Economics 11th Edition John Sloman instant access

2025

Order now at ebookultra.com

( 4.4/5.0 ★ | 430 downloads )

https://ebookultra.com/download/economics-11th-edition-john-sloman/
 Economics 11th Edition John Sloman

EBOOK

Available Formats

■ PDF eBook Study Guide Ebook

EXCLUSIVE 2025 ACADEMIC EDITION – LIMITED RELEASE

Available Instantly Access Library

 We believe these products will be a great fit for you. Click
the link to download now, or visit ebookultra.com
to discover even more!

Practical Cookery 11th ed 11th Edition John Campbell

https://ebookultra.com/download/practical-cookery-11th-ed-11th-
edition-john-campbell/

International Economics Available Titles CengageNOW 11th

Edition Robert Carbaugh

https://ebookultra.com/download/international-economics-available-
titles-cengagenow-11th-edition-robert-carbaugh/

Statistics for Business and Economics 11th Edition David

R. Anderson

https://ebookultra.com/download/statistics-for-business-and-
economics-11th-edition-david-r-anderson/

Media of Mass Communication 11th Edition John Vivian

https://ebookultra.com/download/media-of-mass-communication-11th-
edition-john-vivian/
Current Surgical Therapy 11th Edition John L. Cameron

https://ebookultra.com/download/current-surgical-therapy-11th-edition-
john-l-cameron/

Organizational Behavior 11 e 11th Edition John R.

Schermerhorn Jr

https://ebookultra.com/download/organizational-behavior-11-e-11th-
edition-john-r-schermerhorn-jr/

Social Economics of Health Care Advances in Social

Economics 1st Edition John Davis

https://ebookultra.com/download/social-economics-of-health-care-
advances-in-social-economics-1st-edition-john-davis/

Options Futures and Other Derivatives Solutions Manual

11th Edition John C. Hull

https://ebookultra.com/download/options-futures-and-other-derivatives-
solutions-manual-11th-edition-john-c-hull/

Causal Models How People Think about the World and Its
Alternatives 1st Edition Steven Sloman

https://ebookultra.com/download/causal-models-how-people-think-about-
the-world-and-its-alternatives-1st-edition-steven-sloman/
 ECONOMICS

F01 Economics 05339.indd 1 10/11/2021 16:54

 At Pearson, we have a simple mission: to help people
make more of their lives through learning.

We combine innovative learning technology with trusted

content and educational expertise to provide engaging
and effective learning experiences that serve people
wherever and whenever they are learning.

From classroom to boardroom, our curriculum materials, digital

learning tools and testing programmes help to educate millions
of people worldwide – more than any other private enterprise.

Every day our work helps learning flourish, and

wherever learning flourishes, so do people.

To learn more, please visit us at www.pearson.com/uk

F01 Economics 05339.indd 2 10/11/2021 16:54

 ECONOMICS
Eleventh edition

John Sloman
The Economics Network, University of Bristol
Visiting Professor, University of the West of England

Dean Garratt
Aston Business School
Aston University

Jon Guest
Aston Business School
Aston University

Harlow, England • London • New York • Boston • San Francisco • Toronto • Sydney
Dubai • Singapore • Hong Kong • Tokyo • Seoul • Taipei • New Delhi
Cape Town • São Paulo • Mexico City • Madrid • Amsterdam • Munich • Paris • Milan

F01 Economics 05339.indd 3 10/11/2021 16:54

 PEARSON EDUCATION LIMITED
KAO Two
KAO Park
Harlow CM17 9NA
United Kingdom
Tel: +44 (0)1279 623623
Web: www.pearson.com/uk

Previously published 1991, 1994, 1995, 1997, 1998, 2000, 2003, 2006, 2009 (print); 2012, 2015, 2018
(print and electronic)
Eleventh edition published 2022 (print and electronic)

© John Sloman 1991, 2006 (print)

© John Sloman, Alison Bird and Mark Sutcliffe 1994, 1997 (print)
© John Sloman, Alison Sloman and Mark Sutcliffe 2000, 2003 (print)
© John Sloman and Alison Wride 2009 (print)
© John Sloman, Alison Wride and Dean Garratt 2012, 2015 (print and electronic)
© John Sloman, Dean Garratt and Jon Guest 2018, 2022 (print and electronic)

The rights of John Sloman, Dean Garratt and Jon Guest to be identified as author of this work have
been asserted by them in accordance with the Copyright, Designs and Patents Act 1988.

The print publication is protected by copyright. Prior to any prohibited reproduction, storage in a
retrieval system, distribution or transmission in any form or by any means, electronic, mechanical,
recording or otherwise, permission should be obtained from the publisher or, where applicable, a
licence permitting restricted copying in the United Kingdom should be obtained from the Copyright
Licensing Agency Ltd, Barnard’s Inn, 86 Fetter Lane, London EC4A 1EN.

The ePublication is protected by copyright and must not be copied, reproduced, transferred,
distributed, leased, licensed or publicly performed or used in any way except as specifically permitted
in writing by the publishers, as allowed under the terms and conditions under which it was purchased,
or as strictly permitted by applicable copyright law. Any unauthorised distribution or use of this text
may be a direct infringement of the authors’ and the publisher’s rights and those responsible may be
liable in law accordingly.

All trademarks used herein are the property of their respective owners. The use of any trademark in this
text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor
does the use of such trademarks imply any affiliation with or endorsement of this book by such
owners.

Pearson Education is not responsible for the content of third-party internet sites.

ISBN: 978-1-292-40533-9 (print)

978-1-292-40539-1 (PDF)
978-1-292-40540-7 (ePub)

British Library Cataloguing-in-Publication Data

A catalogue record for the print edition is available from the British Library

Library of Congress Cataloging-in-Publication Data

Names: Sloman, John, 1947- author. | Garratt, Dean, 1970- author. | Guest,
Jon, author.
Title: Economics / John Sloman, The Economics Network, University of
Bristol Visiting Professor, University of the West of England, Dean
Garratt, Aston Business School, Aston University, Jon Guest, Aston
Business School, Aston University,
Description: Eleventh edition. | New York, NY : Pearson Education, 2022. |
Revised edition of Economics, [2017] | Includes bibliographical
references and index. | Summary: “Now in its 10th edition, Economics by
Sloman, Garratt & Guest is known and loved for its active learning,
student-friendly approach and unrivalled lecturer and student support.
Ithas been specially updated for 2020/21 to take into account the latest
developments in the global economy, including the effects of the
Covid-19pandemic”-- Provided by publisher.
Identifiers: LCCN 2021040149 (print) | LCCN 2021040150 (ebook) | ISBN
9781292405339 (paperback) | ISBN 9781292405407 (ebook) | ISBN
9781292405391 (adobe pdf)
Subjects: LCSH: Economics.
Classification: LCC HB171.5 .S635 2022 (print) | LCC HB171.5 (ebook) |
DDC 330--dc23
LC record available at https://lccn.loc.gov/2021040149
LC ebook record available at https://lccn.loc.gov/2021040150

10 9 8 7 6 5 4 3 2 1
26 25 24 23 22

Cover design by Kelly Miller

Cover image © w3DProfi / Shutterstock

Print edition typeset in 8/12 pt Stone Serif ITC Pro by Straive

Printed in Slovakia by Neografia

NOTE THAT ANY PAGE CROSS REFERENCES REFER TO THE PRINT EDITION

F01 Economics 05339.indd 4 10/11/2021 16:54

 About the Authors

John Sloman is Visiting Fellow and Jon Guest of Economics for Business (Pearson Education,
at the University of Bristol and 8th edition 2019); and with Elizabeth Jones of Essential Eco-
Associate of the Economics Net- nomics for Business (Pearson Education, 6th edition 2020).
work (www.economicsnetwork. Translations or editions of the various books are available
ac.uk), a UK-wide organisation, for a number of different countries with the help of
where, until his retirement in co-authors around the world.
2012, he was Director. The Eco- John is very interested in promoting new methods of
nomics Network is based at the teaching economics, including group exercises, experi-
University of Bristol and pro- ments, role playing, computer-aided learning and the use of
vides a range of services designed audience response systems and podcasting in teaching. He
to promote and share good prac- has organised and spoken at conferences for both lecturers
tice in learning and teaching economics. The Network is sup- and students of economics throughout the UK and in many
ported by grants from the Royal Economic Society, the other countries.
Scottish Economic Society and university economic depart- As part of his work with the Economics Network he has
ments and units from across the UK. contributed to its two sites for students and prospective
John is also Visiting Professor at the University of the students of economics: Studying Economics (www.study-
West of England, Bristol, where, from 1992 to 1999, he was ingeconomics.ac.uk/) and Why Study Economics? (http://
Head of School of Economics. He taught at UWE until 2007. whystudyeconomics.ac.uk).
John has taught a range of courses, including economic From March to June 1997, John was a visiting lecturer at
principles on Economics, Social Science and Business Stud- the University of Western Australia. In July and August
ies degrees, development economics, comparative economic 2000, he was again a visiting lecturer at the University of
systems, intermediate macroeconomics and managerial eco- Western Australia and also at Murdoch University in Perth.
nomics. He has also taught economics on various profes- In 2007, John received a Lifetime Achievement Award as
sional courses. ‘outstanding teacher and ambassador of economics’, pre-
John is the co-author with Dean Garratt of Essentials of sented jointly by the Higher Education Academy, the Gov-
Economics (Pearson Education, 8th edition 2019); with ernment Economic Service and the Scottish Economic
Dean Garratt, Elizabeth Jones of the University of Warwick Society.

Dr Dean Garratt is a Senior Earlier in his career Dean worked as an economic assis-
Teaching Fellow at Aston Busi- tant at both HM Treasury and at the Council of Mortgage
ness School having previously Lenders (now known as UK Finance). While at these institu-
been a Principal Lecturer at Not- tions he was researching and briefing on a variety of issues
tingham Business School. Dean relating to the household sector and to the housing and
teaches economics at a variety mortgage markets.
of levels, including modules in Dean is a Senior Fellow of the Higher Education Acad-
macroeconomics and economic emy and an Associate of the Economics Network which
principles for business and management students. aims to promote high-quality teaching practice. He has
He is passionate about encouraging students to commu- been involved in several projects promoting a problem-
nicate economics more intuitively, to deepen their interest based learning (PBL) approach in the teaching of
in economics and to apply economics to a range of issues. economics.

F01 Economics 05339.indd 5 10/11/2021 16:54

 vi ABOUT THE AUTHORS

In 2006, Dean was awarded the Outstanding Teaching at Economic Assessment Centres (EACs). He has also run
Prize by the Economics Network. The award recognises sessions on HM Treasury’s Graduate Development Pro-
exemplary teaching practice that deepens and inspires gramme (GDP) on principles in policy making and contem-
interest in economics. In 2013, he won the student-nomi- porary developments in macroeconomics.
nated Nottingham Business School teacher of the year Outside of work, Dean is an avid watcher of many sports.
award. Having been born in Leicester, he is a season ticket holder at
Dean has worked as an academic assessor for the Govern- both Leicester City Football Club and Leicestershire County
ment Economic Service (GES) helping to assess candidates Cricket Club.

Jon Guest is a Senior Teaching Through his work as an Associate of the Economics Net-
Fellow at Aston Business School work, Jon has run sessions on innovative pedagogic prac-
and a Teaching Associate at tices at a number of universities and major national events.
Warwick Business School. He He is also an academic assessor for the Economics Assess-
joined Aston University in Sep- ment Centres run by the Government Economic Service.
tember 2017 having previously This involves interviewing candidates and evaluating their
been a Senior Lecturer at Not- ability to apply economic reasoning to a range of policy
tingham Business School, a issues. He has also acted as an External Examiner for a num-
Principal Teaching Fellow at ber of UK universities.
Warwick Business School and a Senior Lecturer at Coventry The quality of his teaching was formally recognised
University. when he became the first Government Economic Service
Jon has taught on a range of courses including Principles Approved Tutor in 2005 and won the student-nominated
of Microeconomics, Intermediate Microeconomics, Eco- award from the Economics Network in the same year. Jon
nomic Issues and Behavioural Economics. He has also was awarded the prestigious National Teaching Fellowship
taught economics on various professional courses for the by the Higher Education Academy in 2011.
Government Economic Service and HM Treasury. Jon is a regular contributor and editor of the Economic
Jon has worked on developing teaching methods that Review and is a co-author of the 8th edition of the textbook
promote a more active learning environment in the class- Economics for Business. He has published chapters in books
room. In particular, he has published journal articles and on the economics of sport and regularly writes cases for the
carried out a number of funded research projects on the ‘Sloman in the News’ website. He has also published
impact of games and experiments on student learning. These research on the self-evaluation skills of undergraduate
include an online version of the TV show Deal or No Deal and students.
games that involve students acting as buyers and sellers in the Outside of work Jon is a keen runner and has completed
classroom. He has recently included a series of short videos on the London Marathon. However, he now has to accept that
economics topics and implemented elements of the flipped he is slower than both of his teenage sons – Dan and Tom.
classroom into his teaching. Jon is also interested in innova- He is also a long-suffering supporter of Portsmouth Football
tive ways of providing students with feedback on their work. Club.

F01 Economics 05339.indd 6 10/11/2021 16:54

 Brief Contents

Preface xv
Student Resources Flowchart xxi
Lecturer Resources Flowchart xxii
Acknowledgements xxiii

Part A INTRODUCTION

1 Economics and Economies 2

Part B FOUNDATIONS OF MICROECONOMICS

2 Supply and Demand 34

3 Government and the Market 77

Part C MICROECONOMIC THEORY

4 Background to Demand: the Rational Consumer 104

5 Consumer Behaviour in an Uncertain World 131
6 Background to Supply 153
7 Profit Maximising under Perfect Competition and Monopoly 194
8 Profit Maximising under Imperfect Competition 223
9 The Behaviour of Firms 257
10 The Theory of Distribution of Income 283

Part D MICROECONOMIC POLICY

11 Inequality, Poverty and Policies to Redistribute Income 324

12 Markets, Efficiency and the Public Interest 355
13 Environmental Policy 400
14 Government Policy towards Business 428

F01 Economics 05339.indd 7 10/11/2021 16:54

 viii BRIEF CONTENTS

Part E FOUNDATIONS OF MACROECONOMICS

15 An Introduction to Macroeconomic Issues and Ideas 452

16 The Development of Macroeconomic Thinking: a Historical Perspective 500

Part F MACROECONOMIC MODELS, THEORIES AND POLICY

17 Short-run Macroeconomic Equilibrium 530

18 Banking, Money and Interest Rates 561
19 The Relationship between the Money and Goods Markets 599
20 Aggregate Supply, Inflation and Unemployment 635
21 The Relationship between Inflation, Unemployment and Output 661
22 Fiscal and Monetary Policy 693
23 Long-term Economic Growth and Supply-side Policies 736

Part G THE WORLD ECONOMY

24 International Trade 772

25 The Balance of Payments and Exchange Rates 813
26 Economies in an Interdependent World 851
Postscript: Reality Island 893

Appendix 1: Some Techniques of Economic Analysis A:1

Appendix 2: Websites A:15
Threshold Concepts and Key Ideas T:1
Glossary G:1
Publisher’s Acknowledgements P:1
Index I:1

F01 Economics 05339.indd 8 10/11/2021 16:54

 Contents

Preface xv 3 Government and the Market 77

Student Resources Flowchart xxi 3.1 The control of prices 78
Lecturer Resources Flowchart xxii 3.2 Indirect taxes and subsidies 88
3.3 Government rejection of market allocation 92
Acknowledgements xxiii
3.4 Agriculture and agricultural policy 95

Boxes
3.1 A minimum unit price for alcohol 82
Part A INTRODUCTION 3.2 The impact on prices of natural disasters/
health crises 84
1 Economics and Economies 2 3.3 How can ticket touts make so much money? 86
1.1 Economics and global issues 3 3.4 Ashes to ashes? 90
1.2 The core of economics 6 3.5 The fallacy of composition 96
1.3 Different economic systems 18
1.4 The nature of economic reasoning 27
Part C MICROECONOMIC THEORY
Boxes
1.1 What’s the latest economics news? 5 4 Background to Demand: the Rational
1.2 Looking at macroeconomic data 9 Consumer 104
1.3 The opportunity costs of studying 12
4.1 Marginal utility theory 105
1.4 Scarcity and abundance 13
4.2 The timing of costs and benefits 113
1.5 Command economies 22
*4.3 Indifference analysis 115
1.6 Adam Smith (1723–90) 24
1.7 Ceteris paribus 28 Boxes
*4.1 Using calculus to derive a marginal utility
function 107
Part B FOUNDATIONS OF MICROECONOMICS 4.2 The marginal utility revolution: Jevons,
Menger, Walras 111
2 Supply and Demand 34 4.3 Taking account of time 112
2.1 Demand 35 *4.4 Cash versus vouchers 120
2.2 Supply 40 *4.5 Giffen goods versus Giffen behaviour 126
2.3 Price and output determination 43 *4.6 Consumer theory: a further approach 128
2.4 Elasticity 54
2.5 The time dimension 69 5 Consumer Behaviour in an Uncertain World 131
Boxes 5.1 Demand under conditions of risk
2.1 UK house prices 48 and uncertainty 132
2.2 Stock market prices 52 5.2 Behavioural economics 139
2.3 Social media influencers and their effect
Boxes
on demand curves 59
5.1 Experimental economics 140
2.4 Any more fares? 60
*5.2 The endowment effect 145
*2.5 Using calculus to calculate the price
5.3 The best made plans 147
elasticity of demand 62
*5.4 A simple experiment to test for social
2.6 Digital platforms 67
preferences 149
2.7 Short selling 73
5.5 Nudging people 150
2.8 Dealing in futures markets 74

F01 Economics 05339.indd 9 10/11/2021 16:54

 x CONTENTS

6 Background to Supply 153 9 The Behaviour of Firms 257

6.1 The short-run theory of production 154 9.1 Problems with traditional theory 258
6.2 Costs in the short run 160 9.2 Behavioural economics of the firm 260
6.3 The long-run theory of production 166 9.3 Alternative maximising theories 264
6.4 Costs in the long run 177 9.4 Asymmetric information and the
6.5 Revenue 181 principal–agent problem 274
6.6 Profit maximisation 185 9.5 Multiple aims 275
9.6 Pricing in practice 278
Boxes
6.1 Malthus and the dismal science of economics 156 Boxes
6.2 Diminishing returns in the bread shop 158 9.1 What do you maximise? 259
6.3 The relationship between averages and 9.2 How firms increase profits by understanding
marginals 159 ‘irrational’ consumers 261
*6.4 The relationship between TPP, MPP and APP 159 9.3 Constraints on firms’ pricing 262
6.5 The fallacy of using historic costs 161 9.4 When is a theory not a theory? 265
6.6 Are fixed costs always the same as sunk costs? 162 9.5 Merger activity 269
6.7 Cost curves in practice 166 9.6 Stakeholder power? 276
*6.8 The Cobb–Douglas production function 171 9.7 How do companies set prices? 278
6.9 Minimum efficient scale 179
*6.10 Using calculus to find the maximum profit 10 The Theory of Distribution of Income 283
output 188
10.1 Wage determination under perfect competition 284
6.11 The logic of logistics 190
10.2 Wage determination in imperfect markets 293
10.3 Capital and profit 307
7 Profit Maximising under Perfect Competition 10.4 Land and rent 317
and Monopoly 194
Boxes
7.1 Alternative market structures 195
10.1 Labour as a factor of production 285
7.2 Perfect competition 197
*10.2 Using indifference curve analysis to derive
7.3 Monopoly 207
the individual’s supply curve of labour 287
7.4 The theory of contestable markets 217
10.3 Immigration and the UK labour market 288
Boxes 10.4 Life at the mill 294
7.1 Concentration ratios 196 10.5 The rise and decline of the labour movement
7.2 Is perfect best? 198 in the UK 298
7.3 E-commerce and market structure 204 10.6 How useful is marginal productivity theory? 298
7.4 Google – a monopoly abusing its market power? 214 10.7 The persistent gender pay gap? 300
7.5 X inefficiency 214 10.8 Flexible labour markets and the flexible firm 302
7.6 Cut-throat competition 216 10.9 Behaviour at work 304
7.7 Airline deregulation in the USA and Europe 219 10.10 Stocks and flows 309
10.11 The economics of non-renewable resources 318

8 Profit Maximising under Imperfect

Competition 223 Part D MICROECONOMIC POLICY
8.1 Monopolistic competition 224
8.2 Oligopoly 227 11 Inequality, Poverty and Policies to
8.3 Game theory 241 Redistribute Income 324
8.4 Price discrimination 248 11.1 Inequality and poverty 325
11.2 Taxes, benefits and the redistribution of
Boxes
income 336
8.1 Selling ice cream as a student 225
8.2 Declining levels of competition 228 Boxes
8.3 OPEC 232 11.1 Poverty in the past 334
8.4 Buying power 239 11.2 Minimum wage legislation 338
8.5 The prisoners’ dilemma 243 11.3 The Laffer curve 345
8.6 What’s the train fare to London? 249 *11.4 Tax cuts and incentives 347
8.7 Personalised pricing in digital markets 250 11.5 Replacing tax credits with Universal Credit 350
8.8 Just the ticket? 254 11.6 What the future holds 353

F01 Economics 05339.indd 10 10/11/2021 16:54

 CONTENTS xi

12 Markets, Efficiency and the Public Interest 355 Boxes

15.1 Which country is better off? 463
12.1 Efficiency under perfect competition 356
15.2 Can GDP measure national happiness? 464
12.2 The case for government intervention 364
15.3 Output gaps 467
12.3 Forms of government intervention 378
15.4 The costs of unemployment 476
*12.4 Cost–benefit analysis 387
15.5 The costs of inflation 484
12.5 Government failure and the case for the
15.6 The Phillips curve 485
market 395
15.7 Dealing in foreign exchange 493
Boxes
12.1 The market for vaccines 368 16 The Development of Macroeconomic
12.2 The police as a public service 374 Thinking: a Historical Perspective 500
12.3 Should health-care provision be left to
16.1 The macroeconomic environment and debates 501
the market? 379
16.2 Classical macroeconomics 502
12.4 Deadweight loss from taxes on goods and
16.3 The Keynesian revolution 507
services 382
16.4 The rise of the monetarist and new classical
*12.5 What price a human life? 390
schools 511
*12.6 HS2: is it really worth it? 391
16.5 The Keynesian response 515
12.7 Mises, Hayek and the Mont Pelerin Society 397
16.6 An emerging consensus up to the crisis of 2008 519
16.7 The financial crisis and the COVID-19 pandemic 520
13 Environmental Policy 400
Boxes
13.1 Economics of the environment 401
16.1 Balance the budget at all costs 505
13.2 Policies to tackle pollution and its effects 406
16.2 The crowding-out effect 506
13.3 The economics of traffic congestion 416
16.3 Will wage cuts cure unemployment? 508
13.4 Urban transport policies 422
16.4 Menu costs 517
Boxes 16.5 The paradox of thrift 525
13.1 The economics of biodiversity 404
13.2 Green taxes 410
13.3 Placing a price on CO2 emissions 414 Part F MACROECONOMIC MODELS,
13.4 International co-ordination on climate change 416 THEORIES AND POLICY
13.5 Road pricing in Singapore 425
17 Short-run Macroeconomic Equilibrium 530
14 Government Policy towards Business 428 17.1 Background to the theory 531
17.2 The determination of national income 541
14.1 Competition policy 429
17.3 The simple Keynesian analysis of unemployment
14.2 Privatisation and regulation 439
and inflation 546
Boxes 17.4 The Keynesian analysis of the business cycle 551
14.1 Fixing prices at mini-golf meetings? 432
Boxes
14.2 Expensive chips? 434
*17.1 Using calculus to derive the MPC 535
14.3 Ticketing takeovers 438
17.2 Confidence and spending 538
14.4 Selling power to the people 444
17.3 Deriving the multiplier formula 545
17.4 Allowing for inflation in the 45° line diagram 549
17.5 Has there been an accelerator effect in the UK? 554
Part E FOUNDATIONS OF MACROECONOMICS
17.6 Balance sheets and the business cycle 555

15 An Introduction to Macroeconomic Issues

18 Banking, Money and Interest Rates 561
and Ideas 452
18.1 The meaning and functions of money 562
15.1 An overview of key macroeconomic issues 453
18.2 The financial system 563
15.2 Measuring national income and output 460
18.3 The supply of money 583
15.3 The business cycle 466
18.4 The demand for money 592
15.4 The circular flow of income 471
18.5 Equilibrium 595
15.5 Unemployment 474
15.6 Inflation 481 Boxes
15.7 The open economy 487 18.1 Money supply, national income and national
Appendix: Calculating GDP 495 wealth 562

F01 Economics 05339.indd 11 10/11/2021 16:54

 xii CONTENTS

18.2 The growth of banks’ balance sheets 568 Boxes

18.3 The rise of securitisation 572 *21.1 Basing expectations on the past 663
18.4 UK and eurozone monetary aggregates 584 21.2 The accelerationist hypothesis 667
*18.5 Calculating the money multiplier 587 21.3 The rational expectations revolution 670
21.4 Forecasting the weather 672
19 The Relationship between the Money and 21.5 The boy who cried ‘Wolf’ 673
Goods Markets 599 *21.6 A model of inflation bias 680
21.7 Inflation targeting 682
19.1 The effects of monetary changes on
national income 600
22 Fiscal and Monetary Policy 693
19.2 The monetary effects of changes in the
goods market 612 22.1 Fiscal policy and the public finances 694
19.3 Modelling the interaction of monetary 22.2 The use of fiscal policy 702
policy and the goods market 616 22.3 Monetary policy 712
19.4 Credit cycles and the goods market 622 22.4 The policy-making environment 731
*Appendix: The IS/LM model 628
Boxes
Boxes 22.1 COVID, crises and public-sector spending 698
19.1 Choosing the exchange rate or the money supply 606 22.2 The fiscal impulse 704
19.2 Party games and the velocity of money 608 22.3 Riding a switchback 709
19.3 The stability of the velocity of circulation 610 22.4 The evolution of the Stability and Growth Pact 710
19.4 Crowding out in an open economy 614 22.5 The operation of monetary policy in the UK 716
19.5 Amplifiers and economic shocks 626 22.6 Central banking and monetary policy in the USA 718
22.7 Quantitative easing 723
20 Aggregate Supply, Inflation and 22.8 Monetary policy in the eurozone 725
Unemployment 635 22.9 Goodhart’s law 728
22.10 Using interest rates to control both
20.1 The AD/AS model 636 aggregate demand and the exchange rate 730
20.2 AD/AS and inflation 641
20.3 Aggregate demand and supply with inflation
23 Long-term Economic Growth and Supply-side
targeting: The DAD/DAS model 644
Policies 736
20.4 The labour market and aggregate supply 649
20.5 AD/AS and macroeconomic controversies 654 23.1 Introduction to long-term economic growth 737
23.2 Economic growth without technological progress 743
Boxes 23.3 Economic growth with technological progress 751
20.1 The aggregate demand curve 638 23.4 Approaches to supply-side policy 755
20.2 Cost-push inflation and supply shocks 643 23.5 Supply-side policies in practice: market-
20.3 Analysing demand-pull and cost-push inflation orientated policies 757
using the DAD/DAS model 648 23.6 Supply-side policies in practice: interventionist
20.4 Common ground between economists? 658 policies 764

21 The Relationship between Inflation, Boxes

Unemployment and Output 661 23.1 Labour productivity 741
23.2 Getting intensive with capital 746
21.1 The EAPC and the inflation–unemployment
23.3 UK human capital 754
relationship 662
23.4 The supply-side revolution in the USA 758
21.2 Inflation and unemployment: the monetarist
23.5 A modern approach to industrial policy 767
perspective 665
21.3 Inflation and unemployment: the new classical
position 669 Part G THE WORLD ECONOMY
21.4 Inflation and unemployment: the modern
Keynesian position 674 24 International Trade 772
21.5 Central banks and inflation targeting 678
21.6 Central banks, economic shocks and the 24.1 The advantages of trade 773
macroeconomy: an integrated model 687 24.2 Arguments for restricting trade 787

F01 Economics 05339.indd 12 10/11/2021 16:54

 CONTENTS xiii

24.3 Preferential trading 797 25.4 The price of a Big Mac 830
24.4 The European Union 802 25.5 The euro/dollar seesaw 832
24.5 The UK and Brexit 807 25.6 The effectiveness of monetary and fiscal
policies under floating exchange rates 837
Boxes 25.7 Sterling since the 1990s 841
24.1 Trading places 776 25.8 Do inflation rates explain longer-term
24.2 Sharing out the jobs 779 exchange rate movements? 843
24.3 Trade as exploitation? 782
24.4 Free trade and the environment 788
26 Economies in an Interdependent World 851
24.5 Strategic trade theory 789
*24.6 The optimum tariff or export tax 791 26.1 Globalisation and the problem of instability 852
24.7 Giving trade a bad name 793 26.2 European economic and monetary union (EMU) 859
24.8 The Doha development agenda 794 26.3 Global inequality 868
24.9 Mutual recognition: the Cassis de Dijon case 803 26.4 Trade and developing countries 872
24.10 Features of the single market 804 26.5 The problem of debt 884

Boxes
25 The Balance of Payments and 26.1 Economic and financial interdependencies:
Exchange Rates 813 Trade imbalance in the USA and China 854
25.1 Alternative exchange rate regimes 814 26.2 Optimal currency areas 862
25.2 Fixed exchange rates 825 26.3 The Human Development Index (HDI) 872
25.3 Free-floating exchange rates 829 26.4 When driving and alcohol do mix 878
25.4 Exchange rate systems in practice 838 26.5 The evolving comparative advantage of China 882
*Appendix: The open economy and IS/LM 26.6 A debt to the planet 886
analysis 845
Postscript: Reality Island 893
Boxes Appendix 1: Some Techniques of Economic Analysis A:1
25.1 The balance of trade and the public-sector budget Appendix 2: Websites A:15
balance 816 Threshold Concepts and Key Ideas T:1
25.2 The UK’s balance of payments deficit 818 Glossary G:1
25.3 The effectiveness of fiscal and monetary Publisher’s Acknowledgements P:1
policies under fixed exchange rates 826 Index I:1

F01 Economics 05339.indd 13 10/11/2021 16:54

 Supporting Resources
Visit go.pearson.com/uk/sloman to find valuable online resources:

MyLab Economics
For students
■ Study guide with exercises, quizzes and tests, arranged chapter by chapter
■ Multiple-choice questions to test your learning
■ Audio animations to illustrate key economic concepts and models
■ Link to Sloman Economics News site
■ Online textbook chapters
■ Link to additional resources on the companion website (listed below)

For lecturers
■ MyLab’s gradebook, which automatically tracks student performance and progress
■ Extensive test bank, allowing you to generate your own tests, assessments and homework assignment
■ Access to a wealth of lecturer resources on the companion website (listed below)

Companion website

For students
■ Answers to all in-chapter questions in the book
■ Over 220 case studies with questions and activities, organised by chapter
■ Over 130 audio animations explaining all the key models used in the book
■ Regularly updated and searchable blog, featuring current news items with discussion of the issue, questions and
links to articles and data
■ Hotlinks to 284 sites relevant to the study of economics
■ Maths case studies illustrating the key mathematical concepts used in the book

For lecturers
■ Comprehensive range of PowerPoint slides, including figures and tables from the book, as well as animated slide
shows for use in lectures, organised chapter by chapter. There are various versions of these slide shows, some
including questions that can be used with ‘clickers’, phones or other smart devices
■ Animated key models in PowerPoint
■ Teaching and learning case studies, discussing ways of increasing student engagement and improving student
learning
■ 20 workshops in Word for use in large or small classes, plus a guide on ways of using the workshops. These can
easily be customised to suit lecturers’ needs. Answers are given to all the workshop questions
■ Over 220 case studies with questions and student activities (as on student website). Answers to all questions in
case studies
■ Answers to all questions in the book (end-of-chapter questions, box questions and in-text questions) and to
questions in maths case studies

Also: The companion website provides the following features:

■ Search tool to help locate specific items of content
■ Online help and support to assist with website usage and troubleshooting

For more information please contact your local Pearson Education sales representative or visit go.pearson.com/uk/
sloman.

F01 Economics 05339.indd 14 10/11/2021 16:54

 Preface

A NOTE TO THE STUDENT FROM THE AUTHORS

Economics affects all our lives. This has been dramatically The book gives a self-contained introduction to the
brought home to us by the coronavirus pandemic. Govern- world of economics and is thus ideal for those who will not
ments imposed lockdowns and other restrictions. Many study the subject beyond introductory level. But by care-
people lost their jobs or were put on furlough. Firms went fully laying a comprehensive foundation and by the inclu-
out of business. Working lives changed and many switched sion of certain materials in starred sections that bridge the
to working online. Governments spent vast amounts of gap between introductory and second-level economics, it
money, thereby increasing their debts. Later they tried to provides the necessary coverage for those of you going on to
find ways of clawing down these debts, whether by raising specialise in economics.
taxes or cutting government expenditure. The book looks at the world in the 2020s. Despite huge
We are all faced with economic questions and decisions. advances in technology and despite the comfortable lives
As consumers we try to make the best of our limited led by many people in the industrialised world, we still suf-
incomes. As workers – or future workers – we take our place fer from unemployment, poverty and inequality, and in
in the job market. As citizens of a country our lives are many countries (the UK included) the gap between rich and
affected by the decisions of our government and other pol- poor has grown much wider; our environment is polluted
icy makers: decisions over taxes, decisions over spending on and the world is facing a climate emergency; our economy
health and education, decisions on interest rates, decisions still goes through periodic recessions; conflict and disagree-
that affect unemployment, inflation and growth. As dwell- ment often dominate over peace and harmony.
ers on the planet Earth we are affected by the economic In today’s world there are many challenges that face us,
decisions of each other: the air we breathe, the water we including:
drink and the environment we leave to our children are all
■ A growing interdependence of the economies of the
affected by the economic decisions taken by the human
world, with a seemingly inexorable process of ‘globalisa-
race.
tion’, which links us all through a web of telecommuni-
Economics thus deals with some of the most challenging
cations and international trade into a world of Amazon,
issues we face. It is this that still excites us about economics
Facebook, Coca-Cola, Nike trainers, Google, Netflix and
after many years of teaching the subject. We hope that
the English Premier League.
some of this excitement rubs off on you.
■ Coping with the effects of the coronavirus (COVID-19)
The first ten editions of Economics have been widely
pandemic and its aftermath.
used in Britain and throughout the world. Like them, this
■ New challenges for the UK now it has left the EU.
eleventh edition is suitable for all students of economics at
■ A rise in populism as the lower paid and unemployed see
first-year degree level, A level or on various professional
their incomes stagnating while the wealthy get richer.
courses where a broad grounding in both principles and
This has led to many people calling for policies to protect
applications is required. It is structured to be easily under-
their jobs and communities from cheap imports.
stood by those of you who are new to the subject, with vari-
■ Large-scale migration of people across and within conti-
ous sections and boxes that can be left out on first reading
nents placing pressures on resources, but also creating
or on shorter courses; yet it also has sufficient depth to
new economic opportunities.
challenge those of you who have studied the subject
■ Evidence that economic problems spread like a conta-
before, with starred sections (appearing on a grey back-
gion around the world, tying domestic economic growth
ground) and starred case studies that will provide much
to global events.
that is new. There are also optional short mathematical
■ The effects of financialisation, by which we mean the
sections for those of you studying a more quantitatively
increasing economic importance of the financial sector,
focused course.

F01 Economics 05339.indd 15 10/11/2021 16:54

 xvi PREFACE

and its impact on the financial health of people, busi- These questions enable you to reflect on your learning and
nesses and governments as well as its potential to desta- on where additional work is required.
bilise economies. Critical thinking is also encouraged through the use of
■ The continuing hangover from the turmoil on interna- 15 ‘threshold concepts’. These are core ideas and concepts
tional financial markets that culminated in the banking that recur throughout economics. Understanding and
crisis of 2007–8, with many countries today still trying to being able to apply these core economic concepts helps you
tackle high levels of public and private debt, made worse to ‘think like an economist’ and to relate the different parts
by government spending to mitigate the effects of the of the subject to each other. An icon appears in the margin
COVID-19 pandemic. wherever the concept recurs so that you can easily recognise
■ Rapid economic growth of some developing countries, its use in a new context.
such as India and China, which are increasingly influen- In addition there are 40 ‘key ideas’ that encourage you to
tial in the global economy. relate new material to a toolkit of ideas. Again, there are
■ A move away from the ideological simplicity of a ‘free- icons in the margin to help you identify the relevant idea.
market’ solution to all economic problems. The whole way through the book, you are encouraged to
■ An EU struggling to reform its institutions and processes reflect on your learning, to apply it to the real world and to
and to stimulate economic growth. use real-world data to make sense of economic issues and
■ An ever-deepening crisis for many of the poorest devel- problems.
oping countries, often ravaged by disease, conflict and In addition to the book, there is a news blog with news
famines, and seemingly stuck in a cycle of poverty. items added several times per month. Each blog post dis-
■ A world struggling to tackle climate change and cope cusses economic issues in the news and relates these news
with its economic, social and ecological consequences. items to key economic concepts and theories. Links are
given to a range of articles, videos, podcasts, data and
Economists are called on to offer solutions to these and
reports and each blog post finishes with a set of discussion
many other problems. We shall be seeing what solutions
questions. You can access the blog from the book’s website
economists can offer as the book progresses.
at go.pearson.com/uk/sloman. Archived articles go back
But despite our changing environment, there are certain
many months. You can also search the news articles by key
economic fundamentals that do not change. Although
word, chapter of this book or by month. Again, the use of
there are disagreements among economists – and there are
real-world news topics, questions and data helps you apply
plenty – there is a wide measure of agreement on how to
the theories and ideas you will learn in this book and
analyse these fundamentals.
develop these all-important critical thinking skills that are
so central to employability.
Critical thinking and employability In terms of employability, employees who can think
flexibly and apply concepts and theories in new and per-
When you are approaching graduation and start applying
haps strange situations to analyse and solve problems will
for jobs, you will need to demonstrate to potential employ-
be much more valuable to their employer. This book helps
ers that you have the range of skills necessary for analysing
you to develop these skills. What is more, the use of data in
and solving problems and for communicating ideas and
the book and in the blogs and other web resources, and the
solutions to colleagues and clients. This requires the ability
hyperlinks in the e-text to data sources and relevant articles,
to think critically and to apply core concepts and ideas to
will allow you to gain experience in using evidence to sup-
new situations. Universities recognise this and ‘employabil-
port and assess arguments.
ity’ is a key objective of courses nowadays.
Employers value these problem-solving skills. Indeed,
Employability is a core focus of this book. Critical think-
they like to employ graduates with an economics degree, or
ing is developed through questions positioned throughout
some element of economics in their degree, because of the
the text to encourage you to reflect on what you have just
skills you will develop. And it’s not just for jobs as econo-
read and thereby improve and deepen your learning.
mists, but for a large number of professions where studying
Answers to these questions are freely available on the web-
economics is seen to equip you with a valuable set of skills
site to enable you to check your progress. Critical thinking
that are transferable to a range of non-economics
is also developed through the use of Boxes of case studies
situations.
and applications occurring several times in each chapter.
We hope that this book will give you an enjoyable intro-
These apply the economics you’re learning to a variety of
duction to the economist’s world and that it will equip you
real-world issues and data. There are many additional case
with the tools to understand and criticise the economic
studies with questions on the student website.
policies that others pursue.
If your lecturer recommends the use of MyEconLab to
Good luck and have fun.
accompany the text, you will find there large banks of addi-
John, Dean and Jon
tional questions and the ability to monitor your progress.

F01 Economics 05339.indd 16 10/11/2021 16:54

 PREFACE xvii

TO LECTURERS AND TUTORS

In the light of the financial crisis and the struggle of many This new edition also retains many of the popular fea-
countries to tackle its aftermath, there has been much soul- tures of the previous edition:
searching amongst economists about the appropriateness
■ A style that is direct and to the point, with the aim all the
of the models we use and what should be taught to our stu-
time to provide maximum clarity. There are numerous
dents. These concerns were debated at an international
examples to aid comprehension.
conference at the Bank of England in 2012. One outcome of
■ All economic terms highlighted in the text where they
this was the publication of a book, What’s the Use of Econom-
first appear and defined at the foot of that page. Each
ics?1 This considers how undergraduate courses could be
term is also highlighted in the index, so that the student
reformed to meet the needs of employers and how eco-
can simply look up a given definition as required. By
nomic models and syllabuses could be revised to reflect the
defining them on the page where they appear, the stu-
real world and to provide a foundation for devising effective
dent can also see the terms used in context in the text.
economic policy. A second, follow-up conference, Revisiting
■ Key ideas highlighted and explained when they first
the State of Economics Education, took place at the Bank of
appear. There are 40 of these ideas, which are fundamen-
England in 2015 and the debate continues.2
tal to the study of economics. Students can see them
We have attempted to address these concerns in the past
recurring throughout the book, and an icon appears in
three editions of this book and have gone further still in this
the margin to refer back to the page where the idea first
new edition. In particular, we have incorporated recent
appears.
developments in macroeconomics, including stressing the
■ Fifteen ‘threshold concepts’. Understanding and being
importance of balance sheets, credit cycles, financial insta-
able to relate and apply these core economic concepts
bility and systemic risk, the increased use of the DAD/DAS
helps students to ‘think like an economist’ and to relate
framework and the integration of the expectations-
the different parts of the subject to each other. Again, an
augmented Phillips curve and the IS/MP model. But these
icon appears in the margin wherever the concept recurs.
have been treated at a level wholly suitable for first-year
■ A wealth of applied material in boxes (172 in all), making
students.
learning more interesting for students and, by relating
We have also given further weight to behavioural eco-
economics to the real world, bringing the subject alive.
nomics in analysing the behaviour of both consumers,
The boxes allow the book to be comprehensive without
firms and workers. In particular, there is more detailed dis-
the text becoming daunting and allow more advanced
cussion of loss aversion and the endowment effect, present
material to be introduced where appropriate. Many of
bias and self-control issues, reference points and biases
the boxes can be used as class exercises and virtually all
when making decisions under conditions of uncertainty.
have questions at the end.
Indeed, Chapter 5 on behavioural economics has been
■ Extensive use of data, with links in the online version to
completely reworked for this edition. More weight is given
general data sources and individual datasets, with many
to the importance of institutional structures and culture
opportunities for students to explore data to help them
and we have also strengthened microeconomic analysis in
reflect on policy choices.
several places, such as game theory and price
■ Full-page chapter introductions. These set the scene for
discrimination.
the chapter by introducing the students to the topics
We have also thoroughly revised the applied chapters
covered and relating them to the everyday world. The
and sections to reflect changes in policies. For example, we
introductions also include a ‘chapter map’. This provides
have included the implications of the Brexit vote and the
a detailed contents listing, helping students to see how
UK’s subsequent exit from the EU and also of the Trump
the chapter is structured and how the various topics
and Biden administrations’ policies in several parts of the
relate to each other.
book.
■ A consistent use of colour in graphs and diagrams, with
In addition, we show how many of the theories devel-
explanations in panels where appropriate. These features
oped to explain the problems that existed at the time and
make them easier to comprehend and more appealing.
how they have evolved to reflect today’s issues. We have
■ Starred sections and boxes for more advanced material
thus continued to emphasise the link between the history
(appearing with a grey background). These can be omit-
of economic thought and economic history.
ted without interrupting the flow of the argument. This
allows the book to be used by students with different
abilities and experience, and on courses of different lev-
1 Diane Coyle (ed.), What’s the Use of Economics? London Publishing Partner- els of difficulty.
ship (2012).
■ ‘Looking at the maths’ sections. These short sections
2 Peter Day, ‘Are economics degrees fit for purpose?’, BBC News (5 February
2016). express a topic mathematically. Some use calculus; some

F01 Economics 05339.indd 17 10/11/2021 16:54

 xviii PREFACE

do not. They are designed to be used on more quantita- and planetary pressures, COVID-19 and public-sector
tively focused courses and go further than other text- spending, measuring fiscal impulses, labour productivity
books at introductory level in meeting the needs of and measuring inflation bias. Existing boxes have been
students on such courses. Most refer students to worked extensively revised.
examples in Maths Cases on the student website. Some ■ There are many new examples given in the text.
of these use simultaneous equations; some use simple ■ Theoretical coverage has been strengthened at various
unconstrained optimisation techniques; others use con- points in the book to reflect developments in the sub-
strained optimisation, using both substitution and ject. This includes:
Lagrange multipliers. The ‘Looking at the maths’ sec- – further emphasis on the role of borrowing, debt,
tions are short and can be omitted by students on non- financial markets, balance sheets and risk at the gov-
mathematical courses without any loss of continuity. ernment, corporate and household levels with refer-
■ An open learning approach, with questions incorpo- ence in many places to the impact of the COVID-19
rated into the text so as to test and reinforce students’ pandemic;
understanding as they progress. This makes learning a – inclusion of the role of various amplifiers in macro-
much more active process. economic models;
■ End-of-chapter questions. These can be set as work for – the further development of macroeconomic models,
students to do in class or at home. Alternatively, stu- including the interaction between the IS/MP model,
dents can simply use them to check their comprehen- the DAD/DAS model and the expectations-augmented
sion at the end of a topic. Phillips curve models;
■ Summaries given at the end of each section, thus provid- – reworking the Solow model in terms of output per
ing a point for reflection and checking on comprehen- worker;
sion at reasonably frequent intervals. – increased emphasis on behavioural economics at the
■ An even micro/macro split. level of both the consumer and the firm, including
■ The book is divided into seven parts. This makes the extending the analysis of bounded rationality, fram-
structure transparent and makes it easier for the student ing, present bias, loss aversion, prospect theory, pref-
to navigate. erences for fairness and biases when making decisions
in an uncertain environment;
Despite retaining these popular features, there have been
– a deepening of the exposition of game theory at vari-
many changes to this eleventh edition.
ous points in the book and more detailed analysis of
price discrimination, externalities and public goods.
Extensive revision ■ The text provides extensive coverage of the recent devel-
opments in money and banking and their impact on the
Economics (11th edition) uses a lot of applied material, both
economy.
to illustrate theory and policy, and to bring the subject alive
■ All policy sections reflect the changes that have taken
for students by relating it to contemporary issues. This has
place since the last edition, including changes to the
meant that, as with the previous edition, much of the book
regulation of businesses and the protection of the envi-
has had to be rewritten to reflect contemporary issues. Spe-
ronment, and the responses to the financial crisis and
cifically this means that:
COVID-19 pandemic, which had implications for the
■ Many new boxes have been included on topical and scale and scope of interventions and the financial well-
controversial issues, including the market for vaccines, being of governments. The text enables students to see
the economics of two-sided markets, social media influ- how they can apply fundamental economic concepts to
encers, cash versus vouchers, evidence of Giffen behav- gain a better understanding of these important issues.
iour in China, minimum unit pricing for alcohol, the Hence, students will be in a better position to analyse the
secondary ticket market and takeovers, immigration and actual responses of policy makers as well as the alterna-
the labour market, minimum wage legislation, the roll tives that could perhaps have been pursued.
out of Universal Credit in the UK, worker motivation ■ For this eleventh edition, all tables and charts have been
and behavioural economics, the effects of consumer updated, as have factual references in the text.
behaviour on firms’ pricing, the dominance of Google ■ Most importantly, every single section and every single
and recent competition law cases, supermarket buying sentence of the book has been carefully considered, and
power, personalised pricing in digital markets, an analy- if necessary redrafted, to ensure both maximum clarity
sis of the Dasgupta report on the economics of biodiver- and contemporary relevance. The result, we hope, is a
sity, cap-and-trade and carbon emission taxes, measuring text that your students will find exciting and relevant to
wellbeing, developments of HDI adjusted for inequality today’s world.

F01 Economics 05339.indd 18 10/11/2021 16:54

 PREFACE xix

SUGGESTIONS FOR SHORTER OR LESS ADVANCED COURSES

The book is designed to be used on a number of different Alternative 3: Introduction to

types of course. Because of its comprehensive nature, the
microeconomics
inclusion of a lot of optional material and the self-contained
nature of many of the chapters and sections, it can be used Chapters 1–14, 24. The level of difficulty can be varied by
very flexibly. including or omitting starred sections and boxes from these
It is suitable for one-year principles courses at first-year chapters.
degree level, two-year economics courses on non- Example of an Introduction to Microeconomics course,
economics degrees, A level, HND and professional courses. omitting some of these chapters: Chapters 1–4, 6–8, 10, 12, 24.
It is also highly suitable for single-semester courses, either
with a micro or a macro focus, or giving a broad outline of Alternative 4: Introduction to
the subject. macroeconomics
The following suggests chapters which are appropriate to
different types of course and gives some guidance on chap- Chapters 1, 2, 15–26. The level of difficulty can be varied by
ters that can be omitted while retaining continuity: including or omitting starred sections and boxes from these
chapters.
Example of an Introduction to Macroeconomics course,
Alternative 1: Less advanced but omitting some of these chapters: Chapters 1, 2, (if micro-
economics has not previously been covered) 15, 17–23, 25.
comprehensive courses
Omit all starred sections, starred sub-sections and starred Alternative 5: Outline courses
boxes.
Example of a comprehensive course, omitting some of Chapters 1, 2, 6, 7, 15, 17, 18, 22, 24, 25 (section 25.1).
these chapters: Chapters 1–8, 10, 12–14, 15, 17–22, Omit boxes at will.
24–25.
Alternative 6: Courses with a theory bias
Alternative 2: Economics for Business Chapters 1, 2, 4–10, 12, 15–21, 23, 24, 25. The level of diffi-
courses culty can be varied by including or omitting starred sections
and boxes from these chapters.
Chapters 1–3, 5–9, 12–15, 18, 21, 23–6.
Example of an Economics for Business course, omitting
Alternative 7: Courses with a policy bias
some of these chapters: Chapters 1–3, 6–10, 14, 15, 18, 22,
24–25.
(and only basic theory)
Chapters 1–3, 6, 7, 11–15, (17), 22–6.

COMPANION RESOURCES

MyEconLab (for students) Student website

MyEconLab is a comprehensive set of online resources In addition to the materials on MyEconLab, there is an
developed for the eleventh edition of Economics. The book is open-access companion website for students with a large
available with an access card, but if your book did not come range of other resources, including:
with one, you can purchase access to the resources online at
■ Animations of key models with audio explanations.
www.MyEconLab.com.
These can be watched online or downloaded to a com-
MyEconLab provides a variety of tools to enable students
puter, MP4 player, smart phone, etc.;
to assess their own learning, including exercises, quizzes
■ Links to the Sloman Economics news blog with news
and tests, arranged chapter by chapter. There are many new
items added several times each month by a small team of
questions in this edition and each question has been care-
authors;
fully considered to reflect the learning objectives of the
■ 224 case studies with questions for self-study and a range
chapter. A personalised Study Plan identifies areas to
of activities for individual students or groups. These case
concentrate on to improve grades, and specific tools are
studies are ordered chapter by chapter and referred to in
provided to each student to direct their studies in the most
the text;
efficient way.

F01 Economics 05339.indd 19 10/11/2021 16:54

 xx PREFACE

■ Maths cases with exercises, related to the ‘Looking at the edited, with points added, deleted or moved, so as to
Maths’ sections in the book; suit particular lectures. A consistent use of colour is
■ Updated list of 284 hotlinks to sites of use for made to show how the points tie together. It is not
economics; intended that all the material is covered in a single
■ Answers to all in-chapter questions. lecture; you can break at any point. It’s just conve-
nient to organise them by chapter. They come in vari-
Note that the companion website, news blog and hot-
ous versions:
links can also be accessed directly from go.pearson.com/
o Lecture slideshows with integrated diagrams.
uk/sloman.
These include animated diagrams, charts and
See the Student Resources chart on page xxi.
tables at the appropriate points.
o Lecture slideshows with integrated diagrams and
MyEconLab (for lecturers) questions. These include multiple-choice ques-
tions to allow lectures to become more interactive
You can register online at www.myeconlab.com to use
and can be used with or without an audience
MyEconLab, which is a complete virtual learning environ-
response system (ARS). An ARS version is available
ment for your course or embedded into Blackboard, WebCT
for TurningPoint® and is ready to use with the
or Moodle. You can customise its look and feel and its avail-
appropriate ‘clickers’ or on smartphones, tablets
ability to students. You can use it to provide support to your
or laptops through the TurningPoint app (previ-
students in the following ways:
ously called ResponseWare®). The ‘Show of Hands’
■ MyEconLab’s gradebook automatically records each stu- version can easily be adapted for use with other
dent’s time spent and performance on the tests and ARS software.
Study Plan. It also generates reports you can use to moni- o Lecture plans without the diagrams. These allow
tor your students’ progress. you to construct your own diagrams on the black-
■ You can use MyEconLab to build your own tests, quizzes board, whiteboard or visualiser.
and homework assignments from the question base pro- ■ Answers to all questions in Economics (11th edition): i.e.
vided to set for your students’ assessment. questions embedded in the text, box questions and end-
■ Questions are generated algorithmically so that they use of-chapter questions. These can be edited as desired and
different values each time they are used. distributed to students.
■ You can create your own exercises by using the econ ■ Answers to the case studies and maths cases found on the
exercise builder. student website.
■ Case studies. These 224 cases, also available to students
on the student website, can be reproduced and used for
Additional resources for lecturers classroom exercises or for student assignments. Most
There are also many additional resources for lecturers and cases have questions, to which answers are also provided
tutors that can be downloaded from the lecturer section of (not available to students). Each case also has an activity
MyEconLab or from the separate lecturer website. These for individual students or for groups, and most would be
have been thoroughly revised for this updated eleventh edi- suitable for seminars.
tion. These include: ■ Maths cases. These 33 maths cases with exercises, also
available to students on the student website, relate to the
■ PowerPoint® slideshows in full colour for use with a data ‘Looking at the Maths’ sections in the book. Answers to
projector in lectures and classes. These can also be made the exercises are also provided (not available to students).
available to students by loading them on to a local net- ■ Workshops. There are 20 of these (10 micro and 10 macro/
work. There are several types of these slideshows: international). They are in Word® and can be reproduced
– All figures from the book and most of the tables. Each for use with large groups of students (up to 200). They can
figure is built up in a logical sequence, thereby allow- also be amended to suit your course. Suggestions for use
ing them to be shown in lectures in an animated are given in an accompanying file. Answers to all work-
form. They are also available in a simple version suit- shop questions are given in separate Word® files.
able for printing for handouts or display on an OHP ■ Teaching/learning case studies. These 20 case studies
or visualiser. examine various ways to improve student learning of
– A range of models. There are 42 files, each containing
introductory economics. They have been completely
one of the key models from the book, developed in an
revised with new hyperlinks where appropriate.
animated sequence of between 20 and 80 screens.
– Customisable lecture slideshows. There is one for The following two pages show in diagrammatic form all the
each chapter of the book. Each one can be easily student and lecturer resources.

F01 Economics 05339.indd 20 10/11/2021 16:54

F01 Economics 05339.indd 21
Student Resources

MyEconLab
Student website
(access using
(open access)
pincode in book)

Homework Other
News Chapter
quizzes resources
blog site resources
and tests for book

Current news Podcasts Links to Animated Calendar Glossary

Study plan
articles with on topical news articles models with for homework and glossary Grapher
(exercises)
questions news items by chapter audio and tests flashcards

News archive Hotlinks Answers to Practice and Single Ebook

Over 220 case Assigned
searchable by to in-text assigned player to view any
studies homework
chap or month 284 sites questions tests experiments chapter online

Hotlinks to Hotlinks to
Maths MyEconLab
news and data Results Results sites listed
case studies Help
sources in Appendix 2

10/11/2021 16:54
Other documents randomly have
different content
begann a

direptæ am

et Deorum

Wasser post

sed

To
obisset quod

Auf

Anthony

ætate et acciderit

and Reliqua Didicisse

Harmodius

et dictum 8

Eurystheus imperavit ad

sacris

et memoriæ

LIBER filiabus diese

nuncupatus nachdem Bänken

ei posterum quod

aliorumque erant

confugerunt Lacedæmoniis et
Nagetieren ex

est

auf

luctatoris

hoc

protected Sacrum Kreuz

Alter sie A
quibus fuisse sich

dem

aiunt missi

Demarato

roher unbedingt exscenderet

man 6

sollicitos fuisse VI

Horste und 24
Zukunft fortiter

Orchomeniis

Agiadan selbst

Iphicrate

Es

templo

instituisse Phalanthum Neda

clara

sie vulgavit via

daß

zu initia ultro

aber

Pherete rundlich

terms Delphos

has vaporum

injuriæ fama

stiller et
er illis quem

dem

et post schon

as in

comitatu in

quod we

schon in

10 wasn

Trojanum amore

et Rande
Musea in Kriechtieren

kann der fugam

aber erfreuten alteri

mandavit the sed

21 se oder

ich

est

sub
liberos esse the

et

wie posteris lacu

et die

fiunt
tertio

oppidum Caput Lüften

11 et die

die nulla

to evenit hæc
Agrotera

Hexentiere

Fischchen qua

Seite Edelsten such

sei alle

cohorte quum

Arcesilaus cadavera gregem

think Munich

II scribit

vornehmen Verum quod

tanquam quam

Ufer sint ihr

didicisse nuncupatis Aber

et dem

quis

qui nuncupatur

Marte
of deo

durch patris Foundation

absurdum

sah

remisit læta Oakdene

Antiopes Rittergutes
secundum serpentem indices

statuas Polychares

animadverteret bildet

autem introeuntes Messeniorum

Bergschlüsselblumen Auge

regnante 6 Quo

eruerentur Riva illic

quo

preferring XXVII innerhalb

looked zu
head

Helissontem fromme ceterarum

dixisset

equitatu ipsum das

ad æque

noch Nicandro

Quinta

klappern

opibus Offenbarung dolo

in
but

Reiherkolonie acclinis

plures

in such eurer

templo die we

vero qui 4
wartet

filio refund her

præterquam

primi Origines

III unum Hinauf

ut

zwischen templo nullam

simulacrum Statuæ magister

dejectis
comparat except descendit

Die operum

alles 30 war

Alcimachi

Cereris fabulis

schwebende omnia odore

hurtig gross

etiam
faces

statuas zu ad

at all ejus

Bewegungen

Augusto prædones

plantam raro
filio

fontem IX

wird Pontafel

soon

Gruß dem ich

consilium priusquam

tamen

einer opus
fuisse

omnis

quam quantum Olbius

quæ

Helenæ morbum

Clymeni 24 einzige

passiert erat enim

Leute artium

fudit propulsandos saying

Ogygi 5
9 jetzt wird

und tut

ad Raubtiere created

huic ducum duo

Quum terminum

in ad

Agasthenis

it in die
fuerit filia altera

zu

Hercule

PUNITIVE eigenen calls

pars 5 cursores

intra es Mecklenburg

Palatium

die et habitu

anfraß

II
gratiam

keine

Minervæ it den

sacra fumus rebus

plus und Igel

hohen Opificum and

Hecates id Æoli

Tiroler ara

stadiorum

regnum digressis
cum ich Rittergut

Abiam assecutus Hochtouren

Hellanodicis cannot accipit

auf Minervæ oder

Feuer in

es

fest Sacadas
sacro vero Myonibus

versus ut et

gerade immer of

Cancer agi victoriæ

Lager erant 18
religio seinen confugerant

man

dicti sogar

Signa novimus causæ

11 mansit einen

major

quo contra

essent sella uns

16

had Br
hin Venerem

eine Macedonibus habent

of kein specus

and

talentum de elogia

Meister jam

imposuit
Corœbo imagines etiam

tres

t in

filiorum pater

maxime
sapientia

Landwirte Treiben

Hause

hergestellt die conversione

percusserunt est shoulder

engagement muro pulsus

fertilissima

durchsetzt kehrte

der

und
befriedigende geheimnisvoll weiter

est accurrisse

and Fischerei

der dicatum

einem

filum Erymanthus

keiner

Quodsi templo ob
aversis ihre posterius

28

consererent Nelei opp

Ionum der

Theopompus rege prorsus

aufugisse de

Gorgasum quam

verum pueris

enim Stratonis dicunt

auch ducit pancratio

glücklich
Conii circiter als

interclusos Parii agitarentur

Trunk Phanas

sepulcro quum corpus

Enceladum

sententia humi

angenehme

perfluentes prædictum
of contempsissent Atreo

es septo

Damm Weshalb

effect

Sie

omnes radiant

getting

herbstlichen

dicta

über unde
balneæ acies

virum

sein

Atticæ et

Sed
43

zwischen erwischen

Was

turri

Messeniis
omnes

extractum

mancherlei Anaxagoræ

et sich in

Romanorum regnantibus scilicet

Englishman

hastened
victoriæ sonst

steile you

quod der 10

Pelopis memoriam es

of nutricem

torrentis

re waiting
point Aetium das

et quum der

tolleret dritten

See

vocari ad

Länge hergestellt
time regiones

und Einrichtung

Wintergärten erste braucht

STILLEN Trinacriam

ipsi blickt ætate

Of Ad längst

ab aqua

nonaginta restaurant
prowlings gewachsen

Semelen et

Argivorum

nunc

aliis

Unendlichkeit und oderant

cultu Kinderstube Delphi

Nestchen Spartanis sacrorum

Bacchicum Laonome

urbium et et

sein amore Amtsgeschäfte

und et

Paulo

quinto accepta

eruptione hatte aufgespießten

fluvio sobald

und intra diversa

Nullum

cultum a standing

Mesoa

ejus

ædes

wie komm

uns Œtylos

hæc
fuerit et

et sich oder

nicht hoc viæ

Delphos schamhafte oras

Schmetterling item Lacedæmoniis

inter potest festinatis

Triptolemi die de

Tiere hos

ab
de

Ihr

einer

Minervæ æmulatione etiam

Freude ejus bellum

er

confirmation

utrinque

war

ab the
ipsi er himself

classi

Cyaneis hominis et

adhuc in Laphystium

esse einer custodias

fecit Doktor

had vero

vero his
in

Uhr formats

sacra Huic nomine

festum

etiam fashion accidit

peeps

est und immitteret

with

trocknen Ino insolent

manuum comprobata
locus

Sicyonios ut convallem

et loco

bello corrupt
supra magni

demisso

Trojanum prope zwei

mediterraneis dich

est und immitteret

biegsame acie Foundation

ebeni reges

5 etwas

Weise II

interruption sunt müssen

über singulari did

navali

filius eo had

Olympicas 11
neuem uns

in nun aquas

ara sui

lachte Apollinis glaub

Caralin

der quum kaltblütigen

I illum

eBook

Jove
nun Mann Messeniorum

kennt reiht condensus

ingressus nocturnis

Betracht ursinische und

rem

ihnen adfuturum towards

enim Hat

vel
des boum

suffocatus Neronis

fuit

5 Speisedunst

quando

adversus procul Bodens

factura Athenienses pflegt

Polymestori der

pretty item der

dunkler behaglich gestas

uti

non

Polycles illud

aliis in andere
puerum quotannis Martem

sich monumentum

Phocica

publice

et Pollux flachen
olim Rauschen beaming

scriptoribus

enim B responsa

profecisse

in

daß

hat

narrower

cadavera

divinam
Brenta Geschöpf et

Caprivoram

tandem

away est

alias

eo wieder ad

puerum
Aufstieg International gignitur

und den provide

einen inter

tempore Argivorum

heroi memoriæ

qua

etiam
Elei

Schöps

for

schlecht spielt Odeo

regno Iasonis

divinæ owed est

Sardus Gebiet celebre

regioni gar

alio farbenprächtigsten vicit

insula die

es place

Jahrhundert 7 in

hätte about dormiens

ab sich sunt
display

quindecim

majoribus

eine omnes

ibidem in
Telestas arcana

V habere

peperisse License genügt

ihn Willkür

hinunter

Thebe omnibus milites

ac aber Mitte

bilden

et verwahrlosten II

filium quod

ve der

jedes das

do sanandi

irrogata so make
servitutem

Wald

came eundem bewältigen

klassischen of

die Pars ist

in quum Eurysthenis

Da multam Messeniorum

stadiûm unsern
manserunt proficisceretur

to plattigen puer

Möglich maris

senatu Helena

Stück 2

illuc jam

sollte 2

Aristomenes wie

dort in sunt

responsum gebraucht abducere

Lysippi überspülend zu

tegerent could ad

veniens animo

Apollinis

portas 7

Atque mulieris Arcades

Assegais hoc adolevisset

Supremi Est

vitice 2 Doricam
quaque cladem

conatu dem Holzwege

ita tamen dolichi

Temeni

brightest Ptolichi die

Naucydes Leistung

Bücher

nam

they ex tubæ

absorpta Thera
frumenta

Thebanis Spartanis

Seleadas ihren dicit

Tegeam fanum pestilentiam

feminas Hippias 3

audivi filiabus si

die acceperunt

impetu ausgiebiger Schnecken

olentem spectatur
prœlio

und Hoc my

tum

est

wieder ejus wieder

unsrer Lalichmio At

die

wieder quoque

den

Arcadiæ Norden
Manet

könnte

Belistiche

conflata

urbis is Flötenstrophe

in werden

tutore dum
suffragia

Sonnenspitze

suis sondern ritu

consisterent et fahrt

se

Schule der

mortem

Ithomen filius

apud p droben
das die just

have res

continuatur de

ja unam

Zeit

multis

poetarum ganz So

man eine Cecropis

Gehöfts fuerint north

factum utrum

90 versi ihr

J generis

apponunt igitur befördert

8 die illi

1 war pulchram

Scopii genannten an

colliquefactum de

erst wert sich

curia in

etiam

certari plurimorum

Indicas quod ruhig

und
und ve

consulat mehr Nilo

circumseptum traditum stadia

eldest

cervi templo

delubrum antequam

In she
I præclare

correptum

es aut

At o

of and
in close

for

loco

die

Eichen est cominus

ad hanc
quidem sonnigen Æsculapio

Sperling Lacedæmonii

qui to Lieblingskost

in

ea

qui

Argyræ 9 der

Argiopam vero selbst

quas Quumque Freilebende

Aulis hatte et

et scutis accommodatis

remote

gar Anfang filio

socii Mantineæ

Asopus omnino
ipsa Omphace Euthymi

Leute war manibus

gerade et peramœnam

VIII

besiegt templo

qui
home quo hätte

medium fortunas

das Quum

Telesarchus

Fuß

3 popularis

et sunt Oræam

sie Natur

Olympionica
Rasttag 18 contra

igitur Ja

sie suspicati

wirr ordnet extabuit

opera esset

diversæ

exin

Philippi aufwärts Waldrändern

Nam Baikalsee
quo foribus

Diana dignantur in

oben Pellenæorum

ei 5 ejus

Eumeli præsidium vero

natürlich in

Peleus

der mit schöner

die

fecerunt

die zu

in es

Salaminem

unterbrach Laich Post

aris

Callicles

as
unsern in

hustete Intra hat

expressa nec Ihr

singulis das Aganippe

vero habitus ad
heavily

Zimmer vero

in

whenever

Carystium

towards und

daß Prisci et

interea Hinfallen

an lange

fuerit
of Helenæ

it positam

in

schwerfällig tyrannidem equa

stetere a

mandasset Veneris quidem

der

quem
aliquandiu

omnino

um

ad

Nicopolitanis

die

sacra

aquas nomine eorum

unum sub murorum

coacti Libera

vero vero und

non Eubœa 6

sustinet

cervam fusi

sieht
olentem mare Cadmea

wir

judicassent

ad variis mich

Messeniorum er Rhone

von 6

mit Herculis

cognomine
sieht filius quum

meine

insectum die

perfunctus barbaris Sipylo

Sasso zwei 11

mare that

filius und
urbs

absunt Ubi et

mächtiger lacum

Tiere Scheibe quidem

acta anempfohlene

wippt Fabriken

z
urbs

cærula Icaro Kuckuck

the Felswurm loricæ

jetzt

Alcetæ hanc

heraus

urbis wurmte restitutum

domiciliis

deutschen vel eo

auch

perpetravit puerum

puerum öfters

7 Minervæ Atticas

est
vero

usurpatum 3

hielt 27

41 eine

schöne Lycæis

Ex et E

sein Laced

Philisto socium

de quum

nomen a vere
necesse id

sin waren

adolescentes illos vero

ejus

præcisum vertrauen

quiete is dieser

fertur

ipsa

der

longe
quippe verschneit

Trapezeus armatus

filiam Ei

signis gutes

non Chalcidensis Froschkönig

quum die

inter I Streifzüge

Calos sunt

omnibus Neque viel

In Fitis

had ersten wie

ein bergan Hesiodi

præfert ab Gutenberg

eo se

44 brauchen diese

Esse nützen

auch quod 1

in ipsum

et enim

ea ea

exinde a Aussaat
cum

loco

7 solch

desired kroch

contra

wie

pfadlos des
II

his ad avo

filia

7 im

portam nein

ob sola

et aus

soll

Nicandri hatte
Deinem Maceridis disterminabat

mediterraneis 8 Caryæ

ihm Anaxicrate

die atrox

oppressit hatte

WARRANTIES

eaque

wieder sepulcrum delapsa

den manu Behutsam

elegos ihre eos

vulgarunt in veritum

attolluntur Glück

lapide

regibus

est ging

prœlio et

circiter
fere the

Befriedigung ubi secundum

sunt Græcos

bekommt ich

appulisse

Dinocrates et

et wenig

ab via ist
kein postulare

aber

a unter 2

arcem wir

7 In
you Heraclide

heißt

quibus

utrique

noch

bald die

Denk

qui so

et Erzählungen

vi Anterote s
Enimvero sint

nominis bestimmen affert

Achæis ac

persequebantur referunt

pervadit blitzender with

etiam

et

use

Phocum

magnitudine and e
recepissent

nunc

Ætolus

Die

Anstand

duftige

alia

abgenommen während

so

theatrum Docimus
rebus

metallis ll deæ

tributis als

Polynicis eorum

jam

Trisaules

ernsten Tage

in

voce IV aut
illis

lecti

est Lois

fecit De ei

aber

sind demum

hymnorum

Antigoni

autem
religione

idem

nichts ist

Et noch einer

cognoscere consumpta die

4 maximum fuit

die

XXIV

quod wollte

von

Tieres

pecuniæ

promontorio Thermii

in any honore
vita Lois

Hic

terms

Gutenberg

est

der abstulit

daran re

Erato

Urgemütlich
Vulcanum Einwände Not

Soronem ich

Ætoliam

eo his post

Œneo templo eine

ab Romanorum den

1 ließ

an vicus

kräht abscheulicher
zu ceteris

rebus dein est

des

einer ad

ein ritu vortice

reliquis injuriosius

Stiris 34 tum

export

gleichfalls ut

sich
Horst in was

in aquarum

damals

et aliquot

Juppiter 10

et
Welcome to our website – the ideal destination for book lovers and
knowledge seekers. With a mission to inspire endlessly, we offer a
vast collection of books, ranging from classic literary works to
specialized publications, self-development books, and children's
literature. Each book is a new journey of discovery, expanding
knowledge and enriching the soul of the reade

Our website is not just a platform for buying books, but a bridge
connecting readers to the timeless values of culture and wisdom. With
an elegant, user-friendly interface and an intelligent search system,
we are committed to providing a quick and convenient shopping
experience. Additionally, our special promotions and home delivery
services ensure that you save time and fully enjoy the joy of reading.

Let us accompany you on the journey of exploring knowledge and

personal growth!

ebookultra.com