Table of Contents

Intro: The Ordinary Business of Life; PART I: WHAT IS ECONOMICS?; First Principles; Economic Models: Trade-offs and Trade; Appendix: Graphs in Economics; PART II: SUPPLY AND DEMAND; Supply and Demand; Consumer and Producer Surplus; The Market Strikes Back; Elasticity; PART III: INDIVIDUALS AND MARKETS; Taxes; International Trade; PART IV: ECONOMICS AND DECISION MAKING; Making Decisions; PART V: THE CONSUMER; Rational Consumer; Consumer Preferences and Consumer Choice; PART VI: THE PRODUCTION DECISION; Behind the Supply Curve: Inputs and Costs; Perfect Competition and Supply Curve; PART VII: MARKET STRUCTURE: BEYOND PERFECT COMPETITION; Monopoly; Oligopoly; Monopolistic Competition and Product Differentiation; PART VIII: MICROECONOMICS AND PUBLIC POLICY; Externalities; Public Goods and Common Resources; Economics of the Welfare State; PART IX FACTOR MARKETS AND RISK; Factor Markets and the Distribution of Income; Appendix: Indifference Curve Analysis of Labour Supply; Uncertainty, Risk and Private Information; PART X: INTRODUCTION TO MACROECONOMICS; Macroeconomics: The Big Picture; Tracking the Macroeconomy; Unemployment and Inflation; PART XI: LONG-RUN ECONOMIC GROWTH; Long-Run Economic Growth; Savings, Investment Spending, and the Financial System; PART XII: SHORT-RUN ECONOMIC FLUCTUATIONS; Income and Expenditure; Appendix: Deriving the Multiplier Algebraically; Aggregate Demand and Aggregate Supply; PART XIII: STABILIZATION POLICY; Fiscal Policy; Appendix: Taxes and the Multiplier; Money, Banking, and the Federal Reserve System; Monetary Policy; Appendix: Reconciling Two Models of the Interest Rate; Inflation, Disinflation, and Deflation; PART XIV: EVENTS AND IDEAS; Macroeconomics: Events and Ideas; PART XV: THE OPEN ECONOMY; Open-Economy Macroeconomics.

About the Author

PAUL KRUGMAN is Professor of Economics at Princeton University, USA, where he regularly teaches the principles course. Prior to his current position he taught at Yale, Stanford and MIT. ROBIN WELLS is Researcher in Economics at Princeton University, USA, where she teaches undergraduate courses. She has previously taught at the University of Michigan, the University of Southampton, Stanford and MIT. Her teaching and research focus on the theory of organizations and incentives. She writes regularly for academic journals.