"Splendid and informed exposition of the basic principles of economics. The economics is sophisticated, the exposition simple, concise, lucid, and free from jargon."-Milton Friedman, 1976 Nobel Prize Recipient "The authors tell us what everyone should know about economics in language we can all understand. It's refreshing, when four of the best in the profession avoid the all-too-common practice of writing in a code that only other economists can comprehend."--Robert McTeer, former President, Federal Reserve Bank of Dallas With the global economy recovering from a steep recession, those who fail to grasp basic economic principles such as gains from trade, the role of profit and loss, and the secondary effects of government spending, taxes, and borrowing risk falling behind in their professional careers--even their personal lives. Common Sense Economics discusses key principles and uses them to show how to make wise personal and policy choices. This new edition of a classic, with reflections on the recent recession and the policy response to it, illuminates our world and what might be done to make it better.