Includes index.

Contents: 1. Introduction: Ten principles of economics -- Thinking like an economist -- Interdependence and the gains from trade -- 2. Supply and demand I: how markets work: The Market forces of supply and demand -- Elasticity and its application -- Supply, demand and government policies -- 3. Supply and demand II: markets and welfare: Consumers, producers and the efficiency of markets -- Application: the costs of taxation -- Application: international trade -- 4. The Economics of the public sector: Externalities -- Public goods and common resources -- The Design of the tax system -- 5. Firm behaviour and the organization of industry: The Costs of production -- Firms in competitive markets -- Monopoly -- Monopolistic competition -- Oligopoly -- 6. The Economics of labour markets: The Markets for the factors of production -- Earnings and discrimination -- Income inequality and poverty -- 7. Topics for further study: The Theory of consumer choice -- Frontiers of microeconomics --