Includes index.

Part 1: Introduction: Thinking like an economist. Economics and economic reasoning ; The production possibility model, trade, and globalization ; Appendix A: Graphish : the language of graphs ; Economic institutions ; Appendix A: The history of economic systems ; Supply and demand ; Using supply and demand -- Part 2: Microeconomics. I. The power of traditional economic models. Describing supply and demand : elasticities ; Taxation and government intervention ; Market failure versus government failure ; Politics and economics : the case of agricultural markets -- II. International economic policy issues. Comparative advantage, exchange rates, and globalization ; International trade policy -- III. Production and cost analysis. Production and cost analysis I ; Production and cost analysis II ; Appendix A: Isocost/isoquant analysis -- IV. Market structure. Perfect competition ; Monopoly and monopolistic competition ; Appendix A: The algebra of competitive and monopolistic firms ; Oligopoly and antitrust policy ; Real-world competition and technology -- V. Factor markets. Work and the labor market ; Appendix A: Derived demand ; Nonwage and asset income : rents, profits, and interest ; Who gets what? the distribution of income -- VI. Choice and decision making. The logic of individual choice : the foundation of supply and demand ; Appendix A: Indifference curve analysis ; Game theory, strategic decision making, and behavioral economics ; Appendix A; Game theory and oligopoly -- VII. Modern economic thinking. Thinking like a modern economist ; Behavioral economics and modern economic policy ; Microeconomic policy, economic reasoning, and beyond -- Part 3: Macroeconomics. I. Macroeconomic basics. Economic growth, business cycles, and structural stagnation ; Measuring the aggregate economy -- II. Policy models. The short-run Keynesian policy model : demand-side policies ; The multiplier model ; The classical long-run policy model : growth and supply-side policies ; Advances in modern macroeconomic theory ; The structural stagnation policy dilemma ; Appendix A: Creating a targeted safety net to help the least well off -- III. Finance, money, and the economy. The financial sector and the economy ; Appendix A; Closer look at financial assets and liabilities ; Monetary policy ; Financial crises, panics, and unconventional monetary policy -- IV. Taxes, budgets, and fiscal policy. Deficits and debt ; The fiscal policy dilemma -- V. Macroeconomic problems. Jobs and unemployment ; Inflation, deflation, and macro policy -- VI. International macroeconomic policy issues. International financial policy ; Appendix A: History of exchange rate systems ; Macro policy in a global setting ; Macro policy in developing countries.