This textbook has been produced in collaboration with OCR for use with the new 2015 OCR Economics specification, giving you up-to-date material that supports your teaching. This book will enable students to - Develop subject knowledge, with topic-by-topic insight and advice from Peter Smith, a professorial fellow in: Economics and editor of Economic Review - Demonstrate awareness of current issues in economics and build analytical and evaluative skills with new case studies - Build their quantitative skills with worked examples - Accurately explain key economic concepts and issues by learning the key terms throughout the text and in the end of section glossaries - Prepare for exams with practice questions and activities throughout the book Contents Introduction Section 1 - Microeconomics - Part 1 Scarcity and choice --Chapter 1: Introducing economics - Part 2 How competitive markets work --Chapter 2: The coordination problem --Chapter 3: The nature of demand --Chapter 4: The nature of supply --Chapter 5: Market equilibrium and the price system --Chapter 6: Prices and resource allocation -Part 3 Market failure and government intervention --Chapter 7: Market failure and externalities --Chapter 8: Other forms of market failure --Chapter 9: Government intervention and government failure Microeconomics key terms Microeconomics practice questions Section 2 - Macroeconomics - Part 4 Economic policy objectives and indicators of macroeconomic performance --Chapter 10: Macroeconomic performance: inflation --Chapter 11: Macroeconomic performance: employment and unemployment --Chapter 12: Measuring economic performance: economic growth - Part 5 Aggregate demand and aggregate supply --Chapter 13: Aggregate demand --Chapter 14: Aggregate supply and macroeconomic equilibrium - Part 6 The application of policy ins