Contents

List of Boxes ix

To the Instructor x

To the Student xiv

Acknowledgements xv

About the Author xvi

Chapter 1 Economic Issues and Concepts 1

1. 1 What Is Economics? 3
   Resources 4
   Scarcity and Choice 4
   Four Key Economic Problems 8
   Microeconomics and Macroeconomics 9
   Economics and Government Policy 9


2. 2 The Complexity of Modern Economies 10
   The Nature of Market Economies 11
   The Decision Makers and Their Choices 13
   Production and Trade 15


3. 3 Is There an Alternative to the Market Economy? 17

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