| Preface | |
| Acknowledgments | |
| Suggested One-Semester and One-Quarter Course | |
| Outlines | |
| Pt. 1 | An Introduction to Economics and the Economy | |
| 1 | The Nature and Method of Economics | 1 |
| 2 | The Economizing Problem | 19 |
| 3 | Pure Capitalism and the Circular Flow | 35 |
| 4 | Understanding Individual Markets: Supply and Demand | 47 |
| 5 | The Private Sectors and the Market System | 67 |
| 6 | The Public Sector | 88 |
| Pt. 2 | National Income, Employment, and Fiscal Policy | |
| 7 | Measuring Domestic Output, National Income, and the Price Level | 105 |
| 8 | Macroeconomic Instability: Unemployment and Inflation | 129 |
| 9 | Aggregate Demand and Aggregate Supply | 151 |
| 10 | Classical and Keynesian Theories of Employment | 171 |
| 11 | Equilibrium Domestic Output in the Keynesian Model | 196 |
| 12 | Fiscal Policy | 221 |
| Pt. 3 | Money, Banking, and Monetary Policy | |
| 13 | Money and Banking | 243 |
| 14 | How Banks Create Money | 264 |
| 15 | The Federal Reserve Banks and Monetary Policy | 281 |
| Pt. 4 | Problems and Controversies in Macroeconomics | |
| 16 | Alternative Views: Monetarism and Rational Expectations | 305 |
| 17 | The Inflation-Unemployment Relationship | 324 |
| 18 | Budget Deficits and the Public Debt | 349 |
| 19 | Economic Growth | 365 |
| Pt. 5 | Microeconomics of Product and Resource Markets | |
| 20 | Demand and Supply: Elasticities and Applications | 383 |
| 21 | Consumer Behavior and Utility Maximization | 402 |
| 22 | The Costs of Production | 418 |
| 23 | Price and Output Determination: Pure Competition | 438 |
| 24 | Price and Output Determination: Pure Monopoly | 465 |
| 25 | Price and Output Determination: Monopolistic Competition | 485 |
| 26 | Price and Output Determination: Oligopoly | 498 |
| 27 | Production and the Demand for Resources | 518 |
| 28 | The Pricing and Employment of Resources: Wage Determination | 533 |
| 29 | The Pricing and Employment of Resources: Rent, Interest, and Profits | 553 |
| 30 | General Equilibrium: The Market System and Its Operation | 567 |
| Pt. 6 | Government and Current Economic Problems | |
| 31 | Government and Market Failure: Public Goods, the Environment, and Information Problems | 579 |
| 32 | Public Choice Theory and Taxation | 599 |
| 33 | Antitrust and Regulation | 619 |
| 34 | Agriculture: Economics and Policy | 638 |
| 35 | Income Inequality and Poverty | 654 |
| 36 | Labor Market Issues: Unionism, Discrimination, and Immigration | 672 |
| Pt. 7 | International Economics and the World Economy | |
| 37 | International Trade: Comparative Advantage and Protectionism | 697 |
| 38 | Exchange Rates, the Balance of Payments, and Trade Deficits | 720 |
| 39 | Growth and the Less Developed Countries | 745 |
| 40 | The Soviet Economy in Transition | 765 |
| Glossary | G1 |
| Index | I1 |