James D. Gwartney - Macroeconomics: private and public choice

These keys to the economic prosperity of a nation are highlighted throughout the text.

1. Human Ingenuity . Economic goods are the result of human ingenuity and action; thus, the size of the economic pie is variable, not fixed. [Economics ]

2. Private Ownership . Private ownership provides people with a strong incentive to take care of things and develop resources in ways that are highly valued by others. [Economics ]

3. Gains from Trade . Trade makes it possible for individuals to generate more output through specialization and division of labor, large-scale production processes, and the dissemination of improved products and production methods. [Economics ]

4. Invisible Hand Principle . Market prices coordinate the actions of self-interested individuals and direct them toward activities that promote the general welfare. [Economics ]

5. Profits and Losses . Profits direct producers toward activities that increase the value of resources; losses impose a penalty on those who reduce the value of resources. [Economics ]

6. Competition . Competition motivates businesses to produce efficiently, cater to the views of consumers, and search for innovative improvements. [Economics Chapter 22; Microeconomics ]

7. Entrepreneurship . The entrepreneurial discovery and development of improved products and production processes is a central element of economic progress. [Economics Chapter 23; Microeconomics ]

8. Productivity and Earnings . In a market economy, productivity and earnings are closely linked. In order to earn a large income, one must provide large benefits to others. [Economics Chapter 26; Microeconomics ]

9. Innovation and the Capital Market . If the potential gains from innovative ideas and human ingenuity are going to be fully realized, it must be relatively easy for individuals to try their innovative and potentially ingenious ideas, but difficult to continue if the idea is a bad one. [Economics Chapter 27; Microeconomics ]

10. Price Stability . Maintenance of price stability is the essence of sound monetary policy; price stability provides the foundation for both economic stability and the efficient operation of markets. [Economics ]

11. International Trade . When people are permitted to engage freely in international trade, they are able to achieve higher income levels and living standards than would otherwise be possible. [Economics ]

12. Role of Government . Governments promote economic progress when they protect individuals and their property, enforce contracts impartially, provide access to money of stable value, avoid high taxes and excessive regulation, and foster competitive markets and free international trade. [Economics ]

MICROECONOMICS

PRIVATE AND PUBLIC CHOICE
FOURTEENTH EDITION

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MICROECONOMICS

PRIVATE AND PUBLIC CHOICE
FOURTEENTH EDITION

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JAMES D. GWARTNEY
Florida State University

RICHARD L. STROUP
Montana State University

RUSSELL S. SOBEL
West Virginia University

DAVID A. MACPHERSON
Trinity University, San Antonio TX

Australia Brazil Japan Korea Mexico Singapore Spain United Kingdom United States

Macroeconomics: Private and Public Choice, Fourteenth Edition

James D. Gwartney
Richard L. Stroup
Russell S. Sobel
David A. Macpherson

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