Economic Issues and Policy - 7th ed

This text is intended for a nontechnical, issues-oriented economics course, usually a 100-level

course at four-year universities. It is often a general education course. The book is also appropriate

for two-year colleges and other institutions, as well as economic education programs for

elementary and secondary teachers. Chapters are designed so that they can be taught in any

order after Chapter 1. Each chapter includes references to other chapters that mention similar

topics. Some of these references are provided in the “Roadmap” that begins each chapter.

The goal of this book is to make students aware of social issues in the world around them and to facilitate their understanding of these issues and related policy options from an economic perspective. The hope is this would inspire students to become involved with the issues in order to make this a better world.

Students are often unaware that the important issues of our day, even ones that directly affect

them—the environment, our healthcare system, our educational system, crime and drugs,

and matters as weighty as war and peace—are rooted in economics. Furthermore, students

often set aside as too complex the issues that are recognized as economic, such as unemployment

and infl ation or trade and budget defi cits. They believe that these issues are better left for

the experts. Students need to know that all of these issues are indeed relevant to them and

within their ability to understand. They need to comprehend these issues to make sound

choices and form intelligent opinions. Of course, before students are willing to commit themselves

to the lifelong learning of economics, they fi rst need to be convinced that it is relevant

to their lives and that it is interesting!