Table of Contents

• Introduction
• Chapter 1: A Wealth of Opportunities in a World of Limits
• Chapter 2: Social Cooperation and the Three M’s of the Marketplace
• Chapter 3: Messing with the Market
• Chapter 4: Profits: The Consumer’s Best Friend
• Chapter 5: Entrepreneurs and Economic Freedom

Introduction
Federal Reserve Bank of Dallas
October 2002

Economic education is a high priority at the Dallas Fed. In a democracy, effecting sound economic policy requires an economically literate public. We’re convinced that greater economic literacy will lead to sounder policies, which will in turn raise our standard of living significantly.

That’s why I’m delighted to offer this publication, which looks at how communication, coordination and cooperation interact to make free markets work. Our hope is that it gives readers a deeper appreciation for an economic system that encourages both individual freedom and social cooperation.

I’ve read enough economics tomes to know that the subject can be made deadly dull. Luckily, Dwight Lee, author of this booklet, writes with style and humor. He has a knack for conveying complex information in a straightforward fashion and being entertaining in the process. We’re grateful that he agreed to take on this project.

About the Author Dwight R. Lee is Ramsey Professor of Economics and Private Enterprise at the University of Georgia’s Terry School of Business and a visiting scholar at the Federal Reserve Bank of Dallas. Lee has published more than 300 articles and commentaries in professional journals, magazines and newspapers. He has coauthored seven books, including Getting Rich in America: 8 Simple Rules for Building a Fortune and a Satisfying Life.