Paul Krugman's grasp of economics in action and his uncanny way of translating complex issues into everyday terms have made him the most widely read economist writing for the general public today. He has been awarded the 2008 prize in Economic Sciences for his study of international trade and the effects of globalisation.

What's new?
• Chapter order – re-organised from the 1st edition to reflect how the subject is taught
• Stronger international focus – Global issues are dealt with throughout the text and emphasis is placed on looking at topics from an international perspective
• Global Comparison boxes – uses data driven examples to illustrate the international dimension of economic concepts
• New chapters on Taxes, Inflation and Unemployment
• Coverage of the financial crisis

Strengths:
• Real world examples, stories, applications and case studies – These teach the core concepts and motivate learning
• The writing style is accessible, entertaining and friendly
• Tools for learning

Tools for learning:
Each chapter is structured around a common set of features that helps students learn while keeping them engaged

• Chapter opening summaries – Each chapter begins with a real-life story that is then integrated throughout the chapter. They illustrate concepts, build intuition and encourage students to think further
• Economics in action – each chapter closes with a real world case study
• Each chapter also has:
o What you will learn – easy to read bulleted list
o Quick review – to cement ideas
o Check your understanding – short in text questions to test the student has understood the concepts
o For enquiring minds – concepts are applied to real world events
o Global comparison boxes – illustrations from around the world
o Pitfalls – Concepts that are often misunderstood or that students often struggle with are dealt with as they come up
o Definition of key terms – terms are defined in the text, then again in the margin
o A look ahead – Provides students with an idea of what to expect
o End of chapter review – a brief but complete summary of the key concepts, key terms and a comprehensive set of end of chapter problems
  
 
A full-array of supplements accompanies this text:

Study guides are available for the Macro/Micro splits - Micro = 9781429217569, Macro = 9781429217552
Instructors Resource CD - 9781429218313
Computer Test Bank - 9781429218535
Companion website - www.worthpublishers.com/krugmanwells
eBook - 9781429226004

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

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.