Table of Contents

Preface to the fifth edition Acknowledgements List of abbreviations Part One: Resources and sustainability 1 Allocating resources to maximise human welfare 2 Governments, markets and economic performance... Part Two: The price mechanism 3 Demand and supply 4 Elasticity of demand and supply, and government policies Part Three: Theory of the Firm 5 Costs of production 6 Market structure and the revenue of a firm 7 Business decision-making strategy Part Four: Market failure and government intervention 8 Allocative efficiency in a pure market economy 9 Social goods and externalities 10 Government intervention Part Five: The macroeconomic environment 11 Circular flow of a nation's economy 12 Economic activity, the price level and living standards 13 The labour market 14 Aggregate demand and aggregate supply 15 Money and financial markets Part Six: Macroeconomic policy 16 Monetary policy 17 Fiscal policy 18 The public sector in New Zealand Part Seven: The environment of international trade 19 Benefits and costs of international trade 20 Balance of payments: a country's balance sheet 21 Foreign exchange market 22 New Zealand's development in a globalising economy References Glossary Index