The correct answer is option 1, Economics. Paul Krugman won the Nobel Prize in 2010 for his contribution to the field of economics. The Nobel Prize is a prestigious international award given annually in several categories, including economics, literature, and promotion of peace.

Economics is the study of how societies allocate their limited resources to meet their unlimited wants and needs. It involves analyzing production, exchange, and consumption of goods and services. Paul Krugman, an American economist, was awarded the prize for his analysis of international trade patterns and the effects of globalization.

While options 2, 3, and 4 are valid categories for the Nobel Prize, they are not correct in this instance. Genetics is the study of genes and heredity, literature focuses on written works of art, and the promotion of peace pertains to efforts to resolve conflicts and create harmony among nations. Therefore, option 1, Economics, is the correct answer.