Understanding economics

The aim of this book is to introduce the reader who is new to the subject to the principles of modern economics and to demonstrate their application in the study of some of the major problems in contemporary society. It will be valuable both for those with a keen interest in current affairs who simply wish to penetrate the meaning behind the media headlines, and for the student, with more formal requirements, preparing for an examination.

The text in two parts: Part One examines the role of markets (the arrangements whereby goods and services are exchanged for money), the interaction of buyers and sellers, how the price of a good is determined and the way in which firms and households make their economic decisions. Part Two considers operations on a larger scale. Instead of single markets it looks at the factors influencing national and international levels of economic activity - for exam

ple, national income, the general level of prices, total employment. Although there are cross references, each part is fairly self contained. Thus the reader whose interests largely concern prob lems such as inflation and unemployment can turn directly to Part Two. Those more concerned with industry and the operations of firms and markets will find most of what they need in Part One. The first two chapters are introductory and should be studied by all readers.

The book covers topics necessary for those studying for the professional examinations of the Institute of Bankers, the Institute of Chartered Secretaries and Administrators and professional accounting examinations, as well as the GCE A-Level and BTEC certificates and diplomas. A selection of questions from past ex amination papers is appended to each chapter.