MARKETS
- What is economics?
  - The nature of economics
  - Methods used by economists
  - Index numbers
- Exchange
- The economic problem
- Production possibility frontiers
- Economic growth
- Economic systems
- Competitive markets
- Rationing, incentives, and signalling
- Consumer demand
  - Demand curves
  - Shifts in demand
- Demand and income
- Producer supply
  - Supply curves
  - Shifts in supply
- Market equilibrium
- Non-market price
- Elasticity
  - Price elasticity of demand
  - Income elasticity of demand
  - Cross elasticity of demand
  - Price elasticity of supply
- Tax incidence
- Consumer and producer surplus
- The housing market
  - House price trends
- Financial markets
  - The stock market
  - The foreign exchange market
  - Financial products
- The labour market
- Primary markets
- The oil market
- Food prices
  - Commodity agreements
- Transition economies
- Evaluation of market systems
- QUESTIONS
  - Quiz 1
  - Quiz 2
  - The nature of economics
  - PPFs
  - Demand
  - Supply
  - Equilibrium
  - Income elasticity of demand
  - Cross elasticity of demand
  - Price elasticity of demand
  - Consumer and producer surplus
  - Taxation
  - Commodities
  - Vanilla prices
  - The housing market
  - The stock market
  - Foreign exchange market
  - The labour market
  - Multiple choice
MARKET FAILURES
- Introduction
- Types of market failure
- Inefficiency
- Cost Benefit Analysis (CBA)
- Missing markets
- Incomplete markets
- Merit goods
- Higher education
- Healthcare
- Negative externalities
- Pollution
- Information failure
- Moral hazard
- Lack of property rights
- Unstable markets
  - Unstable markets
  - Price stabilisation schemes
- Labour market failures
  - Skills gaps and immobility
  - Unequal distribution of income
  - National minimum wage
- Cases
  - Depletion of fish stocks
  - Road congestion
  - Public transport subsidies
- Government failure
- QUESTIONS
  - Cost benefit analysis
  - Missing markets
  - Congestion
  - Education
  - Externalities
  - Information failure
  - Depletion of fish stocks
  - Unstable markets
  - Inequality
  - Government failure
  - Commodities
  - Multiple choice
THE NATIONAL ECONOMY
- What is macro-economics?
- Measuring performance
- National income
- Circular flow of income
- Income, wealth, and liquidity
- Aggregate demand
- Household spending
- Investment
- The public sector
- International trade
- Savings
- Aggregate supply
- Equilibrium
  - What is equilibrium national income?
  - Different perspectives on equilibrium
- Demand-side shocks
- Multiplier effect
- Supply-side shocks
- Policy objectives
  - Introduction
  - Sustainable growth
  - Development
  - Stable prices
  - Full employment
    - Employment
  - Balance of payments
- Macro-economic problems
  - Inflation and deflation
  - Unemployment
  - Inequality
    - Inequality and equity
    - The income gap
  - Poverty
- Policy instruments
- Fiscal policy
- Monetary policy
  - What is monetary policy?
  - The Bank of England
  - European Monetary Policy
- Exchange rate policy
- Policies to reduce poverty and inequality
- Policy conflicts
  - What are policy conflicts?
  - The Phillips Curve
- Applying the AD-AS Model
- QUESTIONS
  - National income
  - Aggregate demand
  - Aggregate supply
  - Equilibrium
  - Growth
  - Investment
  - The multiplier
  - Inflation
  - Unemployment
  - Balance of payments
  - Fiscal policy
  - Monetary policy
  - Exchange rate policy
  - Supply side policy
  - Multiple choice
BUSINESS ECONOMICS
- Introduction
- Enterprise
- Business motives
- Sales revenue
- Principles of production
- Costs
  - Types of production cost
  - The short run supply curve
- The long run
  - Economies of scale
  - Diseconomies of scale
- Profits
  - Types of profit
  - Profit maximisation
- Efficiency
- Revenue and sales maximisation
- Introduction to market structures
- Perfect competition
- Monopolistic competition
- Introduction to market structures
- Perfect competition
- Monopolistic competition
- Oligopoly
- Monopoly
  - Characteristics of monopoly
  - Natural monopoly
  - Complex monopoly
  - Cartels
- Game theory
- Monopsony
- Barriers to entry
- Price discrimination
- Mergers
- Regulation
  - UK Competition Policy
  - European Competition Policy
  - Bank regulation
  - Nationalisation
  - Evaluation
- Cases
  - Brewing
  - Railways
  - Telecoms
  - Supermarkets
  - Banks
  - Music industry
  - Microsoft
  - Soap powder
  - Energy supply
- QUESTIONS
  - Quiz
  - Motives
  - Revenue
  - Costs
  - Profits
  - Economies and diseconomies
  - Perfect competition
  - Monopolistic competition
  - Oligopoly
  - Monopoly
  - Price discrimination
  - Regulation
THE GLOBAL ECONOMY
- Introduction
- Trade
  - Why do countries trade?
  - Comparative advantage
  - Patterns of trade
- Globalisation
  - What is globalisation?
  - Global shocks
- FDI
- Free trade
- Protectionism
  - What is protectionism?
  - Trading blocs
  - Trade creation and trade distortion
  - CAP
- Economic Integration
- World Trade Organisation
- Balance of payments
- Trade problems and policies
  - Trade problems
  - Deficits
  - Deflation
  - Devaluation
  - Direct controls
  - Supply-side policy
- Terms of trade
- Currencies
  - Exchange rates
  - Monetary union
- Competitiveness
  - Price and non-price competitiveness
  - Policies to improve competitiveness
- Economic development
- Development theories
  - Linear growth theory
  - Structural change theory
  - Dependency theory
  - New classical theory
  - New growth theory
  - Property rights
- Economic growth and welfare
  - Statistical limitations
  - Measures of economic welfare
  - Costs of growth
  - Policies to promote stable growth
- Macro-economic problems
  - Unemployment
  - Inflation
  - Deflation
  - Phillips Curve
- Macro-economic policies
  - Fiscal policy
    - Government spending
    - Fiscal stabilisers
  - Monetary policy
  - Exchange rate policy
  - Supply-side policy
- Economic conflicts
  - Types of conflict
  - The Phillips Curve
- The Financial Crisis
- Tobin Taxes
- Case Study
- QUESTIONS
  - Globalisation
  - Trade
  - Tariffs
  - Trading blocs
  - CAP
  - Competitiveness
  - Global shocks
  - Global problems
  - Economics growth
  - Economic conflicts
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- OCR
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MARKETS

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THE NATIONAL ECONOMY

BUSINESS ECONOMICS

THE GLOBAL ECONOMY

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GLOSSARY

National income

Question 1

What is meant by 'value added'?
Distinguish between nominal and real national income.
Define GDP per head.
Calculate the real growth rate for a country, as an annual %, if in a given year the value of nominal income rises from $800b to $850, and the index of inflation rises to 104 during that year - assume it started the year at 100.

Question 2

Look at the following data

National Income
Consider the data of the National Income, inflation and population of a hypothetical economy.

YEAR	NOMINAL GDP $B	INFLATION INDEX	POPULATION (M)
2007	790	100	40
2008	870	107	41
2009	940	118	42
2010	1000	122	43

What is the base year?
What was the value of Y in real terms in 2009 compared with the base year?
Calculate real Y per head in 2008.
Describe and comment on the state of the economy in 2009 in comparison with 2007.

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