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eae aa oul lanes Second Edition DOMINICK SALVATORE EUGENE A. DIULIO The perfect aid for better grades! Covers all course fundamentals—supplements any class text 'o Teaches effective problem-solving 964 fully worked problems Ideal for self-study! Use with these courses: (2 Economics [Principles of Economics { Microeconomics ( Macroeconomics SCHAUM’S OUTLINE OF THEORY AND PROBLEMS oF PRINCIPLES OF ECONOMICS Second Edition DOMINICK SALVATORE, Ph.D. Professor of Economics Fordham University EUGENE A, DIULIO, Ph.D. Associate Professor of Economics Fordham University SCHAUM’S OUTLINE SERIES McGRAW-HILL New York San Francisco Washington, D.C. Auckland Bogoté Caracas Lisbon London Madrid Mexico City Milan Montreal New Delhi San Juan Singapore Sydney Tokyo Toronto DOMINICK SALVATORE received his Ph.D. in 1971 and is currently Professor of Economics at Fordham University in New York. He is the author of the textbooks International Economics, 5th Ed, (1995), Microeconomic Theory, 2nd Ed. (1994), and Managerial Economics in a Global Economy, 3rd Ed. (1996). He has also written Schaum's Outlines in Microeconomic Theory, Managerial Economics, Statistics and Econometrics, and International Economics, and coauthored Development Economics. His research has been published in numerous leading scholarly journals and presented at national and international conferences. EUGENE A. DIULIO, currently Associate Professor of Economics at Fordham University, received his Ph.D. from Columbia University. He is the author of Schaum's Outline of Macroeconomic Theory. His research has been in the area of financial institutions and financial markets. He is an educational consultant to numerous banks and is an Adjunct Professor at the Columbia University Graduate School of Business. Appendix A is jointly copyrighted ©1996 by The McGraw-Hill Companies, Inc. and MathSoft, Ine. ‘Schaum's Outline of Theory and Problems of PRINCIPLES OF ECONOMICS. Copyright ©1996, 1980 by The McGraw-Hill Companies, Inc. All rights reserved. Printed in the United States of America. Except as permitted under the Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a data base or retrieval system without the prior written permission of the publisher. 4567890BAW BAW99 ISBN 0-07-054629.0 Sponsoring Eiitor: Jeanne Flagg Production Supervisor: Denise Puryear Editing Supervisor: Patty Andrews Library of Congress Cataloging: Salvatore, Dominick. ‘Schaum’s outline of theory and problems of principles of economics J Dominick Salvatore, Eugene A. Diulio. — 2nd ed. p. cm, — (Schaum's outline series) Includes index. ISBN 0-07-054629-0 (soft cover) 1. Economics—Outlines, syllabi, etc. 1. Diulio, Eugene A. Title HBI7I.5S245 1995 330—de20 95.6358 cP McGraw-Hill A Division of The McGraw Hil Companies