Economics is "the study of how society uses its scarce resources" or, more snappily, "the science of choices" that helps people make decisions about how to use such scarce things as land, labour, raw materials, capital, entrepreneurial spirit and time. An understanding of economics can therefore help people in politics and public service, in business and the professions, and even in their private life make decisions that will produce the results they are seeking to achieve. For anyone who wants a better understanding of this far from dismal science, which has such a powerful influence on world affairs, business, and the way we live, this clear and entertaining guide will prove invaluable.
Matthew Bishop has been writing about business and economics for The Economist for more than ten years and is currently The Economist's business editor.
The aim of this book is to explain economics and its most important
ideas, and to demystify the most important pieces of
economic jargon. It is intended to be practical, rather than
provide a comprehensive tour of economic theory. It focuses on
the economics that affects jobs and prices and trade, that raises
voices in boardrooms and bars and among politicians and
pundits, in short, the economics that touches and shapes everyday
life.
The book starts with an essay that examines the nature of
economics and the challenges it must rise to if it is to be relevant
in a fast-changing world. Following this is an A–Z of jargon,
terms and concepts. In this section words in small capitals
usually indicate a cross-reference to a separate entry, although
readers should note that abbreviations that may not have a separate
entry are also in small capitals. As is inevitable with a
book of this nature, the entries draw heavily, and with gratitude,
on the work of others. This includes many articles published
in The Economist and previous Economist guides to
economics.
