Includes index, glossary and appendix.

Contents: 1. Introduction: Economics and the economy -- Tools of economic analysis -- Demand, supply and the market -- 2. Positive microeconomics: Elasticities of demand and supply -- Consumer choice and demand decisions -- Introducing supply decisions -- Costs and supply -- Perfect competition and pure monopoly -- Market structure and imperfect competition -- The labour market -- Factor markets and income distribution -- Risk and information -- 3. Welfare economics: Welfare economics -- Government spending and revenue -- 4. Macroeconomics: Introduction to macroeconomics -- Output and aggregate demand -- Fiscal policy and foreign trade -- Money and banking -- Interest rates and monetary transmission -- Monetary and fiscal policy -- Aggregate supply, prices and adjustment to shocks -- Inflation, expectations and credibility -- Unemployment -- Exchange rates and the balance of payments -- Open economy macroeconomics -- Exchange rate regimes. -- Business cycles -- Supply-side economics -- 5. The World economy: International trade --