Basic Economics
Basic Economics is the bestselling citizen's guide to economics. It is specially written for those who want to understand how the economy works but have no interest in jargon or equations. It explains the general principles underlying different economic systems: capitalist, socialist, and feudal, to name a few. In readable language, Basic Economics shows how to critique economic policies in terms of the incentives they create, rather than the goals they proclaim. It comes with clear explanations of the entire field, from rent control and the rise and fall of businesses to the international balance of payments.
Basic Economics: Fifth Edition includes a new chapter explaining the reasons for large differences of wealth and income between nations.
This book is focused on how societies create prosperity or poverty for their people by the way they organize their economies.
The six main parts of the book cover Prices and Markets, Industry and Commerce, Work and Pay, Time and Risk, The National Economy, and The International Economy. The revised edition concludes with a new section, Special Economic Issues.
It includes discussions about the role of prices, incentives, competition, the consequences of price controls, costs as forgone alternatives, trade-offs and substitutes, taxes, and subsidies.
Sowell also presents arguments about the social and economic consequences of minimum wages, and questions of income distribution, mobility, and poverty.
TABLE OF CONTENTS
Preface
Acknowledgments
Chapter 1: What is Economics?
PART I - PRICES AND MARKETS
Chapter 2: The Role of Prices
Chapter 3: Price Controls
Chapter 4: An Overview of Prices
PART II - INDUSTRY AND COMMERCE
Chapter 5: The Rise and Fall of Businesses
Chapter 6: The Role of Profits - and Losses
Chapter 8: Regulation and Antitrust Laws
PART III - WORK AND PAY
Chapter 10: Productivity and Pay
Chapter 11: Minimum Wages Laws
Chapter 12: Special Problems in Labor Markets
PART IV - TIME AND RISK
Chapter 13: Investment
Chapter 15: Special Problems of Time and Risk
PART V - THE NATIONAL ECONOMY
Chapter 16: National Output
Chapter 17: Money and the Banking System
Chapter 18: Government Functions
Chapter 19: Government Finance
Chapter 20: Special Problems in the National Economy
PART VI - THE INTERNATIONAL ECONOMY
Chapter 21: International Trade
Chapter 22: International Transfers of Wealth
Chapter 23: International Disparities in Wealth
PART VII - SPECIAL ECONOMIC ISSUES
Chapter 24: Myths about Markets
Chapter 25: "Non-Economic" Values
Chapter 27: Parting Thoughts
Questions
Notes