Includes index.

1. Economics and Economics Issues -- 2. Scarcity, Choice, and the Economic Problem -- 3. The nature of the Mixed Economy -- 4. Demand, Supply, and Price Determination -- 5. Elasticity of Demand and Supply and Further Topics in Demand Theory -- 6. Applications of Demand, Supply, and Elasticity -- 7. The Firm and Its Costs of Production -- 8. Perfect Competition -- 9. Monopoly -- 10. Monopolistic Competition -- 11. Oligopoly and market Concentration -- 12. Market Structure, Public Policy, and Regulated Markets -- 13. Government Regulation: Dealing with Market Shortcomings -- 14. Production and the Demand for Productive Resources -- 15. Wage Determination, Labor Market Structure, and Unions -- 16. Rent, Interest, and Capital -- 17. Income Distribution, Poverty, and Welfare Policy.

Since its inception, this book's primary objective has been to demonstrate how principles of economics are used to analyze real-world events and problems. To meet this objective in a new way, a major feature has been added to the third edition- a series of discussions about contemporary economic problems and policies for dealing with them. Each chapter has from one to four such sections, called "Policy Perspectives." They are directly related to the chapter's content and, because they deal with real-world situations, they enhance students' understanding of important economic issues.