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CHAPRER 1 Introduction 1
TEXT A Why Study Economics 1
TEXT B What is Economics 6
TEXT C The Uses of Economics 16
CHAPTER 2 Basic Concepts of Economics and Basic Problems of Economy 25
TEXT A Macro and Micro Economics 25
TEXT B The Three Problems of Economic Organization 32
TEXT C Market,Command,and Mixed Economics 37
CHAPTER 3 Markets and Governments in a Modern Economy 45
TEXT A The Market Mechanism 45
TEXT B How a Market Solves the Three Economic Problems 52
TEXT C Who Governs the Market 60
CHAPTER 4 Basic Elements of Supply and Demand 70
TEXT A Introduction to Supply and Demand 70
TEXT B Demand 75
TEXT C Supply 83
CHAPTER 5 Labor,Land,and Capital 93
TEXT A Labor 93
TEXT B Land,Natural Resources,and Rent 100
TEXT C Capital 107
CHAPTER 6 Business Organization 114
TEXT A The Nature of the Firm 114
TEXT B Big,Small,and Infinitesimal Businesses 120
TEXT C Features of a Modern Corporation and Advatages and Disadvantages of Corporations 126
CHAPTER 7 Major Concepts in Macro Economics 131
TEXT A GNP,NNP and GDP 131
TEXT B Consumption,Income,and Saving 137
TEXT C Investment and Capital Formation 147
CHAPTER 8 Money 154
TEXT A The Essence of Money 154
TEXT B Interest Rates 162
TEXT C Banking and the Supply of Money 169
CHAPTER 9 The Federal Reserve System 178
TEXT A Structure of the Federal Reserve 178
TEXT B The Fed's Operations 187
TEXT C International Reserve Movements and Other Activities 198
CHAPTER 10 Business Cycles and Their Effects to the Economy 208
TEXT A Business Cycles 208
TEXT B Unemployment 218
TEXT C Inflation 227
CHAPTER 11 Fiscal Policy,Budget,Deficits,and the Government Debt 241
TEXT A Fiscal Policy 241
TEXT B Fiscal Deficits:Concepts and Trends 251
TEXT C Government Debt 261
CHAPTER 12 International Trade and the Theory of Comparative Advantage 272
TEXT A The Sources of International Trade 272
TEXT B The Principle of Comparative Advantage 279
TEXT C Protectionism and Free Trade 287
Answers to Exercises 301
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