| Preface | xvii |
| Economics and the Internet | xxiii |
| Part 1 | Basic Concepts | 1 |
| Chapter 1 | The Fundamentals of Economics | 3 |
| Appendix 1 | How to Read Graphs | 18 |
| Chapter 2 | Markets and Government in a Modern Economy | 25 |
| Chapter 3 | Basic Elements of Supply and Demand | 46 |
| Part 2 | Microeconomics: Supply, Demand, and Product Markets | 65 |
| Chapter 4 | Applications of Supply and Demand | 67 |
| Chapter 5 | Demand and Consumer Behavior | 85 |
| Appendix 5 | Geometrical Analysis of Consumer Equilibrium | 102 |
| Chapter 6 | Production and Business Organization | 108 |
| Chapter 7 | Analysis of Costs | 125 |
| Appendix 7 | Production, Cost Theory, and Decisions of the Firm | 142 |
| Chapter 8 | Analysis of Perfectly Competitive Markets | 147 |
| Chapter 9 | Imperfect Competition and Its Polar Case of Monopoly | 166 |
| Chapter 10 | Oligopoly and Monopolistic Competition | 183 |
| Chapter 11 | Uncertainty and Game Theory | 203 |
| Part 3 | Factor Markets: Labor, Land, and Capital | 223 |
| Chapter 12 | How Markets Determine Incomes | 225 |
| Chapter 13 | The Labor Market | 243 |
| Chapter 14 | Land and Capital | 267 |
| Appendix 14 | Markets and Economic Efficiency | 286 |
| Part 4 | Applied Microeconomics: International Trade, Government, and the Environment | 295 |
| Chapter 15 | Comparative Advantage and Protectionism | 297 |
| Chapter 16 | Government Taxation and Expenditure | 322 |
| Chapter 17 | Promoting More Efficient Markets | 344 |
| Chapter 18 | Protecting the Environment | 363 |
| Chapter 19 | Efficiency vs. Equality: The Big Trade-off | 385 |
| Part 5 | Macroeconomics: The Study of Economic Growth and Business Cycles | 411 |
| Chapter 20 | Overview of Macroeconomics | 413 |
| Appendix 20 | Macroeconomic Data | 432 |
| Chapter 21 | Measuring Economic Activity | 434 |
| Chapter 22 | Consumption and Investment | 455 |
| Chapter 23 | Business Fluctuations and the Theory of Aggregate Demand | 476 |
| Chapter 24 | The Multiplier Model | 491 |
| Chapter 25 | Money, Banking, and Financial Markets | 511 |
| Chapter 26 | Central Banking and Monetary Policy | 541 |
| Part 6 | Economic Growth and Macroeconomic Policy | 565 |
| Chapter 27 | The Process of Economic Growth | 567 |
| Chapter 28 | The Challenge of Economic Development | 591 |
| Chapter 29 | Exchange Rates and the International Financial System | 612 |
| Chapter 30 | Open-Economy Macroeconomics | 635 |
| Part 7 | Unemployment, Inflation, and Economic Policy | 659 |
| Chapter 31 | Unemployment and the Foundations of Aggregate Supply | 661 |
| Chapter 32 | Ensuring Price Stability | 683 |
| Chapter 33 | The Warring Schools of Macroeconomics | 709 |
| Chapter 34 | Policies for Growth and Stability | 730 |
| Valediction | 754 |
| Glossary of Terms | 756 |
| Index | 779 |
