Leads the student through microeconomics, macroeconomics and welfare economics. This comprehensive introduction includes examples of economics in action and two new chapters on economic growth and the business cycle. Parts of the text and supplements are designed for use in Europe.

Economics and the economy; the tools of economic analysis; demand, supply, and the market; government in the mixed economy; the effect of price and income on demand quantities; the theory of consumer choice; business organization and behaviour; developing the theory of supply - costs and production; perfect competition and pure monopoly - the limiting cases of market structure; market structure and imperfect competition; the analysis of factor market - labour; human capital, discrimination, and trade unions; capital and land - completing the analysis of factor markets; coping with risk in economic life; introduction to welfare economics; taxes and public spending - the government and resource allocation; competition policy and industrial policy; nationalization and privatization; general equilibrium and welfare economics; macroeconomics; the determination of national income; aggregate demand, fiscal policy and foreign trade; money and modern banking; central banking and the monetary system; monetary and fiscal policy in a closed economy; aggregate supply, the price level and the speed of adjustment; unemployment; inflation; open economy macroeconomics; economic growth; the business cycle; macroeconomics - where do we stand?; international trade and commercial policy; the international monetary system and international finance; European integration in the 1990s; problems of developing countries in the world economy.