Foundations of Economics, Global Edition (8e) : 9781292217888

Foundations of Economics, Global Edition (8e)

Bade & Parkin
Published by
Pearson Higher Ed USA
Available on demand
Title type
Title type

For courses in Economics.

Guide students through the economic principles that will influence their financial decisions

Foundations of Economics, 8th Edition introduces students to the economic principles they can use to navigate the financial decisions of their futures. Each chapter concentrates on a manageable number of ideas, usually 3 to 4, with each reinforced several times throughout the text. This patient approach helps guide students through unfamiliar terrain and focus them on the most important concepts.

The text does four core things to help students grasp and apply economic principles: it motivates with compelling issues and questions, focuses on core ideas, offers concise points, and encourages learning with activities and practice questions. After completing this text, students will have the foundational knowledge of how the economy works and can apply it to their lives going forward.


Table of contents
  • Part 1: Introduction
  • 1. Getting Started
  • 2. The U.S. and Global Economies
  • 3. The Economic Problem
  • 4. Demand and Supply
  • Part 2: A Closer Look at Markets
  • 5. Elasticities of Demand and Supply
  • 6. Efficiency of Fairness and Markets
  • Part 3: How Governments Influence the Economy
  • 7. Government Actions in Markets
  • 8. Taxes
  • 9. Global Markets in Action
  • Part 4: Market Failures and Public Policy
  • 10. Externalities
  • 11. Public Goods and Common Resources
  • 12. Private Information and Healthcare Markets
  • Part 5: A Closer Look At Decision Makers
  • 13. Consumer Choice and Demand
  • 14. Production and Cost
  • Part 6: Prices, Profits, and Industry Performance
  • 15. Perfect Competition
  • 16. Monopoly
  • 17. Monopolistic Competition
  • 18. Oligopoly
  • Part 7: Incomes and Inequality
  • 19. Markets for Factors of Production
  • 20. Economic Inequality
  • Part 8: Monitoring the Macroeconomy
  • 21. GDP: A Measure Of Total Production and Income
  • 22. Jobs and Unemployment
  • 23. The CPI and the Cost of Living
  • Part 9: The Real Economy
  • 24. Potential GDP and the Natural Unemployment Rate
  • 25. Economic Growth
  • 26. Finance, Saving, and Investment
  • Part 10: The Money Economy
  • 27: The Monetary System
  • 28: Money, Interest, and Inflation
  • Part 11: Economic Fluctuations
  • 29. Aggregate Supply and Aggregate Demand
  • 30. Aggregate Expenditure Multiplier
  • 31. The Short-Run Policy Tradeoff
  • Part 12: Macroeconomic Policy
  • 32. Fiscal Policy
  • 33. Monetary Policy
  • 34. International Finance
New to this edition

Notable content changes in micro

  • Economics as a Life Skill section explains how economics can be used as a life tool, the scientific method the subject employs, and economics as an aid to critical thinking (Chapter 1).
  • Eye on Your Life looks at the BLS data on student time allocation.
  • Coverage on how the outward bowed production possibilities frontier arises from exploiting comparative advantage (Chapter 3).
  • Section on production quotas, which explains why producers like them and illustrates how a quota expands producer surplus (Chapter 7).
  • Explanation of the Flat Tax and Fair Tax proposals and compares their efficiency and equity properties with those of the existing tax code (Chapter 8).
  • Expanded discussion of carbon emissions and the global challenge of achieving an efficient use of energy resources (Chapter 10).
  • Efficient provision of transportation infrastructure is a motivating example and discussion of the underprovision that results from limited revenue sources is included (Chapter 11).
  • Coverage of the economics of healthcare insurance and services. It identifies the sources of healthcare market failure and describes and compares alternative solutions including Obamacare and the healthcare systems of Canada and Europe (Chapter 12).
  • Broadened examination of inequality trends with a focus on the income share of the top one percent--the great compression through the mid-1970s and the great divergence of the past 40 years. Coverage of mobility up and down the income quintiles has also been expanded (Chapter 20).

Notable content changes in macro

  • The text explores the question of whether we are back at full employment. In seeking an answer, the chapter adds to the standard list of job market indicators--the new Z-Pop measure of the percentage of the population that is fully occupied (Chapter 22).
  • Data on the new Sticky Price CPI and its related Flexible Price CPI as an attempt to measure the underlying inflation rate (Chapter 23).
  • Covers who gets the benefits of economic growth with a dramatic demonstration of the gains by the top one percent compared with the gains of the other 99 percent (Chapter 25).
  • Explains the concepts of fiscal imbalance and generational imbalance, and the magnitudes of these imbalances in the US today (Chapter 32).
  • Discusses the rules versus discretion dichotomy and a description of both the Taylor interest rate rule and the McCallum monetary base growth rate rule (Chapter 33).


Outcome-driven teaching and learning

  • The text has been revised to provide an outcome-driven teaching and learning program to strengthen problem-solving, critical-thinking, and decision-making skills.
Features & benefits
  • NEW! The text reflects the dramatic economic history of today, including persistent slow economic growth, an increasing concentration of wealth, headwinds from the UK’s stagnant economy, the UK’s decision to leave the European Union, China’s slowing expansion, and enhanced concern about climate change. In the US specifically, the text covers the increasing loss of jobs to offshore companies, the political popularity of trade protection, financial demands from an aging population, a dysfunctional congress with rising government debt and a slow, decade-long recovery from the financial crisis.
  • UPDATED! Each chapter contains small changes to enhance clarity and currency, and every example reflects the most recent current events.