Producing prosperity: the subject matter of economics -- Economic models: a framework for analysis -- The market process -- Market-clearing forces in the economy -- The innovative nature of firms -- The role of firms in the market -- The trajectory of the economy: growth and progress -- Economic welfare: theory and policy -- Rent seeking in a creative economy -- The coordination of economic activity -- Agglomeration economies and economic progress -- The evolution of the economy: differentiation, selection, replication -- Producing prosperity.