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Now firmly established as one of the leading economics principles texts in Europe, the Middle East and Africa, this highly anticipated second edition of Economics by N. Gregory Mankiw (Harvard University) and Mark Taylor (Warwick University) will further enhance the book’s reputation for clarity, authority and real-world relevance.

This Second Edition provides:
• New case studies and news articles providing relevant and topical insights into real life economics from UK, Europe, Middle East, and South Africa

• Two new chapters, one offering highly topical and in-depth coverage of the causes and effects of the global financial crisis and one covering Keynesian economics and IS-LM analysis

• An introduction to the latest thinking in economics, particularly regarding some aspects of behavioural economics, to help students see different explanations for economic phenomena

• An emphasis throughout on ‘thinking like an economist’ – adopting the tools, methods and concepts economists use in addressing problems and issues

Economics is essential reading for all students taking introductory economics modules on undergraduate courses. It is also suitable for use with the economics component of MBA courses.

Economics is also accompanied by Aplia, an online, interactive, auto-graded assignment setting tool. For more information about Aplia please visit: www.aplia.com/cengageemea

Table of Contents

PART 1 Introduction
1 Ten Principles of Economics
2 Thinking Like an Economist
3 Interdependence and the Gains From Trade

PART 2 Supply and Demand I: How Markets Work
4 The Market Forces of Supply and Demand
5 Elasticity and its Application
6 Supply, Demand and Government Policies

PART 3 Supply and Demand II: Markets and Welfare
7 Consumers, Producers and the Efficiency of Markets
8 Application: The Costs of Taxation
9 Application: International Trade

PART 4 The Economics of the Public Sector
10 Externalities
11 Public Goods and Common Resources
12 The Design of the Tax System

PART 5 Firm Behaviour and the Organization of Industry
13 The Costs of Production
14 Firms in Competitive Markets
15 Monopoly
16 Monopolistic Competition
17 Oligopoly

PART 6 The Economics of Labour Markets
18 The Markets for the Factors of Production
19 Earnings and Discrimination
20 Income Inequality and Poverty

PART 7 Topics for Further Study
21 The Theory of Consumer Choice
22 Frontiers of Microeconomics

PART 8 The Data of Macroeconomics
23 Measuring a Nation’s Income
24 Measuring the Cost of Living

PART 9 The Real Economy in the Long Run
25 Production and Growth
26 Saving, Investment and the Financial System
27 The Basic Tools of Finance
28 Unemployment

PART 10 Money and Prices in the Long Run
29 The Monetary System
30 Money Growth and Inflation

PART 11 The Macroeconomics of Open Economies
31 Open-Economy Macroeconomics: Basic Concepts
32 A Macroeconomic Theory of the Open Economy

PART 12 Short-Run Economic Fluctuations
33 Keynes and IS-LM Analysis
34 Aggregate Demand and Aggregate Supply
35 The Influence of Monetary and Fiscal Policy on Aggregate Demand
36 The Short-Run Trade-Off Between Inflation and Unemployment

PART 13 Topics in International Finance and Macroeconomics
37 The Financial Crisis
38 Common Currency Areas and European Monetary Union

PART 14 Final Thoughts
39 Five Debates over Macroeconomic Policy

928 pages, Paperback