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By Karl E. Case, Ray C. Fair, Sharon C. Oster

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Extra resources for Principles of Macroeconomics (10th Edition)

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Some societies receive much from previous generations—art, music, technical knowledge, beautiful buildings, and productive factories. Others are left with overgrazed, eroded land, cities leveled by war, or polluted natural environments. All societies face limits. economics The study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided. Economics is the study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided.

In the United States at the beginning of 2010 more than 15 million people who wanted to work could not find a job. Millions around the world found themselves with falling incomes and wealth. At any moment in time, every society faces constraints imposed by nature and by previous generations. Some societies are handsomely endowed by nature with fertile land, water, sunshine, CHAPTER OUTLINE Why Study Economics? p. 2 To Learn a Way of Thinking To Understand Society To Understand Global Affairs To Be an Informed Citizen The Scope of Economics p.

How have the roles of unions and management changed in recent years? Law and economics analyzes the economic function of legal rules and institutions. How does the law change the behavior of individuals and businesses? Do different liability rules make accidents and injuries more or less likely? What are the economic costs of crime? Public economics examines the role of government in the economy. What are the economic functions of government, and what should they be? How should the government finance the services that it provides?

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