Part 1 Introduction 1. Ten lessons from economics 2. Thinking like an economist 3. Interdependence and the gains from trade Part 2 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 3 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 4 The economics of the public sector 10. Externalities 11. Public goods and common resources 12. The design of the tax system Part 5 Firm behaviour and the organisation of industry 13. The costs of production 14. Firms in competitive markets 15. Monopoly 16.

Monopolistic competition 17. Oligopoly and business strategy Part 6 The economics of labour markets 18. The markets for the factors of production 19. Earnings, unions and discrimination 20. Income inequality and poverty Part 7 Topics for further study 21. The theory of consumer choice 22. Frontiers of microeconomics.