• Real life case studies highlight the economic issues that businesses and countries across the world face.
• Problems and Applications at the end of every chapter test students on what they have just learned.
• Case Studies and In the News boxes have been updated throughout reflecting the current economic issues faced across the world.

Part 1 Introduction to economics

1 What is economics?

2 Thinking like an economist

Part 2: Supply and demand: How markets work

3 The market forces of supply and demand

4 Elasticity and its applications

5 Background to demand: Consumer choices

6 Background to supply: Firms in competitive markets

Part 3, Markets, efficiency and welfare

7 Consumers, producers and the efficiency of markets

8 Supply, demand and government policies

Part 4 The economics of the public sector

9 The tax system

Part 5 Inefficient market allocations

10 Public goods, common resources and merit goods

11 Market failure and externalities

12 Information and behavioural economics

Part 6 Firm behaviour and market structures

13 Firms’ production decisions

14 Market structures I: Monopoly

15 Market structures II: Monopolistic competition

16 Market structures III: Oligopoly

Part 7 Factor markets

17 The economics offactor markets

PAart 8 Inequality

18 Income inequality and poverty

Part 9 Trade

19 Interdependence and the gains from trade

N. Gregory Mankiw, Harvard University

N. Gregory Mankiw is Robert M. Beren Professor of Economics at Harvard University. He studied economics at Princeton University and MIT. Dr. Mankiw is a prolific writer and a regular participant in academic and policy debates. His research includes work on price adjustment, consumer behavior, 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, and in more widely accessible forums, including The New York Times, The Washington Post, The Wall Street Journal, and Fortune. Dr. 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.

Mark P. Taylor, Dean of Olin Business School, Washington University, St. Louis

Mark P. Taylor is Dean of the John M Olin Business School at Washington University, US and was previously Dean of Warwick Business School at the University of Warwick, UK. He obtained his first degree in philosophy, politics and economics from Oxford University. He then worked as a foreign exchange dealer in London for two years while simultaneously studying part-time for a master’s degree in economics at London University, from where he also holds a doctorate in economics. Professor Taylor has taught economics at various universities (including Warwick, Oxford, Marseille and New York), at various levels (from principles courses to advanced graduate and MBA courses) and in various fields (including macroeconomics, microeconomics and econometrics). He also worked for several years as a senior economist at the International Monetary Fund and before that at the Bank of England. His work has been extensively published in scholarly journals, such as the Journal of Political Economy and the Economic Journal, and he is today one of the most highly cited economists in the world in economic research. In addition, Professor Taylor has acted as an advisor to the International Monetary Fund, the World Bank, the Bank of England, the European Commission and to senior members of the UK government. He is a research fellow of the Centre for Economic Policy Research, a member of council of the Royal Economic Society, and a fellow of both the Royal Statistical Society and the Royal Society of Arts.