Questo points to something close to you. It's a normal adjective with four endings:

	singular	plural
masculine	questo vestito	questi vestiti
feminine	questa borsa	queste borse

Before a vowel, the singular often shortens: quest'anno (this year), quest'estate (this summer).

On its own, without a noun, it means this one: Mi piace questo. — I like this one. Prendo queste. — I'll take these.