Economics : measurement theories case studies / by George Soule

This book is designed for use by that large body of students who need a knowledge of economics as an essen tial part of a liberal education and a preparation for responsible citizen ship, but who do not expect to specialize in the subject. It is based on years of experience in the teaching of a course so conceived. In spite of the apparent limitation of aim, the course always turned out some students who became so intrigued with the subject that they went on to more advanced material and, as a rule, were able to master it with little difficulty.

The book embodies the following distinguishing features: 1. Part I explains important "tools of the trade"-methods of eco nomic measurement, such as business, governmental, personal, and social accounts; and common statistical measures, such as index numbers, sampling, and simple graphs. Part II continues with a description of how the economy works, recurrent themes being allocation of resources, business cycles, and economic growth. Without undue complexity, it examines markets, price theory, and the theory of a firm. It then indi cates the influences on markets exerted by such institutions as types of business organization and departures from competition, and by money and its management, governmental activities, labor policy, agricultural policy, behavior of consumers, and foreign transactions. Part II con cludes with an examination of the broad outcome of our economic practices, such as advances in technology, growth of income and changes in its distribution, and "big government"; and with a comparative assessment of our society as an "economic system."

2. Part III, comprising almost one third of the volume, consists of case studies involving principles and other material presented in Parts I and II. These cases are not imagined; they are based on documents issued to influence opinion or to throw light on important contemporary problems. Like all policy problems, each involves more than one of the formal principles as they are usually separated for the purpose of teach ing; each may be referred back to the several pertinent chapters in Parts I and II. Whatever confusion this may introduce into an orderly. presentation of the discipline is far outweighed by the sense of reality derived by the student and by the opportunity for vivid discussion. The cases are intended not merely as exercises but also as illustra tions of the method, which may be employed and extended by the

instructor on the basis of contemporary material which comes in the

mail to every economist. Some instructors may prefer the procedure of completing Parts I and II before tackling the case studies in Part III, and then using these studies as a review and application of the principles discussed. Others may wish immediately to apply the principles described in an early chapter to an appropriate case study; then turn back to a chapter relevant to the case but not yet assigned to the class. There are good arguments to support either procedure; the choice will depend on the preference of the instructor and on the bent of a particular group of students.

I am deeply indebted to Dean Leland E. Traywick, of Michigan State University, and to Professor Francis E. Boddy, of the University of Minnesota, for their help in the preparation of this book. Both read early and final drafts of the manuscript and made many invaluable suggestions. Though I assume full responsibility for the final product, including defects that may be discovered by its users, the book derives much of any merit it may possess from the conscientious and friendly efforts of these two editorial advisers.