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Economic Way of Thinking, The, 13th edition

  • Paul L. Heyne
  • Peter J. Boettke
  • David L. Prychitko

Published by Pearson (July 3rd 2013) - Copyright © 2014

13th edition

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The Economic Way of Thinking (Subscription)

ISBN-13: 9780133253818

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Table of contents

Chapter 1 The Economic Way of Thinking

Recognizing Order

The Importance of Social Cooperation

How Does It Happen?

An Apparatus of the Mind–The Skill of the Economist

Cooperation Through Mutual Adjustment


Rules of the Game

Property Rights as Rules of the Game

The Biases of Economic Theory: A Weakness or a Strength?

Biases or Conclusions?

The Skills of the Economist

Questions for Discussion


Chapter 2 Efficiency, Exchange and Comparative Advantage

Goods and Bads

The Myth of Material Wealth

Trade Creates Wealth

Is It Worth It? Efficiency and Values

Recognizing Trade-Offs: Comparing Opportunity Costs of Production

The Gains from Specialization and Exchange

Why Specialize?

From Individual Trade to International Trade, and Back Again

Transaction Costs

Incentives to Reduce Transaction Costs: Middlemen

Middlemen Create Information

Markets as Discovery Processes

The Big Picture:¿ First Thoughts on Economic Growth

Searching for an Explanation

The Evolution of Rules That Encourage Specialization and Exchange

Questions for Discussion


Chapter 3 Substitutes Everywhere: The Concept of Demand

On the Notion of “Needs”

Marginal Values

Forks in the Road:¿ Everyday Choices Are Marginal Choices

The Demand Curve

The Law of Demand

Demand and Quantity Demanded

Demand Itself Can Change

Everything Depends on Everything Else

Misperceptions Caused by Inflation

Time Is on Our Side

Price Elasticity of Demand

Thinking About Elasticity

Elasticity and Total Receipts

The Myth of Vertical Demand

What Role Should Demand Play?

Is Money All That Matters? Money Costs, Other Costs, and Economic Calculation

Questions for Discussion


Chapter 4 Cost and Choice: The Concept of Supply

Refresher on Opportunity Costs

Costs Are Tied to Actions, Not Things

What Do I Do Now? The Irrelevance of “Sunk Costs”

Producers’ Costs as Opportunity Costs

Marginal Opportunity Costs

Costs and Supply

The Supply Curve

Supply Itself Can Change

Marginal and Average Costs

The Cost of a Volunteer Military Force

Price Elasticity of Supply¿¿¿¿¿¿¿¿

Cost as Justification

Questions for Discussion


Chapter 5 Supply and Demand: A Pr

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