IMS Content 1.2 <langstring xml:lang="en-US">WinEcon - Sloman, Hinde and Garratt, Economics for Business (5th Edition)</langstring> A fully interactive business economics course by Sloman, Hinde and Garratt. Interactive business economics course WinEcon - Sloman, Hinde, Garratt, Economics for Business 5ed The business environment and business economics The business environment Introduction Economics and the world of business What do economists study? Introduction Mobile Telecommunications - Markets and Government Introduction to Economics Summary Business economics: the macroeconomic environment Introduction The Circular Flow of Goods and Income Summary Business economics: microeconomic choices Introduction 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 Business organisations The nature of firms Introduction The Activities of Firms Lonely Planet: An Example of a Modern Firm 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 firm as a legal entity Introduction Forms of Business Organisation Businesses and Legal Liability Legal Forms of Business Organisation Franchising Franchise Partners Summary The internal organisation of the firm Introduction The working of competitive markets Business in a 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 Analysing Markets using Supply and Demand Introduction Market Equilibrium Comparative Statics Agricultural Support Government Intervention The Cobweb Model: A Divergent Cobweb The Cobweb Model: A Convergent Cobweb Asymmetric Information - The Market for Lemons Supply and Demand with Quality Variation Summary Business in a market environment Price elasticity of demand 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 Summary The importance of price elasticity of demand to business decision making Introduction Price Elasticity and Total Revenue Summary Other elasticities Introduction 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 The time dimension of market adjustment Introduction Dealing with uncertainty Introduction Spot and Forward Markets Futures Markets How does a Futures Market work? Summary Demand and the consumer Marginal utility theory Introduction Consumption Decisions Total & Marginal Utility Utility and Demand Choice of Goods Summary Demand under conditions of risk and uncertainty Introduction 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 The indifference approach to analysing consumer demand Introduction Saatchi and Saatchi - Product Choices Consumption Decisions (revisited) Elements of the Consumer Choice Model Discovering Indifference Curves Assumptions of Indifference Curves The Budget Line Drawing the Budget Line Changing the Budget Line Optimal Consumption Choice Income - Consumption Curve The Engel Curve Price - Consumption Curve Deriving the Demand Curve The Effect of a Price Change The Substitution Effect The Income Effect The Income & Substitution Effects Spend and Save Coupons A Two Part Tariff Inter-temporal Choice - Budget Constraint Inter-temporal Choice - Indifference Curve Analysis Carol's Hairdressing Business Summary Demand and the firm Demand and the firm Introduction Product, marketing and advertising Product differentiation Introduction Marketing the product Introduction Advertising Introduction Non - Price Competition Advertising The Economics of Advertising The Advertising Elasticity of Demand Saatchi and Saatchi: Product Differentiation Summary Costs of production The meaning of costs Introduction IKEA - Better Products at Lower Cost Production in the short run Introduction 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 Production Functions: a numerical example Marginal and Average Physical Product of Labour: a numerical example Mathematics of the Marginal Product Summary Costs in the short run Introduction 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 in the long run Introduction Nike Changes its Production Processes A Crude Oil Pipeline Crude Oil Pipeline - Economies of Scale Economies of Scale: definitions Summary Costs in the long run Introduction Long-Run Average Costs in Practice Summary Revenue and profit Revenue Introduction Profit maximisation Introduction Profit Maximisation Marginal Cost and Revenue at Profit Maximisation Normal and Supernormal Profit Summary Profit maximisation under perfect competition and monopoly Alternative market structures Introduction Virgin Records - New Business, Cheaper Prices Characteristics of Different Market Structures 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 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 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 The theory of contestable markets Introduction Profit maximisation under imperfect competition Monopolistic competition Introduction Key Assumptions in Monopolistic Competition Short Run Equilibrium of a Monopolistic Firm Adjustment to Long-run Equilibrium Quiz on Monopolistic Competition 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 Assumptions of Cournot's Oligopoly Model Cournot's Model of Duopoly 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 Reasoning as a Duopolist Followers and Leaders Summary An introduction to business strategy What is strategy? Introduction Strategic analysis Introduction Revising Value Chain Analysis Summary Strategic choice Introduction Business strategy in a global economy Introduction Strategy: evaluation and implementation Introduction Alternative theories of the firm Problems with traditional theory Introduction The Business Environment Organisation and Objectives Summary Alternative maximising theories Introduction A Managerial Approach to the Firm The Profit Objective Summary Multiple aims Introduction HSBC - Return on Capital Nestle - Sustainable Value Examples of Company Objectives The Nature of Business Objectives The Motivations of Owners, Managers and Workers Summary Growth strategy Growth and profitability Introduction Constraints on growth Introduction Alternative growth strategies Introduction Internal growth Introduction External growth through merger Introduction Bank of Scotland and Halifax Merger The Merger Process Merger Activity Types of Merger Effects of Mergers and Acquisitions Summary External growth through strategic alliance Introduction Explaining external firm growth: a transactions cost approach Introduction The small-firm sector The small-firm sector Introduction Pricing strategy Growth and profitability Introduction Alternative pricing strategies Introduction Price discrimination Introduction Price Discrimination Under Monopoly Summary Multiple product pricing Introduction Transfer pricing Introduction Pricing and the product life cycle Introduction Labour markets, wages and industrial relations 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 Firms with 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 and Output Markets Imperfect Input Market and Competitive Output Market Summary The role of trade unions Introduction The efficiency wage hypothesis Introduction Low pay and discrimination Introduction Minimum Wage The National Minimum Wage The Aggregate Supply Curve faced by a Monopsonist Discriminating and Non-Discriminating Monopsony Compared Summary The flexible firm and the market for labour Introduction Investment and the employment of capital The UK labour market Introduction The demand for and supply of capital services Introduction 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 Financing investment Introduction Why Do Firms Need Finance? Finance for Industry Types of Security Short-Term Financing Sources of Short-Term Finance Summary The stock market Introduction The Stock Exchange Ways of Issuing Securities The History of the Stock Exchange The Body Shop Summary Reasons for government intervention in the market Markets and the role of government Introduction Reasons for Market Failure 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 Types of market failure Introduction 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 Efficiency in Competition & Monopoly Social Surplus in Competition Social Surplus in Monopoly Changes Resulting from Monopolisation Deadweight Loss of Monopoly - An Alternative Measure Asymmetric Information Asymmetric Information - The Market for Lemons (revisited) Key Characteristics of a Merit Good Summary 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 The case for less government intervention Introduction Firms and social responsibility Introduction Government and the firm Markets and the role of government Introduction Banking Services Monopoly UK regulation of Private Monopolies & Oligopolies UK Merger Policy Regulation due to Membership of the European Union Summary Policies towards research and technology development (R&TD) Introduction Policies towards training Introduction Government and the market Environment policy Introduction Market Failures and the Environment Transport policy Introduction Privatisation and regulation 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 Globalisation and multinational business Globalisation: setting the scene Introduction What is a multinational corporation? Introduction Doing Business Abroad: The Multinational Corporation Multinational Companies: Procter and Gamble Summary Trends in multinational investment Introduction Why do businesses go multinational? Introduction Examples of MNCs: BP, Nike and HB Fuller The advantages of MNC investment for the host state Introduction The disadvantages of MNC investment for the host state Introduction Multinational corporations and developing economies Introduction International trade Trading patterns Introduction The advantages of trade Introduction The Principle of Comparative Advantage Sources of Comparative Advantage More Sources of Comparative Advantage Summary Arguments for restricting trade Introduction The Effect of a Tariff on Imports World attitudes towards trade and protection Introduction Trading blocs Trading blocs Introduction The macroeconomic environment of business Macroeconomic objectives Introduction Trended and Non-Trended 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 Summary Economic growth Introduction Fitting Linear Trends Trends in Levels and Logarithms Deviations from Linear and Log-Linear Trends Linear Trends with Constant Growth Annual Real GDP Growth Rates Quarterly GDP Growth Rates Summary Unemployment Introduction Introducing Unemployment Summary Inflation Introduction Measuring the Price Level and Inflation Calculating the GDP Deflator Hyperinflations Summary The business cycle and macroeconomic objectives Introduction 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 Appendix: Measuring national income and output Introduction Potential Pitfalls in Measuring Productive Activity Transfer Payments Double Counting - a Potential Error Double Counting - Avoiding the Problem Real and Nominal GDP The Output Approach GVA in Current Prices Output by Sector The Income Approach GDP by Income Type The Expenditure Approach Composition of Expenditure 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 balance of payments and exchange rates The balance of payments account Introduction The Balance of Payments Devaluation and the Balance of Payments Summary The exchange rate Introduction International Trade: An Example Flexible Exchange Rates Doing Business Abroad: Reducing Exchange Rate Risk Summary Exchange rates and balance of payments Introduction Fixed Exchange Rates Summary Fixed versus floating exchange rates Introduction Money and interest rates The meaning and functions of money Introduction Money Supply and Demand: Introduction Functions of Money Summary The financial system Introduction 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 Non-Bank Financial Institutions (NBFI's) The Banking System Banking Operations A Multi Bank System Loans and the Banking System The Minimum Reserve Ratio Summary The supply of money Introduction The Money Stock: Aggregate Measures Loan Expansion and the Bank Deposit Multiplier Summary The 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 Summary Equilibrium Introduction Reconciling Money Flows and Money Stocks The Money Market and Equilibrium Interest Rate Exogenous Changes and their Money Market Effects Summary Business activity, employment and inflation The determination of business activity 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 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 The relationship between money and GDP Introduction The Quantity Theory of Money The Quantity Theory and Aggregate Demand The Monetarist Transmission Mechanism Policy Implications Summary Unemployment and inflation Introduction Unemployment and Macroeconomic Policy Equilibrium and Full Employment Policy Implications: A Few Cautions Monetarist Aggregate Supply at a Glance Monetarist Theory of Labour Supply Monetarist Model: Employment Determination The Natural Rate Hypothesis Monetarist Aggregate Supply: A Summary Monetarist Model: AD Shock Monetarist Model: AD Shocks Monetarist Model: AS Shock Monetarist Model: AS Shocks 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 Inflation targeting and unemployment Introduction Keynesian Aggregate Supply at a Glance Keynesian Theory of Labour Supply Keynesian Model: Employment Determination Unemployment in the Keynesian Model Keynesian Aggregate Supply: A Summary Summary Business cycles Introduction Measuring a Cycle Cycles Terminology An Actual Cycle Theories of Cycles: Overview Investment Demand and Aggregate Output/Income Keynesian Model: AD Shock Keynesian Model: AS Shock Classical Model: AD Shock Classical Model: AS Shock Stabilising Prices in the Classical Model Summary Demand-side 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 Attitudes towards demand management Introduction Supply-side policy Supply-side policy Introduction International economic policy International economic policy 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