Economics: Theory and Practice, 10th Edition
December 2012, ©2013
Designed for the Survey of Economics course, Economics: Theory and Practice introduces students to basic economic concepts, institutions, relationships, and terminology.
This text prepares students to use economic thinking in their classes, careers, and everyday lives. Flexible in approach, instructor-friendly in structure, and student-friendly in language, Economics: Theory and Practice contains an essential coverage of both microeconomics and macroeconomics, in any sequence.
Whether addressing topics such as the effects of inflation on interest rates or an economy’s response to a price increase in consumer goods, no Survey of Economics course is complete without Patrick and Gerry Welch’s classic text.
PART ONE Introduction to Economics 1
CHAPTER 1 Introduction to Economics 3
CHAPTER 2 Economic Decision Making and Economic Systems 35
CHAPTER 3 Demand, Supply, and Price Determination 63
PART TWO The Macroeconomy 101
CHAPTER 4 Goals and Problems of the Macroeconomy: Employment, Prices, and Production 103
CHAPTER 5 Foundations of the Macroeconomy 141
CHAPTER 6 The Role of Government in the Macroeconomy 173
CHAPTER 7 Money, Financial Institutions, and the Federal Reserve 203
CHAPTER 8 Money Creation, Monetary Theory, and Monetary Policy 231
CHAPTER 9 Macroeconomic Viewpoints and Models 259
PART THREE The Microeconomy 283
CHAPTER 10 Households and Businesses: An Overview 285
CHAPTER 11 Benefits, Costs, and Maximization 305
CHAPTER 12 Production and the Costs of Production 335
CHAPTER 13 Competition and Market Structures 365
CHAPTER 14 Government and the Markets 405
CHAPTER 15 Labor Markets, Unions, and the Distribution of Income 431
PART FOUR The International Economy 461
CHAPTER 16 International Trade 463
CHAPTER 17 International Finance 485
Answers to “Test Your Understanding” 517
- Has gone through a thorough update to the data, both macroeconomic and microeconomic, so students have the most current information available.
- Changes include relevant changes in the macroeconomy such as higher and prolonged unemployment figures, large budget deficits, and a growing federal debt.
- Chapter 7, Money and Banking, now includes legislative changes like Dodd-Frank and the financial crisis.
- New and updated applications, debates, and critical thinking cases help students understand how the content is applied to everyday life.
- Continued emphasis remains on environmental examples, issues, and policies throughout the text.
- Updates include consumer products and company profiles such as Starbuck’s & Kraft.
- Critical Thinking Cases - Featured at the end of each chapter, these cases encourage students to develop critical thinking skills and examine how concepts are applied.
- Up For Debate - Looks at the competing sides of a current economic issue. Examples of issues include:
- Raising minimum wage
- Should the Federal Reserve be controlled by Congress?
- Test Your Understanding - Reinforces key concepts and material by focusing on a particular case or way of using the concept.
- Student-friendly writing style - Accessible language and interesting case studies keep introductory, principles, and survey of economics students engaged with the material.
- Flexibility - The organization of the material allows instructors to take either a macro/micro or micro/macro sequence.