Table of Contents

PART I: WHAT IS ECONOMICS? Intro: The Ordinary Business of Life First Principles Economic Models: Trade-offs and Trade Appendix: Graphs in Economics PART II: SUPPLY AND DEMAND Supply and Demand Consumer and Producer Surplus Price Controls and Quotas: Meddling with Markets Elasticity PART III: INDIVIDUALS AND MARKETS Taxes International Trade PART IV: ECONOMICS AND DECISION MAKING Making Decisions PART V: THE CONSUMER The Rational Consumer Appendix: Consumer Preferences and Consumer Choice PART VI: THE PRODUCTION DECISION Behind the Supply Curve: Inputs and Costs Perfect Competition and the 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 The Economics of the Welfare State PART IX: FACTOR MARKETS AND RISK Factor Markets and the Distribution of Income Appendix: Indifference Curve Analysis of Labor 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 New! Crises and Consequences PART XIV: EVENTS AND IDEAS Events and Ideas PART XV: THE OPEN ECONOMY Open-Economy Macroeconomics

About the Author

PAUL KRUGMAN, recipient of the 2008 Nobel Memorial Prize in Economics, is Professor of Economics at Princeton University, where he regularly teaches the principles course. He received his BA from Yale and his PhD from MIT. Prior to his current position, he taught at Yale, Stanford, and MIT. He also spent a year on staff of the Council of Economics Advisors in 1982-1983. His research is mainly in the area of international trade, where he is one of the founders of the 'new trade theory,' which focuses on increasing returns and imperfect competition. He also works in international finance, with a concentration in currency crises. In 1991, Krugman received the American Economic Association's John Bates Clark medal. In addition to his teaching and academic research, Krugman writes extensively for nontechnical audiences. Krugman is a regular op-ed columnist for the New York Times. His latest trade book, The Conscience of a Liberal, is a best-selling study of the political economy of economic inequality and its relationship with political polarization from the Gilded Age to the present. His earlier books, Peddling Prosperity and The Age of Diminished Expectations, have become modern classics. ROBIN WELLS was a lecturer and researcher in Economics at Princeton University, where she has taught undergraduate courses. She received her BA from the University of Chicago and her PhD from the University of California, Berkeley; she then did her postdoctoral work at MIT. She has taught at the University of Michigan, the University of Southampton (United Kingdom), Stanford, and MIT. Her teaching and research focus on the theory of organizations and incentives.