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Pearson Education
Survey of Economics : Principles and Tools / Edition 1

Survey of Economics : Principles and Tools / Edition 1


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Product Details

ISBN-13: 9780130601438
Publisher: Pearson Education
Publication date: 01/01/2002
Edition description: Older Edition
Pages: 420
Product dimensions: 7.86(w) x 10.06(h) x 0.69(d)

Table of Contents

1. Principles of Economics.
2. Supply, Demand, and Market Equilibrium.
3. Elasticity: A Measure of Responsiveness.
4. Production and Cost.
5. Perfect Competition: Short Run and Long Run.
6. Monopoly.
7. Monopolistic Competition, Oligopoly, and Antitrust.
8. Public Goods, Spillovers, and Imperfect Information.
9. The Labor Market.
10. Measuring a Nation's Production and Income.
11. Unemployment and Inflation.
12. Why Do Economies Grow?
13. Aggregate Demand and Aggregate Supply.
14. Keynesian Economics and Fiscal Policy.
15. Money, the Banking System, and the Federal Reserve.
16. Monetary Policy and Inflation.
17. International Trade and Finance.


Our Story

When we set out to write an economics text, we were driven by the vision of the sleeping student. A few years ago, one of the authors was in the middle of a fascinating lecture on monopoly pricing when he heard snoring. It wasn't the first time a student had fallen asleep in one of his classes, but this was the loudest snoring he had ever heard—it sounded like a sputtering chain saw. The instructor turned to Bill, who was sitting next to the sleeping student and asked, "Could you wake him up?" Bill looked at the sleeping student and then gazed theatrically around the room at the other students. He finally looked back at the instructor and said, "Well professor, I think you should wake him up. After all, you put him to sleep."

That experience changed the way we taught economics. It highlighted for us a basic truth—for many students, economics isn't exactly exciting. We took this as a challenge—to get first-time economics students to see the relevance of economics to their lives, their careers, and their futures.

In order to get students to see the relevance of economics we knew that we had to engage them. With the first and second editions of Economics: Principles and Tools, we helped professors to do that by emphasizing an active learning approach. We engaged students by teaching them how to do something—economic analysis. We kept the book brief, lively, and to the point, and used the five key principles of economics as an organizing theme.

One Semester Book

Our full length text was a success in the classrooms across the country. But many schools and universitiesteach a one semester course in economics, which covers both microeconomics and macroeconomics. While instructors can successfully choose material from our full length text for a one-semester course it would be much more valuable to the instructors and students if there were a dedicated one-semester book to meet their needs.

Our objective was to develop a one-semester book that preserved the key features of Economics: Principles and Tools. We know we had the right ingredients. Our book was unified by the repeated use of key principles of economics, which stressed the unity of economic thinking. Our style was also right: the text was brief, lively, and fully accessible to students.

In creating a one-semester book, we remained true to our basic teaching philosophy: an introductory course in economics should be taught as if it were the last economics class a student will ever take. Because this is true for most students, we just have an opportunity to teach them how to do economics. The best way to teach economics is to focus on a few key concepts and ideas and apply them repeatedly in different circumstances.

In designing the one-semester book, we knew we had to focus on just the absolute essentials. In microeconomics, we start with the five key principles of economics and move quickly into the heart of microeconomics—supply and demand. We then turn to production and cost, competition and market structure, market failures, and the labor market. Macroeconomics begins with chapters that introduce national income, unemployment, and inflation. We then focus on the importance of long run economic growth and introduce economic fluctuations. We cover monetary and fiscal policy, both in the long run and the short run. The book concludes with international trade and finance.

We worked hard to make every explanation of key ideas and key concepts as simple as possible. In a one semester course, the student will be introduced to a wide range of ideas. It is important that these ideas be as straightforward and transparent as possible.

Principles And Tools

In keeping with the themes of relevance and student accessibility, we have organized our text around the five key principles of economics. Throughout the text, every point of theory is tied back to the five key principles and is indicated by the key symbol.

  1. The Principle of Opportunity Cost. The opportunity cost of something is what you sacrifice to get it.
  2. The Marginal Principle. Pick the level of an activity at which the marginal benefit equals the marginal cost.
  3. The Principle of Diminishing Returns. If we increase one input while holding the other inputs fixed, output will increase, but at a decreasing rate.
  4. The Spillover Principle. In some circumstances, decision makers do not bear all the cost or experience all the benefits from their decision.
  5. The Reality Principle. What matters to people is the real value of money or income—its purchasing power—not the face value of money or income.

We use these principles to explain the logic underpinning the most important tools of economics. By using these five principles repeatedly, we reveal the logic of economic reasoning and demystify the tools of economics. Students see the big picture and also learn how to use the tools of economics properly.

"What I Do, I Understand" — Confucius

Our book is based on Active Learning, a teaching approach based on the idea that students learn best by doing. Our book engages students by letting them do activities as they read. We implement Active Learning with the following features:

  • Economic Detective exercises provide a few clues and then ask the student to solve the economic mystery.
  • Using the Tools questions at the end of each chapter give students opportunities to do their own economic analysis. Complete answers appear at the end of each chapter.
  • Economic Experiments actively involve the student in role-playing as consumers, producers, and policy makers. All these activities are designed to be fun for students and easy for professors, who decide when and how to use them.
  • Test Your Understanding questions help students determine whether they understand the preceding material before continuing. These are straightforward questions that ask students to review and synthesize what they have read. Complete answers appear at the end of each chapter.
  • Chapter-opening stories open each chapter and motivate the chapter's subject matter.
  • Each chapter starts with a list of practical questions that are answered in the chapter.
  • Lively Examples are integrated throughout the text and help bring economic concepts to life. We have hundreds of fresh, new examples in this edition.
  • A Closer Look boxes are featured throughout the text and provide brief, interesting examples of the tools and concepts discussed in the text.

The Teaching And Learning Package

Each component of the teaching and learning package has been carefully crafted to ensure that the introductory economics course is a rewarding experience for both students and instructors. Each component of the teaching and learning package has been carefully crafted to ensure that the introductory economics course is a rewarding experience for both students and instructors. Fernando Quijano of Dickinson State University and Yvonne Quijano have carefully adapted each of the supplements that accompany Economics: Principles and Tools, 2/e to create a complete, book-specific package for Survey of Economics: Principles and Tools.

Technology Supplements

Prentice Hall Test Manager, Version 4.1

The Test Bank was designed for use with the Prentice Hall Test Manager, a computerized package that allows instructors to custom design, save, and generate classroom tests. The test program (in PC Windows and Macintosh formats) permits instructors to edit, add, or delete questions from the test banks; edit existing graphics and create new graphics; analyze test results; and organize a database of tests and student results.

Active Learning CD-ROM

This interactive student CD-ROM, created by Stephen Perez of Washington State University, in conjunction with Gregory M. Werner, Inc., includes self-assessment quizzes for each chapter, a tutorial walk-through of the key graphs in the text, and a Graph Builder application. The CD-ROM features over fifty Active Graphs selected from key figures in the text and referenced with an icon: which allow students to manipulate variables in the graphs and note the changes and effects. A graph-assessment quiz follows each Active Graph. The Active Learning CD-ROM also links the student to PHLIP/CW Web site.

PowerPoint Presentation

This lecture presentation tool, prepared by Fernando Quijano of Dickinson State University, offers outlines and summaries of important text material, tables and graphs that build, and additional exercises. The PowerPoint Presentation is downloadable from the O'Sullivan/Sheffrin Web site.

ABC/Prentice Hall Video Library

Prentice Hall and ABC News have combined their experience in academic publishing and global reporting to provide a comprehensive video ancillary to enhance our principles of economics texts. Through its wide variety of award-winning programs, such as Nightline, This Week With David Brinkley, World News Tonight, and 20/20 – ABC offers a resource for feature and documentary-style videos related to the chapters in the text. The programs have extremely high production quality, present substantial content, and are hosted by well-versed, well-known anchors.

Prentice Hall's Learning on the Internet Partnership/myPHLIP

myPHLIP is a content-rich, multidisciplinary Web site with Internet exercises, activities, and resources related specifically to Survey of Economics: Principles and Tools. New Internet resources are added every two weeks by a team of economics professors to provide both the student and the instructor with the most current, up-to-date resources available.

Current Events Articles and Exercises, related to topics in each chapter, are fully supported by group activities, critical-thinking exercises, and discussion questions. These articles, from current news publications to economics-related publications, help show students the relevance of economics in today's world.

The Online Study Guide prepared by Leonie Stone of SL1NY Geneseo offers students another opportunity to sharpen their problem-solving skills and to assess their understanding of the text material. The Online Study Guide for 0'Sullivan/Sheffrin contains two levels of quizzes: definitional and applied. Each level includes 10 to 15 multiple-choice, true/false, and 2 essay questions per chapter. The Online Study Guide grades each question submitted by the student, provides immediate feedback for correct and incorrect answers, and allows students to e-mail results to up to four e-mail addresses.

The myPHLIP site also links the student to the Take it to the Net exercises featured in the textbook. These Web-destination exercises are keyed to each chapter and direct the student to an appropriate, updated, economics related Web site to gather data and analyze a specific economic problem.

For the instructor, myPHLIP offers resources such as the Syllabus Manager, answers to Current Events and Internet exercises, and a Faculty Lounge area including teaching resources and faculty chat rooms. From the myPHLIP web site, instructors can also download supplements and lecture aids, including the Instructor's Manuals and PowerPoint Presentations. Instructors should contact their Prentice Hall sales representative to get the necessary username and password to access the faculty resources on myPHLIP.

On-line Course Offerings


Developed by educators, WebCT provides faculty with easy-to-use Internet tools to create on-line courses. Prentice Hall provides the content and enhanced features to help instructors create a complete on-line course.


Easy to use, Blackboard's single template and tools make it easy to create, manage, and use on-line course materials. Instructors can create on-line courses using the Blackboard tools, which include design, communication, testing, and course management tools.


This customizable, interactive online course management tool powered by Blackboard, provides the most intuitive teaching and learning environment available. Instructor's can communicate with students, distribute course material, and access student progress online.

CourseCompass with Ebook

Provides the features of CourseCompass along with an electronic version of the textbook. The addition of digital textbooks to CourseCompass gives instructors greater choice and flexibility as they design and build their online courses. With this feature, students can remain online and use an eBook for all of their online assignments.

Print Supplements

Test Bank

We've assembled a team of dedicated educators to edit, write, review, and accuracy check the over 7,000 multiple-choice questions in both the test bank.

The Test Bank, prepared by Sheryl Ball and Mark McLeod, both of Virginia PolyTechnic University, and Mary Lesser of Iona College, offers multiple-choice, true/false, short answer, and problem questions. Each question is keyed by degree of difficulty (easy, moderate, or hard), page reference, and type of question (comprehension, knowledge or application/analysis). It contains a wealth of new questions and totally new graphs.

The authors worked together and with a team of technical reviewers to follow a strict formula of screening, analysis, and assessment of every test question. Linda Ghent and Jeffrey DeSimone, both of East Carolina University, Peggy Crane of Southwestern College, and James Swofford of University of South Alabama, contributed to a continuous technical Teview and numerous accuracy checks of both test banks.

Instructor's Manual

The Instructor's Manual, prepared by Stephen Perez of Washington State University, and Leonie Stone of SUNY, Geneseo, reflect the textbook's organization, incorporating policy problems in case studies, exercises, extra questions, and useful Internet links. The manuals also provide detailed outlines (suitable for use as lecture notes) and solutions to all questions in the textbook.

The Instructor's Manual contains by chapter: a summary, an outline, opening questions, examples for class discussion, teaching tips, extended examples, problems and discussion questions, test your understanding questions, Internet exercises, and tips for classroom experiments.

It also incorporates a Video Guide for the clips available in the Video Library. The guide provide a summary of the clips, running time, teaching notes, and discussion questions, as well as useful tips on how to use the clip in class. Each video is keyed to the appropriate topic in the text.

Study Guide

The Study Guide, prepared by Janice Boucher Breuer of University of South Carolina, emphasizes the practical application of theory. It is a practicum designed to promote comprehension of economic principles and develop each student's ability to apply them to different problems.

The Study Guide contains by chapter: an overview of the corresponding chapter in the textbook, a checklist to provide a quick summary of material covered in the textbook and lectures, a list of key terms, practice exams, and the detailed answer keys. Integrated throughout the Study Guide are Performance Enhancing Tips (PETS), which are designed to help students understand economics by applying the principles and promoting analytical thinking.

Two practice exams, featuring both multiple-choice and essay questions, are included at the end of each chapter. Both exams require students to apply one or more economic principles to arrive at each correct answer. Full solutions to the multiple-choice questions are included, not only listing each correct answer but also explaining in detail why one answer is correct and the others are not. Detailed answers to the essay questions are also provided.

Using Experiments, Cases, and Activities in the Classroom, 2/e

Prepared by Dirk Yandell of the University of San Diego, this manual contains experiments that illustrate topics such as positive vs. normative economics and monopoly. The experiments include tables and charts, in addition to an overview, learning objectives, a list of preparations and materials needed, a detailed What to Do section, an analysis of the results, and questions that require students to interpret and analyze the material.

The Wall Street Journal Print and Interactive Editions

Prentice Hall has formed a strategic alliance with The Wall Street Journal, the most respected and trusted daily source for information on business and economics. For a small additional charge, Prentice Hall offers your students a 10-week subscription to The Wall Street Journal print edition and The Wall Street Journal Interactive Edition. Adopting professors will receive a free subscription of both the print and interactive version as well as weekly subject-specific Wall Street Journal educators' lesson plans.

The Financial Times Subscription

We are pleased to announce a special partnership with The Financial Times. For schools that adopt a special package including the book and subscription supplement, instructors will receive a complimentary one-year personal subscription and students will receive a 15-week print subscription. Please contact your Prentice Hall representative for details and ordering information. Subscription

Through a special arrangement with, upon adoption of the book and subscription supplement package, professors will receive a six-month subscription to the online version. Students get a twelve-week subscription to the on-line version. Please contact your Prentice Hall representative for further details and ordering information.

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