Includes bibliographical references and index.

Contents: 1. What is economics: The ordinary business of life -- First principles -- Economic models: trade-offs and trade -- 2. Supply and demand: Supply and demand -- The Market strikes back -- Elasticity -- 3.Individuals and markets: Consumer and producer surplus -- Making decisions -- 4. The Producer: Behind the supply curve: inputs and costs -- Perfect competition and the supply curve -- 5. The Consumer: The rational consumer -- Consumer preferences and consumer choice -- 5. Markets and efficiency: Factor markets and the distribution of income -- Efficiency and equity -- 7. Market structure: beyond perfect competition: Monopoly -- Oligopoly -- Monopolistic competition and product differentiation -- 8. Extending market boundaries: International trade -- Uncertainty, risk and private information -- 9. Microeconomics and public policy: Externalities -- Public goods and common resources -- Taxes, social insurance and income distribution -- 10. New direction for markets: Technology, information goods and network externalities -- 11. Introduction to macroeconomics: Macroeconomics: the big picture -- Tracking the macroeconomy -- 12. The Economy in the long run: Long-run economic growth -- Savings, investment spending and the financial system -- 13. Short-run economic fluctuations: Aggregate supply and aggregate demand -- Income and expenditure -- Fiscal policy -- Money, banking and the federal reserve system -- Monetary policy -- 14. The Supply side and the medium run: Labor markets, unemployment and inflation -- Inflation, disinflation and deflation -- 15. Events and ideas: The making of modern macroeconomics -- 16. The Open economy: Open-economy macroeconomics --