Principles of Economics Essentials You Always Wanted To Know

1. An Introduction to the World of Economics

1.1 The Ten Principles of Economics

1.2 Conclusion

Quiz

Chapter Summary

2. Demand, Supply, and the Market Equilibrium

2.1 What is a Market?

2.2 How Markets Determine How Much to Produce, and at What Price to Produce Goods

2.3 Equilibrium in the Market

2.4 Comparative Statics

2.5 Are Price Movements Always Unambiguous?

2.6 Conclusion

Quiz

Chapter Summary

3. Elasticity And Price Controls

3.1 Elasticity

3.2 Factors Affecting Elasticity

3.3 Perfectly Elastic and Inelastic Demand and Supply

3.4 Cross-Price Elasticity of Demand and Supply

3.5 Market Failures and Price Mechanisms

3.6 Market Implications of Elasticity

Quiz

Chapter Summary

Case Study

4. Consumer Behavior

4.1 The Budget Constraint

4.2 Consumer Preferences

4.3 Consumer Equilibrium

4.4 Concluding Remarks and Practical Applications

Quiz

Chapter Summary

5. Theory of the Firm—Production

5.1 The Theory of the Firm

5.2 The Production Function

5.3 Isoquants

5.4 Isoquants and Types of Inputs

5.5 Returns to Scale

5.6 Concluding Remarks

Quiz

Chapter Summary

6. Cost

6.1 Introduction

6.2 Types of Costs

6.3 Relation Between Marginal Cost and Average Cost: Zones Along the Cost Function

6.4 The Long-Run Cost Curve

6.5 Concluding Remarks

Quiz

Chapter Summary

7. Markets I—Perfect Competition

7.1 Characteristics of a Perfectly Competitive Market

7.2 Price Discovery for a Perfectly Competitive Market

7.3 Profit Maximization Principle

7.4 Shut-Down Condition

7.5 Exit Conditions for a Firm

7.6 Concluding Remarks

Quiz

Chapter Summary

Case Study

8. Markets II—Monopoly: The Good, Bad, and the Ugly

8.1 Introduction

8.2 Monopoly

8.3 How do Monopolies Price Their Products?

8.4 Monopoly Power

8.5 Social Cost of a Monopoly

8.6 Price Discrimination

8.7 Conclusion

Quiz

Chapter Summary

9. Markets III—Game Theory and Oligopolistic Markets

9.1 Game Theory and Oligopoly Markets

9.2 How Cooperation Works

9.3 Simultaneous Versus Sequential Games

9.4 Cheap Talk and Empty Threats

9.5 First-Mover Advantage

9.6 Conclusion

Quiz

Chapter Summary

10. Macroeconomics: It’s the Economy, Stupid

10.1 The Circular Economy

10.2 Injection and Leakages

10.3 National Income

10.4 Conclusion

Quiz

Chapter Summary

11. Aggregate Demand: The Building Blocks of an Economy

11.1 Introduction

11.2 The Keynesian Economy and the Role of the Aggregate Demand

11.3 Conclusion

Quiz

Chapter Summary

12. Fiscal and Monetary Policy: The Toolkit for the Economy

12.1 Fiscal Policy

12.2 Fiscal Policy and the Aggregate Demand Curve

12.3 Monetary Policy and the Role of the Central Bank

12.4 Policy Mix and Lag Effect

12.5 The Aggregate Supply Curve

12.6 Conclusion

Quiz

Chapter Summary

Glossary

Bibliography

Cledwyn Fernandez is a seasoned economist and, professor. He has experience in both academics and policy think tanks. He works in the area of development economics and public policy, closely aligned with issues around financial inclusion, labor markets, development financing, and policy evaluation. Cledwyn holds a Ph.D. in Economics and is a gold medallist in M.A. in Economics.

Vibrant Publishers is focused on presenting the best texts for learning about technology and business as well as books for test preparation. Categories include programming, operating systems and other texts focused on IT. In addition, a series of books helps professionals in their own disciplines learn the business skills needed in their professional growth.

Vibrant Publishers has a standardized test preparation series covering the GMAT, GRE and SAT, providing ample study and practice material in a simple and well organized format, helping students get closer to their dream universities.

The Self-Learning Management Series is designed to help students, new managers, career switchers, and entrepreneurs learn essential management lessons and covers every aspect of business, from HR to Finance to Marketing to Operations across any and every industry. Each book includes basic fundamentals, important concepts, and standard and well-known principles as well as practical ways of application of the subject matter.

This book consists of 12 chapters highlighting three important aspects of economics, that is, the consumer, the producer, and the market. It illustrates all the basics of micro and macroeconomic theories that provide a way for economists to analyze and predict the behavior of financial markets and the economy.

The chapters inside this book highlight the above information with examples, which will help the readers understand the concepts in a better way. The way this book is written encourages the reader to finish it at a stretch. Many examples and relations are drawn not just from mathematics or statistics but also from aesthetic literature. This book goes beyond the conventional understanding of the meaning of economics and does an excellent job of it.
-- Dr. Raj Seshadri, Professor, 
Jawaharlal Business School, Palakkad.

Did you sleep your way through economics class like so many others? Now it's time to fill in those missing economic ideas to you can better understand today's world. This book will do the trick.
-- Mike Michelsen
Net Galley reviewer
Freelance Writer

The book was well laid out and easy to follow. The content was informed and up to date. It was easy to use and well designed.
-- Jack Wiley
Academic Dean of Instruction, Trinidad State College, Alamosa Colorado

There are ten principles of economics chosen by the author to develop into a comprehensive in-depth overview of economics. It is all there and each chapter stands pretty well on its own. There are a few very minor glitches in the book. The novice may have trouble keeping in mind the principles since they are not enumerated initially nor numbered in the chapters. Also, the novice may be taken aback somewhat to learn that to an economist a curve is sometimes depicted as a straight line. Minor discrepancies like this should in no way detract the potential reader from reading this book. It is sound, standard economics. The best portions of the book may be the examples of the principles with current realistic situations that reinforce those principles. This is a good book and worth reading. Even those who have not always wanted to know the principles will learn the importance of economics in the world by reading this book. Definitely worth four stars.
-- Gilbert R. Demange
M. D, M. B. A.

Online Resources

Instructor Resources

Download Errata Sheet