Toc: Front Cover......Page 1 Title Page......Page 2 Copyright......Page 3 Table of Contents......Page 8 Part 1 INTRODUCTION......Page 34 CHAPTER 1 The Role and Method of Economics......Page 35 1.1 Economics: A Brief Introduction......Page 36 1.2 Economic Behavior......Page 40 1.3 Economic Theory......Page 43 1.4 Pitfalls to Avoid in Scientific Thinking......Page 47 1.5 Positive Statements and Normative Statements......Page 49 Interactive Chapter Summary......Page 53 CHAPTER 2 The Economic Way of Thinking......Page 69 2.1 Scarcity......Page 70 2.2 Choices, Costs, and Trade-Offs......Page 73 2.3 Marginal Thinking......Page 75 2.4 Incentives Matter......Page 80 2.5 Specialization and Trade......Page 82 2.6 Markets and Improved Efficiency......Page 85 Interactive Chapter Summary......Page 88 CHAPTER 3 Scarcity, Trade-Offs, and Production Possibilities......Page 99 3.1 The Three Economic Questions Every Society Faces......Page 100 3.2 The Circular Flow Model......Page 104 3.3 The Production Possibilities Curve......Page 106 3.4 Economic Growth and the Production Possibilities Curve......Page 111 Interactive Chapter Summary......Page 114 Part 2 SUPPLY AND DEMAND......Page 124 CHAPTER 4 Supply and Demand......Page 125 4.1 Markets......Page 126 4.2 Demand......Page 127 4.3 Shifts in the Demand Curve......Page 130 4.4 Supply......Page 137 4.5 Shifts in the Supply Curve......Page 139 Interactive Chapter Summary......Page 144 CHAPTER 5 Bringing Supply and Demand Together......Page 154 5.1 Market Equilibrium Price and Quantity......Page 155 5.2 Changes in Equilibrium Price and Quantity......Page 160 5.3 Price Controls......Page 168 Interactive Chapter Summary......Page 174 CHAPTER 6 Elasticities......Page 184 6.1 Price Elasticity of Demand......Page 185 6.2 Total Revenue and the Price Elasticity of Demand......Page 191 6.3 Other Types of Demand Elasticities......Page 196 6.4 Price Elasticity of Supply......Page 198 Interactive Chapter Summary......Page 205 Part 3 MARKET EFFICIENCY, MARKET FAILURE, AND THE PU