IMS Content 1.2 <langstring xml:lang="en-US">WinEcon - Sloman, Economics and the Business Environment (2nd Edition)</langstring> A fully interactive business economics course by John Sloman. Interactive business economics course WinEcon - Sloman, Economics and the Business Environment 2ed Economics and the business environment The business organisation Introduction The Activities of Firms Lonely Planet: An Example of a Modern Firm Forms of Business Organisation Businesses and Legal Liability Legal Forms of Business Organisation The Firm Adding Value The Value Chain Stages in the Value Chain Market or Firm Co-ordination? The Market, Firms or Both? Better Co-ordination by Firms Transaction Costs Markets, Contracts and the Firm The Principal-Agent Relationship Dealing with Principal-Agent Problems Principals, Agents and Incentives - some examples Summary The external business environment Introduction The economist's approach to business Introduction Mobile Telecommunications - Markets and Government 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 The workings of competitive markets Business in a perfectly competitive market Introduction Demand Introduction Demand for Housing in St. Andrews - Sudden Increase 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 The Demand for Water 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 Price and output determination Introduction Market Equilibrium Comparative Statics Agricultural Support Government Intervention Summary Elasticity of demand and supply Introduction Market Demand for Water The Concept of Elasticity Elasticity and Smoking Price Elasticity of Demand Factors Affecting PED Elasticities in Estimating the Demand for Water Demand Curves with Constant Elasticity Price Elasticity and Total Revenue Income Elasticity of Demand Cross Elasticity of Demand Ruby Earrings and PES Price Elasticity of Supply Price Elasticity and the Slope of the Supply Curve Factors Affecting PES Summary Dealing with uncertainty (optional additional section) Introduction Spot and Forward Markets Futures Markets How does a Futures Market work? Summary Demand and the consumer Demand and the firm Introduction Understanding consumer behaviour Introduction Consumption Decisions Total & Marginal Utility Utility and Demand Choice of Goods Examples of Certainty and Risk Risk in Economics Types of Risk Risks - Fair or Not? Risk Aversion Test your Understanding of Risk Insurance and Risk The Supply of Insurance Problems with Insurance Summary Estimating and predicting demand Introduction Stimulating demand Introduction Non - Price Competition Advertising The Economics of Advertising The Advertising Elasticity of Demand Saatchi and Saatchi: Product Differentiation Summary Supply decisions in a perfectly competitive market Production and costs: short run Introduction IKEA - Better Products at Lower Cost Production and Factor Inputs Production in the Short-Run Diminishing Returns in Production The Law of Variable Proportions Modern Production Methods Modern Production Methods: an example Short-Run Costs and Labour Productivity Short-Run Cost Definition Drawing Short-Run Cost Curves Positioning Short-Run Cost Curves Deriving the Short-Run 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 Short-Run MC and AC Curves: a numerical example Mathematics of Marginal Cost Deriving Short-Run Total Cost Curves Summary of Short-Run Costs Summary Production and costs: long run Introduction Nike Changes its Production Processes A Crude Oil Pipeline Crude Oil Pipeline - Economies of Scale Economies of Scale: definitions Long-Run Average Costs in Practice Summary Revenue Introduction Four Key Assumptions in Perfect Competition Firm and Industry Demand in Perfect Competition Demand Curve of a Firm in Perfect Competition Summary Profit maximisation Introduction Profit Maximisation Marginal Cost and Revenue at Profit Maximisation Normal and Supernormal Profit Profit Maximisation in Perfect Competition Profit Maximising Output for a Firm in Perfect Competition Fixed and Variable Costs Short Run Supply Profits and Losses in the Short-run The Comparative Static Effects of Demand Changes A Change in Demand with Diseconomies of Scale Comparative Static Effects of Changing Costs Summary Pricing and output decisions in imperfectly competitive markets Alternative market structures Introduction Virgin Records - New Business, Cheaper Prices Characteristics of Different Market Structures 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 Perfect Competition and Monopoly Compared Price, Output & Profit in Competition & Monopoly Main Differences between Perfect Competition and Monopoly Economies of Scale and Market Structure The Supply of Water Impact of Water Meters and Weather Summary Oligopoly Introduction The Key Assumptions of Oligopoly Interdependence in Oligopoly Rivalry in Oligopoly Competition or Collusion Collusive Oligopoly Cartels Cartel Disintegration A Cartel Example - OPEC Collusion in Practice Non Collusive Oligopoly Equilibrium in Non Collusive Oligopoly Models of Non-collusive Oligopoly The Kinked Demand Curve Other Explanations for Stable Prices Summary Game theory Introduction Game Theory Prisoners' Dilemma Game: an example A Duopoly Game Based on the Prisoners' Dilemma Nash Equilibria versus Co-operation Summary Alternative aims of the firm Introduction Examples of Company Objectives The Nature of Business Objectives The Motivations of Owners, Managers and Workers The Business Environment Organisation and Objectives HSBC - Return on Capital Nestle - Sustainable Value The Profit Objective Summary Setting price Introduction Price Discrimination Under Monopoly Summary Business growth and strategy Strategic analysis Introduction Revising Value Chain Analysis Summary Strategic choice Introduction Growth strategy Introduction Bank of Scotland and Halifax Merger The Merger Process Merger Activity Types of Merger Effects of Mergers and Acquisitions Summary Financing growth and investment Introduction Why Do Firms Need Finance? Finance for Industry Types of Security Short-Term Financing Sources of Short-Term Finance The Stock Exchange Ways of Issuing Securities The History of the Stock Exchange The Body Shop Summary Starting small Introduction Multinational corporations and business strategy in a global economy Multinational corporations Introduction Doing Business Abroad: The Multinational Corporation Multinational Companies: Procter and Gamble Summary Business strategy in a global economy Introduction Examples of MNCs: BP, Nike and HB Fuller Problems facing multinationals Introduction Multinationals and the host state Introduction Labour and employment The UK labour market Introduction Nike Labour Force - Rights of Employees Market-determined wage rates and employment Introduction Factor Markets: an overview The Market Supply of Labour Short-Run Demand for Labour: competitive input & output markets Short-Run Demand for Labour Aggregate Demand for Labour Summary Power in the labour market Introduction Factor Demand by a Firm: under different market structures The Firm's Demand for Factors: possible market combinations Derivation of the Marginal Factor Cost in Imperfect Input Markets Derivation of MRP and VMP in Imperfect Output Markets Imperfect Input Market and Competitive Output Market Imperfect Input and Output Markets Summary Minimum wages Introduction Minimum Wage The National Minimum Wage The flexible firm and the market for labour Introduction The labour market and incentives Introduction Government, the firm and the market Market failures Introduction Reasons for Market Failure Externalities & Allocative Inefficiency Production Externalities Consumption Externalities Finding Marginal Social Cost & Benefit What are Social Costs and Externalities? Public versus Private Goods Key Characteristics of a Public Good Public Goods and Free Riders How much of a public good to produce? Monopoly Power & Allocative Inefficiency Asymmetric Information Asymmetric Information - The Market for Lemons Key Characteristics of a Merit Good Summary Business ethics and corporate social responsibility Introduction Government intervention in the market Introduction Microeconomic Intervention: Instruments and Aims Externality Policy in a First-Best World Monopoly Policy in a First-Best World The Second-Best World Advantages/Disadvantages of Taxes & Subsidies Summary Environment policy Introduction Market Failures and the Environment Competition policy and business behaviour Introduction Banking Services Monopoly UK regulation of Private Monopolies & Oligopolies UK Merger Policy Regulation due to Membership of the European Union Summary The regulation of business Introduction Definitions of Privatisation UK Privatisations UK Privatisation - Two Periods Incentives and Efficiency Seven Reasons to Privatise Ownership and Efficiency Objectives of Privatisation Demand for Regulation Supply of Regulation Equilibrium Amount of Regulation Examples of Regulation Regulation of Privatised Utilities The Privatisation of Electricity Summary The economy and business activity Business activity and the circular flow of income 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 determination of business activity Introduction Goods Market Equilibrium Keynesian Cross Diagram Formal Model: Diagrams A Change in Injections A Change in Injections: a numerical example The Multiplier The Size of the Multiplier Summary The business cycle Introduction Money, interest rates and business activity Introduction Money Supply and Demand: Introduction Functions of Money The Banking System Banking Operations A Multi Bank System Loans and the Banking System The Minimum Reserve Ratio The Money Stock: Aggregate Measures Loan Expansion and the Bank Deposit Multiplier 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 Summary Unemployment Introduction Unemployment in the Classical Model Keynesian Aggregate Supply at a Glance Keynesian Theory of Labour Supply Keynesian Model: Employment Determination Unemployment in the Keynesian Model Summary Inflation Introduction Measuring the Price Level and Inflation Calculating the GDP Deflator Hyperinflations Summary Government macroeconomic policy Fiscal policy Introduction Policy Timing and Magnitude The Timing of Policy Changes Timing and Magnitude The Political Angle Summary Monetary policy 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 Supply-side policy Introduction The global trading environment International trade Introduction The Principle of Comparative Advantage Sources of Comparative Advantage More Sources of Comparative Advantage Summary Trade restrictions Introduction The Effect of a Tariff on Imports The world trading system and the WTO Introduction The European Union and the Single Market Introduction The global financial environment The balance of payments Introduction The Balance of Payments Devaluation and the Balance of Payments Summary Exchange rates Introduction International Trade: An Example Flexible Exchange Rates Doing Business Abroad: Reducing Exchange Rate Risk Fixed Exchange Rates Summary The growth of global financial flows Introduction Economic and monetary union in the EU Introduction International economic policy: managing the global economy Introduction 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 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 Chi-squared Test for Normality of Residuals F-Test t-test 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 variable Introduction Dummy Variables Summary Time series analysis Introduction Time Series Analysis: Moving Averages Time Series Analysis Summary