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<langstring xml:lang="enUS">WinEcon  Introductory Economics</langstring>
A complete and fullyinteractive introduction to the principles of economics.
Interactive introductory economics courseware
WinEcon  Introductory Economics

What is Economics

Introduction to Economics

Introduction

Introduction to Economics

The Economic Approach  Rationality

Objectives and Actions: The Squash Club

Objectives and Actions: Allocating a Health Budget

Objectives and Actions: Looking Ahead

Economic Modelling

Summary

Introduction to Demand and Supply

Introduction to Supply and Demand

Introduction

Demand

Introduction

Factors Affecting Demand

The Demand Curve of an Individual

Shifts in an Individual's Demand Curve

The Product Demand Curve

Shifts in the Product Demand Curve

Summary

Supply

Introduction

Factors Affecting Supply

The Supply Curve of a Firm

Shifts in the Supply Curve of a Firm

The Product Supply Curve

Shifts in the Product Supply Curve

Summary

Supply and Demand Analysis

Introduction

Market Equilibrium

Comparative Statics

Agricultural Support

Government Intervention

The Cobweb Model: A Divergent Cobweb

The Cobweb Model: A Convergent Cobweb

Summary

Elasticity

Introduction

The Concept of Elasticity

Elasticity and Smoking

Price Elasticity of Demand

Price Elasticity and Total Revenue

Point Elasticity  Linear Demand Curve

Point Elasticity  Nonlinear Demand Curve

Demand Curves with Constant Elasticity

Factors Affecting PED

Income Elasticity of Demand

Cross Elasticity of Demand

Elasticity of Supply

Ruby Earrings and PES

Price Elasticity of Supply

Price Elasticity and the Slope of the Supply Curve

Point Elasticity  Supply

Factors Affecting PES

Summary

Summary of Demand and Supply

Summary

Intermediate Demand

Introduction to Intermediate Demand

Introduction

Consumer Behaviour

Introduction

Consumption Decisions

Summary

Utility Analysis

Introduction

Total & Marginal Utility

Utility and Demand

Choice of Goods

Summary

About Indifference Curves

Introduction

Elements of the Consumer Choice Model

Discovering Indifference Curves

Assumptions of Indifference Curves

NonStandard Indifference Curves

Summary

The Budget Line

Introduction

The Budget Line

Drawing the Budget Line

Changing the Budget Line

Summary

Indifference Curve Analysis

Introduction

Optimal Consumption Choice

Income  Consumption Curve

The Engel Curve

Price  Consumption Curve

Deriving the Demand Curve

Summary

The Income & Substitution Effects

Introduction

The Effect of a Price Change

The Substitution Effect

The Income Effect

The Income & Substitution Effects

Inferior Goods

Summary

Summary of Intermediate Demand

Summary

Production and Costs

Introduction to Production and Costs

Introduction

ShortRun Production

Introduction

Production and Factor Inputs

The ShortRun Production Function

Diminishing Returns in Production

The Law of Variable Proportions

Modern Production Methods

Modern Production Methods: an example

ShortRun Production Functions: a numerical example

Marginal and Average Physical Product of Labour: a numerical example

Mathematics of the Marginal Product

Summary

Production at Minimum Cost in the Long Run

Introduction

The LongRun Production Function

Output against Labour Curve as Capital is Increased

The Isocost Line

Factors Affecting the Isocost Line

The Slope of the Isocost Line

Isoquants and Production Rays

Technical Efficiency

The Shape of the Isoquant: factor substitutability

The Slope of the Isoquant: factor substitutability

The Shape of the Isoquant: marginal rate of substitution

Producing at Minimum Cost

Cost Minimisation for a Fixed Output Level

Maximum Output for a Fixed Budget

Changes in Factor Prices: factor prices

Changes in Factor Prices: an example

Summary

ShortRun Costs

Introduction

ShortRun Costs and Labour Productivity

ShortRun Cost Definition

Drawing ShortRun Cost Curves

Positioning ShortRun Cost Curves

Deriving the ShortRun Average Fixed (AFC) and Average Variable Cost (AVC) Curves

The Shape of the Average Total Cost (AC) Curve

The Shape of the Marginal Cost (MC) Curve

Deriving the ShortRun MC and AC Curves: a numerical example

Mathematics of Marginal Cost

Deriving ShortRun Total Cost Curves

Summary of ShortRun Costs

Cost Volume Profit (CVP) Analysis

Introduction

Cost Volume Profit (CVP) Analysis

Cost Volume Profit Assumptions

CVP: graphical analysis

CVP: algebraic analysis

Equation Showing CVP Required Output Level

CVP: an illustration

CVP: a numerical example

Summary of Cost Volume Profit (CVP) Analysis

Comparing Long and ShortRun Costs

Introduction

LongRun Expansion Path

ShortRun Expansion Path

Expansion Paths: short and longrun cost curves

Comparing Long and ShortRun Costs

Economies of Scale

Introduction

Economies of Scale: definitions

The Three Scale Effects

LongRun Average Costs in Practice

Economies of Scale and Market Structure

Summary

Perfect Competition and Monopoly

Introduction to Perfect Competition and Monopoly

Introduction

Markets and Profits

Introduction

Characteristics of Different Market Structures

Profit Maximisation

Marginal Cost and Revenue at Profit Maximisation

Normal and Supernormal Profit

Summary

Perfect Competition

Introduction

Four Key Assumptions in Perfect Competition

Firm and Industry Demand in Perfect Competition

Demand Curve of a Firm in Perfect Competition

Profit Maximisation in Perfect Competition

Profit Maximising Output for a Firm in Perfect Competition

Fixed and Variable Costs

Short Run Supply

Summary

Comparative Static Analysis of Perfect Competition

Introduction

Profits and Losses in the Shortrun

The Comparative Static Effects of Demand Changes

A Change in Demand with Diseconomies of Scale

Comparative Static Effects of Changing Costs

The Effect of a Tariff on Imports

Summary

Monopoly

Introduction

Two Key Assumptions in Monopoly

Barriers to Entry

A Monopolist's Revenue

A Monopolist's Demand and Marginal Revenue

Profit Maximisation by a Monopolist

Profit Maximisation for a Monopolist using MC and MR

Monopoly and Supply

Demand, Elasticity and Monopoly

Price Discrimination Under Monopoly

Perfect Competition and Monopoly Compared

Main Differences between Perfect Competition and Monopoly

Summary

Summary of Perfect Competition and Monopoly

Summary

Imperfect Competition

Introduction to Monopolistic Competition and Oligopoly

Introduction

Monopolistic Competition

Introduction

Key Assumptions in Monopolistic Competition

Short Run Equilibrium of a Monopolistic Firm

Adjustment to Longrun Equilibrium

Quiz on Monopolistic Competition

Summary

Oligopoly

Introduction

The Key Assumptions of Oligopoly

Interdependence in Oligopoly

Collusive Oligopoly

Cartels

Cartel Disintegration

A Cartel Example  OPEC

Collusion in Practice

Non Collusive Oligopoly

Equilibrium in Non Collusive Oligopoly

Models of Noncollusive Oligopoly

Assumptions of Cournot's Oligopoly Model

Cournot's Model of Duopoly

The Kinked Demand Curve

Other Explanations for Stable Prices

Non  Price Competition

Advertising

The Economics of Advertising

The Advertising Elasticity of Demand

Game Theory

Prisoners' Dilemma Game: an example

A Duopoly Game Based on the Prisoner's Dilemma

Nash Equilibria versus Cooperation

Reasoning as a Duopolist

Followers and Leaders

Summary

Comparing Monopolistic Competition and Oligopoly

Introduction

The Case for Imperfect Competition

Differences Within Imperfect Competition

Summary

Summary of Monopolistic Competition and Oligopoly

Summary

Regulation of Markets and Market Failure

Introduction to Regulation of Markets and Market Failure

Introduction

Requirements for Allocative Efficiency

Introduction

Allocative Efficiency

Marginal Private Cost & Benefit

Perfect Competition & Allocative Efficiency

The Six Competitive Market Assumptions

Summary

Market Failure

Introduction

Reasons for Market Failure

Monopoly Power & Allocative Inefficiency

Externalities & Allocative Inefficiency

Summary

Monopoly Power

Introduction

Price, Output & Profit in Competition & Monopoly

Efficiency in Competition & Monopoly

Summary

Externalities & Social Costs

Introduction

Production Externalities

Consumption Externalities

Finding Marginal Social Cost & Benefit

What are Social Costs and Externalities?

Summary

Government Regulation

Introduction

Demand for Regulation

Supply of Regulation

Equilibrium Amount of Regulation

Examples of Regulation

Summary

Taxes & Subsidies

Introduction

Monopoly Policy in a FirstBest World

Externality Policy in a FirstBest World

The SecondBest World

Advantages/Disadvantages of Taxes & Subsidies

Summary

Monopoly & Merger Policy

Introduction

UK regulation of Private Monopolies & Oligopolies

UK Merger Policy

Regulation due to Membership of the European Union

Summary

Summary of Regulation of Markets and Market Failure

Summary

Factors of Production

Introduction to Factors of Production

Introduction

Factor Markets

Introduction

Factor Markets: an overview

Factor Supply: the supply of labour

Introduction

Supply of Labour: the leisure/work tradeoff

Supply of Labour: derivation of the budget constraint

The Labour Supply Decision

The Market Supply of Labour

Summary

Factor Demand: the demand for labour

Introduction

ShortRun Demand for Labour: competitive input & output markets

ShortRun Demand for Labour

Aggregate Demand for Labour

Factor Demand by a Firm: under different market structures

The Firm's Demand for Factors: possible market combinations

Competitive Input Market & Imperfect Output Market

Derivation of Marginal Factor Costs in Imperfect Input Markets

Derivation of MRP & VMP in Imperfect Output Markets

Imperfect Input & Output Markets

Imperfect Input Market & Competitive Output Market

Summary

Economic Rent and Transfer Earnings

Introduction

The Market for Skilled Labour  TV weather presenters

The Market for Unskilled Labour  bar staff

The Market for City Centre Office Space

Economic Rent and Transfer Earnings

Summary of Economic Rent and Transfer Earnings

Discrimination in the Labour Market

Introduction

The Aggregate Supply Curve faced by a Monopsonist

Discriminating and NonDiscriminating Monopsony Compared

Summary

Labour Markets: Impact of the Minimum Wage

Introduction

Minimum Wage

Summary

Capital Investment Appraisal

Introduction

Net Present Value

Evaluate Your Own Project

The Meaning of Net Present Value

The Cost of Capital: an introduction

The Cost of Capital: influences

Payback

Summary

Macroeconomic Data

Introduction to Macroeconomic Data

Introduction

Macroeconomic Variables

Introduction

Trended and NonTrended Variables

The Behaviour of Real and Nominal Variables

Nominal and Real Interest Rates

Positive and Negative Real Interest Rates

Real Interest Rates in Various Countries

Hyperinflations

Fitting Linear Trends

Trends in Levels and Logarithms

Deviations from Linear and LogLinear Trends

Linear Trends with Constant Growth

Annual Real GDP Growth Rates

Quarterly GDP Growth Rates

Summary

Measuring Macroeconomic Variables

Introduction

Measuring the Price Level and Inflation

Calculating the GDP Deflator

The Balance of Payments

Devaluation and the Balance of Payments

Summary

Interactions Between Macroeconomic Variables

Introduction

Comovements with GDP Growth

Lead and Lag Comovements

Inflation over the Business Cycle

Money Supply and Inflation

International Comovements

Summary

National Income Accounting

Introduction to National Income Accounting

Introduction

Defining Output

Introduction

Potential Pitfalls in Measuring Productive Activity

Transfer Payments

Double Counting  a Potential Error

Double Counting  Avoiding the Problem

Summary

Developing an Accounting Framework

Introduction

Developing an Accounting Framework

The Household Sector

The Productive Sector

The Circular Flow of Income

Investment and Saving

Why Saving Equals Investment

The Inclusion of Government

Injections Equal Withdrawals

The Foreign Sector

The Injections Equal Withdrawals (Again)

Summary

The Measurement of GDP in Practice

Introduction

Real and Nominal GDP

The Output Approach

GVA in Current Prices

Output by Sector

The Expenditure Approach

Composition of Expenditure

The Income Approach

GDP by Income Type

Summary

GNI, NNI and Economic Welfare

Introduction

GNI and NNI

GDP and Economic Welfare

Summary

Summary of National Income Accounting

Summary

Income Expenditure Model

Introduction to the Income Expenditure Model

Introduction

Circular Flow of Income and Expenditure

Introduction

Basic Concepts: Firms and Households

Basic Concepts: Aggregate Markets

The Simple Circular Flow of Income and Expenditure

The Full Circular Flow of Income and Expenditure

Accounting Identities in the Circular Flow

Planned Versus Actual Flows

Summary

The Household Sector

Introduction

The Consumption Function

Consumption and Income in Selected Countries

Marginal Propensities to Consume and Save

Average Propensity to Consume

The Consumption Function Diagram

Consumption, Taxation and Saving

Taxation

Saving

Summary

The Firms Sector and the Goods Market

Introduction

Aggregate Demand in the Goods Market

Constructing the Aggregate Demand Function

The Firms Sector

Aggregate Supply: Equation & Diagram

Summary

Equilibrium in the Goods Market

Introduction

Goods Market Equilibrium

Keynesian Cross Diagram

The Formal Model: Equations & Solutions

Solution Method 1: Aggregate Demand equals Aggregate Output/Income

Introduction to Solution Method Two

Solution Method 2: Planned Withdrawals equals Planned Injections

Equilibrium Values for Other Variables

Formal Model: Diagrams

Summary

Exogenous Changes in Aggregate Demand

Introduction

A Change in Injections

A Change in Injections: a numerical example

The Multiplier

The Size of the Multiplier

Equilibrium Values and Exogenous Changes

The Multiplier: Withdrawals/Injections

Summary

Policy Implications of the Model

Introduction

Unemployment and Macroeconomic Policy

Equilibrium and Full Employment

Policy Implications: A Few Cautions

Summary

Money Supply and Demand

Introduction to Money

Introduction

Money Supply and Demand: Introduction

Functions of Money

Summary

Money Supply

Introduction

The Money Stock: Aggregate Measures

Flows of Funds Accounts

Assets and Liabilities

Financial Accounts and the Flows of Funds

The Banking System: The Role of the Central Bank

The Banking System: The Other Banks

NonBank Financial Institutions (NBFI's)

The Banking System

Banking Operations

A Multi Bank System

Loans and the Banking System

The Minimum Reserve Ratio

Loan Expansion and the Bank Deposit Multiplier

Summary

Monetary Control

Introduction

Control of the Money Supply

Exogenous and Endogenous Money

Bills and Bonds

Open Market Operations: In Theory

Open Market Operations: In UK Practice

Open Market Sales and Banks' Responses

Other Monetary Control Measures

Interest Rate Control Methods

Summary

Classical Theory of Money Demand

Introduction

Money Supply and Demand: Theoretical Approaches

The Classical Quantity Theory of Money

The Cambridge Version of Quantity Theory of Money

The Classical Loanable Funds Market

Summary

Keynesian Theory of Demand for Money

Introduction

Keynesian Theory of Money Demand

The Transactions Demand for Money

The Speculative Demand for Money

The Total Demand for Money Function

The Money Market and Equilibrium Interest Rate

Exogenous Changes and their Money Market Effects

The LM Curve and Equation

LM Curve: Graphical Derivation

LM Curve and Equation: Exogenous Changes

LM Curve: Equation Derivation

Summary

Monetarist Theory

Introduction

Friedman's Theory of Money Demand

Monetarism  The General Approach

Money, Price Level and Output: Debates on Causality

Empirical Evidence on the Money Demand Function

Summary

Summary of Money Supply and Demand

Introduction

Reconciling Money Flows and Money Stocks

Money Supply and Demand: Review

Summary

Theories of Aggregate Demand

Introduction to Aggregate Demand

Introduction

Theories of Aggregate Demand

Classical / Monetarist Aggregate Demand

Introduction

The Quantity Theory of Money

The Quantity Theory and Aggregate Demand

The Monetarist Transmission Mechanism

Policy Implications

Summary

Classical / Monetarist Open Economy

Introduction

International Trade: An Example

Fixed Exchange Rates

Flexible Exchange Rates

Summary: Trade and Exchange Rates

Summary

Keynesian Aggregate Demand

Introduction

Introduction: Keynesian Aggregate Demand

Consumer Demand and Disposable Income

Consumer Demand and the Rate of Interest

The Consumption Demand Function

The Investment Decision and the Rate of Interest

Investment Demand and the Rate of Interest

Investment Demand and Aggregate Output/Income

The Investment Demand Function

The IS Equation and Curve: Graphical Approach

Changes in Injections and Withdrawals

The IS Equation and Curve: Equation Approach

The IS Curve and Aggregate Demand

The ISLM Analysis and Aggregate Demand

Real  Financial Sector Interactions

Joint Equilibrium of Goods and Money Markets

ISLM Equilibrium

Exogenous Changes in the ISLM Model

Relative Effects of Exogenous Changes

ISLM Models

Policy Implications of the ISLM Theory

Keynesian Aggregate Demand and the Price Level

Summary

Keynesian Open Economy

Introduction

The BP Curve

ISLMBP Analysis with Fixed Exchange Rates

ISLMBP Analysis: Exchange Rate Changes

ISLMBP Analysis with Flexible Exchange Rates

Exogenous Changes: Fixed Exchange Rates

Exogenous Changes: Flexible Exchange Rates

Summary

Neoclassical Aggregate Demand

Introduction

Neoclassical Theory of Consumer Expenditure

The Permanent Income Hypothesis

The Life Cycle Hypothesis

Neoclassical Consumption Theories

Real Balance Effects in Aggregate Demand

Aggregate Demand as a Function of the Price Level

The Neoclassical Synthesis

Criticisms of the Neoclassical Synthesis

Summary

Theories of Aggregate Supply

Introduction to Theories of Aggregate Supply

Introduction

Basic Tools for Aggregate Supply

Introduction

The Aggregate Production Function

The Aggregate Demand for Labour

Labour Supply and Unemployment

Summary

The Classical Theory of Aggregate Supply

Introduction

Classical Aggregate Supply at a Glance

Classical Labour Supply Theory

Are You Prone to Money Illusion?

Classical Model: Employment Determination

The Classical Aggregate Supply Curve

AS Curve Shifts: Technology Shocks

AS Curve Shifts: Income Tax Changes

Unemployment in the Classical Model

Classical Aggregate Supply: A Summary

Summary

Keynesian Theory of Aggregate Supply

Introduction

Keynesian Aggregate Supply at a Glance

Keynesian Theory of Labour Supply

Keynesian Model: Employment Determination

The Keynesian Aggregate Supply Curve

Unemployment in the Keynesian Model

Keynesian Aggregate Supply: A Summary

Summary

The Monetarist Model of Aggregate Supply

Introduction

Monetarist Aggregate Supply at a Glance

Monetarist Theory of Labour Supply

Monetarist Model: Employment Determination

The Monetarist Aggregate Supply Curve

Unemployment in the Monetarist Model

Logarithms and Growth Rates: A Review

The Phillips Curve

Monetarist Aggregate Supply: A Summary

Summary

Monetary and Fiscal Policies

Introduction to Fiscal and Monetary Policy in Closed and Open Economies

Introduction

Macroeconomic Policy and AggregateDemand

Introduction

Fiscal Policy and Crowding Out

Recap on the Slope of the IS Curve

Recap on the Slope of the LM Curve

The Effectiveness of Fiscal Policy

Fiscal Policy Exercise  Introduction

Fiscal Policy Exercise

Fiscal Policy Exercise Solutions

Monetary Policy

The Effectiveness of Monetary Policy

Monetary Policy Exercise  Introduction

Monetary Policy Exercise

Monetary Policy Exercise Solutions

Summary

Fiscal and Monetary Policy in the ASAD framework

Introduction

Keynes Versus the Classics

Fiscal Policy Under Flexible Prices

Monetary Policy Under Flexible Prices

ASAD Fiscal Policy Exercise  Introduction

ASAD: Fiscal Policy Exercise

ASAD: Fiscal Policy Solutions

Summary

Policy in the Open Economy

Introduction

The ISLMBP Framework

Policy Effectiveness in the Open Economy

Fiscal Policy in a Fixed Exchange Rate Regime

Monetary Policy in a Fixed Exchange Rate Regime

Fiscal Policy Under Flexible Exchange Rates

Monetary Policy Under Flexible Exchange Rates

Policy Exercise

Summary

The Monetarist Critique of Active Stabilisation Policy

Introduction

The Natural Rate Hypothesis

Policy Timing and Magnitude

The Timing of Policy Changes

Timing and Magnitude

The Political Angle

Summary

Monetary and Fiscal Policy in Open and Closed Economies

Summary

Macroeconomic Fluctuations

Macroeconomic Fluctuations: An Introduction

Introduction

Concepts and Definitions

Introduction

Measuring a Cycle

Cycles Terminology

An Actual Cycle

Aggregate Demand and Supply Shocks

Shocks and Persistence

Effects of Shocks and Persistence

Summary

Macroeconomic Theories of Fluctuations

Introduction

Theories of Cycles: Overview

Classical Model: AD Shock

Classical Model: AS Shock

Stabilising Prices in the Classical Model

Keynesian Model: AD Shock

Keynesian Model: AS Shock

Monetarist Model: AD Shock

Monetarist Model: AD Shocks

Monetarist Model: AS Shock

Monetarist Model: AS Shocks

Summary

Development Economics

Introduction to The Economics of Development

Introduction

The Distribution of Income

Introduction

The Distribution of Income

Countries by Income Categories

Distribution of Income  The Lorenz Curve

Countries with the Lowest Income

Lorenz Curves for Different Countries

Summary

Measuring Development

Introduction

Development  Concepts and Measurements

GNP Per Capita and Life Expectancy at Birth

Countries Classified by Development Indicators

The Human Development Index

The Human Development Index for Selected Countries

Increasing the Value of the Human Development Index

Countries Classified by the Human Development Indicator

Basic Development Indicators

Summary

The Last Three Development Decades

Introduction

The Last Three Development Decades

The Development of Various Regions over Three Decades

The 1960s

The Problems of Primary Producers

Import Substitution Industrialisation

Import Substitution Industrialisation  An Example

The 1970s

The Four Tigers of Asia

The 1970s: The First Oilshock, Borrowing and Debt

The 1980s

The Debt Crisis

Borrowing and Indebtedness

Summary

The Direction and Composition of International Trade

Introduction

The Direction of International Trade

Proportions of Trade Between Groups of Countries

Recap: The Direction of International Trade

Composition of International Trade

Composition of Exports by Groups of Countries

Composition of Exports for Various Regions

Countries Grouped by Income and Composition of Trade

Composition of Trade for Selected Countries

Summary

Summary of The Economics of Development

Summary

Welfare Economics

Introduction to Welfare Economics

Introduction

Efficiency & Equity Criteria

Introduction

Allocative Efficiency for Society

Net Social Benefit

Types of Efficiency  Quiz

The Pareto Principle

Pareto Optimality

Equity & Efficiency

Summary

Production Possibility Frontier

Introduction

The Five Assumptions for the PPF

Production Possibilities

The Production Possibility Frontier

Production Not at the Frontier

Changing the PPF

Summary

Public & Merit Goods

Introduction

Public versus Private Goods

Key Characteristics of a Public Good

Public Goods and Free Riders

How much of a public good to produce?

Key Characteristics of a Merit Good

Summary

Consumer & Producer Surplus

Introduction

Understanding Consumer Surplus

Individual Consumer Surplus

Market Consumer Surplus

Consumer Surplus for Different Demand Curves

Defining Producer Surplus

Producer Surplus in Different Markets

Social Surplus

Summary

Welfare Effects of Monopoly

Introduction

The Competitive Industry

Social Surplus in Competition

Social Surplus in Monopoly

Changes Resulting from Monopolisation

Deadweight Loss of Monopoly  An Alternative Measure

Monopolisation of a Constant Cost Industry

The Welfare Cost of Monopoly: Scale Economies & Choice

Rentseeking by Monopolists

Summary

Taxation, Benefits & Tax Incidence

Introduction

Types of Tax in the U.K.

Sources of Tax Revenue

Progressive, Regressive & Proportional Taxes

Requirements of a Good Tax System

Benefit Payments

What is Tax Incidence?

Unit Tax  An Example of Tax Incidence

Summary

Summary of Welfare Economics

Summary

Insurance and Risk

Introduction to Insurance & Risk

Introduction

Risk in Economics

Introduction

Examples of Certainty and Risk

Risk in Economics

Types of Risk

Risks  Fair or Not?

Risk Aversion

Test your Understanding of Risk

Summary

Insurance

Introduction

Insurance and Risk

The Supply of Insurance

Problems with Insurance

Summary

Forward and Futures Markets

Introduction

Spot and Forward Markets

Futures Markets

How does a Futures Market work?

Summary

Investment and Uncertainty

Introduction

Holding a Portfolio

Diversification

Summary

Summary for Insurance & Risk

Summary

Nationalisation and Privatisation

Introduction to Nationalisation and Privatisation

Introduction

Nationalisation

Introduction

The Major UK Nationalisations

The Case for Nationalisation

The Economic Case for Nationalisation

The Emergence of a Natural Monopoly

Pricing Policy  Problems under Natural Monopolies

Externalities and Public Goods

The Nationalised Industries in the UK  A Potted History

Productive Efficiency

UK Allocative Efficiency

Summary

Privatisation

Introduction

Definitions of Privatisation

UK Privatisations

UK Privatisation  Two Periods

Incentives and Efficiency

Seven Reasons to Privatise

Ownership and Efficiency

Objectives of Privatisation

Regulation of Privatised Utilities

The Privatisation of Electricity

Summary

A Case Study on the Provision of Healthcare

Introduction

Case Study: The UK's National Health Service (NHS)

Private vs Public Control of Health Care Resources

Private vs Public Control  Ask the Experts

Case Study NHS: What are the Benefits of a Mixed System?

Case Study NHS: Internal Markets  the NHS of the 1990's

Summary

Summary of Nationalisation and Privatisation

Summary

Financing Business

Introduction to Financing Business

Introduction

What is a Firm?

Introduction

Types of Firm

What is a Firm?

The Value Chain

Stages in the Value Chain

Value Chain Exercise

Market or Firm Coordination?

The Market, Firms or Both?

Better Coordination by Firms

Forms of Business Organisation

Businesses and Legal Liability

Legal Forms of Business Organisation

Business Organisation: Matching Game

Company Information

Summary

Financing Firms

Introduction

Why Do Firms Need Finance?

Finance for Industry

Types of Security

ShortTerm Financing

Sources of ShortTerm Finance

Capital Gearing

Capital Gearing  an illustration

Simulate the Effect of Capital Gearing on your own Company

The Stock Exchange

The History of the Stock Exchange

Ways of Issuing Securities

The Stock Exchange  Conditions for Listing

Summary

Company Accounts

Introduction

Company Accounts: Legal Requirements

Published Accounts  Accounting Principles

The Balance Sheet

Balance Sheet Entries

Balance Sheet Exercise

The Profit and Loss Account

Profit and Loss Account: an exercise

Cash Flow Statements

Relationship between the Accounts

Measuring Profits and Costs: Differing Perspectives

Introduction

Differing Perspectives  Cost of Using Fixed Assets

Straight Line Depreciation

Reducing Balance Depreciation

Differing Perspectives  Stock Valuation

Differing Perspectives  Imputed Values

Summary

Introductory Mathematics for Economists

Introductory Mathematics for Economists

Introduction

About Introductory Mathematics for Economists

The Basics

Introduction

Variables and Functions

Fractions and Sharing

Basic Rules of Algebra

Coordinates and Graphs

Powers and Indices

Economic Problems  Basic Mathematics

Summary of the Basics

Equations

Introduction

Transposition

Linear Equations

Quadratic Equations

Simultaneous Equations

Exponential Functions

Logarithmic Functions

Economic Problems  Equations

Summary of Equations

Sequences and Series

Introduction

Sequences and Series

Present Value & Cash Flow

Economic Problems  Sequences

Summary  Sequence & Series

Summary for Introductory Mathematics for Economists

Summary

Intermediate Mathematics for Economists

Intermediate Mathematics for Economists

Introduction

About Intermediate Mathematics for Economics

Differentiation in Economics

Introduction

Why Economists use Differentiation

The Basic Rules of Differentiation

Worked Examples

A Summary of The Basic Rules of Differentiation

Practice Differentiation

Example One  Utility Functions

Example Two  Revenue Functions

Example Three  Cost Functions

Maximum & Minimum Values

Introduction

Identifying Maximum & Minimum Values

Checking for Maximum or Minimum Turning points

Rules for Finding a Maximum or Minimum

What Happens at a Maximum?

Example One  Maximum Profit

Example Two  Minimum Average Cost

Product, Quotient & Chain Rules

Introduction

The Product Rule

The Quotient Rule

The Chain Rule

Further Rules of Differentiation  A Summary

Example One  Marginal Revenue (Product Rule)

Partial Differentiation

Introduction

Marginal Product of Labour and Capital

Practice Partial Differentiation

Maxima/Minima of Multivariate Functions

Introduction

Optimisation of Multivariate Functions

Maxima/Minima Subject to a Constraint

Introduction

Constrained Optimisation

The Substitution Method

The Lagrange Multiplier Method

Differentiation of Log/Exponential Functions

Introduction

Natural Logarithmic & Exponential Functions

Rules for Differentiation of Logs/Exponentials

Practise Differentiating Logs/Exponentials

Summary for Intermediate Mathematics for Economists

Summary

Probability for Economists

Elementary Probability

Introduction

Sets

Probability: Outcomes, Events & Sample Spaces

Definition of Probability: The Probability Postulates

Probability Calculator

Throwing Two Coins: How Many Heads?

Summary

Elementary Statistics

Introduction

Grouped Data

The Mean

The Mode

The Median of Raw Ungrouped Data

The Median: Grouped Data

Mean, Mode, Median and Symmetry

Summary

Discrete Distributions

Introduction

Binomial Distribution

Poisson Distribution

Summary

Continuous Distributions

Introduction

Normal Distribution

Summary

Central Limit Theorem

Introduction

Central Limit Theorem

Summary

Statistics for Economists

Correlation Coefficient

Introduction

How To Get More Information (in this chapter)

Correlation Coefficient

Summary

Simple Regression

Introduction

Fitting a Line to the Data

Linear Regression (or Fitting a Line to the Data)

Linear Regression

Summary

Multiple Regression

Introduction

Multiple Linear Regression

Multiple Linear Regression Analysis

Chisquared Test for Normality of Residuals

FTest

ttest

Regression: Analysis of Variance

The Analysis of Variance

Multiple Regression As A Sequence of Simple Regressions

Summary

Analysis of Variance

Introduction

Analysis of Variance

Summary

Dummy Variables

Introduction

Dummy Variables

Summary

Time Series Analysis

Introduction

Time Series Analysis: Moving Averages

Time Series Analysis

Summary