This book presents the concepts, theory and applications in a clear and concise manner. The eighteen chapters of the book are divided into two main parts, progressing from micro- to macroeconomics, illustrated throughout by the use of examples. The third edition updates the real world data and includes a new chapter on the economic implications of major environmental factors, such as pollution and traffic congestion, and expanded material on long-run production, regional policy, monetary union, deregulation and aggregate demand and supply. *Up to date with all recent policy changes and European developments. *Numerous illustrative examples and self-test questions with answers.