PART ONE

INTRODUCTION 1

CHAPTER 1 What Is Economics? 1

CHAPTER 2 The Economic Problem 29

PART TWO

HOW MARKETS WORK 55

CHAPTER 3 Demand and Supply 55

CHAPTER 4 Elasticity 83

CHAPTER 5 Efficiency and Equity 105

CHAPTER 6 Government Actions in Markets 127

CHAPTER 7 Global Markets in Action 151

PART THREE

HOUSEHOLDS’ CHOICES 179

CHAPTER 8 Utility and Demand 179

CHAPTER 9 Possibilities, Preferences, and
Choices

203

PART FOUR

FIRMS AND MARKETS 227

CHAPTER 10 Organizing Production 227

CHAPTER 11 Output and Costs 251

CHAPTER 12 Perfect Competition 273

CHAPTER 13 Monopoly 299

CHAPTER 14 Monopolistic Competition 323

CHAPTER 15 Oligopoly 341

PART FIVE

MARKET FAILURE AND GOVERNMENT 371

CHAPTER 16 Public Choices and Public Goods
371

CHAPTER 17 Economics of the Environment 393

PART SIX

FACTOR MARKETS, INEQUALITY,

AND UNCERTAINTY 417

CHAPTER 18 Markets for Factors of Production 417

CHAPTER 19 Economic Inequality 441

CHAPTER 20 Uncertainty
and Information 465

PART SEVEN

MONITORING MACROECONOMIC

PERFORMANCE 489

CHAPTER 21 Measuring GDP and Economic

Growth 489

CHAPTER 22 Monitoring Jobs and Inflation
513

PART EIGHT

MACROECONOMIC TRENDS 539

CHAPTER 23 Economic Growth 539

CHAPTER 24 Finance, Saving, and Investment
565

CHAPTER 25 Money, the Price Level, and
Inflation

589

CHAPTER 26 The Exchange Rate and the
Balance of

Payments 617

PART NINE

MACROECONOMIC FLUCTUATIONS 647

CHAPTER 27 Aggregate Supply and Aggregate

Demand 647

CHAPTER 28 Expenditure Multipliers: The
Keynesian

Model 671

CHAPTER 29 U.S. Inflation, Unemployment,
and

Business Cycle 701

PART TEN

MACROECONOMIC POLICY 727

CHAPTER 30 Fiscal Policy 727

CHAPTER 31 Monetary Policy 753