What Every Economics Student Needs to Know and Doesn't Get in the Usual Principles Text

by John Komlos

This short book explores a core group of 40 topics that tend to go unexplored in an Introductory Economics course. Though not a replacement for an introductory text, the work is intended as a supplement to provoke further thought and discussion by juxtaposing blackboard models of the economy with empirical observations.

Each chapter starts with a short "refresher" of standard neoclassical economic modelling before getting into real world economic life. Komlos shows how misleading it can be to mechanically apply the perfect competition model in an oligopolistic environment where only an insignificant share of economic activity takes place in perfectly competitive conditions. Most economics texts introduce the notion of oligopoly and differentiate it from the perfect competition model with its focus on "price takers." Komlos contends that oligopolies are "price makers" like monopolies and cause consumers and economies nearly as much harm. Likewise, most textbook authors eschew any distortions of market pricing by government, but there is usually little discussion of the real impact of minimum wages, which Komlos corrects.

The book is an affordable supplement for all basic economics courses or for anyone who wants to review the basic ideas of economics with clear eyes.

Genres: Economics, Nonfiction

268 pages, Paperback

First published January 25, 2014

Reviews

[Lampros · Rating 4 out of 5]

A concise and flowing introduction to economics with emphasis on the institutional and behavioural aspects. Komlos follows a pragmatic approach which is commendable especially concerning that it is a contribution to a field of study which consists of naive rationalists fitting the world to its theories. His style is well flowing, fulfilling its promise of being a students handbook.

Komlos shows his knowledge of behavioural sciences throughout the book. His critique of the economic field being pre-Freudian and pre-Pavlovian is particularly interesting. His Pavlovian explanation of demand, needs and marketing, draws similarities to another great book, namely “The Affluent Society” by J.K. Galbraith. Moreover similarities in his explanation of consumption can be drawn to the systems approach of Niklas Luhmann. As a result of the writers social cognitin background, his critique of the neoclassical indifferences curves is well captured. The main aspects of competition, finance, crisis economics and globalisation are adequately explained to the casual as well as the better informed reader.

[Lincoln Garrett · Rating 3 out of 5]

3.5 stars. Macro section should be bigger. Not sure the take is right on budget and trade deficits.