The study of economics should not be highly abstract, but closely related to real-world events. Principles of Economics in Context addresses this challenge, laying out the principles of micro-and macroeconomics in a manner that is thorough, up to date and relevant to students, keeping theoretical exposition close to experience. Emphasizing writing that is compelling, clear, and attractive to students, it addresses such critical concerns as ecological sustainability, distributional equity, the quality of employment, and the adequacy of living standards.

Key features include:

  • Clear explanation of basic concepts and analytical tools, with Discussion Questions at the end of each section, encouraging immediate review of what has been read and relating the material to the students’ own experience;
  • Full complement of instructor and student support materials online, including test banks and grading through Canvas;
  • Key terms highlighted in boldface throughout the text, and important ideas and definitions set off from the main text;
  • A glossary at the end of the book containing all key terms, their definitions, and the number of the chapter(s) in which each was first used and defined.

Updates for the second edition include:

  • Expanded coverage of topics including inequality, financialization and debt issues, the changing nature of jobs, and sustainable development;
  • New material on wage discrimination by race and gender; an expanded section on labor markets and immigration;
  • Updated discussion of fiscal policy to include more recent developments such as the Trump tax cuts;
  • New material on behavioral economics, public goods, and climate change policy; a new section on “The Economics of Renewable Energy.”

This new, affordable edition combines the just-released new editions of Microeconomics in Context and Macroeconomics in Context to provide an integrated full-year text covering all aspects of both micro-and macro-analysis and application, with many up-to-date examples and extensive supporting Web resources for instructors and students.


part I|82 pages

The Context for Economic Analysis

chapter 0|37 pages

Economics and Well-Being

chapter 1|15 pages

Economic Activity in Context

chapter 2|17 pages

Useful Tools and Concepts

chapter 3|11 pages

Markets and Society

part II|87 pages

Basic Economic Analysis

chapter 4|24 pages

Supply and Demand

chapter 5|18 pages


chapter 6|20 pages

Welfare Analysis

chapter 7|23 pages

International Trade and Trade Policy

part III|73 pages

Economics and Society

chapter 8|15 pages

Economic Behavior and Rationality

chapter 9|28 pages

Consumption and the Consumer Society

chapter 10|28 pages

Markets for Labor

part IV|93 pages

Essential Topics for Contemporary Economics

chapter 11|30 pages

Economic and Social Inequality

chapter 12|20 pages

Taxes and Tax Policy

chapter 13|23 pages

The Economics of the Environment

chapter 14|18 pages

Common Property Resources and Public Goods

part V|74 pages

Resources, Production, and Market Organization

chapter 15|14 pages

Capital Stocks and Resource Management

chapter 16|17 pages

Production Costs

chapter 17|19 pages

Perfectly Competitive Markets

chapter 18|22 pages

Markets with Market Power

part VI|115 pages

Macroeconomic Basics

part VII|142 pages

Macroeconomic Theory and Policy

chapter 24|27 pages

Aggregate Demand and Economic Fluctuations

chapter 25|22 pages

Fiscal Policy

chapter 26|17 pages

Money, Banking, and Finance

chapter 27|28 pages

The Federal Reserve and Monetary Policy

chapter 29|26 pages

The Global Economy and Policy

part VIII|102 pages

Macroeconomic Issues and Applications

chapter 31|21 pages

Deficits and Debt

chapter 32|24 pages

How Economies Grow and Develop