Preface, Acknowledgements, 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 and Demand and Government Policies, Supply and Demand II: Markets and Welfare, Consumers and Producers and the Efficiency of Markets, Application: The Costs of Taxation, Application: International Trade, The Economics of the Public Sector, Externalities, Public Goods and Common Resources, The Design of the Tax System, Firm Behaviour and the Organization of Industry, The Costs of Production, Firms in Competitive Markets, Monopoly, Monopolistic Competition, Oligopoly, The Economics of Labour 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 of Microeconomics, Glossary, Index.