Previous ed.: 1995.

"International edition."

Includes index

Part 1 Basic concepts: the fundamentals of economics; the shifting boundary between markets and government; basic elements of supply and demand. Part 2 Microeconomics: supply, demand, and product markets; applications of supply and demand; demand and consumer behaviour; production and business organization; analysis of costs; the behaviour of perfectly competitive markets; imperfect competition and its polar case monopoly; oligopoly and monopolistic competition; uncertainty and game theory. Part 3 factor markets and the distribution of income: how markets determine incomes; the labour market; land and capital; markets and economic efficiency. Part 4 Economic policies of state and market; government taxation and expenditure; curbing market power; protecting the environment; efficiency versus equality - the big trade off. Part 5 Macroeconomics - the study of growth and business cycles; overview of macroeconomics; measuring economic activity; consumption and investment; business cycles and the theory of aggregate demand; the multiplier model; money and commercial banking; central banking and monetary policy. Part 6 Economic growth and macroeconomic policy: the process of economic growth; the challenge of economic development (moved to integrate with growth theory); unemployment and the foundation of aggregate supply; ensuring price stability; open economy macroeconomics (new chapter); A - foreign trade and economic activity, B - interdependence in the global economy; the Warring schools of macroeconomics; policies for growth and stability. Part 7 International trade and the world economy; international trade and exchange rates; comparative advantage and protectionism; managing the global economy.

This edition places continued emphasis on the analytical core of economics, with particular attention to economic growth (macro) and analysis of market economy (micro). Advanced material has been relegated to ten appendices.