PART 1
INTRODUCTION
1
CHAPTER 1
Ten Principles of Economics 3
CHAPTER 2
Thinking Like an Economist 19
CHAPTER 3
Interdependence and the Gains from Trade 45
PART 2
SUPPLY AND DEMAND h
HOW MARKETS WORK 61
CHAPTER 4
The Market Forces of Supply and
Demand 63
CHAPTER 5
Elasticity and Its Application 89
CHAPTER 6
Supply, Demand, and Government
Policies 113
PART 3
SUPPLY AND DEMAND II:
MARKETS AND WELFARE 135
CHAPTER 7
Consumers, Producers, and the Efficiency
of Markets 137
CHAPTER 8
Application: The Costs of Taxation 159
CHAPTER 9
Application: International Trade 175
PART 4
THE ECONOMICS
OF THE PUBLIC SECTOR 201
CHAPTER 10
Externalities 203
CHAPTER 11
Public Goods and
Common Resources 223
CHAPTER 12
The Design of the Tax System 241
PART 5
FIRM BEHAVIOR AND THE ORGANIZATION
OF INDUSTRY 265
CHAPTER 13
The Costs of Production 267
CHAPTER 14
Firms in Competitive Markets 289
CHAPTER 15
Monopoly 313
CHAPTER 16
Oligopoly 345
CHAPTER 17
Monopolistic Competition 373
PART 6
THE ECONOMICS
OF LABOR MARKETS 389
CHAPTER 18
The Markets for the
Factors of Production 391
CHAPTER 19
Earnings and Discrimination 411
CHAPTER 20
Income Inequality and Poverty 429
PART 7
TOPICS FOR FURTHER STUDY 451
CHAPTER 21
The Theory of Consumer Choice 453
CHAPTER 22
Frontiers of Microeconomics 479
PART 8
THE DATA OF MACROECONOMICS
497
CHAPTER 23
Measuring a Nation''s Income 499
CHAPTER 24
Measuring the Cost of Living 519
PART 9
THE REAL ECONOMY
IN THE LONG RUN 535
CHAPTER 25
Production and Growth 537
CHAPTER 26
Saving, Investment,
and the Financial System 561
CHAPTER 27
The Basic Tools of Finance 583
CHAPTER 28
Unemployment and Its Natural Rate 599
PART 10
MONEY AND PRICES
IN THE LONG RUN 625
CHAPTER 29
The Monetary System 627
CHAPTER 30
Money Growth and Inflation 645
PART 11
THE MACROECONOMICS
OF OPEN ECONOMIES 673
CHAPTER 31
Open-Economy Macroeconomics:
Basic Concepts 675
CHAPTER 32
A Macroeconomic Theory of the Open
Economy 697
PART 12
SHORT-RUN ECONOMIC
FLUCTUATIONS 721
CHAPTER 33
Aggregate Demand and
Aggregate Supply 723
CHAPTER 34
The Influence of Monetary and
Fiscal Policy on Aggregate Demand 755
CHAPTER 35
The Short-Run Tradeoff between Inflation
and Unemployment 781
PART 13
FINAL THOUGHTS
809
CHAPTER 36
Five Debates over
Macroeconomic Policy 811
Glossary 829
Index 835
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