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Essentials of Economics (3e)

By Glenn Hubbard, Anne Garnett, Philip Lewis, Tony O'Brien
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Real examples. Real companies. Real business decisions.

Many students of first year economics ask themselves "why am I here?" and "will I ever use this?". Essentials of Economics answers these questions by demonstrating that real businesses use economics to make real decisions every day.

The authors believe that students can learn to apply economics principles successfully if they learn them in a familiar context. By using a wealth of relevant global and local businesses examples and case studies, Essentials of Economics makes the subject relevant and meaningful.

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Published date
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Pearson Australia
Table of contents

CHAPTER 1 Economics: foundations and models
CHAPTER 1 APPENDIX Using graphs and formulae
CHAPTER 2 Choices and trade-offs in the market

CHAPTER 3 Where prices come from: the interaction of demand and supply
CHAPTER 4 Elasticity: the responsiveness of demand and supply
CHAPTER 5 Economic efficiency, government price setting and taxes

CHAPTER 6 Technology, production and costs
CHAPTER 7 Firms in perfectly competitive markets
CHAPTER 8 Monopoly markets
CHAPTER 8 APPENDIX Price discrimination
CHAPTER 9 Monopolistic competition and oligopoly

CHAPTER 10 The markets for labour and other factors of production
CHAPTER 10 APPENDIX Tools to analyse the decision to purchase capital

CHAPTER 11 Government intervention in the market

CHAPTER 12 GDP: measuring total production, income and economic growth
CHAPTER 13 Unemployment and inflation
CHAPTER 14 Aggregate demand and aggregate supply analysis
CHAPTER 14 APPENDIX The aggregate expenditure model

CHAPTER 15 Money, banks and the Reserve Bank of Australia
CHAPTER 16 Monetary policy
CHAPTER 17 Fiscal policy
CHAPTER 17 APPENDIX 1 Is there a short-run trade-off between unemployment and inflation?
CHAPTER 17 APPENDIX 2 A closer look at the multiplier

CHAPTER 18 International trade
CHAPTER 19 Macroeconomics in an open economy

Click here to download the detailed contents list (693 Kb)

New to this edition
Essentials of Economics takes a real-world, hands-on approach to learning economics to spark students’ interest in the subject.

  • NEW! and updated opening business case studies. Many are completely replaced with up-to-date business examples.
  • NEW! ‘Economics in Your Life’ feature challenges students to think critically about how economics affects their own lives. This item opens and closes each chapter and students can check their answer against a response at the end of the chapter.
  • All economic data is updated throughout the text and accompanying resources. Figures and tables are updated, using the latest data available.
  • All ‘Making the Connection’ features are updated, with a number of new and substantially revised features. These features help students tie economic concepts to current events and policy debates.
  • All NEW ‘An Inside Look’ news articles and analysis, to enable students to apply economic concepts to current events and policy debates.
  • NEW, revised and updated end-of-chapter Problems and Applications.
  • NEW! A clear focus on learning objectives and AACSB Assurances of Learning. To make it easy for instructors, End-of-chapter summaries, Review Questions and Problems and Applications are grouped according to Learning Objectives. All online quizzes are also organised and tagged this way.
  • The latest coverage of both domestic and international economics policy changes that have occurred over recent years.
Features & benefits
  • Engage student interest and connect economic theory to real business situations with case studies and examples throughout each chapter.
  • Each chapter of the text opens with a business case study, refers to the study throughout the Chapter, and concludes with An Inside Look—a news article format which illustrates how a key principle covered in the Chapter relates to real business situations or was used by a real company to make a real business decision.
  • Making the Connection’ presents relevant, stimulating, and provocative news stories, primarily about business and aims to reinforce the relevance of economics to students.
  • Solved problems provide models of how to solve an economic problem by breaking it down step by step. Each ‘Solved Problem’ includes a problem statement, steps to solve the problem, a graph and a ‘Your Turn’ feature directing students to related end-of-Chapter problems for immediate practice.
  • Don’t Let This Happen to You’ features alert students to the most common pitfalls in the Chapter’s material. These are supported with a related question in the end-of-Chapter ‘Problems and Applications’ section.
  • Graphs – Four devices are used to assist students to read and interpret graphs: captions, boxed notes, colour-coded curves and summary tables with graphs. End- of-Chapter problems also require students to read, draw and interpret graphs. MyEconLab includes interactive graphing exercises.
  • Contemporary coverage of both domestic and international economics policy changes that have occurred over recent years.
Author biography

Glenn Hubbard is the Dean and Russell L. Carson Professor of Finance and Economics in the Graduate School of Business at Columbia University and Professor of Economics in Columbia’s Faculty of Arts and Sciences. He is also a research associate of the National Bureau of Economic Research and a director of Automatic Data Processing, Black Rock Closed-End Funds, KKR Financial Corporation and MetLife. From 2001 to 2003 he served as chairman of the White House Council of Economic Advisers and chairman of the OECD Economy Policy Committee, and from 1991 to 1993 he was deputy assistant secretary of the US Treasury Department. He currently serves as co-chair of the non-partisan Committee on Capital Markets Regulation. Glenn’s fields of specialisation are public economics, financial markets and institutions, corporate finance, macroeconomics, industrial organisation and public policy. He is the author of more than 100 articles in leading journals.

Anne Garnett is a Senior Lecturer in Economics at Murdoch University. She has extensive teaching experience at the undergraduate and postgraduate level, both in Australia and many parts of Southeast Asia. Her research areas include regional economics, labour economics, international trade and agricultural economics. Anne has been an adviser to the federal government on rural and regional economics. She has published numerous chapters in books and articles in international journals. She has taught in all areas of economics at all levels; however, over the past 15 years her primary teaching focus has been to teach first-year introductory economics. Anne is also co-author of the widely used Microeconomics and Macroeconomics undergraduate texts published by Pearson Australia.

Phil Lewis is the Foundation Professor of Economics and the Canberra Director of the Centre for Labour Market Research at the University of Canberra. He is among the best-known economists in the area of employment, education and training in Australia and Asia. He is the author of over 120 publications including journal articles, book chapters and books. He is the editor of The Australian Journal of Labour Economics. Phil has also worked extensively in government and has produced a number of major reports for the private and public sectors. He has served as the National President of the Economic Society of Australia. In 2008 Phil was presented with the Honorary Fellow Award by the Economic Society of Australia for exceptional service to the economics profession.

Anthony Patrick (Tony) O’Brien is a Professor of Economics at Lehigh University. He has taught principles of economics for more than 15 years. He received the Lehigh University Award for Distinguished Teaching. He was formerly the director of the Diamond Center for Economic Education and was named a Dana Foundation Faculty Fellow and Lehigh Class of 1961 Professor of Economics. He has been a visiting professor at the University of California, Santa Barbara, and the Graduate School of Industrial Administration at Carnegie Mellon University. Tony’s research has dealt with such issues as the evolution of the US car industry, sources of US economic competitiveness, the development of US trade policy, the causes of the Great Depression and the causes of black–white income differences. His research has been published in leading journals. Tony also serves on the editorial board of the Journal of Socio-Economics.

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