Economics

The text is designed primarily for a one semester survey course in general economics. It has also been successfully used in M.B.A. economics courses and in Master's courses in economic education.

The Economic Way of Thinking develops the basic principles of micro- and macroeconomic analysis, and rigorously employs them as tools rather than ends unto themselves. This text introduces students to a method of reasoning; to think like an economist. It teaches students through example and application. It even teaches by showing students how not to think, by exposing them to the errors implicit in much popular reasoning about economic events.

• NEW - New co-authors—Peter Boettke (George Mason University) and David Prychitko (Northern Michigan University) remain true to Paul Heyne's style, and wit. They continue the book's coordinationist themes, clear focus on property rights and its emphasis on the dynamic, informational characteristics of markets.

• NEW - A greater emphasis on economics as the study of choice and the unintended consequences of choice is provided in Chapter 1, and continues throughout the book.

• NEW - The basic supply and demand model is developed and applied with many updated examples in Chs. 5 and 6. These chapters (formerly Chs. 4 and 5) have been thoroughly rewritten.

• NEW - Clarified the continuing theme in all previous editions—The market as a coordinating process. Quantities demanded and supplied are interpreted as plans among consumers and producers. Market clearing is discussed as a meshing of these plans, and as an unintended consequence of individual economizing behavior. The problem of non-market (socialist) coordination is discussed as well.

• NEW - Analysis of the relationship between cost and price has been rewritten.

• NEW - Emphasis on the dynamic element of competition and the importance of the competitive market process in teaching market participants how to behave in an economically rational manner.

• NEW - Chapter 8, "Profit and Loss" has been completely reorganized and a lengthy discussion of the difference between accounting profit and economic profit has been added. The discussion also provides a focus on entrepreneurship and the role it plays in coordinating the plans of buyers and sellers. Entrepreneurship is the driving force of markets, yet it is something that few if any other principles books discuss.

• NEW - A new appendix has been added.

  • Alerts students to common errors and abuses in the economic way of thinking, such as confusions between demand and quantity demanded, and dire forecasts of growing and permanent shortages of oil (which invariably ignore relative prices!).

• NEW - In the macro chapters, the data has been updated for income distribution, unemployment, inflation, economic fluctuations, and international economic growth.

• NEW - A discussion of the "boom-bust" theory of the business cycle has been added—Emphasizes how a credit expansion can distort market signals and misguide entrepreneurial expectations of profit and loss, creating malinvestment in the industrial sector.

• NEW - Data is incorporated from the Index of Economic Freedom in the discussion of the performance of economic systems—Emphasizes the argument that the security of property, freedom of contract, open trade and monetary and fiscal constraint are essential policy ingredients that explain why some countries perform well and others not so well.

• NEW - Many end-of-chapter questions have been streamlined.

  • Provides students with the task that looks less daunting without so many long and probing questions, and new questions have been added.

• New co-authors—Peter Boettke (George Mason University) and David Prychitko (Northern Michigan University) remain true to Paul Heyne's style, and wit. They continue the book's coordinationist themes, clear focus on property rights and its emphasis on the dynamic, informational characteristics of markets.

• A greater emphasis on economics as the study of choice and the unintended consequences of choice is provided in Chapter 1, and continues throughout the book.

• The basic supply and demand model is developed and applied with many updated examples in Chs. 5 and 6. These chapters (formerly Chs. 4 and 5) have been thoroughly rewritten.

• Clarified the continuing theme in all previous editions—The market as a coordinating process. Quantities demanded and supplied are interpreted as plans among consumers and producers. Market clearing is discussed as a meshing of these plans, and as an unintended consequence of individual economizing behavior. The problem of non-market (socialist) coordination is discussed as well.

• Analysis of the relationship between cost and price has been rewritten.

• Emphasis on the dynamic element of competition and the importance of the competitive market process in teaching market participants how to behave in an economically rational manner.

• Chapter 8, "Profit and Loss" has been completely reorganized and a lengthy discussion of the difference between accounting profit and economic profit has been added. The discussion also provides a focus on entrepreneurship and the role it plays in coordinating the plans of buyers and sellers. Entrepreneurship is the driving force of markets, yet it is something that few if any other principles books discuss.

• A new appendix has been added.

  • Alerts students to common errors and abuses in the economic way of thinking, such as confusions between demand and quantity demanded, and dire forecasts of growing and permanent shortages of oil (which invariably ignore relative prices!).

• In the macro chapters, the data has been updated for income distribution, unemployment, inflation, economic fluctuations, and international economic growth.

• A discussion of the "boom-bust" theory of the business cycle has been added—Emphasizes how a credit expansion can distort market signals and misguide entrepreneurial expectations of profit and loss, creating malinvestment in the industrial sector.

• Data is incorporated from the Index of Economic Freedom in the discussion of the performance of economic systems—Emphasizes the argument that the security of property, freedom of contract, open trade and monetary and fiscal constraint are essential policy ingredients that explain why some countries perform well and others not so well.

• Many end-of-chapter questions have been streamlined.

  • Provides students with the task that looks less daunting without so many long and probing questions, and new questions have been added.

 1. The Economic Way of Thinking.


 2. Efficiency, Exchange, and Comparative Advantage.


 3. Substitutes Everywhere: The Concept of Demand.


 4. Opportunity Cost and the Supply of Goods.


 5. Supply and Demand: A Process of Cooperation.


 6. Supply and Demand: Issues and Applications.


 7. Information, Middlemen, and Speculators.


 8. Profit and Loss.


 9. Competition and Monopoly.


10. Price Searching.


11. Competition and Government Policy.


12. The Distribution of Income.


13. Externalities and Conflicting Rights.


14. Markets and Government.


15. The Overall Performance of Economic Systems.


16. The Supply of Money.


17. Monetary and Fiscal Policies.


18. National Policies and International Exchange.


19. Employment and Unemployment.


20. Promoting Economic Growth.


21. Economic Performance and Political Economy.


22. The Limitations of Economics.

One-Semester Principles of Economics (Economics)

Primarily for a one-semester survey course in general economics.

 

The Economic Way of Thinking develops the basic principles of micro- and macroeconomic analysis, and employs them as tools rather than ends unto themselves. This text introduces students to a method of reasoning; to think like an economist through example and application. It even teaches by showing students how not to think, by exposing them to the errors implicit in much popular reasoning about economic events.

 

• The Economic Way of Thinking, 11/E
  Heyne, Boettke & Prychitko
  © 2006 | Prentice Hall | Paper; 576 pages | Estimated Availability: 10/31/2008
  ISBN-10: 0131543695 | ISBN-13: 9780131543690
  Brief Description
  

"I feel very positive about this revision. I liked The Economic Way of Thinking before and now I like it better." — Howard Swaine, Northern Michigan University (Has used Heyne since the first edition.)

"It is a bit like Zen economics ... It is an excellent introduction to economics text that explains not only some of the technical aspects of economics (supply and demand, comparative advantage, marginal analysis, etc.) but also the social science dimensions of the discipline (and sometimes the philosophical and ethical aspects of the discipline). It uses language, as opposed to math or graphs, to convey the concepts. Heyne is very clever and the book is beautifully written. I think it stands in the first rank of introductory economics texts along with Samuelson and Alchain & Allen..." — Mark McNeil, Irvine Valley College, California

"The strengths of this text are its intellectual approach—it seems to be written as a whole and not just a few principles chapters thrown together..." — James Swofford, University of Southern Alabama

"The new authors have made a serious and successful attempt to maintain the comfortable narrative style of Heyne's previous editions. In my role as a teacher ... I am delighted with the direction of change as well as the reordering of chapters. From what I have seen of the Tenth Edition, there are discussions that are entirely appropriate for my audience and they are pitched at approximately the right level of reading skill and experiential background. — Joseph Fuhrig, Golden Gate University

View a Sample Chapter PDF:

• Companion Website - Heyne, 10/E
  Heyne
  © 2003 | Prentice Hall | On-line Supplement | Instock
  ISBN-10: 0130092304 | ISBN-13: 9780130092304
  URL: http://www.prenhall.com/heyne
  
  
  

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Pearson Higher Education offers special pricing when you choose to package your text with other student resources. If you're interested in creating a cost-saving package for your students contact your Pearson Higher Education representative.