship at the Rotman School of Management, University of Toronto; he was previously Professor of Management (information Economics) at the Melbourne Business School. He studied economics at the University of Queensland and Stanford University. He currently teaches network and digital marketing strategy, but prior to his relocation to Canada he taught introductory economics and incentive theory to MBA students. Joshua Gans holds the Skoll Chair in Innovation and Entrepreneurship at the Rotman School of Management, University of Toronto; he was previously Professor of Management (information Economics) at the Melbourne Business School. He studied economics at the University of Queensland and Stanford University. He currently teaches network and digital marketing strategy, but prior to his relocation to Canada he taught introductory economics and incentive theory to MBA students. N. Gregory Mankiw is the Robert M. Beren Professor of Economics at Harvard University. As a student, he studied economics at Princeton University and the Massachusetts Institute of Technology. As a teacher he has taught macroeconomics, microeconomics, statistics and principles of economics. Professor Mankiw is a prolific writer and a regular participant in academic and policy debates. In addition to his teaching, research and writing, Professor Mankiw has been a research associate of the National Bureau of Economic Research and an advisor to the Federal Reserve Banks of Boston and New York and the Congressional Budget Office. From 2003 to 2005, he served as chairman of the US President�s Council of Economic Advisors and was an advisor to presidential candidate Mitt Romney during the 2012 US presidential election. Martin Byford is Senior Lecturer of Economics at RMIT University. Prior to joining RMIT he was Assistant Professor of Economics at the University of Colorado at Boulder. Martin discovered economics during the final year of a combined Arts and Civil Engineering degree. Realising that he had made a terrible error in his choice of vocation, Martin went back to university to study economics. He completed a PhD at the University of Melbourne in 2007. Martin�s introductory microeconomics course is currently taught on RMIT campuses in Australia, Singapore and Vietnam. Robin Stonecash has recently retired from her position as Executive Dean of the Faculty of Business Law and Arts at Southern Cross University. She was previously Director of Executive Education and the Global EMBA at the University of Sydney�s Business School and Director of Executive Education at the Business School at the University of Technology, Sydney, as well as Director of Stonecash Associates, a boutique consulting firm. She studied economics at Swarthmore College, the University of Wisconsin and the University of New South Wales. She currently consults on strategy and negotiation as well as teaching economics, strategy and negotiation to business owners. Professor Stonecash�s research interests currently focus on agribusiness in Australia and New Zealand and the impact of sustainability in the agricultural sector.

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