Modern Principles of Economics

Modern Principles of Economics

Sixth Edition  ©2024 Tyler Cowen; Alex Tabarrok Formats: Digital & Print


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    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: WATCH: Tyler Cowen at the Economic Bloggers Forum.

  • Photo of Betsey Stevenson

    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

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

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.

For over 20 years, Tyler Cowen and Alex Tabarrok have made economics engaging and accessible—from their hugely influential economics blog, Marginal Revolution, to their game-changing economics videos.They bring that same refreshing approach to their innovative principles of economics textbook.

Modern Principles sets a new standard for introductory economics. Building on the runaway success of their Marginal Revolution University video series, Cowen and Tabarrok integrate over 100 superb explanatory videos throughout the textbook. The videos bring key concepts to life, allowing students to visualize core economic principles in action.

The textbook itself is crafted to focus on the ideas, examples and applications today's students care about. Real-world data and pressing policy debates show how economics can solve problems and enable better decision making. Accessible explanations and intuitive graphs make even complex concepts understandable. The textbook is designed for contemporary students while retaining the academic rigor of the dismal science.

For an introduction to economics that's truly modern, there's only one choice—Modern Principles from Tyler Cowen and Alex Tabarrok. Let the masters of popular economics education put their decades of teaching expertise to work for you and your students.

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Tyler Cowen; Alex Tabarrok | Sixth Edition | ©2024 | ISBN:9781319482787

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