Showing the power of economic tools and the importance of economic ideas, this 4th edition of Principles of Economics continues to focus on what is truly important for students to learn in their first economics course. With an engaging approach to the study of the economy, the text returns to applications and policy questions as often as possible, encouraging students to relate economic theory to their own experiences. Designed particularly for students in Australia and New Zealand, this new edition incorporates contemporary topics such as the effects of the US sub-prime market, increased trading with China and India, the RBA, interest rates and monetary policy, global warming, outsourcing, work quality, poverty and immigration. Comprehensively revised and updated, the text enables students to understand the important foundations of economic analysis in a practical real-world context.