Introduction -- Ten Principles of Economics -- Thinking Like an Economist -- Interdependence and the Gains from Trade -- Supply and Demand I: How Markets Work -- The Market Forces of Supply and Demand -- Elasticity and Its Application -- Supply, Demand, and Government Policies -- Supply and Demand Ii: Markets and Welfare -- Consumers, Producers, and the Efficiency of Markets -- Application: The Costs of Taxation -- Application: International Trade -- The Economics of Public Sector -- Externalities -- Public Goods and Common Resources -- The Design of the Tax System -- Firm Behavior and the Organization of Industry -- The Costs of Production -- Firms in Competitive Markets -- Monopoly -- Monopolistic Competition -- Oligopoly -- The Economics of Labor Markets -- The Markets for the Factors of Production -- Earnings and Discrimination -- Income Inequality and Poverty -- Topics for Further Study -- The Theory of Consumer Choice -- Frontiers in Microeconomics -- The Data of Macroeconomics -- Measuring a Nation's Income -- Measuring the Cost of Living -- The Real Economy in the Long Run -- Production and Growth -- Saving, Investment, and the Financial System -- The Basic Tools of Finance -- Unemployment and Its Natural Rate -- Money and Prices in the Long Run -- The Monetary System -- Money Growth and Inflation -- The Macroeconomics of Open Economies -- Open-Economy Macroeconomics: Basic Concepts -- A Macroeconomic Theory of the Open Economy -- Short-Run Economic Fluctuations -- Aggregate Demand and Aggregate Supply -- The Influence of Monetary and Fiscal Policy on Aggregate Demand -- The Short-Run Tradeoff between Inflation and Unemployment -- Final Thoughts -- Five Debates over Macroeconomic Policy.