Economics: The Basics (Basics (Routledge (Firm)).)

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Economics: The Basics......Page 1
Copyright Info......Page 5
TABLE OF CONTENTS......Page 7
CHAPTER 1: WEALTH AND POVERTY......Page 8
THREE DECISION-MAKING SYSTEMS......Page 11
TRADITIONAL AGRICULTURE......Page 13
MARKET AGRICULTURE......Page 15
PLANNED AGRICULTURE......Page 16
EFFICIENCY AND EQUITY......Page 19
OPPORTUNITY COST......Page 23
THE MODERN, MIXED ECONOMY......Page 24
FURTHER READING......Page 27
CHAPTER 2: PRICES, MARKETS AND COFFEE......Page 29
THE PRICE MECHANISM......Page 30
Land and Transfer Earnings......Page 31
Mismatch Unemployment......Page 32
DEMAND, SUPPLY AND THE THEORY OF PRICE......Page 33
Consumer Equilibrium......Page 34
Market Demand......Page 40
Shifts in Demand......Page 42
Market Supply......Page 44
Shifts in Supply......Page 46
PRICE DETERMINATION: A CASE STUDY......Page 47
Summary......Page 53
FURTHER READING......Page 54
PRIVATE PROPERTY......Page 55
CAPITAL, INVESTMENT AND GROWTH......Page 56
The Law of Diminishing Returns......Page 57
Economies and Diseconomies of Scale......Page 59
A Shift in Average Costs......Page 61
COMPETITION, PRICES AND PROFITS......Page 62
Profit Maximisation under Perfect Competition......Page 63
MONOPOLY AND OLIGOPOLY......Page 68
Barriers to Entry......Page 69
Monopoly Demand......Page 72
Oligopolistic Rivalry......Page 75
Oligopoly Demand......Page 76
CONCLUSION......Page 81
FURTHER READING......Page 84
CHAPTER 4: INFLATION AND UNEMPLOYMENT – BOOM AND BUST......Page 85
THE FALLACY OF COMPOSITION......Page 86
THE CIRCULAR FLOW MODEL......Page 87
Booms and Slumps......Page 92
THE CONTINUING DEBATE......Page 100
THE CONTROVERSIAL CORRELATION......Page 103
THE SUPPLY-SIDE CONSENSUS......Page 106
Deregulate and Free-Up Trade......Page 108
De-Politicise Money......Page 109
MONETARIST, NEW CLASSICAL AND NEW KEYNESIAN DIFFERENCES......Page 112
CONCLUSION......Page 114
Summary......Page 116
FURTHER READING......Page 117
THE NATURE OF MONEY......Page 118
A Medium......Page 119
A Measure......Page 122
A Store......Page 123
THE FORMS OF MONEY......Page 124
COMMERCIAL BANKING......Page 125
THE CREATION OF MONEY......Page 127
CENTRAL BANKS AND THE MONEY SUPPLY......Page 129
THE DEMAND FOR MONEY......Page 132
The Precautionary Motive......Page 134
MONETARY POLICY WITH GLOBAL MARKETS......Page 136
The Transmission Mechanism......Page 137
Exchange Rates......Page 138
FINANCIAL CRISES......Page 140
Summary......Page 144
FURTHER READING......Page 145
CHAPTER 6: NATIONAL INCOME, WORLD TRADE AND MULTINATIONAL ENTERPRISE......Page 146
THE CIRCULAR FLOW OF INCOMES......Page 147
Import and Export Functions......Page 148
The Foreign Trade Multiplier......Page 150
THE BALANCE OF PAYMENTS......Page 152
Causes......Page 153
Devaluation......Page 157
The J-Curve Effect......Page 158
COMPARATIVE ADVANTAGE AND THE GAINS FROM TRADE......Page 160
Political Arguments......Page 165
Infant Industries......Page 166
‘External’ Effects......Page 167
MULTINATIONAL COMPANIES......Page 169
Causes for Growth......Page 172
The Benefits of Multinational Enterprise......Page 175
The Disadvantages......Page 178
CONCLUSION......Page 179
Summary......Page 180
FURTHER READING......Page 181
CHAPTER 7: CAN WE REDUCE POVERTY AND PROTECT THE ENVIRONMENT?......Page 182
Physical Capital......Page 184
Technological Progress......Page 187
Endogenous Growth Theory......Page 189
Social Capital......Page 190
Policy Reforms......Page 192
New Institutional Economics......Page 195
Geography?......Page 199
CAN THE PLANET AFFORD IT?......Page 201
Market Failure......Page 205
EXTERNALITIES......Page 206
IMPERFECT INFORMATION......Page 207
SUSTAINABLE DEVELOPMENT......Page 208
Exhaustible Resources......Page 209
Renewable Resources......Page 210
MARKETS AND GOVERNMENT......Page 211
Summary......Page 212
FURTHER READING......Page 213
GLOSSARY......Page 214