Essentials of Economics 3/e

For Survey of Economics courses at four- and two-year colleges and universities.
Learn economics through real business examples.
The number-one question students of economics ask themselves is, "Why am I here, and will I ever use this?" Hubbard/O'Brien answers this question by demonstrating that real businesses use economics to make real decisions everyday. This is something all students can connect to, whether they're business majors or not, because students encounter businesses in their daily lives. And regardless of their future career path—opening an art studio, doing social work, trading on Wall Street, working for the government, or bartending at the local pub—students will benefit from understanding the economic forces behind their work.

•Solved Problems throughout the text provide models of how to solve an economic problem by breaking it down step-by-step. Each solved problem includes a problem statement, delineated steps to solve the problem, a graph, and a "Your Turn" feature directing students to a related end-of-chapter problem(s) for immediate practice. This keeps students focused on the main ideas of each chapter, and prevents them from getting bogged down due to a lack of basic math or "word problem" skills.

•MyEconLab integrated throughout brings the text to life for students just when they need it. Through MyEconLab students can access additional, interactive versions of the problems they're working to ensure their mastery of the concepts.
•Real-world business chapter opening cases set a real context for learning, spark students' interest, and provide a unifying theme for the chapter by showing how the economic concepts about to be learned impact a real business.
•Chapter Examples and Figures consistently revisit the business discussed in the opener and use that business (or industry) to motivate the economic principles.
•An Inside Look ends each chapter with a newspaper article illustrating how a key principle in the chapter was used by the chapter-opening case company to make a real business decision. The authors provide an analysis of the article, corresponding graph (s), and Thinking Critically exercises.

New To This Edition
•The new chapter on The Economics of Health Care covers:
◦Health care around the world
◦Information problems and externalities in the market for health care
◦The Patient Protection and Affordable Care Act in the United States
•There is new coverage of the slow recovery from the recession and financial crisis of 2007–2009.
•There is new coverage of initiatives by the Federal Reserve, including quantitative easing and Operation Twist.
•There is new coverage of fiscal policy, including analysis of the debate over fiscal stimulus and the magnitude of multipliers for government spending and taxes.
•All companies in the chapter-openers have been replaced with new companies or updated with current information.
•All chapters include new An Inside Look newspaper articles and analyses to help students apply economic thinking to current events and policy debates.
•There are new Making the Connection features to help students tie economic concepts to current events and policy issues.
•Figures and tables have been updated, using the latest data available.
•Many of the end-of-chapter problems have been either replaced or updated.

R. Glenn Hubbard - Columbia University

Anthony P. O'Brien - Lehigh University

PART 1:  INTRODUCTION
Chapter 1: Economics: Foundations and Models
Appendix: Using Graphs and Formulas
Chapter 2: Trade-offs, Comparative Advantage, and the Market System
Chapter 3: Where Prices Come From: The Interaction of Demand and Supply
PART 2:  MARKETS IN ACTION: POLICY AND APPLICATIONS
Chapter 4: Market Efficiency and Market Failure 
Chapter 5: The Economics of Healthcare
PART 3:  MICROECONOMIC FOUNDATIONS: CONSUMERS AND FIRMS
Chapter 6: Firms, the Stock Market, and Corporate Governance
Chapter 7: Consumer Choice and Elasticity 
Chapter 8: Technology, Production, and Costs
PART 4: MARKET STRUCTURE AND FIRM STRATEGY
Chapter 9: Firms in Perfectly Competitive Markets
Chapter 10: Monopoly and Antitrust
Chapter 11: Monopolistic Competition and Oligopoly
PART 5:  MACROECONOMIC FOUNDATIONS
Chapter 12: GDP: Measuring Total Production and Income
Chapter 13: Unemployment and Inflation
PART 6:  LONG-RUN AND SHORT-RUN FLUCTUATIONS
Chapter 14: Economic Growth, the Financial System and Business Cycles
Chapter 15: Aggregate Demand and Aggregate Supply Analysis
Appendix: Schools of Macro Thought
PART 7: MONETARY AND FISCAL POLICY
Chapter 16: Money, Banks, and the Federal Reserve System
Chapter 17: Monetary Policy
Chapter 18: Fiscal Policy
Chapter 19: Comparative Advantage, International Trade, and Exchange Rates