We use a multi-factor asset pricing model to investigate whether fluctuations in industry stock returns are due to industry stock returns are due to industry-specific shocks or to monetary and other macroeconomic factors. We find that common factors explain a substantial portion of the variation...

Introduction -- Thinking like an economist -- Economic models and gains from trade -- The market at work : supply and demand -- Market efficiency -- Microeconomics -- Costs and production : how do businesses work? -- Market structures -- Behavioral economics and game theory -- Labor markets and...