Introduction; Section 1. The basic economic problem; 1. The nature of the economic problem; 2. Factors of production; 3. Opportunity cost; 4. Production possibility curves; Exam-style structured questions for Section 1; Section 2. The allocation of resources; 5. Microeconomics and macroeconomics; 6.

The role of markets in allocating resources; 7. Demand; 8. Supply; 9. Price determination; 10. Causes of price changes; 11. Price elasticity of demand; 12. Price elasticity of supply; 13. Market economic system; 14.

Market failure; 15. Mixed economic system; Exam-style structured questions for Section 2; Section 3. Microeconomic decision makers; 16. Money and banking; 17. Households; 18. Workers; 19. Trade unions; 20. Firms; 21.

Firms and production; 22. Firms' costs, revenue and objectives; 23. Market structure; Exam-style structured questions for Section 3; Section 4. Government and the macroeconomy; 24. The role of government; 25. The macroeconomic aims of government; 26. Fiscal policy; 27. Monetary policy; 28.

Supply-side policy; 29. Economic growth; 30. Employment and unemployment; 31. Inflation and deflation; Exam-style structured questions for Section 4; Section 5. Economic development; 32. Living standards; 33. Poverty; 34. Population; 35.

Differences in economic development between countries; Exam-style structured questions for Section 5; Section 6. International trade and globalisation; 36. International specialisation; 37. Free trade and protection; 38. Foreign exchange rates; 39. Current account of balance of payments; Exam-style structured questions for Section 6; Suggested Answers; Glossary.