Part I: INTRODUCTION. 1. Ten Principles of Economics. 2. Thinking Like an Economist. Appendix: Graphing: A Brief Review. 3. Interdependence and the Gains from Trade. Part II: SUPPLY AND DEMAND I: HOW MARKETS WORK. 4. The Market Forces of Supply and Demand. 5. Elasticity and Its Application. 6. Supply, Demand, and Government Policies. Part III: SUPPLY AND DEMAND II: MARKETS AND WELFARE. 7. Consumers, Producers, and the Efficiency of Markets. 8. Application: The Costs of Taxation. 9. Application: International Trade. Part IV: THE ECONOMICS OF PUBLIC SECTOR. 10. Externalities. 11. Public Goods and Common Resources. 12. The Design of the Tax System. Part V: FIRM BEHAVIOR AND THE ORGANIZATION OF INDUSTRY. 13. The Costs of Production. 14. Firms in Competitive Markets. 15. Monopoly. 16. Monopolistic Competition. 17. Oligopoly. Part VI: THE ECONOMICS OF LABOR MARKETS. 18. The Markets for the Factors of Production. 19. Earnings and Discrimination. 20. Income Inequality and Poverty. Part VII: TOPICS FOR FURTHER STUDY. 21. The Theory of Consumer Choice. 22. Frontiers in Microeconomics. Glossary. Index.