Contents

• Unit 1 Introduction to Economics xvi

  

  • Chapter 1 What Is Economics? 2
    • 1 Scarcity and the Factors of Production 3
    • 2 Opportunity Cost 8
    • 3 Production Possibilities Curves 13
      • Case Study: Safety at Any Cost? 19
    • Chapter 1 Assessment 20
  • Chapter 2 Economic Systems 22
    • 1 Answering the Three Economic Questions 23
    • 2 The Free Market 28
    • 3 Centrally Planned Economies 34
      • Case Study: Russia in Crisis 39
    • 4 Modern Economies 40
    • Chapter 2 Assessment 46
  • Chapter 3 American Free Enterprise 50

    

    • 1 Benefits of Free Enterprise 51
    • 2 Promoting Growth and Stability 57
    • 3 Providing Public Goods 62
    • 4 Providing a Safety Net 67
      • Case Study: Government and the Interstate Highway System 71
    • Chapter 3 Assessment 72
      • THE WALL STREET JOURNAL CLASSROOM EDITION DEBATING CURRENT ISSUES: Health-Care Costs 74
• Unit 2 Introducing Microeconomics: How Markets Work 76
  • Chapter 4 Demand 78

    

    • 1 Understanding Demand 79
    • 2 Shifts of the Demand Curve 85
    • 3 Elasticity of Demand 90
      • Case Study: What Makes a Person an Entrepreneur? 97
    • Chapter 4 Assessment 98
  • Chapter 5 Supply 100

    

    • 1 Understanding Supply 101
    • 2 Costs of Production 108
    • 3 Changes in Supply 116
      • Case Study: Are Baseball Players Paid Too Much? 121
    • Chapter 5 Assessment 122

Table of Contents