The new edition of this popular text combines a clear, concise presentation of basic micro- and macroeconomic theory with up-to-date coverage of the U.S. economic recovery as well as international issues. The author's treatment of current debates over banking regulation, fiscal issues, and other hot topics is always well-balanced. Many students in an introductory economics course are non-majors, so Carbaugh keeps things light and friendly and uses lots of applications to hold the reader's interest.

Part 1. Introduction 1. Scarcity and Choice Part 2. The Microeconomy 2. Market Transactions: Demand and Supply Analysis 3. Demand and Supply Applications 4. Production and the Costs of Production 5. Competition and Monopoly: Virtues and Vices 6. Imperfect Competition 7. Labor Markets 8. Government and Markets Part 3. The Macroeconomy 9. The Mixed Economy of the United States 10. Gross Domestic Product and Economic Growth 11. The Business Cycle, Unemployment, and Inflation 12. Macroeconomic Instability: Aggregate Demand and Aggregate Supply 13. Fiscal Policy and the Federal Budget 14. Money and the Banking System 15. The Federal Reserve and Monetary Policy Part 4. The International Economy 16. International Trade and the Global Economy 17. International Finance 18. Economic Systems and Developing Countries