This text assists students to develop a clear and critical understanding of economic concepts and theories, how the economy works and current economic issues. This edition has been revised to take into account the philosophy and coverage of the new A Level syllabuses and recent developments in the economy, government policy and economic theory. The book provides up-to-date economic data and real world examples. In addition, topics new to this edition include: the causes of market failure; business cycles; the costs of unemployment; the question of independence for the Bank of England; the move to market economies; externalities; the peace divided; game theory; contestable markets; buffer stocks; the Human Development Index; and government failure.