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ECONOMICS
FOURTEENTH EDITION
GLOBAL EDITION

◆
MICHAEL PARKIN
University of Western Ontario
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Designs and Patents Act 1988.

Authorized adaptation from the Global Editions, entitled Microeconomics, 14th Edition, ISBN 978-1-292-43459-9, and Macroeconomics,
14th Edition, ISBN: 978-1-292-43360-8 by Michael Parkin, published by Pearson Education © 2023.

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TO ROBIN
Michael Parkin is Professor Emeritus in the Department of Economics
◆
ABOUT THE AUTHOR

at the University of Western Ontario, Canada. Professor Parkin has held faculty
appointments at Brown University, the University of Manchester, the University
of Essex, and Bond University. He is a past president of the Canadian Economics
Association and has served on the editorial boards of the American Economic Review
and the Journal of Monetary Economics and as managing editor of the Canadian
Journal of Economics. Professor Parkin’s research on macroeconomics, monetary
economics, and international economics has resulted in over 160 publications in
journals and edited volumes, including the American Economic Review, the Journal
of Political Economy, the Review of Economic Studies, the Journal of Monetary
Economics, and the Journal of Money, Credit and Banking. He became most visible
to the public with his work on inflation that discredited the use of wage and price
controls. Michael Parkin also spearheaded the movement toward European
monetary union. Professor Parkin is an experienced and dedicated teacher
of introductory economics.

5
This page intentionally left blank
PART ONE PART SIX
BRIEF CONTENTS
◆
INTRODUCTION 39 FACTOR MARKETS, INEQUALITY,
CHAPTER 1 What Is Economics? 39 AND UNCERTAINTY 461
CHAPTER 2 The Economic Problem 71 CHAPTER 18 Markets for Factors of Production 461
CHAPTER 19 Economic Inequality 487
PART TWO CHAPTER 20 Uncertainty and Information 511
HOW MARKETS WORK 97
CHAPTER 3 Demand and Supply 97 PART SEVEN
CHAPTER 4 Elasticity 125 MONITORING MACROECONOMIC
CHAPTER 5 Efficiency and Equity 147 PERFORMANCE 533
CHAPTER 6 Government Actions in Markets 169 CHAPTER 21 Measuring the Value of Production:
CHAPTER 7 Global Markets in Action 193 GDP 533
CHAPTER 22 Monitoring Jobs and Inflation 557
PART THREE
HOUSEHOLDS’ CHOICES 219 PART EIGHT
CHAPTER 8 Utility and Demand 219
MACROECONOMIC TRENDS 581

CHAPTER 9 Possibilities, Preferences, CHAPTER 23 Economic Growth 581

and Choices 243 CHAPTER 24 Finance, Saving, and Investment 609
CHAPTER 25 Money, the Price Level, and
PART FOUR Inflation 631
FIRMS AND MARKETS 265 CHAPTER 26 The Exchange Rate and the Balance of
CHAPTER 10 Organizing Production 265 Payments 661
CHAPTER 11 Output and Costs 289
PART NINE
CHAPTER 12 Perfect Competition 313
MACROECONOMIC FLUCTUATIONS 691
CHAPTER 13 Monopoly 339
CHAPTER 27 Aggregate Supply and Aggregate
CHAPTER 14 Monopolistic Competition 365
Demand 691
CHAPTER 15 Oligopoly 383
CHAPTER 28 Expenditure Multipliers 715
PART FIVE CHAPTER 29 The Business Cycle, Inflation, and
MARKET FAILURE AND GOVERNMENT 411 Deflation 745
CHAPTER 16 Public Choices, Public Goods, PART TEN
and Healthcare 411 MACROECONOMIC POLICY 771
CHAPTER 17 Externalities 433
CHAPTER 30 Fiscal Policy 771
CHAPTER 31 Monetary Policy 797

7
◆ ALTERNATIVE PATHWAYS THROUGH MICRO CHAPTERS

Micro Flexibility

Chapter 1 Chapter 5 Chapter 6 Chapter 16

What Is Economics? Efficiency and Equity Government Actions Public Choices,

in Markets Public Goods,
and Healthcare

Chapter 2 Chapter 19 Chapter 7 Chapter 17

The Economic Problem Economic Inequality Global Markets Externalities

in Action

Chapter 3 Chapter 4 Chapter 12

Demand and Supply Elasticity Perfect Competition

Chapter 13

Chapter 10 Chapter 11 Monopoly

Organizing Production Output and Costs

Chapter 14
Chapter 8 Chapter 20
Monopolistic
Uncertainty and Competition
Utility and Demand
Information

Chapter 9 Chapter 15

Possibilities, Oligopoly
Preferences, and
Choices

Chapter 18

Markets for Factors

of Production

Start here ... … then jump to … and jump to any of these after
any of these … doing the prerequisites indicated

8
 ALTERNATIVE PATHWAYS THROUGH MACRO CHAPTERS

Macro Flexibility
◆
Chapter 1 Chapter 23

What Is Economics? Economic Growth

Chapter 2 Chapter 24 Chapter 30

The Economic Problem Finance, Saving, Fiscal Policy

and Investment

Chapter 3 Chapter 21
Chapter 27 Chapter 29
Demand and Supply Measuring the Value
of Production: GDP Aggregate Supply and The Business Cycle,
Aggregate Demand Inflation, and Deflation

Chapter 22
Chapter 24
Monitoring Jobs Chapter 31
and Inflation Finance, Saving,
Monetary Policy
and Investment

Chapter 25

Money, the Price Level,

and Inflation

Chapter 26

The Exchange Rate and

the Balance of Payments

Chapter 28

Expenditure Multipliers

Start here ... … then jump to … and jump to any of these after
any of these … doing the prerequisites indicated

9
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◆ DETAILED CONTENTS

PART ONE
APPENDIX Graphs in Economics 55
INTRODUCTION 39 Graphing Data 55
Graphing Economic Data 56
CHAPTER 1 ◆ WHAT IS ECONOMICS? 39 Scatter Diagrams 56

Definition of Economics 40 Graphs Used in Economic Models 58

Variables That Move in the Same Direction 58
Two Big Economic Questions 41 Variables That Move in Opposite Directions 59
What, How, and For Whom? 41 Variables That Have a Maximum or a
Do Choices Made in the Pursuit of Self-Interest Minimum 60
also Promote the Social Interest? 43 Variables That Are Unrelated 61
The Economic Way of Thinking 47 The Slope of a Relationship 62
A Choice Is a Tradeoff 47 The Slope of a Straight Line 62
Making a Rational Choice 47 The Slope of a Curved Line 63
Benefit: What You Gain 47
Graphing Relationships Among More Than Two
Cost: What You Must Give Up 47
Variables 64
How Much? Choosing at the Margin 48
Choices Respond to Incentives 48 Ceteris Paribus 64
When Other Things Change 65
Economics as Social Science and Policy Tool 49
Economist as Social Scientist 49 MATHEMATICAL NOTE
Economist as Policy Adviser 49 Equations of Straight Lines 66

Economists in the Economy 50 ■ AT ISSUE, 46

Jobs for an Economics Major 50 ■ ECONOMICS IN THE NEWS, 44
Will Jobs for Economics Majors Grow? 50
Earnings of Economics Majors 51
Skills Needed for Economics Jobs 51
A Diversity Challenge in the Economics
Profession 51

Worked Problem, Summary (Key Points and Key Terms),

Problems and Applications, and Additional Problems and
Applications appear at the end of each chapter.

10
 DETAILED CONTENTS 11

CHAPTER 2 ◆ THE ECONOMIC PROBLEM 71

PART TWO
Production Possibilities and Opportunity Cost 72 HOW MARKETS WORK 97
Production Possibilities Frontier 72
Production Efficiency 73 CHAPTER 3 ◆ DEMAND AND SUPPLY 97
Tradeoff Along the PPF 73
Opportunity Cost 73 Markets and Prices 98
Using Resources Efficiently 75 Demand 99
The PPF and Marginal Cost 75 The Law of Demand 99
Preferences and Marginal Benefit 76 Demand Curve and Demand Schedule 99
Allocative Efficiency 77 A Change in Demand 100
A Change in the Quantity Demanded Versus a
Gains from Trade 78
Change in Demand 102
Comparative Advantage and Absolute
Advantage 78 Supply 104
Achieving the Gains from Trade 80 The Law of Supply 104
The Liz–Joe Economy and Its PPF 82 Supply Curve and Supply Schedule 104
A Change in Supply 105
Economic Growth 83
A Change in the Quantity Supplied Versus a
The Cost of Economic Growth 83 Change in Supply 106
A Nation’s Economic Growth 84
Changes in What We Produce 84 Market Equilibrium 108
Price as a Regulator 108
Economic Coordination 86
Price Adjustments 109
Firms 86
Markets 86 Predicting Changes in Price and Quantity 110
Property Rights 86 An Increase in Demand 110
Money 86 A Decrease in Demand 110
Circular Flows Through Markets 86 An Increase in Supply 112
Coordinating Decisions 87 A Decrease in Supply 112
Changes in Both Demand and Supply 114
■ ECONOMICS IN ACTION, 84
MATHEMATICAL NOTE
■ ECONOMICS IN THE NEWS, 74, 88 Demand, Supply, and Equilibrium 118
PART ONE WRAP-UP ◆ ■ ECONOMICS IN THE NEWS, 111, 113, 116

Understanding the Scope of Economics

Your Economic Revolution 95
Talking with
Esther Duflo 96
12 DETAILED CONTENTS

CHAPTER 4 ◆ ELASTICITY 125 CHAPTER 5 ◆ EFFICIENCY AND EQUITY 147

Price Elasticity of Demand 126 Resource Allocation Methods 148
Calculating Price Elasticity of Demand 126 Market Price 148
Inelastic and Elastic Demand 127 Command 148
The Factors That Influence the Elasticity Majority Rule 148
of Demand 128 Contest 148
Elasticity Along a Linear Demand Curve 129 First-Come, First-Served 148
Total Revenue and Elasticity 130 Lottery 149
Your Expenditure and Your Elasticity 132 Personal Characteristics 149
Force 149
More Elasticities of Demand 133
Income Elasticity of Demand 133 Benefit, Cost, and Surplus 150
Cross Elasticity of Demand 134 Demand, Willingness to Pay, and Value 150
Individual Demand and Market Demand 150
Elasticity of Supply 136
Consumer Surplus 151
Calculating the Elasticity of Supply 136
Supply and Marginal Cost 151
The Factors That Influence the Elasticity of
Supply, Cost, and Minimum Supply-Price 152
Supply 137
Individual Supply and Market Supply 152
■ ECONOMICS IN ACTION, 131, 133, 134 Producer Surplus 153
■ ECONOMICS IN THE NEWS, 132, 135, 140 Is the Competitive Market Efficient? 154
Efficiency of Competitive Equilibrium 154
Market Failure 156
Sources of Market Failure 156
Alternatives to the Market 157
Is the Competitive Market Fair? 158
It’s Not Fair if the Result Isn’t Fair 158
It’s Not Fair if the Rules Aren’t Fair 160
Case Study: A Generator Shortage in a Natural
Disaster 160
■ ECONOMICS IN ACTION, 155

■ AT ISSUE, 161

■ ECONOMICS IN THE NEWS, 162

 DETAILED CONTENTS 13

CHAPTER 6 ◆ GOVERNMENT ACTIONS IN CHAPTER 7 ◆ GLOBAL MARKETS IN

MARKETS 169 ACTION 193
A Housing Market with a Rent Ceiling 170 How Global Markets Work 194
A Housing Shortage 170 International Trade Today 194
Increased Search Activity 170 What Drives International Trade? 194
An Illicit Market 170 Why the United States Imports T-Shirts 195
Inefficiency of a Rent Ceiling 171 Why the United States Exports Airplanes 196
Are Rent Ceilings Fair? 172
Winners, Losers, and the Net Gain
A Labor Market with a Minimum Wage 173 from Trade 197
Minimum Wage Brings Unemployment 173 Gains and Losses from Imports 197
Is the Minimum Wage Fair? 173 Gains and Losses from Exports 198
Inefficiency of a Minimum Wage 174 Gains for All 198
Taxes 175 International Trade Restrictions 199
Tax Incidence 175 Tariffs 199
Equivalence of a Tax on Buyers and Sellers 176 Import Quotas 202
Taxes and Efficiency 177 Other Import Barriers 205
Tax Influence of the Elasticity of Demand 178 Export Subsidies 205
Tax Influence of the Elasticity of Supply 179
The Case Against Protection 206
Taxes and Fairness 180
Helps an Infant Industry Grow 206
The Big Tradeoff 180
Counteracts Dumping 206
Production Quotas and Subsidies 181 Saves Domestic Jobs 206
Production Quotas 181 Allows Us to Compete with Cheap Foreign
Subsidies 182 Labor 206
Penalizes Lax Environmental Standards 207
Markets for Illegal Goods 184
Prevents Rich Countries from Exploiting
A Free Market for a Drug 184
Developing Countries 207
A Market for an Illegal Drug 184
Reduces Offshore Outsourcing that Sends Good
Legalizing and Taxing Drugs 185
U.S. Jobs to Other Countries 207
■ ECONOMICS IN ACTION, 172, 180, 183 Avoiding Trade Wars 208
Why Is International Trade Restricted? 208
■ AT ISSUE, 174 Compensating Losers 209
■ ECONOMICS IN THE NEWS, 186 ■ ECONOMICS IN ACTION, 194, 200, 205

■ AT ISSUE, 208

■ ECONOMICS IN THE NEWS, 204, 210

PART TWO WRAP-UP ◆

Understanding How Markets Work

The Amazing Market 217
Talking with
Susan Athey 218
14 DETAILED CONTENTS

CHAPTER 9 ◆ POSSIBILITIES, PREFERENCES,

PART THREE AND CHOICES 243
HOUSEHOLDS’ CHOICES 219
Consumption Possibilities 244
CHAPTER 8 ◆ UTILITY AND DEMAND 219 Budget Line 244
Budget Equation 245
Consumption Choices 220
Preferences and Indifference Curves 247
Consumption Possibilities 220
Preferences 221 Marginal Rate of Substitution 248
Degree of Substitutability 249
Utility-Maximizing Choice 223
Predicting Consumer Choices 250
A Spreadsheet Solution 223
Choosing at the Margin 224 Best Affordable Choice 250
The Power of Marginal Analysis 226 A Change in Price 251
Revealing Preferences 226 A Change in Income 253
Substitution Effect and Income Effect 254
Predictions of Marginal Utility Theory 227
■ ECONOMICS IN ACTION, 252
A Fall in the Price of a Movie 227
A Rise in the Price of Soda 229 ■ ECONOMICS IN THE NEWS, 256
A Rise in Income 230
The Paradox of Value 231 PART THREE WRAP-UP ◆
Temperature: An Analogy 232
Understanding Households’ Choices
New Ways of Explaining Consumer Choices 234 Making the Most of Life 263
Behavioral Economics 234
Neuroeconomics 235 Talking with
Controversy 235 Steven D. Levitt 264

■ ECONOMICS IN ACTION, 232

■ ECONOMICS IN THE NEWS, 236

 DETAILED CONTENTS 15

CHAPTER 11 ◆ OUTPUT AND COSTS 289

PART FOUR
FIRMS AND MARKETS 265 Decision Time Frames 290
The Short Run 290
CHAPTER 10 ◆ ORGANIZING The Long Run 290
PRODUCTION 265 Short-Run Technology Constraint 291
The Firm and Its Economic Problem 266 Product Schedules 291
The Firm’s Goal 266 Product Curves 291
Accounting Profit 266 Total Product Curve 292
Economic Accounting 266 Marginal Product Curve 292
A Firm’s Opportunity Cost of Production 266 Average Product Curve 294
Economic Accounting: A Summary 267 Short-Run Cost 295
The Firm’s Decisions 267 Total Cost 295
The Firm’s Constraints 268 Marginal Cost 296
Technological and Economic Efficiency 269 Average Cost 296
Technological Efficiency 269 Marginal Cost and Average Cost 296
Economic Efficiency 269 Why the Average Total Cost Curve Is
U-Shaped 296
Information and Organization 271 Cost Curves and Product Curves 298
Command Systems 271 Shifts in the Cost Curves 300
Incentive Systems 271
Long-Run Cost 302
The Principal–Agent Problem 271
Coping with the Principal–Agent Problem 271 The Production Function 302
Types of Business Organization 272 Short-Run Cost and Long-Run Cost 302
Pros and Cons of Different Types of Firms 273 The Long-Run Average Cost Curve 304
Economies and Diseconomies of Scale 304
Markets and the Competitive Environment 275
■ ECONOMICS IN ACTION, 294, 305
Measures of Concentration 276
Limitations of a Concentration Measure 278 ■ ECONOMICS IN THE NEWS, 298, 306
Produce or Outsource? Firms and Markets 280
Firm Coordination 280
Market Coordination 280
Why Firms? 280
■ ECONOMICS IN ACTION, 274, 277, 279, 281

■ ECONOMICS IN THE NEWS, 272, 282

16 DETAILED CONTENTS

CHAPTER 12 ◆ PERFECT COMPETITION 313 CHAPTER 13 ◆ MONOPOLY 339

What Is Perfect Competition? 314 Monopoly and How It Arises 340
How Perfect Competition Arises 314 How Monopoly Arises 340
Price Takers 314 Monopoly Price-Setting Strategies 341
Economic Profit and Revenue 314
A Single-Price Monopoly’s Output and Price
The Firm’s Decisions 315
Decision 342
The Firm’s Output Decision 316 Price and Marginal Revenue 342
Marginal Analysis and the Supply Decision 317 Marginal Revenue and Elasticity 343
Temporary Shutdown Decision 318 Price and Output Decision 344
The Firm’s Supply Curve 319
Single-Price Monopoly and Competition
Output, Price, and Profit in the Short Run 320 Compared 346
Market Supply in the Short Run 320 Comparing Price and Output 346
Short-Run Equilibrium 321 Efficiency Comparison 347
A Change in Demand 321 Redistribution of Surpluses 348
Profits and Losses in the Short Run 321 Rent Seeking 348
Three Possible Short-Run Outcomes 322 Rent-Seeking Equilibrium 348
Output, Price, and Profit in the Long Run 323 Price Discrimination 349
Entry and Exit 323 Two Ways of Price Discriminating 349
A Closer Look at Entry 324 Increasing Profit and Producer Surplus 350
A Closer Look at Exit 324 A Price-Discriminating Airline 350
Long-Run Equilibrium 325 Efficiency and Rent Seeking with Price
Discrimination 353
Changes in Demand and Supply as Technology
Advances 326 Monopoly Regulation 355
A Decrease in Demand 326 Efficient Regulation of a Natural Monopoly 355
An Increase in Demand 327 Second-Best Regulation of a Natural
Technological Advances Change Supply 328 Monopoly 356
Competition and Efficiency 330 ■ ECONOMICS IN ACTION, 341, 353
Efficient Use of Resources 330
■ ECONOMICS IN THE NEWS, 354, 358
Choices, Equilibrium, and Efficiency 330
■ ECONOMICS IN ACTION, 323, 325

■ ECONOMICS IN THE NEWS, 327, 329, 332

 DETAILED CONTENTS 17

CHAPTER 14 ◆ MONOPOLISTIC CHAPTER 15 ◆ OLIGOPOLY 383

COMPETITION 365
What Is Oligopoly? 384
What Is Monopolistic Competition? 366 Barriers to Entry 384
Large Number of Firms 366 Small Number of Firms 385
Product Differentiation 366 Examples of Oligopoly 385
Competing on Quality, Price, and Marketing 366
Oligopoly Games 386
Entry and Exit 367
What Is a Game? 386
Examples of Monopolistic Competition 367
The Prisoners’ Dilemma 386
Price and Output in Monopolistic An Oligopoly Price-Fixing Game 388
Competition 368 A Game of Chicken 393
The Firm’s Short-Run Output and Price
Repeated Games and Sequential Games 394
Decision 368
A Repeated Duopoly Game 394
Profit Maximizing Might Be Loss
A Sequential Entry Game in a Contestable
Minimizing 368
Market 396
Long Run: Zero Economic Profit 369
Monopolistic Competition and Perfect Antitrust Law 398
Competition 370 The Antitrust Laws 398
Is Monopolistic Competition Efficient? 371 Price Fixing Always Illegal 399
Product Development and Marketing 372 Three Antitrust Policy Debates 399
Mergers and Acquisitions 401
Product Development 372
Advertising 372 ■ ECONOMICS IN ACTION, 385, 392, 400, 401
Using Advertising to Signal Quality 374
■ ECONOMICS IN THE NEWS, 395, 402
Brand Names 375
Efficiency of Advertising and Brand Names 375
PART FOUR WRAP-UP ◆
■ ECONOMICS IN ACTION, 367, 373
Understanding Firms and Markets
■ ECONOMICS IN THE NEWS, 376 Managing Change and Limiting Market
Power 409
Talking with
Thomas Hubbard 410
18 DETAILED CONTENTS

PART FIVE CHAPTER 17 ◆ EXTERNALITIES 433

MARKET FAILURE AND Externalities in Our Lives 434
GOVERNMENT 411 Negative Production Externalities 434
Positive Production Externalities 434
CHAPTER 16 ◆ PUBLIC CHOICES, Negative Consumption Externalities 434
PUBLIC GOODS, AND Positive Consumption Externalities 434
HEALTHCARE 411 Negative Externality: Pollution 436
Public Choices 412 Private, External, and Social Cost 436
Why Governments? 412 Establish Property Rights 437
Public Choice and the Political Marketplace 412 Mandate Clean Technology 438
Political Equilibrium 413 Tax or Cap and Price Pollution 439
What Is a Public Good? 414 Coping with Global Externalities 442
A Fourfold Classification 414 Negative Externality: The Tragedy of the
The Things Our Governments Buy 414 Commons 443
Providing Public Goods 416 Unsustainable Use of a Common Resource 443
The Free-Rider Problem 416 Inefficient Use of a Common Resource 444
Marginal Social Benefit of a Public Good 416 Achieving an Efficient Outcome 446
Marginal Social Cost of a Public Good 417 Positive Externality: Knowledge 448
Efficient Quantity of a Public Good 417
Private Benefits and Social Benefits 448
Inefficient Private Provision 417
Government Actions in the Market with External
Efficient Public Provision 417
Benefits 449
Inefficient Public Overprovision 419
Illustrating an Efficient Outcome 449
The Economics of Healthcare 420 Bureaucratic Inefficiency and Government
Healthcare Market Failure 420 Failure 450
Alternative Public Choice Solutions 421
■ ECONOMICS IN ACTION, 435, 440, 442, 445,
Better Solutions? 425
447, 451
■ ECONOMICS IN ACTION, 412, 415, 418, 421, 423
■ AT ISSUE, 441
■ AT ISSUE, 424
■ ECONOMICS IN THE NEWS, 452
■ ECONOMICS IN THE NEWS, 426
Part Five Wrap-Up ◆

Understanding Market Failure and

Government
We, the People, ... 459
Talking with
Caroline M. Hoxby 460
 DETAILED CONTENTS 19

PART SIX CHAPTER 19 ◆ ECONOMIC INEQUALITY 487

FACTOR MARKETS, INEQUALITY, Economic Inequality in the United States 488
AND UNCERTAINTY 461
The Distribution of Income 488
The Income Lorenz Curve 489
CHAPTER 18 ◆ MARKETS FOR FACTORS OF The Distribution of Wealth 490
PRODUCTION 461 Wealth or Income? 490
The Anatomy of Factor Markets 462 Annual or Lifetime Income and Wealth? 491
Trends in Inequality 491
Markets for Labor Services 462
Poverty 493
Markets for Capital Services 462
Markets for Land Services and Natural Inequality in the World Economy 495
Resources 462 Income Distributions in Selected Countries 495
Entrepreneurship 462 Global Inequality and Its Trends 496
The Demand for a Factor of Production 463 The Sources of Economic Inequality 497
Value of Marginal Product 463 Human Capital 497
A Firm’s Demand for Labor 463 Discrimination 498
A Firm’s Demand for Labor Curve 464 Contests Among Superstars 499
Changes in a Firm’s Demand for Labor 465 Unequal Wealth 500
Labor Markets 466 Income Redistribution 501
A Competitive Labor Market 466 Income Taxes 501
Differences and Trends in Wage Rates 468 Income Maintenance Programs 501
A Labor Market with a Union 469 Subsidized Services 501
Capital and Natural Resource Markets 473 The Big Tradeoff 502
Capital Rental Markets 473 ■ ECONOMICS IN ACTION, 492, 494, 502
Land Rental Markets 473
■ ECONOMICS IN THE NEWS, 504
Nonrenewable Natural Resource Markets 475
MATHEMATICAL NOTE
Present Value and Discounting 480

■ ECONOMICS IN ACTION, 468, 477

■ AT ISSUE, 471

■ ECONOMICS IN THE NEWS, 474, 478

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Exploring the Variety of Random
Documents with Different Content
Suffering and discontent increased until a party of
La Salle's men lay in ambush and shot him, and left La Salle's death
his body in the woods. More than a year went by
before the faithful Tonti at Starved Rock heard of the sad fate of the
great leader.
The French king refused to send aid to the starving
colonists in Texas, but the brave and heroic Tonti, The heroic Tonti
though saddened by the death of La Salle, resolved
to rescue them. His rescuing party suffered awful hardships. They
deserted Tonti on the lower Mississippi, and he was at last forced to
return to Starved Rock.
 THE MEN OF NEW FRANCE
62. Life of the Trapper, Jesuit Missionary,
and Soldier of New France. For more than a Men of New
France lived as
hundred years after the explorations of Joliet and the Indians
La Salle the French in Canada sent trappers, lived
missionaries, and soldiers into the new territory.
The trappers lived on friendly terms with the Indians. They took
shelter in the Indian wigwam and sat at the Indian camp fire.
Together they searched the forest for game, and paddled up and
down the rivers and lakes in the Indian canoes. They joined in the
Indian sports, lived as the Indians lived, and often married the
Indian maidens.
The lives of the missionaries who went to preach among the Indians
were full of self-sacrifice. They had great difficulties to overcome.
The Indians were ignorant and hard to teach, but they treated the
missionaries with respect and loved them for their kind deeds.
From the mouth of the St. Lawrence to the Gulf of
Mexico the soldiers of New France built many forts. Long years of
war
Their chief danger was from the Iroquois Indians,
who sided with the English in the long years of war. Many times their
settlements were destroyed, their forts burned. But they were
courageous and determined. They went on with their work of
establishing New France in America, fighting the English and the
Indians, until 1759. Then Wolfe captured Quebec and New France
became English territory.

SUGGESTIONS INTENDED TO HELP THE PUPIL

The Leading Facts. 1. La Salle was sent to complete the
exploration of the Mississippi. 2. La Salle made his way to
the Gulf of Mexico and later built the fort at Starved Rock.
3. The French sent trappers, missionaries, and soldiers
into New France to strengthen it against the English. 4.
The French trappers lived on intimate terms with the
Indians. 5. With the fall of Quebec, England won New
France.
Study Questions. 1. Why was La Salle not satisfied
merely to get rich? 2. Describe the first voyage on the
Lakes. 3. Find on the map the places named, from
Mackinac to Fort Crèvecœur. 4. How did La Salle reach the
Mississippi? 5. Picture Tonti's fort on Starved Rock. 6. Tell
the story of the fate of La Salle. 7. What Indian tribe sided
with the English? 8. What was the effect of the fall of
Quebec?
Suggested Readings. La Salle: Wright, Children's Stories
in American History, 316-330; Pratt, Later Colonial Period,
1-28.
GEORGE WASHINGTON, THE FIRST
GENERAL AND FIRST PRESIDENT
OF THE UNITED STATES
 THE "FATHER OF HIS COUNTRY"
63. George Washington as a Boy. When
Washington was born, February 22, 1732, in the Washington's
birthday and
old colony of Virginia, the early settlements had birthplace
grown into towns, and planters had prospered. His
father's house stood upon a gentle hill slope which ran down to the
lazily flowing Potomac. Across the river one could see the wooded
Maryland shore, broken with a few great farms and plantations.
Washington's father owned more than one
plantation, and had many negro slaves. He was The mother of
Washington
also a partner in some iron mines, and once had
been captain of a ship carrying iron ore to London. It was in London
that he had fallen in love with Mary Ball, called, on account of her
beauty, the "Rose of Epping Forest." She, too, was a Virginian, and
she married Augustine Washington, and became the greatly revered
mother of George.
When George was but three years old his parents
moved to the plantation on the Rappahannock. School in
Fredericksburg
Across the river, in the old town of Fredericksburg,
George went to a school taught by the church sexton. Both teachers
and schools were scarce in Virginia then because the people lived
miles apart on their great plantations.
 THE BOYHOOD HOME OF WASHINGTON
Here on the site of the farmhouse, a slope on the
river bank, stands the first monument erected to
Washington, the bricks from the great chimney
forming its foundation
In Washington's day the plantations were usually located on the
rivers or bays. The rivers were the best roadways in those old times.
Besides, the planter was glad to have the yearly ship from London
stop at his door.
The coming of the ship brought happy days to the
young people, for it often brought furniture for the The yearly ship
from London
house and fine clothes for the family. Sometimes,
too, it brought back some long-absent son or daughter, or letters
from relatives in the old English home. Then there were the stories
such as only sailors can tell.
When all the stores of tobacco and grain had been loaded, once
more the great ship spread her wings and sailed away. Then many a
Virginia boy longed to go on board and sail away, too.
George's father died and left him, at the age of
eleven, to the care of his mother. Mary Washington Mary
Washington
was a wise, firm mother, and always held the love
and admiration of her children.
According to the custom of those old Virginia days,
the eldest son, Lawrence Washington, received the The eldest son
in Virginia
beautiful plantation on the Potomac, which he
named Mount Vernon in honor of Admiral Vernon, an English naval
officer under whom he had fought in the West Indies.
To George fell a smaller plantation on the
Rappahannock. He could hardly hope to go to George studied
hard and played
England to study, but went to a school near his hard
birthplace. Here he studied hard, mastering
mathematics, and business papers of all sorts. The book into which
he copied business letters, deeds, wills, and bills of sale and
exchange shows how careful he was and how he mastered
everything he undertook.
At school, George was a spirited leader in all outdoor sports. He
outran, outjumped, as well as outwrestled all his comrades. He could
throw farther than any of them. The story is told that he once threw
a stone across the Rappahannock, and that at another time he threw
a stone from the valley below to the top of the Natural Bridge, a
distance of more than two hundred feet.
 WASHINGTON DREAMING OF A SEAMAN'S LIFE
Washington was captain when the boys played at
war. Every boy among them expected to be a Playing war
soldier some day. George listened to the stories
told by his brother Lawrence, who had been a captain in the West
Indies.
 WASHINGTON'
S SURVEYING
INSTRUMENTS
As a boy George Washington also learned many
useful things outside of school. He became a skillful A horseback
rider
horseback rider, for every Virginia plantation had
fine riding horses. People lived so far apart that they had to ride
horseback when they visited each other and when they went to
church or to town. Whether George rode a wild colt to "break" it, or
whether he rode with his neighbors through woods and fields,
jumping fences or swimming streams, or in a wild chase after the
fox, he always kept his seat.
Even while a boy Washington was learning the
ways of a woodsman. With only a gun and a dog A woodsman
for companions, he made long trips into the deep,
dark Virginia forests, where no road or path showed the way. He
could cross rivers without bridge or boat, could build a shelter at
night, could trap, and shoot, and cook over the fire by the side of
which he slept. All this knowledge was soon put to use by
Washington.

WASHINGTON AS A WOODSMAN
When George was fourteen it was decided that he
might "go to sea." No doubt he dreamed of the Washington
wanted to be a
time when he should be a seaman, or perhaps an
officer on one of the king's great war ships. But sailor
when all was ready, he gave up his plans to please
his mother and went back to school. He now studied surveying, and
was soon able to mark off the boundaries of farms and lay out
roads.
George was now more and more at Mount Vernon,
where he met many fine people. Among these Lord Fairfax
visitors he admired most an old English nobleman,
Lord Fairfax, who had come to spend the rest of his days beyond the
Blue Ridge in the beautiful valley of the Shenandoah.
64. Washington as Surveyor. Lord Fairfax was
pleased with Washington, who was then tall, A surveyor at
sixteen
strong, active, and manly looking, although but
sixteen years old. Accordingly, one spring Washington, with a
number of companions, started over the mountains to survey the
wild lands of Lord Fairfax.
 THE SURVEYING PARTY AT AN INDIAN WAR DANCE
The trip was full of danger. There were no roads,
bridges, or houses after the party reached the Life in the
Shenandoah in
mountains; but deep rivers, wild animals, and 1748
savage Indians were plentiful. Some nights they
slept in rude huts, other nights in tents, but more often under the
stars and around the camp fire. One night they saw a party of
Indians dance their wild war dance to the music of a rude drum,
made by stretching a hide over a pot, and to the noise of a rattle,
made by putting shot in a gourd.
 WASHINGTON SURVEYING LORD FAIRFAX'S LANDS
Within a month Washington was back with maps
and figures showing what lands belonged to Lord Work well done
Fairfax. Few men could have done better, and a
warm friendship grew up between this white-haired English
nobleman and the young Virginian. Lord Fairfax immediately built a
great hunting lodge in the Shenandoah, near where Winchester is,
and named it Greenway Court. It became a favorite visiting place for
many Virginians.
Washington had done his work so well that Lord
Fairfax had him made a public surveyor, and invited A public
surveyor
him to make Greenway Court his headquarters.
For three years Washington was hard at work in that western
wilderness marking out the lands of settlers. It was a rough but
health-giving life and made his bones and muscles strong. He had to
take many risks and face many dangers.
Once he wrote to a friend: "Since you received my letter in October I
have not slept above three or four nights in a bed; but, after walking
a great deal all the day, I have lain down upon a little hay, straw,
fodder, or a bear skin, whichever was to be had, with man, wife, and
children, like dogs and cats, and happy is he who gets the berth
nearest the fire."
But the young surveyor was often at Greenway
Court taking part in its pastimes, or spending his At Greenway
Court
time in sober conversation with Lord Fairfax, or in
reading the books on history which were found in his friend's library.
65. Washington as a Soldier against the
French. Suddenly Washington's whole life was Heavy
responsibility at
changed. His brother Lawrence died and left to twenty
George the beautiful Mount Vernon home and the
care of his only daughter. At the age of twenty Washington found
himself at the head of two large plantations. But he had hardly
begun his new duties before he was called to serve his governor and
the king.
The French in Canada were building a chain of outposts from Lake
Erie into Pennsylvania to the headwaters of the Ohio River so that
they might have a shorter route to their trading posts on the
Mississippi. Governor Dinwiddie of Virginia had sent orders for them
to get out of the country, but his messenger did not get within a
hundred miles of the French soldiers.
 GREENWAY COURT, THE VIRGINIA HOME OF LORD
FAIRFAX
Surmounting the broad, sweeping roof, pierced by
dormer windows, were two belfries, doubtless
designed for bells to call the settlers together when
an Indian uprising was feared
It was probably Lord Fairfax who said to the governor: "Here is the
very man for you; young and daring, but sober minded and
responsible, who only lacks opportunity to show the stuff that is in
him."
In October, 1753, Washington, not then twenty-
two, set out with servants, horses, and two George
Washington
companions for the French posts. One companion sent to order
was the old Dutch soldier who had taught the French out
Washington to use the sword, and the other was of Virginia
territory
the famous backwoodsman, Christopher Gist. They
pushed on through deep forests, over the mountains, across swift
rivers, to the Indian village near where Pittsburgh now stands. From
there Washington hurried on to the fort on French Creek.
The French commander received him with great politeness, and tried
to keep him many days. But Washington saw that the French were
really preparing to fight to hold this "gateway to the West."
The Frenchmen very politely said that they
intended to hold that region at all hazard. The trip back to
Virginia
Washington and his party at once started back with
the answer.
Washington's party traveled through rain and snow, hurrying
through dense forests where savages lurked ready to scalp them. An
Indian shot at Washington, but missed him. Their horses gave out,
and Washington and Gist plunged into the forest alone, on foot,
anxious to lose no time. At last they reached Williamsburg.
 WASHINGTON ON HIS WAY BACK FROM THE
FRENCH POSTS
War now seemed certain, and the governor hurried Washington
Washington forward with about one hundred fifty cuts a road over
men to cut a road through the forests and over the the mountains
mountains. But the French had already reached
and built Fort Duquesne, where the Ohio is formed, and were then
hurrying forward a party to look for the English. Just after
Washington's men crossed the mountains they surprised the French
scouts, killed their commander, and took the rest prisoners. Young
Washington wrote home that he had heard the whistle of bullets and
liked the music.
Although Washington's company soon grew to
three hundred fifty men, he built Fort Necessity, for He wins one
battle, and
a French force numbering four times his own was loses another
now close upon him. A battle followed. Standing
knee deep in mud and water, the English fired all day at the hidden
foe. Their ammunition was about gone, and their men were falling.
Washington surrendered the fort, and the little army, with sad
hearts, started home along their newly made road.
66. Washington and Braddock. But these were
stirring times in Virginia, for an English general, Washington
joins
Braddock, had come up the Potomac; and soldiers, Braddock's
cannon, and supplies were passing right by the army
doors of Mount Vernon. Every day Washington
looked upon the king's soldiers, and saw the flash of sword and
bayonet. How could he keep out of it? General Braddock liked the
young Virginian, and made him an officer on his staff.
Braddock was a brave man, but he had never made war in the
woods, or against Indians. One day Washington suggested that a
long train of heavily loaded wagons would make the march very,
very slow. He was thinking of Indians. Braddock only smiled, as if to
say that a young backwoodsman could not teach him how to fight.
Benjamin Franklin, a very wise man from
Philadelphia, was also troubled when he thought of Braddock too
vain to take
how the Indians and French would cut to pieces good advice
that long line of troops as they marched through
the deep, dark forests. Braddock smiled again, and said: "These
savages may be dangerous to the raw American militia, but it is
impossible that they should make any impression on the king's
troops."

A VIRGINIA RIFLEMAN
The army, over two thousand strong, slowly crossed the mountains,
and by July had almost reached Fort Duquesne. One day nearly one
thousand French and Indians swarmed on both sides of the road,
and from behind the safe cover of trees poured a deadly fire upon
Braddock's men. "God save the king!" cried the British soldiers, as
they formed in line of battle.
Washington urged Braddock to permit the English
to take to the trees and fight Indian fashion, as the A great defeat
Virginians were doing, but Braddock forced his men
to stand and be shot down by the unseen foe. Washington
Braddock himself was mortally wounded. thanked for his
bravery by the
Washington had two horses shot under him and his Burgesses
clothes pierced by four bullets. The British regulars
soon ran madly back upon the soldiers in the rear. They threw away
guns and left their cannon and wagons, while the Virginians under
Washington kept the Indians back. The British army retreated to
Philadelphia, but Washington returned to Virginia, where he received
the thanks of the Burgesses. He at once collected troops, and
hastened into the Shenandoah Valley to protect the settlers from the
French and Indians.
 WASHINGTON AND THE VIRGINIANS SAVE
BRADDOCK'S ARMY
The next year (1756) Washington journeyed on Colonel
horseback to Boston. He wore his colonel's uniform Washington
of buff and blue, with a white and scarlet cloak visits Boston
over his shoulders. At his side hung a fine sword.
With him rode two aids in uniform, besides two servants. Many an
admiring eye was turned toward this stately young cavalier. After this
journey he returned to the frontier, near Greenway Court, and
remained there a year or two more.

THE OLD BLOCK HOUSE, PITTSBURGH

Still standing to-day in the heart of the city, formed
part of Fort Pitt
67. Washington Meets his Future Wife. One
day while on his way to Williamsburg with war Washington
introduced to
dispatches, Washington halted at a plantation to Martha Custis
take dinner with a friend. There he was introduced to Mrs. Martha
Custis, a charming young widow of his own age.
After dinner the conversation with her was too interesting for the
young officer to see the horses being led back and forth near the
window. The horses were stabled again. After supper Washington
was not yet ready to mount. Not until late in the afternoon next day
did he mount and ride away with all speed for the capital. On his
return he visited Mrs. Custis at her own beautiful plantation, and did
not leave until he had her promise of marriage.
Great armies were already gathering. William Pitt,
who sent Wolfe to capture Quebec, also ordered Wolfe made it
easy to capture
General Forbes to march against Fort Duquesne. Fort Duquesne
But it was November before the army reached the
Ohio. The French and Indians had nearly all gone to fight on the St.
Lawrence, and the place was easily captured. It is said that
Washington himself ran up the English flag. The fort's name was
changed to Fort Pitt.
68. Old Days in Virginia. Washington now
hastened home to claim his bride. To the wedding A Virginia
wedding
came the new royal governor in scarlet and gold,
and the king's officers in bright uniforms. There, too, came the great
planters with their wives dressed in the best that the yearly ship
could bring from London. The bride rode home in a coach drawn by
six beautiful horses, while Washington, well mounted, rode by the
side of the coach, attended by many friends on horseback.
The hardy settlers of the frontier, grateful to their
brave defender, had already elected him to Elected to the
House of
represent them in the House of Burgesses. He was Burgesses
proud to take his young wife to the meeting of the
Burgesses when the old capital town was at its gayest, and when
the planters came pouring in to attend the governor's reception.
 A RECEPTION AT THE GOVERNOR'S
At these receptions gay cavaliers and high-born
ladies trod the stately minuet or danced the famous
Virginia reel
Washington had already taken his seat among the
Burgesses when the speaker arose and, in a very Too confused to
make a speech
eloquent speech, praised him and presented him
the thanks of the House for his gallant deeds as a soldier.
Washington was so confused to hear himself so highly praised that,
when he arose to reply, he could not say a word. "Sit down, Mr.
Washington," said the speaker, "your modesty is equal to your valor,
and that surpasses any language that I possess."
Washington took his young bride to Mount Vernon, and there began
the life that he enjoyed far more than the life of a soldier. He felt a
deep interest in everything on the plantation. Early every morning he
visited his stables and his kennel, for he liked horses and dogs very
much. He then mounted a spirited horse and rode over his
plantation to look at the growing fields of tobacco or wheat, or at
the work of his slaves.
When the king's inspectors in the West Indies and in London saw
barrels of flour marked "George Washington, Mount Vernon," they
let them pass without examining them, for they were always good.
He looked after his own and his wife's plantations so well that in a
few years he was one of the richest men in America.

FOX HUNTING IN VIRGINIA

In some sections of our country this popular sport of
the Virginia colonists is still followed as in the days of
George and Martha Washington
 SCENE AT MOUNT VERNON IN THE DAYS OF
WASHINGTON
But besides such duties, there were many simple
pleasures to be enjoyed at Mount Vernon. Here his Old Mount
Vernon days
soldier friends always found a warm welcome. Lord
Fairfax and other Virginia gentlemen went often to Mount Vernon to
enjoy a fox chase. Sometimes Mrs. Washington and the ladies rode
with dash and courage after the hounds. Now and then boating
parties on the wide Potomac were the order of the day. Many times
the halls and grounds of Mount Vernon rang with the shouts and
laughter of younger people, guests, who had come from miles
around, for George and Martha Washington were young in spirit.
69. The Mutterings of War. One day in June,
1765, Washington came back from Williamsburg Washington
took sides with
and told his family and neighbors about the bold Patrick Henry
resolutions and fiery speech of a rustic-looking
member named Patrick Henry. He said that many of the older
members opposed Henry. Washington took Henry's side, but his
friends, the Fairfaxes, took the king's side in favor of the Stamp Act.
When the king put a tax on tea, Washington and many of his
neighbors signed an agreement not to buy any more tea of England
until the tax was taken off. When he heard that Samuel Adams and
the "Mohawks" had thrown the tea into Boston Harbor, he knew that
exciting times would soon be at hand.
The very next year the king ordered more soldiers
to go to Boston and put in force the Boston Port Sent to the
Continental
Bill and other unjust laws. The colonies saw the Congress
danger, and sent their best men to hold the first
Continental Congress at Philadelphia. Virginia sent George
Washington, Patrick Henry, Richard Henry Lee, and other great men.
Washington, however, was not an orator, and made no speech in the
Congress, as others did. He was a man of deeds. His time had not
yet come.

WASHINGTON DRILLING HIS VIRGINIANS

Many persons were surprised to find him so young,
for twenty years before they had heard of his A youthful
colonel
deeds against the French, and how he had saved
the broken pieces of Braddock's army. A member of Congress
declared that "if you speak of solid information, and of sound
judgment, Colonel Washington is unquestionably the greatest man
on the floor."
The Congress, among other things, resolved to stand by Boston, if
General Gage should make war on that town. Washington knew
what that meant. He was not at home many months before he was
busy drilling his brave Virginians, many of whom had been with him
in the French and Indian War.
70. Washington Made Commander of the
American Armies. In the last days of April, 1775, In Congress
again
the news of the fight at Lexington and Concord
was spreading rapidly southward. Washington,
dressed in the buff and blue uniform of a Virginia What John
Adams said
colonel, hurried to Philadelphia to the meeting of
the second Continental Congress. His day had come. It was now a
time for deeds. The American army that surrounded Gage in Boston
must have a head. John Adams arose in Congress and said that for
the place of commander he had "but one gentleman in mind—a
gentleman from Virginia—whose skill and experience as an officer,
whose independent fortune, great talents, and excellent universal
character would command the approbation of all America, and unite
the colonies better than any other person in the Union."
Before all these words were spoken, Washington,
much moved, had left the room. Congress elected What
Washington
him unanimously to be commander in chief of its said to
armies. When he accepted the honor, he said: "I Congress and
beg it may be remembered by every gentleman in wrote to his
wife
this room, that I this day declare, with the utmost
sincerity, I do not think myself equal to the command I am honored
with."
Washington wrote immediately to his wife: "You may believe me, my
dear Patsey, that so far from seeking this appointment, I have used
every endeavor in my power to avoid it, not only from my own
unwillingness to part from you and the family, but from the
consciousness of its being a trust too great for my capacity." Great
men are often the most modest.
Washington was soon on the way to Boston by the
very route he had gone nearly twenty years before. On the way to
take command
But how different the journey! Then he was a
Virginia colonel. Now he was the honored
commander of all the American armies. Then only News from
Bunker Hill
a few friends were with him. Now congressmen,
citizens of Philadelphia, and great crowds cheered him on the way.
Only twenty miles out from Philadelphia, they met the news from
Bunker Hill. When Washington heard how the Americans faced the
British bayonets, and twice forced the Redcoats to retreat, he
exclaimed: "The liberties of the country are safe!"
Through New Jersey he was hailed by the people
with delight. A military procession escorted him Took command
of the army,
through New York City, where he appointed that July 3, 1775
noble general, Philip Schuyler, to take command in
New York. The students at Yale gave him a real college welcome—a
parade with a band and student songs.
On Cambridge Common, under the famous Harvard Elm, on July 3,
1775, Washington drew his sword and took command of the
Continental army. There was a great task before him. He had to drill
the troops, collect cannon from Ticonderoga, which Americans had
captured, and get ready to drive the British out of Boston.
 A COLLEGE WELCOME AT YALE
It took all winter to do these things. One night in
March, 1776, Washington secretly sent some of his A bloodless
victory
best troops to build a fort on Dorchester Heights.
The next morning Howe, the new British general, saw Washington's
cannon pointing down on his army and ships. He immediately put his
army on board and sailed away. This was a victory without a fight.
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