Understanding the Economic Environment, 4th edition

Understanding the Economic Environment is written specifically for the Economic Environment 520 prescription in the New Zealand Diploma of Business as well as providing a general introduction to mainstream economics in contemporary New Zealand.

This edition clearly explains and illustrates the essential tools of economic analysis and applies them to a range of contemporary issues.

NZD$ 130.00
In Stock
Release Date: December 01, 2015
ISBN/ISSN: 9781927248201

Product description

A step-by-step introduction to the key elements of economic theory and a general introduction to mainstream economics in contemporary New Zealand

This 4th edition of Understanding the Economic Environment clearly explains and illustrates the essential tools of economic analysis and applies them to a range of current issues in New Zealand.

Students are encouraged to understand and apply the economic principles they are learning and to critically evaluate these principles as they relate to decision-making for business and government economic policy.​

The Lexis Nexis Understanding series is renowned for its straightforward layout and logical flow between topics, enabling student to navigate the text with ease. It also includes practical tools and reference materials ideal for revision and exam preparation:

  • Clear language
  • Business and real-life examples
  • Diagrams and flow charts
  • Key learnings at the beginning of each chapter
  • Revision questions at the end of each chapter
  • A comprehensive glossary of key terms

Related Titles

Miller, Understanding Commercial Law, 8th edition, (2014)
Barrett, Understanding Company Law 3rd edition, (2014)
Fisher and Moses, Understanding Accounting Principles 7th edition, (2014)


Featured Authors

Table of contents

1. The economic approach

     1.1 The economic problem

     1.2 The economic way of thinking

     1.3 The production possibilities frontier model

     1.4 Revision questions

2. The demand and supply model

     2.1 Demand

     2.2 Elasticity of demand

     2.3 Supply

     2.4 Demand and supply in a market

     2.5 Government intervention in the market

     2.6 Revision questions

3. Firms

     3.1 Profit maximization

     3.2 Short-run and long-run costs

     3.3 Market structures

     3.4 Revenue and profit

     3.5 Business strategy

     3.6 Revision questions

4. The government and the market

     4.1 Allocative efficiency

     4.2 Market failure 1: imperfect competition

     4.3 Market failure 2: public goods

     4.4 Market failure 3: externalities

     4.5 Equity vs. efficiency

     4.6 Revision questions

5. The economy

     5.1 Modelling economic activity

     5.2 Measuring economic activity

     5.3 The business cycle

     5.4 The aggregate demand aggregate supply model

     5.5 Revision questions

6. Government policy and the economy

     6.1 Economic objectives

     6.2 Fiscal policy

     6.3 Monetary policy

     6.4 Monetary policy and inflation targeting

     6.5 Revision questions

7. International trade and the global economy

     7.1 Free trade

     7.2 Balance of payments

     7.3 The foreign exchange market

     7.4 New Zealand and the global economy

     7.5 Revision questions


For lecturers who prescribe Understanding the Economic Environment for their course, the following resources are available:

     • Hi resolution digital Image library (Jpeg files of each graph contained in textbook for lecturers to incorporate into their lecture slides)

     • Recent NZ examples of economics in action (Pdf)

     • Answers to end of chapter queries (Pdf)

You can download the files here:

Local recent examples PDF

End of chapter answers PDF

Graphic images

Note: To download the files, lecturers are required to enter a password. Lecturer should contact their relationship manager Margaret Broadbent at margaret.broadbent@lexisnexis.co.nz for this information.