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