This twenty-fourth edition of Annual Editions: Economics has been largely zevised since previous editions and continues the tradition of providing the most up-to-date readings on contemporary economic issues. In view of the recent explosion of interest in the subject of economics, it is important that students are given opportunities to observe how economic science can help them to understand events in the real world. This anthology is designed to meet such a need. The volume is divided into five major units. Unit 1 introduces several general concepts involving economic analysis. At the heart of economics is the notion of "opportunity cost," the idea that, in choosing one economic alternative, we must forgo other choices. This unit demonstrates the usefulness of this principle.