This text brings the fascinating subject of economics alive, addressing current and often controversial issues that have a great effect upon us all, for example: why does government worry about inflation? What is a fair wage? Is the Euro a good idea? The state of the Health service, etc. The book adopts a unique case-study approach, to both stimulate and challenge the student. Each of the twenty cases has been carefully chosen to build up an understanding of economic analysis, showing how economic theory relates to the real world. For example Supply, Demand and Elasticity is discussed with the help of the case of `The stock market: a quick way to riches or poverty' and Oligopoly is covered with the help of the case of `Europe's airline prices: the sky's the limit?'
List of Applications
Approach to the Fourth Edition
A Word to the Student
A Word to the Instructor
PART I: INTRODUCTORY CONCEPTS
1 Economic Models and Opportunity Cost
East European economic reforms: the road to freedom?
PART II: MICROECONOMICS
2 Supply, Demand and Elasticity
The stock market: a quick way to riches or poverty?
3 Consumer Behaviour: Utility
Traffic jams: could European cities import a solution from Singapore
4 Consumer Behaviour: Indifference Analysis
The health care systems: is radical treatment needed?
5 Production and Cost
Europe's regional problems: why so depressing?
6 Perfect Competition
Small: is small beautiful?
7 Monopoly and Monopolistic Competition
The price of oil: does OPEC hold the West to ransom?
Europe's airline prices: the sky's the limit?
10 Efficiency, Externalities and Public Goods
Government expenditure: is the money efficiently spent?
11 Labour Markets
Trade unions: labour market manipulators?
PART III: MACROECONOMICS
12 National Income
Damaging the Earth: how much does it really matter?
13 Keynesianism and Unemployment
Unemployment: what can the government do?
Saving for the future: how much should we invest
15 Inflation, Aggregate Demand and Supply
Beating inflation: is it really worth it?
16 Supply Side Behaviour: Taxation
Taxes and benefits: a just and fair society?
17 Supply Side Behaviour: Privatisation
Privatisation: a supply side improvement?
18 Money and Banking
Running the economy: an independent central bank?
PART IV: THE INTERNATIONAL ECONOMY
19 Comparative Advantage and the Balance of Payments
Manufacturing trade: not made in Britain?
20 Exchange Rates
Giving up sterling: too high a price to pay?
An Overview of the Economic System
Appendix 1 Guide to Sources of Information
Appendix 2 Sources of Information on Share Prices
Appendix 3 Measuring the Distribution of Income: the Gini Coefficient
Appendix 4 Derivation of the Demand Curve for Labour
Appendix 5 Determination of the Multiplier