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Modern Principles of Economics
Sixth Edition ©2024 Tyler Cowen; Alex Tabarrok Formats: Achieve, E-book, Print
As low as $88.99
As low as $88.99
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Authors
-
Tyler Cowen
Tyler Cowen is Holbert C. Harris Professor of Economics at George Mason University. His latest book is Big Business. With Alex Tabarrok he co-writes the Marginal Revolution blog, often ranked as the #1 economics blog. He is also the author of Discover Your Inner Economist (Dutton, 2007) and numerous other books on economics. He writes regularly for the popular press on economics, including for The New York Times, The Washington Post, Forbes, and The Wilson Quarterly. University web page: http://economics.gmu.edu/faculty/tcowen.html WATCH: Tyler Cowen at the Economic Bloggers Forum.
-
Alex Tabarrok
Alex Tabarrok is Bartley J. Madden Chair in Economics at the Mercatus Center at George Mason University. Tabarrok is co-author with Tyler Cowen of the popular economics blog, Marginal Revolution. His recent research looks at bounty hunters, judicial incentives and elections, crime control, patent reform, methods to increase the supply of human organs for transplant, and the regulation of pharmaceuticals. He is the editor of the books, Entrepreneurial Economics: Bright Ideas from the Dismal Science; The Voluntary City: Choice, Community, and Civil Society; and Changing the Guard: Private Prisons and The Control of Crime. His papers have appeared in the Journal of Law and Economics, Public Choice, Economic Inquiry, Journal of Health Economics, Journal of Theoretical Politics, The American Law and Economics Review, Kyklos and many other journals. His popular articles have appeared in The New York Times, The Wall Street Journal, and many other magazines and newspapers.
Table of Contents
Preface
Chapter 1 The Big Ideas
Chapter 2 The Power of Trade and Comparative Advantage
Part I Supply and Demand
Chapter 3 Supply and Demand
Chapter 4 Equilibrium
Chapter 5 Elasticity and Its Applications
Chapter 6 Taxes and Subsidies
Part II The Price System
Chapter 7 The Price System: Signals, Speculation, and Prediction
Chapter 8 Price Ceilings and Floors
Chapter 9 International Trade
Chapter 10 Externalities: When the Price is Not Right
Part III Firms and Factor Markets
Chapter 11 Costs and Profit Maximization Under Competition
Chapter 12 Competition and the Invisible Hand
Chapter 13 Monopoly
Chapter 14 Price Discrimination and Price Strategy
Chapter 15 Oligopoly and Game Theory
Chapter 16 Networks, Platforms, and the Economics of "Free Goods"
Chapter 17 Monopolistic Competition and Advertising
Chapter 18 Labor Markets
Part IV Government
Chapter 19 Public Goods and the Tragedy of the Commons
Chapter 20 Political Economy and Public Choice
Chapter 21 Economics, Ethics, and Public Policy
Part V Decision Making for Businesses, Investors, and Consumers
Chapter 22 Managing Incentives
Chapter 23 Stock Markets and Personal Finance
Chapter 24 Asymmetric Information: Moral Hazard and Adverse Selection
Chapter 25 Consumer Choice
Part VI Economic Growth
Chapter 26 GDP and the Measurement of Progress
Chapter 27 The Wealth of Nations and Economic Growth
Chapter 28 Growth, Capital Accumulation, and the Economics of Ideas: Catching Up vs. the Cutting Edge
Chapter 29 Saving, Investment, and the Financial System
Part VII Business Fluctuations
Chapter 30 Unemployment and Labor Force Participation
Chapter 31 Inflation and the Quantity Theory of Money
Chapter 32 Business Fluctuations: Aggregate Demand and Supply
Chapter 33 Transmission and Amplification Mechanisms
Part VIII Macroeconomic Policy and Institutions
Chapter 34 The Federal Reserve System and Open Market Operations
Chapter 35 Monetary Policy
Chapter 36 The Federal Budget: Taxes and Spending
Chapter 37 Fiscal Policy
Part IX International Economics
Chapter 38 International Finance
Product Updates
Summer 2026 Updates
What's New
The Summer 2026 update brings new data activities, refreshed teaching resources, and extensive ebook revisions to help instructors teach economics with the latest research, policy developments, and real-world examples.
New in Achieve
- New F.R.E.D. (Federal Reserve Economic Data) activities that help students work with authentic economic data.
- Updated lecture slides featuring dynamic Datawrapper visualizations.
- Refreshed student and instructor resources aligned with the latest ebook revisions.
New in the eBook
Highlights
- Updated economic data throughout key microeconomics and macroeconomics chapters through 2024–2025.
- Expanded coverage of current policy issues, including U.S. tariffs, Chinese EV trade policy, AI and economic growth, and carbon pricing.
- Enhanced explanations of foundational concepts, including externalities, GDP, labor markets, inflation, monetary policy, and fiscal policy.
- Added new examples, figures, and real-world applications that connect economic theory to current events.
- Introduced new and updated discussions of Federal Reserve policy tools, labor markets, and international trade.
Chapter Updates
Major updates across the macroeconomics chapters improve clarity, incorporate current economic developments, and refresh data through 2024–2025. Highlights include:
- Updated examples and data on International Trade
- Updates to Externalities: When the Price Is Not Right
- Updated examples and data on Labor Markets
- Updates to GDP and the Measurement of Progress
- Updates to the Wealth of Nations and Economic Growth
- Updates to Growth, Capital Accumulation, and the Economics of Ideas
- Updated examples and data on Unemployment and Labor Force Participation
- Updates to Inflation and the Quantity Theory of Money
- Updates to the Federal Reserve System and Aggregate Demand
- Updates to Monetary Policy
- Updates to the Federal Budget: Taxes and Spending
- Updates to Fiscal Policy
December 2025 Update: Impact of AI Modules
The Impact of AI modules in Achieve are a flexible, text-agnostic series of assignable, auto-graded activities designed to help students learn how to use AI responsibly through the lens of economics. Formats include case studies, simulations, and prompt engineering exercises.
Winter 2024 Updates:
The updated Econ Math and Graphing Tutorials in Achieve bridge foundational math gaps for economics students through revamped, interactive modules featuring modern videos, algorithmically generated questions, and improved assessments designed to deepen understanding and reflection. Comprehensive accessibility features ensure that all students can effectively engage with the material.
This materials covers 10 foundational areas including Slope, Graphs, Percent Change, Ratios, Linear Equations, Averages, and more.
Sixth Edition Updates (2024):
Interactive Graphs, in the e-book and in a Graphing Bank, allow students to engage with economic models to see how components of the graph change as market dynamics change. Every data graph in the text is now interactive, so students can explore live visualizations and improve their data literacy.
Learning Economics from AI! (in the preface) show students how to use resources such as ChatGPT or Bing Chat to get meaningful answers to economics questions. The cover for 6e was generated by author Alex Tabarroks use of AI, as well.
12 NEW Marginal Revolution University Videos in Achieve accompanied by assessment questions.
Are free goods good? Surprisingly, the answer is "Not necessarily." In the chapter on Taxes and Subsidies, We contrast two strategies for making a good "free": 1) outlawing the sale of a good for money, i.e., mandating a zero-price ceiling, and 2) subsidizing production to such an extent that prices plummet to zero. In the first scenario, deadweight loss arises as society forfeits the value of transactions that never occur. In the second, deadweight loss results from excessive transactions where the marginal cost exceeds the marginal value.
The Great Depression is over: Modern Principles focuses on the Great Financial Crisis and the Pandemic Recession, exemplifying the core of macroeconomics and policy. These events showcase a demand-driven recession followed by a supply-driven one, well-illustrated by our dynamic AD-AS model. Focusing on these recessions also moves the lessons beyond the shifting of curves and towards important discussions of shadow banking, securitization, the microeconomics of externalities, and how monetary and fiscal policy must change when the goal – as during a pandemic -- is not to get people back to work!
The new tools of the Federal Reserve: In the sixth edition, the authors emphasize that although the Federal Reserves ultimate power is the power to create money, its daily influence on aggregate demand is accomplished through the payment of interest on reserves held at the Fed. Open market operations are still relevant for discussions on quantitative easing and repurchase agreements, but the primary focus is on understanding how the Fed affects aggregate demand by adjusting interest on reserves.
Authors
-
Tyler Cowen
Tyler Cowen is Holbert C. Harris Professor of Economics at George Mason University. His latest book is Big Business. With Alex Tabarrok he co-writes the Marginal Revolution blog, often ranked as the #1 economics blog. He is also the author of Discover Your Inner Economist (Dutton, 2007) and numerous other books on economics. He writes regularly for the popular press on economics, including for The New York Times, The Washington Post, Forbes, and The Wilson Quarterly. University web page: http://economics.gmu.edu/faculty/tcowen.html WATCH: Tyler Cowen at the Economic Bloggers Forum.
-
Alex Tabarrok
Alex Tabarrok is Bartley J. Madden Chair in Economics at the Mercatus Center at George Mason University. Tabarrok is co-author with Tyler Cowen of the popular economics blog, Marginal Revolution. His recent research looks at bounty hunters, judicial incentives and elections, crime control, patent reform, methods to increase the supply of human organs for transplant, and the regulation of pharmaceuticals. He is the editor of the books, Entrepreneurial Economics: Bright Ideas from the Dismal Science; The Voluntary City: Choice, Community, and Civil Society; and Changing the Guard: Private Prisons and The Control of Crime. His papers have appeared in the Journal of Law and Economics, Public Choice, Economic Inquiry, Journal of Health Economics, Journal of Theoretical Politics, The American Law and Economics Review, Kyklos and many other journals. His popular articles have appeared in The New York Times, The Wall Street Journal, and many other magazines and newspapers.
Table of Contents
Preface
Chapter 1 The Big Ideas
Chapter 2 The Power of Trade and Comparative Advantage
Part I Supply and Demand
Chapter 3 Supply and Demand
Chapter 4 Equilibrium
Chapter 5 Elasticity and Its Applications
Chapter 6 Taxes and Subsidies
Part II The Price System
Chapter 7 The Price System: Signals, Speculation, and Prediction
Chapter 8 Price Ceilings and Floors
Chapter 9 International Trade
Chapter 10 Externalities: When the Price is Not Right
Part III Firms and Factor Markets
Chapter 11 Costs and Profit Maximization Under Competition
Chapter 12 Competition and the Invisible Hand
Chapter 13 Monopoly
Chapter 14 Price Discrimination and Price Strategy
Chapter 15 Oligopoly and Game Theory
Chapter 16 Networks, Platforms, and the Economics of "Free Goods"
Chapter 17 Monopolistic Competition and Advertising
Chapter 18 Labor Markets
Part IV Government
Chapter 19 Public Goods and the Tragedy of the Commons
Chapter 20 Political Economy and Public Choice
Chapter 21 Economics, Ethics, and Public Policy
Part V Decision Making for Businesses, Investors, and Consumers
Chapter 22 Managing Incentives
Chapter 23 Stock Markets and Personal Finance
Chapter 24 Asymmetric Information: Moral Hazard and Adverse Selection
Chapter 25 Consumer Choice
Part VI Economic Growth
Chapter 26 GDP and the Measurement of Progress
Chapter 27 The Wealth of Nations and Economic Growth
Chapter 28 Growth, Capital Accumulation, and the Economics of Ideas: Catching Up vs. the Cutting Edge
Chapter 29 Saving, Investment, and the Financial System
Part VII Business Fluctuations
Chapter 30 Unemployment and Labor Force Participation
Chapter 31 Inflation and the Quantity Theory of Money
Chapter 32 Business Fluctuations: Aggregate Demand and Supply
Chapter 33 Transmission and Amplification Mechanisms
Part VIII Macroeconomic Policy and Institutions
Chapter 34 The Federal Reserve System and Open Market Operations
Chapter 35 Monetary Policy
Chapter 36 The Federal Budget: Taxes and Spending
Chapter 37 Fiscal Policy
Part IX International Economics
Chapter 38 International Finance
Product Updates
Summer 2026 Updates
What's New
The Summer 2026 update brings new data activities, refreshed teaching resources, and extensive ebook revisions to help instructors teach economics with the latest research, policy developments, and real-world examples.
New in Achieve
- New F.R.E.D. (Federal Reserve Economic Data) activities that help students work with authentic economic data.
- Updated lecture slides featuring dynamic Datawrapper visualizations.
- Refreshed student and instructor resources aligned with the latest ebook revisions.
New in the eBook
Highlights
- Updated economic data throughout key microeconomics and macroeconomics chapters through 2024–2025.
- Expanded coverage of current policy issues, including U.S. tariffs, Chinese EV trade policy, AI and economic growth, and carbon pricing.
- Enhanced explanations of foundational concepts, including externalities, GDP, labor markets, inflation, monetary policy, and fiscal policy.
- Added new examples, figures, and real-world applications that connect economic theory to current events.
- Introduced new and updated discussions of Federal Reserve policy tools, labor markets, and international trade.
Chapter Updates
Major updates across the macroeconomics chapters improve clarity, incorporate current economic developments, and refresh data through 2024–2025. Highlights include:
- Updated examples and data on International Trade
- Updates to Externalities: When the Price Is Not Right
- Updated examples and data on Labor Markets
- Updates to GDP and the Measurement of Progress
- Updates to the Wealth of Nations and Economic Growth
- Updates to Growth, Capital Accumulation, and the Economics of Ideas
- Updated examples and data on Unemployment and Labor Force Participation
- Updates to Inflation and the Quantity Theory of Money
- Updates to the Federal Reserve System and Aggregate Demand
- Updates to Monetary Policy
- Updates to the Federal Budget: Taxes and Spending
- Updates to Fiscal Policy
December 2025 Update: Impact of AI Modules
The Impact of AI modules in Achieve are a flexible, text-agnostic series of assignable, auto-graded activities designed to help students learn how to use AI responsibly through the lens of economics. Formats include case studies, simulations, and prompt engineering exercises.
Winter 2024 Updates:
The updated Econ Math and Graphing Tutorials in Achieve bridge foundational math gaps for economics students through revamped, interactive modules featuring modern videos, algorithmically generated questions, and improved assessments designed to deepen understanding and reflection. Comprehensive accessibility features ensure that all students can effectively engage with the material.
This materials covers 10 foundational areas including Slope, Graphs, Percent Change, Ratios, Linear Equations, Averages, and more.
Sixth Edition Updates (2024):
Interactive Graphs, in the e-book and in a Graphing Bank, allow students to engage with economic models to see how components of the graph change as market dynamics change. Every data graph in the text is now interactive, so students can explore live visualizations and improve their data literacy.
Learning Economics from AI! (in the preface) show students how to use resources such as ChatGPT or Bing Chat to get meaningful answers to economics questions. The cover for 6e was generated by author Alex Tabarroks use of AI, as well.
12 NEW Marginal Revolution University Videos in Achieve accompanied by assessment questions.
Are free goods good? Surprisingly, the answer is "Not necessarily." In the chapter on Taxes and Subsidies, We contrast two strategies for making a good "free": 1) outlawing the sale of a good for money, i.e., mandating a zero-price ceiling, and 2) subsidizing production to such an extent that prices plummet to zero. In the first scenario, deadweight loss arises as society forfeits the value of transactions that never occur. In the second, deadweight loss results from excessive transactions where the marginal cost exceeds the marginal value.
The Great Depression is over: Modern Principles focuses on the Great Financial Crisis and the Pandemic Recession, exemplifying the core of macroeconomics and policy. These events showcase a demand-driven recession followed by a supply-driven one, well-illustrated by our dynamic AD-AS model. Focusing on these recessions also moves the lessons beyond the shifting of curves and towards important discussions of shadow banking, securitization, the microeconomics of externalities, and how monetary and fiscal policy must change when the goal – as during a pandemic -- is not to get people back to work!
The new tools of the Federal Reserve: In the sixth edition, the authors emphasize that although the Federal Reserves ultimate power is the power to create money, its daily influence on aggregate demand is accomplished through the payment of interest on reserves held at the Fed. Open market operations are still relevant for discussions on quantitative easing and repurchase agreements, but the primary focus is on understanding how the Fed affects aggregate demand by adjusting interest on reserves.
Teach the Principles of Economics, teach the World, and help students ACHIEVE.
Modern Principles helps students connect economic theory to the real world through engaging explanations, current examples, and integrated multimedia.
For more than 20 years, Tyler Cowen and Alex Tabarrok have made economics more accessible through their teaching, the Marginal Revolution blog, and educational videos. They bring that same approach to Modern Principles, pairing clear explanations with real-world applications and policy discussions that help students understand how economics shapes everyday decisions.
Building on the Marginal Revolution University video series, Modern Principles integrates more than 100 explanatory videos throughout the text. These videos reinforce key concepts, helping students visualize economic principles and strengthen their understanding.
Designed for today's learners, Modern Principles combines contemporary examples, real-world data, intuitive graphs, and accessible explanations while maintaining the rigor expected of a principles of economics course.
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Here’s why educators who use Achieve would recommend it to their peers.
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Tyler Cowen; Alex Tabarrok | Sixth Edition | ©2024 | ISBN:9781319482787
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MPS Order Search Tool (MOST) is a web-based purchase order tracking program that allows customers to view and track their purchases. No registration or special codes needed! Just enter your BILL-TO ACCT # and your ZIP CODE to track orders.
Canadian Stores: Please use only the first five digits/letters in your zip code on MOST.
Visit MOST, our online ordering system for booksellers: https://tracking.mpsvirginia.com/Login.aspx
Learn more about our Bookstore programs here: https://www.macmillanlearning.com/college/us/contact-us/booksellers
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Our courses currently integrate with Canvas, Blackboard (Learn and Ultra), Brightspace, D2L, and Moodle. Click on the support documentation below to find out more details about the integration with each LMS.
Integrate Macmillan courses with Blackboard
Integrate Macmillan courses with Canvas
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If you’re a verified instructor, you can request a free sample of our courseware, e-book, or print textbook to consider for use in your courses. Only registered and verified instructors can receive free print and digital samples, and they should not be sold to bookstores or book resellers. If you don't yet have an existing account with Macmillan Learning, it can take up to two business days to verify your status as an instructor. You can request a free sample from the right side of this product page by clicking on the "Request Instructor Sample" button or by contacting your rep. Learn more.
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Sometimes also referred to as a spiral-bound or binder-ready textbook, loose-leaf textbooks are available to purchase. This three-hole punched, unbound version of the book costs less than a hardcover or paperback book.
-
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-
Achieve (full course) includes our complete e-book, as well as online quizzing tools, multimedia assets, and iClicker active classroom manager.
Most Achieve Essentials courses do not include our e-books and adaptive quizzing.
Visit our comparison table for details: https://www.macmillanlearning.com/college/us/digital/achieve/compare
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Achieve (full course) includes our complete e-book, as well as online quizzing tools, multimedia assets, and iClicker active classroom manager.
Achieve Read & Practice only includes our e-book and adaptive quizzing, and does not include instructor resources and assignable assessments. Read & Practice does integrate with LMS.
Visit our comparison table for details: https://www.macmillanlearning.com/college/us/digital/achieve/compare
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We can help! Contact your representative to discuss your specific needs for your course. If our off-the-shelf course materials don’t quite hit the mark, we also offer custom solutions made to fit your needs.
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Modern Principles of Economics
Modern Principles helps students connect economic theory to the real world through engaging explanations, current examples, and integrated multimedia.
For more than 20 years, Tyler Cowen and Alex Tabarrok have made economics more accessible through their teaching, the Marginal Revolution blog, and educational videos. They bring that same approach to Modern Principles, pairing clear explanations with real-world applications and policy discussions that help students understand how economics shapes everyday decisions.
Building on the Marginal Revolution University video series, Modern Principles integrates more than 100 explanatory videos throughout the text. These videos reinforce key concepts, helping students visualize economic principles and strengthen their understanding.
Designed for today's learners, Modern Principles combines contemporary examples, real-world data, intuitive graphs, and accessible explanations while maintaining the rigor expected of a principles of economics course.
Select a demo to view:
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