Acknowledgments

Team Credits The people who made up the Economics: Principles in Action team—representing editorial, editorial services, design services, market research, on-line services/multimedia development, product marketing, production services, and publishing processes—are listed below. Bold type denotes core team members.

Joyce Barisano, Barbara Bertell, Peter Brooks, Margaret Broucek, Todd Christy, Lisa J. Clark, Lori-Anne Cohen, Bob Craton, Kathy Dempsey, Gabriela Perez Fiato, Paul Gagnon, Sandy Graff, Mary Ann Gundersen, Katharine Ingram, Tim Jones, Lynne Kalkanajian, Russ Lappa, James Lonergan, Dotti Marshall, Grace Massey, William McAllister, Baljit Nijjar, Jill Ort, Elizabeth Pearson, Judi Pinkham, Mairead Reddin, Colleen Searson, Emily Soltanoff, Mark Staloff, Susan Swan, Merce Wilczek

Contributing Editors

Douglas Kinnear, Trish Taylor

Cover Design

Suzanne Schineller, Sweetlight Creative Partners, The Concept Bank Front Cover Image, Ralph Mercer Photography

Illustration Maps: Mapquest.com, Inc. Charts, graphs and tables: Precision Graphics, Inc.; J/B Woolsey and Associates; Accurate Art, Inc. Creative art:: John Bleck 24; Doug Bowles 528; Adam Cohen 505; Jon Conrad 512; John Edwards and Associates 17; Neil Stewart 30, 42, 153, 158, 167, 169, 244, 260, 262, 273, 302, 303, 322, 342, 416, 421, 426, 445, 510; J/B Woolsey and Associates 198, 199, 278

Picture Research

Kerri Hoar, PoYee Oster, Robin Samper, Siri Schwartzman

Photography Table of Contents, Page i, Ralph Mercer; iv t, Corel Corp.; iv tm, Jan Halaska/Photo Researchers; iv bm, Dick Luria/FPG International; iv b, Ralph Pleasant/FPG International; v t, Todd Davidson/Image Bank/PNI; v m, Stone/Don Smetzer; v b, Tony Freeman/PhotoEdit; vi t, The Granger Collection, New York; vi m, Stone/Paul Chesley; vi b, James Marshall/The Stock Market; vii t, Richard Strauss/National Museum of American History, Smithsonian Institution; vii m, Russ Lappa; vii b, Stone/Brian Seed; ix l, A. Ramey/Stock Boston; ix m, AP/Wide World Photos; ix r, Jim Harrison/Stock Boston; xviii, Farmhouse Productions/Image Bank; xix bl, Phil McCarten/PhotoEdit; xix br, Index Stock Imagery, xx l, Eastcott/Momatiuk/Woodfin Camp & Associates; xx r, Stone/Paula Bronstein; xxi, Stock Boston, Inc./PictureQuest; xxii, Peter Gridley/FPG International; xxiv, Bonnie Kamin/PhotoEdit; xxv l, Stone/Jon Riley; xxv m, Stone/Charles Gupton; xxv r, Arthur D’Arazien/Superstock; xxvi l, John S. Dykes/Stock Illustration Source; xxvi r, Bob Rowan; Progressive Image/Corbis.

UNIT 1 Page xvi-xvii, Neal Preston/Corbis; 2 teens, David Young-Wolff/PhotoEdit; 2 mall background, PhotoDisc.; 4, Jim Felt/Studio 3; 5 tl, Garry McMichael/Photo Researchers; 5 ml, William Taufic/The Stock Market; 5 bl, Roger Ball/Picturesque Stock Photo; 5 m, Stone/Steven Peters; 5 r, Richard Paslet/Stock Boston/PNI; 7 tl, Ludovic/Rea/SABA Press Photos; 7 background, Stone/Stuart McClymont; 8, Ron Kimball/Ron Kimball Stock; 9, Reprinted with permission of King Features Syndicate; 12, Chris Trotman/Duomo; 13 l, Jeff Tinsley/Smithsonian Institution; 13 r, The Bancroft Library, Kaiser Pictorial Collections; 14, ©Tribune Media Services, Inc. All Rights Reserved. Reprinted with permission.; 19 background, Stone; 19 r, David Young-Wolff/PhotoEdit; 22, Stone/Tim Macpherson; 25, Bob Daemmrich/Stock Boston; 26, Jean-Gerard Sidaner/Photo Researchers; 28 l, Stone/Paul Chesley; 28-29, Jan Halaska/Photo Researchers; 29 inset, Paul Stepan/Photo Researchers; 31 t, From The Wall Street Journal-Permission, Cartoon Features Syndicate; 31 b, Bryan F. Peterson/The Stock Market; 33 tl, Corbis/Bettmann; 33 background, Museum der Stadt, Vienna, Austria/ET Archive, London/Superstock; 34 l, Judi Pinkham; 34 r, A. Keler/Corbis Sygma; 35, B. Bisson/Corbis Sygma; 36 l, Corbis/Bettmann; 36 m, r, Sovfoto; 36-37, Jeff Greenberg/dMRp/Photo Researchers; 37 t, Shepard Sherbell/SABA Press Photos; 38, Ricki Rosen/SABA Press Photos; 39 background, Charles Steiners/The Image Works; 39 tr, Stone/Steven Weinberg; 40, Stone/Bob Handelman; 41, David M. Grossman/Photo Researchers; 44, John Banagan/Image Bank; 45, Jeff Isaac Greenberg; 48-49 background, Prentice Hall; 48 l, Russ Lappa; 48 r, Thomas R.Fletcher/Stock Boston; 49 bl, Prentice Hall; 50, Angelo Cavalli/Image Bank; 51, Bob Rowan; Progressive Image/Corbis; 52 tl, bl, Russ Lappa; 52 ml, Tony Freeman/PhotoEdit; 52 tr, br, Tony Freeman/PhotoEdit; 53, National Highway Traffic Safety Administration; 54, Stone/David Young-Wolff; 56 tl, Brooks/Glogau Photographers/Federal Reserve Board; 56 background, Vivian Ronay/Liaison Agency; 57, Brian Orland/East St. Louis Action Research Project/University of Illinois at Urbana-Champaign; 58 both, Library of Congress; 59 tl, Frank Siteman/The Picture Cube; 59 bl, Tony Freeman/PhotoEdit; 59 tr, Corbis Sygma; 59 br, AP/Wide World Photos; 61, Library of Congress; 63 background, Stone/Baron Wolman; 63 tl, MacDonald Photography/Index Stock Imagery; 63 bl, Bud Freund/Index Stock Imagery; 63 tm, Michael J. Howell/Index Stock Imagery; 63 tr, Charles Schoffer/Index Stock Imagery; 63 br, Stone/Frank Siteman; 64, Nancy Simmerman/AllStock/PNI; 65 l, PhotoDisc.; 65 r, John Elk III/Stock Boston; 66, Bill Horsman/Stock Boston; 68, Russ Lappa; 69 l, Silver Burdett Ginn; 69 r, AP/Wide World Photos; 71 background, Superstock; 71 tr, AP/Wide World Photos; 74-75 background, Russ Lappa; 74, Jose Luis Pelaez/Corbis.

UNIT 2 Page 76-77 , Chris Trotman/Duomo; 78, Bill Aron/PhotoEdit; 79, Stone/Robert Torrez; 81, Sears Roebuck & Co.; 82, Index Stock Imagery; 84, Stone/Ron Sherman; 85, Jõso Azel/Aurora/PNI; 86, Stone/Joseph Sohm; 87 t, Dick Luria/FPG International; 87 b, Bruce Fier/Liaison Agency; 88, Stone/Mark Junak; 89 background, Russ Lappa; 89 inset, AP/Wide World Photos; 90, Glasbergen/Rothco Cartoons; 93 l, Bonnie Kamin/PhotoEdit; 93 r, Sonda Dawes/The Image Works; 94 t, Ken Giese/Superstock; 94 bl,Volkswagen America, Inc.; 94 br, Stone/Donald Johnston; 97 background, Craig Hammell/The Stock Market; 97 tr, Superstock; 100, Stone/Andy Sacks; 101, Telegraph Colour Library 1998/FPG International; 102 tl, Rick Gayle/The Stock Market; 102 bl, Dennis Hallinan/FPG International; 102 br, Lynn Goldsmith/Corbis; 106 t, Myrleen Ferguson/PhotoEdit; 106 b, Ralph Pleasant/FPG International; 107, Galen Rowell/Corbis; 108, Richard Haynes; 110, Stone/Jeff Zaruba; 114, Todd Gipstein/Corbis; 115 background, Superstock; 115 tl, Black Entertainment Television; 116 tl, PhotoDisc.; 116 bl, Russ Lappa; 116 the rest, PhotoDisc.; 119, ML Sinibaldi/The Stock Market; 120, Tim Page/Corbis; 121 background, Jerry Arcieri/SABA Press Photos; 121 tr, Darren Carroll/Duomo; 123, Baloo/Rothco Cartoons; 124, Stone/Charles Gupton; 125, Phil McCarten/Photo Edit; 128, Stone/Peter Pearson; 130, David Young-Wolff/Photo Edit; 132, Russ Lappa; 133, Todd Davidson/Image Bank/PNI; 136, Russ Lappa; 138 background, B. Daemmrich/The Image Works; 138 tl, B.Daemmrich/Corbis Sygma; 139, 140, Russ Lappa; 141, H. Armstrong Roberts; 142, Greg Girard/Contact Press; 143, David McIntyre/Black Star; 143 inset, Stone/Keren Su; 144, Stone/Craig Wells; 145 background, Kerrick James Photo/Getty Images; 145 insert, Randy Faris/Corbis; 148-149 background, Prentice Hall; 148 l, Russ Lappa; 148 r, PhotoDisc.; 149 bl, Prentice Hall; 150, Stan Sholik/FPG International; 151, Mark Tomalty/Masterfile; 152 l, Miro Vintoniv/Index Stock Imagery; 152 r, Mark Tomalty/Masterfile; 155 l, Superstock; 155 br, ©Tribune Media Services, Inc. All Rights Reserved. Reprinted with permission.; 156, G. Biss/Masterfile; 158, David J. Carol/Image Bank; 159, A. Ramey/Stock Boston; 163 l, Stone/David Young Wolff; 163 m, Brent Jones/Stock Boston; 163 r, Will McIntyre/Photo Researchers; 165 tl, Courtesy of Microsoft; 165 background, Stone/Peter Poulides; 166, Stock Boston, Inc./PictureQuest; 168, L. Mulvehill/The Image Works; 171, David Young-Wolff/PhotoEdit; 172, Stone/John Elk; 173, 174 l, Culver Pictures; 174 r, Brown Brothers; 175 tl, Stone/Jon Ortner; 175 tr, AP/Wide World Photos; 175 bm, Corbis; 176, James Nielson/Liaison/Getty Images, Inc.; 177 background, Mark Peterson/SABA Press Photos; 177 tr, John Coletti/Stock Boston; 177 br, Corel Corp.; 179, Russell Hodin/New Times; 180-181 background, Russ Lappa; 180, Mark A. Leman/Getty Images, Inc.

UNIT 3 Page 182-183 , Peter Vandemark/Stock Boston; 184, Walter Bibikow/FPG International; 185, Stone/Don Smetzer; 187, Jose Luis Pelaez Inc./The Stock Market; 189 background, David Young-Wolfe/PhotoEdit; 189 tl, Courtesy of Yahoo!; 190, Tony Freeman/PhotoEdit; 192, The New Yorker Collection 1995 Roz Chast from cartoon-bank.com. All Rights Reserved.; 193, Stone/Bruce Ayres; 194, Jon Feingersh; 195, Leonard Harris/Stock Boston; 200, Les Stone/Corbis Sygma; 201, Index Stock Imagery; 202, Young-Wolff/PhotoEdit; 203, Bob Daemmrich/Stock Boston; 204 l, The American Veterinary Medical Association for Veterinarians; 204 tm, Better Business Bureau; 204 tr, Lake Norman Chamber of Commerce; 204 br, American Dental Association; 205 background, Brian Seed; 205 both, Courtesy of the Hitchiner Corporation; 208-209 background, Prentice Hall; 208 l, Russ Lappa; 208 r, Bill Bachmann/Stock Boston; 209 bl, Prentice Hall; 210, Superstock; 211, Stone/Steve Smith; 213 l, The Granger Collection, New York; 213 r, Corbis/Bettmann; 214, Corbis/Bettmann; 217, Bill Pugliano/Liaison Agency; 219 background, Richard Faverty/Liaison Agency; 219 tr, Donald C. Johnson/The Stock Market; 219 br, Corel Corp.; 220, Stone/Gene Peach; 222, Charlie Wasterman/Liaison Agency; 227, Ed Quinn/SABA Press Photos; 228 tl, Library of Congress; 228 background, Culver Pictures; 232, DILBERT reprinted by permission


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Table of Contents

Economics: Principles in Action Unit 1 Introduction to Economics Unit 2 How Markets Work Unit 3 Business and Labor Unit 4 Money, Banking, and Finance Unit 5 Measuring Economic Performance Unit 6 Government and the Economy Unit 7 The Global Economy Reference Section