Includes Bibliographical references and index.

Contents: Part one: Ten principles of economics: How people make decisions -- How people interact -- How the economy as a whole works -- Conclusion -- Summary -- Key concepts -- Questions for review -- problems and applications -- Thinking like an economist: The economist as scientist -- The economist as policy adviser -- Why economists disagree -- Let's get going -- Summary -- Key concepts -- Questions for review -- Problems and applications -- Appendix: Graphing: A brief review -- Interdependence and the gains from trade: A parable for the modern economy -- The principles of comparative advantage -- Applications of comparative advantage -- conclusion -- Summary -- Key concepts -- Questions for review -- Problems and applications -- Part two: Supply and demand: How markets work: The market forces of supply and demand: Markets and competition -- Demand-- Supply -- Supply and demand together -- Conclusion: How prices allocate resources -- summary -- Key concepts -- Questions for review -- Problems and applications -- Elasticity and it's application: The elasticity of demand -- The elasticity of supply -- Three applications of supply, demand, and elasticity -- Conclusion -- Summary -- Key concepts -- Questions for review -- Problems and applications -- Supply, Demand, And Government Policies: Controls on prices -- Taxes -- Conclusion -- Summary -- Key concepts -- Questions for review -- Problems and applications -- Part three: Consumers,Producers, and The Efficiency Of Markets: Consumer surplus -- Producer surplus -- Market efficiency -- Conclusion: Market efficiency and market failure -- Summary -- Key concepts -- Questions for review -- Problems and applications -- Application: The costs of taxation: The deadweight lost of taxation -- The determinants of the deadweight loss -- Deadweight loss and tax revenue as taxes vary -- Conclusion -- Summary -- Key concepts -- Questions for review -- problems and applications -- Application: International trade: The determinants of trade -- The winners and losers from trade -- The arguments for restricting trade -- Conclusion -- Summary -- Key concepts -- Questions for review -- Problems and applications -- Part four: The Economics of the Public Sector: Externalities: Externalities and market inefficiency -- Private solutions to externalities -- Public policies towards externalities -- Conclusions -- Summary -- Key concepts -- Questions for review -- Problems and applications -- Public goods and common resources: The different kinds of goods -- Public goods -- Common resources -- Conclusions: The importance of property right -- Summary -- Key concepts -- Questions for review -- Problems and applications -- The design of the tax system: An over view of the Government sector in Canada -- Taxes and efficiency -- Taxes and equity -- Conclusion: The trade off between efficiency and equity -- Summary -- Key concepts -- Questions for review -- Problems and applications -- Part five: Firm behaviour and the organization of industry: The costs of production: What are costs? -- Production and costs -- The various measures of cost -- Costs in the short Run and in the Long run -- Conclusion -- Summary -- Key concepts -- Questions for review -- Problems and applications -- Firms in competitive markets: What is a competitive market? -- Profit maximization and the competitive firm's supply curve -- The supply curve in a competitive market --