Includes bibliographical references and index.

Introduction : what is economics? -- The key principles of economics -- Exchange and markets -- Supply, demand, and market equilibrium -- Elasticity : a measure of responsiveness -- Consumer choice -- Market efficiency and government intervention -- Imperfect information : adverse selection and moral hazard -- Environmental policy -- Public goods and public choice -- Production technology and cost -- Perfect competition -- Monopoly and price discrimination -- Oligopoly and strategic behavior -- Market structure and public policy -- The labor market and the distribution of income -- Beyond perfect competition : unions, monopsony, and imperfect information -- Measuring a nation's production and income -- Unemployment and inflation -- The economy at full employment -- Why do economies grow? -- Aggregate demand and aggregate supply -- Fiscal policy -- The income-expenditure model -- Investment and financial intermediation -- Money and the banking system -- The federal reserve and monetary policy -- From the short run to the long run -- The dynamics of inflation and unemployment -- Current issues in macroeconomic policy -- International trade and public policy -- The world of international finance.