The study of economics should not be highly abstract, but closely related to real-world events. Principles of Economics in Context addresses this challenge, laying out the principles of micro-and macroeconomics in a manner that is thorough, up to date and relevant to students, keeping theoretical exposition close to experience. Emphasizing writing that is compelling, clear, and attractive to students, it addresses such critical concerns as ecological sustainability, distributional equity, the quality of employment, and the adequacy of living standards.

Key features include:

• Clear explanation of basic concepts and analytical tools, with Discussion Questions at the end of each section, encouraging immediate review of what has been read and relating the material to the students' own experience;
• Full complement of instructor and student support materials online, including test banks and grading through Canvas;
• Key terms highlighted in boldface throughout the text, and important ideas and definitions set off from the main text;
• A glossary at the end of the book containing all key terms, their definitions, and the number of the chapter(s) in which each was first used and defined.

Updates for the second edition include:

• Expanded coverage of topics including inequality, financialization and debt issues, the changing nature of jobs, and sustainable development;
• New material on wage discrimination by race and gender; an expanded section on labor markets and immigration;
• Updated discussion of fiscal policy to include more recent developments such as the Trump tax cuts;
• New material on behavioral economics, public goods, and climate change policy; a new section on "The Economics of Renewable Energy."

This new, affordable edition combines the just-released new editions of Microeconomics in Context and Macroeconomics in Context to provide an integrated full-year text covering all aspects of both micro-and macro-analysis and application, with many up-to-date examples and extensive supporting Web resources for instructors and students.

The companion website can be found at: http://www.bu.edu/eci/education-materials/textbooks/principles-of-economics-in-context/

Neva Goodwin is Co-Director of the Global Development and Environment Institute (GDAE) at Tufts University, where she is the director of the electronic Social Science Library: Frontier Thinking in Sustainable Development and Human Well-Being. Her current interests focus on ecological restoration, especially with regard to soils.

Jonathan M. Harris is Senior Research Associate at the Global Development and Environment Institute at Tufts University. His current research focuses on the implications of large-scale environmental problems, especially global climate change, for macroeconomic theory and policy.

Julie A. Nelson is Professor of Economics at the University of Massachusetts Boston and Senior Research Fellow at the Global Development and Environment Institute at Tufts University. Many of her books and articles critique economic methodology from a feminist perspective. She has published in journals ranging from Econometrica and the Journal of Political Economy to Hypatia: Journal of Feminist Philosophy and Ecological Economics.

Pratistha Joshi Rajkarnikar is a Postdoctoral Scholar at the Global Development and Environment Institute at Tufts University. Her research covers topics on women's empowerment, economic development, and the impacts of globalization on developing economies. She has taught economics in visiting positions at Trinity College and University of Massachusetts Boston.

Brian Roach is Director of the Theory and Education Program at the Tufts University Global Development and Environment Institute, and a lecturer at Tufts and Brandeis universities. He specializes in environmental economics, and is co-author (with Jonathan Harris) of Environmental and Natural Resource Economics: A Contemporary Approach.

Mariano Torras teaches economics at Adelphi University in Garden City, New York. A heterodox economist who specializes in ecological and development economics, his recent research has been in the areas of institutional economics and economic methodology; particular attention has been on approaches to addressing climate change.

PART ONE: The Context for Economic Analysis Chapter 0: Economics and Well-Being Time Trend Graphs: U.S. Gross Domestic Product per Capita U.S. Unemployment Rate U.S. Inflation Rate Taxes as a Percentage of GDP Stock Market Performance Median Home Prices Median Worker Earnings vs. Corporate Profits Gender-Based Earnings Inequality Global International Trade Global Carbon Dioxide Emissions Bar Graphs for United States: Income Inequality Unequal Income Growth Educational Attainment Industrial Concentration Ratios International Comparison Graphs: GDP per Capita Growth Rate of GDP per Capita Net National Savings Government Debt Labor Productivity Average Annual Hours Worked Unemployment Rate Inflation Rate Taxes Received by Central Government Trade Balance Income Inequality (Gini coefficient) CEO Pay vs. Worker Pay Ratio Absolute Poverty Foreign Aid (by Donors) Foreign Aid (by Recipients) Internet Users Educational Performance Life Expectancy Subjective Well-Being Carbon Dioxide Emissions per Capita Local Air Quality Chapter 1: Economic Activity in Context 1. Our Starting Point 2. The Goals of an Economy 2.1 Intermediate and Final Goals 2.2 Traditional Economic Goals 2.3 Components of Well-Being 2.4 Economics and Well-being 3. The Issues That Define Economics 3.1 The Four Essential Economic Activities 3.2 The Three Basic Economic Questions 4. Economic Tradeoffs 4.1 Society's Production-Possibilities Frontier 4.2 Tradeoffs Over Time Chapter 2: Useful Tools and Concepts Our Tools for Understanding Empirical Investigation Theoretical Investigation Historical Investigation Different Economic Theories: Examples of Two Basic Models The Basic Neoclassical Model The Contextual Model The Three Spheres of Economic Activity The Core Sphere The Public Purpose Sphere The Business Sphere The Size of the Three Spheres The Informal Sphere and Less Industrialized Countries Chapter 3: Markets and Society Three Definitions of Markets Markets as Places to Buy and Sell Markets Defined by Product Categories "The Market" as an Economic System The Institutional Requirements of Markets Institutions Related to Property and Decision Making Social Institutions of Trust Infrastructure for the Smooth Flow of Goods and Information Money as a Medium of Exchange Types of Markets Markets Defined by What is Sold Markets Defined by How Prices are Determined Advantages And Limitations of Markets Overview of Advantages and Disadvantages of Markets Assessing Market Outcomes PART TWO: Basic Economic Analysis Chapter 4: Supply and Demand 1. Introduction to the Microeconomic Market Model 2. The Theory of Supply 2.1 The Supply Schedule and Supply Curve 2.2 Changes in Supply 2.3 Nonprice Determinants of Supply 3. The Theory of Demand 3.1 The Demand Schedule and Demand Curve 3.2 Changes in Demand 3.3 Nonprice Determinants of Demand 4. The Theory of Market Adjustment 4.1 Surplus, Shortage, and Equilibrium 4.2 Market Forces and Other Considerations 4.3 Shifts in Supply and Demand 5. Topics in Market Analysis 5.1 Real-World Prices 5.2 Markets and Equity 5.3 Shortage, Scarcity, and Inadequacy 5.4 Precision Versus Accuracy Chapter 5: Elasticity The Price Elasticity of Demand 1.1 Price-Inelastic Demand 1.2 Price-Elastic Demand 1.3 Measuring Price Elasticity 1.4 Two Extreme Cases 1.5 Demand Curves and Elasticity 1.6 Elasticity and Revenues 1.7 Price Elasticity of Demand in the Real World 2. The Price Elasticity o…