• The seventh edition contains extensively updated coverage of relevant, current Economic topics. A few of the chapters with the most comprehensive updates include: 12 – The Design of the Tax System, 20 – Income Inequality and Poverty, 23 – Measuring a Nation's Income, 24 – Measuring the Cost of Living, 25 – Production and Growth, & 28 – Unemployment.
• MindTap, the most advanced online environment for principles focuses students within a learning path while allowing instructors to create the course they want using publisher provided, instructor created or third party materials. Adaptive Test Prep, a new enhancement, improves student confidence before exams by providing 3,800 test bank type questions and 1,700 Quick Coach Videos to ensure student success. Graph Builder allows students to draw graphs from scratch, right in the interactive book. 25 new Graph Builder exercises are available in Summer 2016.
• Aplia, the best-selling online homework solution, has been enhanced for the seventh edition, including an optimized mobile experience, allowing students to access content on their mobile devices anywhere and anytime and closer alignment of Aplia and the textbook with End-of-Chapter text questions.

Part I: Introduction

Chapter 1 Ten Principles of Economics

1-1 How People Make Decisions

1-2 How People Interact

1-3 How the Economy as a Whole Works

1-4 Conclusion

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Chapter 2 Thinking Like an Economist

2-1 The Economist as Scientist

2-2 The Economist as Policy Adviser

2-3 Why Economists Disagree

2-4 Let’s Get Going

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Appendix

Graphing: A Brief Review

Chapter 3 Interdependence and the Gains from Trade

3-1 A Parable for the Modern Economy

3-2 Comparative Advantage: The Driving Force of Specialization

3-3 Applications of Comparative Advantage

3-4 Conclusion

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Part II How Markets Work

Chapter 4 The Market Forces of Supply and Demand

4-1 Markets and Competition

4-2 Demand

4-3 Supply

4-4 Supply and Demand Together

4-5 Conclusion: How Prices Allocate Resources

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Chapter 5 Elasticity and Its Application

5-1 The Elasticity of Demand

5-2 The Elasticity of Supply 98

5-3 Three Applications of Supply, Demand, and Elasticity

5-4 Conclusion

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Chapter 6 Supply, Demand, and Government Policies

6-1 Controls on Prices

6-2 Taxes

6-3 Conclusion

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Part III Markets and Welfare

Chapter 7 Consumers, Producers, and the Efficiency of Markets

7-1 Consumer Surplus

7-2 Producer Surplus

7-3 Market Efficiency

7-4 Conclusion: Market Efficiency and Market Failure

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Chapter 8 Application: The Costs of Taxation

8-1 The Deadweight Loss of Taxation

8-2 The Determinants of the Deadweight Loss

8-3 Deadweight Loss and Tax Revenue as Taxes Vary

8-4 Conclusion

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Chapter 9 Application: International Trade

9-1 The Determinants of Trade

9-2 The Winners and Losers from Trade

9-3 The Arguments for Restricting Trade

9-4 Conclusion

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Part IV: The Economics of the Public Sector

Chapter 10 Externalities

10-1 Externalities and Market Inefficiency

10-2 Public Policies toward Externalities

10-3 Private Solutions to Externalities

10-4 Conclusion

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Chapter 11 Public Goods and Common Resources

11-1 The Different Kinds of Goods

11-2 Public Goods

11-3 Common Resources

11-4 Conclusion: The Importance of Property Rights

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Chapter 12 The Design of the Tax System

12-1 A Financial Overview of the U.S. Government

12-2 Taxes and Efficiency

12-3 Taxes and Equity

12-4 Conclusion: The Trade-off between Equity and Efficiency

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Part V Firm Behavior and the Organization of Industry

Chapter 13 The Costs of Production

13-1 What Are Costs?

13-2 Production and Costs

13-3 The Various Measures of Cost

13-4 Costs in the Short Run and in the Long Run

13-5 Conclusion

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Chapter 14 Firms in Competitive Markets

14-1 What Is a Competitive Market?

14-2 Profit Maximization and the Competitive Firm’s Supply Curve

14-3 The Supply Curve in a Competitive Market

14-4 Conclusion: Behind the Supply Curve

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Chapter 15 Monopoly

15-1 Why Monopolies Arise

15-2 How Monopolies Make Production and Pricing Decisions

15-3 The Welfare Cost of Monopolies

15-4 Price Discrimination

15-5 Public Policy toward Monopolies

15-6 Conclusion: The Prevalence of Monopolies

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Chapter 16 Monopolistic Competition

16-1 Between Monopoly and Perfect Competition

16-2 Competition with Differentiated Products

16-3 Advertising

16-4 Conclusion

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Chapter 17 Oligopoly

17-1 Markets with Only a Few Sellers

17-2 The Economics of Cooperation

17-3 Public Policy toward Oligopolies

17-4 Conclusion

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Part VI The Economics of Labor Markets

Chapter 18 The Markets for the Factors of Production

18-1 The Demand for Labor

18-2 The Supply of Labor

18-3 Equilibrium in the Labor Market

18-4 The Other Factors of Production: Land and Capital

18-5 Conclusion

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Chapter 19 Earnings and Discrimination

19-1 Some Determinants of Equilibrium Wages

19-2 The Economics of Discrimination

19-3 Conclusion

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Chapter 20 Income Inequality and Poverty

20-1 The Measurement of Inequality

20-2 The Political Philosophy of Redistributing Income

20-3 Policies to Reduce Poverty

20-4 Conclusion

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Part VII Topics for Further Study

Chapter 21 The Theory of Consumer Choice

21-1 The Budget Constraint: What the Consumer Can Afford

21-2 Preferences: What the Consumer Wants

21-3 Optimization: What the Consumer Chooses

21-4 Three Applications

21-5 Conclusion: Do People Really Think This Way?

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Chapter 22 Frontiers of Microeconomics

22-1 Asymmetric Information

22-2 Political Economy

22-3 Behavioral Economics

22-4 Conclusion

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Glossary

Index

N. Gregory Mankiw, Harvard University

N. Gregory Mankiw is Robert M. Beren Professor of Economics at Harvard University. For 14 years he taught EC10 Principles, the most popular course at Harvard. He studied economics at Princeton University and MIT. Prof. Mankiw is a prolific writer and a regular participant in academic and policy debates. His research includes work on price adjustment, consumer behaviour, financial markets, monetary and fiscal policy, and economic growth. His published articles have appeared in academic journals such as the American Economic Review, Journal of Political Economy, and Quarterly Journal of Economics. His work has also appeared in more widely accessible forums, including The New York Times, The Washington Post, The Wall Street Journal, and Fortune. Prof. Mankiw has been a research associate of the National Bureau of Economic Research, an adviser to the Federal Reserve Bank of Boston and the Congressional Budget Office, and a member of the ETS test development committee for the advanced placement exam in economics. From 2003 to 2005, he served as chairman of the President’s Council of Economic Advisers.