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A Tribute Preface 1 The Economic Way of Thinking 1 2 Efficiency, Exchange, and Comparative Advantage 18 3 Substitutes Everywhere: The Concept of Demand 43 4 Cost and Choice: The Concept of Supply 73 5 Supply and Demand: A Process of Coordination 96 An Appendix: The Coordinating Roles of Money and Interest 109 6 Unintended Consequences: More Applications of Supply and Demand 120 An Appendix: Framing Economic Questions Correctly 141 7 Profit and Loss 153 An Appendix: Profiteering in Futures Markets 167 8 Price Searching 181 9 Competition and Government Policy 204 10 Externalities and Conflicting Rights 227 11 Markets and Government 253 12 The Distribution of Income 280 13 Measuring the Overall Performance of Economic Systems 304 An Appendix: Limitations of National Income Accounting 325 14 Money 335 An Appendix: What About Gold? 352 15 Economic Performance and Real-World Politics 358 16 The Wealth of Nations: Globalization and Economic Growth 393 Postscript: What Economists Know 420 Glossary 423 Index 429