Includes bibliographical references and index.

Economics, foundations and models -- Tradeoffs, the market system, and comparative advantage -- Where prices come from, the interaction of demand & supply -- Economic efficiency and government price setting -- Externalities, environmental policy, and public goods -- Elasticity, the responsiveness of demand and supply -- Firms, corporate governance, and the stock market -- Comparative advantage and the gains from international trade -- Consumer behavior -- Production, technology, and costs -- Firms in perfectly competitive markets -- Monopolistic competition, the competitive model in a more realistic setting -- Oligopoly, firms in less competitive markets -- Monopoly and antitrust policy -- Pricing strategy -- The markets for labor and other factors of production -- The economics of information -- The tax system and the distribution of income.