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ECONOMICS: PRINCIPLES AND POLICY, Twelfth Edition, takes a policy-based approach to the teaching of introductory economics. Written by two of the most respected economists in the world, this text is also one of the most current texts on the market that includes data through the spring of 2011. The text includes significant updates based on the current economic crisis, providing the right level of rigor and detail.
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Table of Contents

Part I: GETTING ACQUAINTED WITH ECONOMICS. 1 What Is Economics? 2 The Economy: Myth and Reality. 3 The Fundamental Economic Problem: Scarcity and Choice. 4 Supply and Demand: An Initial Look. Part II THE BUILDING BLOCKS OF DEMAND AND SUPPLY. 5 Consumer Choice: Individual and Market Demand. 6 Demand and Elasticity. 7 Production, Inputs, and Cost: Building Blocks for Supply Analysis. 8 Output, Price, and Profit: The Importance of Marginal Analysis. 9 Securities: Business Finance and the Economy: The Tail that Wags the Dog? Part III MARKETS AND THE PRICE SYSTEM. 10 The Firm and the Industry under Perfect Competition. 11 Monopoly. 12 Between Competition and Monopoly. 13 Limiting Market Power: Regulation and Antitrust. Part IV THE VIRTUES AND LIMITATIONS OF MARKETS. 14 The Case for Free Markets: The Price System. 15 The Shortcomings of Free Markets. 16 The Market's Prime Achievement: Innovation and Growth. 17 Externalities, the Environment, and Natural Resources. 18 Taxation and Resource Allocation. Part V THE DISTRIBUTION OF INCOME. 19 Pricing the Factors of Production. 20 Labor and Entrepreneurship: The Human Inputs. 21 Poverty, Inequality, and Discrimination. Part VI THE MACROECONOMY: AGGREGATE SUPPLY AND DEMAND. 22 An Introduction to Macroeconomics. 23 The Goals of Macroeconomic Policy. 24 Economic Growth: Theory and Policy. 25 Aggregate Demand and the Powerful Consumer. 26 Demand-Side Equilibrium: Unemployment or Inflation? 27 Bringing in the Supply Side: Unemployment and Inflation? Part VII FISCAL AND MONETARY POLICY. 28 Managing Aggregate Demand: Fiscal Policy. 29 Money and the Banking System. 30 Monetary Policy: Conventional and Unconventional. 31 The Financial Crisis and the Great Recession 32 The Debate over Monetary and Fiscal Policy. 33 Budget Deficits in the Short and Long Run. 34 The Trade-Off between Inflation and Unemployment. Part VIII THE UNITED STATES IN THE WORLD ECONOMY. 35 International Trade and Comparative Advantage. 36 The International Monetary System: Order or Disorder? 37 Exchange Rates and the Macroeconomy.


"The text is very strong as is. It addresses topics at just the right level of depth/complexity for my students." "I continue to enjoy using the Baumol and Blinder text. My students find it clear, relevant and accessible." -The text is very strong as is. It addresses topics at just the right level of depth/complexity for my students.- -I continue to enjoy using the Baumol and Blinder text. My students find it clear, relevant and accessible.-

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