Note: New features to be added pending reviewer response and discussion with author. Extensive material on economics of the information age. For example, students need to understand how information is different from conventional commodities. Additionally, since the production of new information is crucial to economic growth, the role of technological change and intellectual property is highlighted. In addition, this edition includes network effects and the role of antitrust in the information age. Boxed material in the text with icons alert students to difficult concepts, brief biographies of relevant historical figures, and real-world examples of the concepts discussed in the text. This edition contains approximately 20 new examples including European Monetary Union, Network Economics, the Microsoft case, diminishing returns, and globalization. Not only will these current examples pique student interest and relate the topics to practical matters, but these icons help flag these interesting and timely features. Always keeps an eye on the importance of economics for public policy and world events, including important events such as the Microsoft trial, inflation and Federal Reserve monetary policy, the recent resurgence in productivity growth, new tools in deregulation, global public goods and the Kyoto Protocol for global warming.