Basic economic principles

This fourth edition of Basic Economic Principles is published at a time when urgent economic questions are raised daily. The value of the dollar and other currencies fluctuate broadly and often unpredictably. The past decade saw two economic recessions, one of which was the most severe in a third of a century: hence the timing and movements of the business cycle are matters of constant concern. Inflation is a vexing problem. which has brought forth numerous but often inconclusive proposals. Environmental concerns, coupled with an impending "energy crisis." give us a new awareness of the limited nature of resources and the very

real prices that will have to be paid in connection with hard choices. The major questions have no easy answers. Yet many of the pro posed answers and possible approaches to answers demand careful consideration.
These and other points underscore the need to improve the level of our national understanding of economics. Certainly there are many basic lessons that have not been learned.