Principles of Economics
AuthorN. Gregory Mankiw
Published1997 (Harcourt)
ISBN0-030-27087-1

Principles of Economics[1] is an introductory economics textbook by Harvard economics professor N. Gregory Mankiw. It was first published in 1997 and has nine editions as of 2020.[2] The book was discussed before its publication for the large advance Mankiw received for it from its publisher Harcourt[3] and has sold over a million copies over its lifetime, generating Mankiw at least $42 million.[4] After criticism about the price from students Mankiw decided to donate the textbook royalties from his students to charity.[5]

Principles of Economics is the standard textbook for American economics departments' introductory classes.[6][7][8] The current publisher Cengage claims it is the "most popular economics textbook".[9]

10 Principles

The book introduces 10 principles of economics "that supposedly represent the heart of economic wisdom".[10][11]

They are listed by Mankiw as follows:

1. People face trade-offs

2. The cost of something is what you give up to get it

3. Rational people think at the margin

4. People respond to incentives

5. Trade can make everyone better off

6. Markets are usually a good way to organize economic activity

7. Governments can sometimes improve market outcomes

8. A country's standard of living depends on its ability to produce goods and services

9. Prices rise when the government prints too much money

10. Society faces a short-run tradeoff between Inflation and unemployment.

Peter Bofinger has criticized the book for creating the "impression that the economic principles explained correspond to a kind of economic consensus", which it denies.[12]

References

  1. ^ Mankiw, N. Gregory (January 2020). Principles of economics (Ninth ed.). Boston, MA: Cengage Learning. ISBN 978-0-357-03831-4. OCLC 1109789332.
  2. ^ Mankiw, N. Gregory. (1998). Principles of economics. Fort Worth, TX: Dryden Press. ISBN 0-03-098238-3. OCLC 37611615.
  3. ^ Nasar, Sylvia (1995-03-14). "A Hard Act to Follow? Here Goes". The New York Times. ISSN 0362-4331. Retrieved 2021-01-06.
  4. ^ Oregonian/OregonLive, Richard Read | The (2015-02-12). "A $280 college textbook busts budgets, but Harvard author Gregory Mankiw defends royalties". oregonlive. Retrieved 2020-03-18.
  5. ^ "After Criticism, Mankiw to Donate Textbook Royalties to Charity". The Harvard Crimson. Retrieved 2021-01-06.
  6. ^ Matthews, Dylan (2019-05-14). "The radical plan to change how Harvard teaches economics". Vox. Retrieved 2020-03-18.
  7. ^ Samuelson, Robert J. "Opinion | It's time we tear up our economics textbooks and start over". Washington Post. ISSN 0190-8286. Retrieved 2021-01-06.
  8. ^ "Play it again, Samuelson". The Economist. 1997-08-21. ISSN 0013-0613. Retrieved 2021-01-06.
  9. ^ "Principles of Economics, 9th Edition". Cengage. Retrieved 2021-01-06.
  10. ^ "Greg Mankiw's Ten Principles | New World Economics". newworldeconomics.com. Retrieved 2021-01-06.
  11. ^ "Mankiw's 10 Principles of Economics". Tom Spencer. 2011-11-23. Retrieved 2021-01-06.
  12. ^ Bofinger, Peter (2020-01-03). "Best of Mankiw: Errors and Tangles in the World's Best-Selling Economics Textbooks". Institute for New Economic Thinking. Retrieved 2021-01-06.

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