This accompanying book to Mankiw and Taylor’s Economics does three things. First, it reinforces the text and improves the student’s understanding of the material presented in it. Second, it provides the reader with experience in using economic theories and tools to solve actual economic problems, that is it bridges the gap between economic concepts and economic problem solving. Finally, the Workbook and Study Guide includes a self-test to confirm areas of successful learning and to highlight areas needing improvement. Each chapter in the Workbook and Study Guide corresponds to a chapter in the main textbook - Mankiw and Taylor’s Economics.

Review

1. Ten Principles of Economics 2. Thinking Like an Economist 3. Interdependence and the Gains from Trade 4. The Market Forces of Supply and Demand 5. Elasticity and Its Application 6. Supply, Demand, and Government Policies 7. Consumers, Producers, and the Efficiency of Markets 8. Application: The Costs of Taxation 9. Application: International Trade 10. Externalities 11. Public Goods and Common Resources 12. The Design of the Tax System 13. The Costs of Production 14. Firms in Competitive Markets 15. Monopoly 16. Oligopoly 17. Monopolistic Competition 18. The Markets for the Factors of Production 19. Earnings and Discrimination 20. Income Inequality and Poverty 21. The Theory of Consumer Choice 22. Frontiers of Microeconomics 23. Measuring a Nation?s Income 24. Measuring the Cost of Living 25. Production and Growth 26. Saving, Investment, and the Financial System 27. The Basic Tools of Finance 28. Unemployment 29. The Monetary System 30. Money Growth and Inflation 31. Open-Economy Macroeconomics: Basic Concepts 32. A Macroeconomic Theory of the Open Economy 33. Aggregate Demand and Aggregate Supply 34. The Influence of Monetary and Fiscal Policy on Aggregate Demand 35. The Short-Run Tradeoff between Inflation and Unemployment 36. Common Currency Areas and European Monetary Union 37. Five Debates Over Macroeconomic Policy

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