About the book

This is a substantial update of the classic, Modern Economics. It will be updated to reflect recent developments in the field, and made more student friendly with the addition of 'Learning Objectives' at start of chapters, 'Chapter Summaries' and 'Review Questions' at end of chapters and boxed 'examples' and 'case studies' incorporated through the chapters.

Read a sample chapter

Contents

Preface

PART 1: INTRODUCTION
What Economics is About
Methods of Allocating Resources

PART 2: WHAT TO PRODUCE
How Price is Formed in the Free Market
Applications of Demand and Supply Analysis
A Further Look at Demand

PART 3: HOW TO PRODUCE - THE THEORY OF PRODUCTION
The Firm
The Organisation and Scale of Production
The Distribution of Goods to the Consumer
The Location of Production
Combining the Factors of Production
Deciding on the Most Profitable Output
The Supply Curve of the Industry under Perfect Competition
Rewarding the Factors of Production: The Marginal Productivity Theory of Distribution

PART 4: THE GOVERNMENT AND THE ALLOCATION OF RESOURCES
Market Failure and the Role of Government
Monopoly
Imperfect Competition: Other Forms
Externalities and Cost-Benefit Analysis
The Environment: Conservation and Pollution
The Provision of Goods and Services by the Public Sector

PART 5: REWARDS TO THE DIFFERENT FACTORS OF PRODUCTION
Labour and Wages
Capital and Interest
Land and Rent
Entrepreneurship and Profit

PART 6: MONEY AND FINANCIAL INSTITUTIONS
Money and the Rate of Interest
Financial Markets
Clearing Banks
The Bank of England

PART 7: THE GOVERNMENT AND STABILISATION POLICY
Measuring the Level of Activity: National Income Calculations
Unemployment
The Level of Output and Aggregate Demand: The Keynesian Explanation
Employment and the Price Level
Inflation: Its Effects
Policies to Achieve Price Stability
Economic Growth
Balanced Regional Development
Public Finance

PART 8: INTERNATIONAL TRADE
The Nature of International Trade
The Balance-of-Payments
Foreign Exchange Rates
The Correction of a Balance-of-Payments Disequilibrium
The European Union

PART 9: LOOKING INTO THE FUTURE
The Population of the UK
Current Problems and Policies in the UK and Europe