In this part we consider macroeconomic policy.
Competing schools of economic thought feature prominently in macroeconomics.
Macroeconomic policy conclusions depend crucially on the framework adopted with
which to view the world. It is
In the previous lesson we considered consumer theory which added some insight into the
theory of demand. In this lesson we consider some traditional aspects of the theory of
supply, also sometimes referred to as the theory of the firm.
We begin with what
In this lesson we look briefly at the essentials of a monetary economy. This takes us
immediately to a macro-perspective.
In our discussions so far we have said very little about money. We have discussed how
prices work in markets to provide both signal
In this lesson we exam the other end of the competition-monopoly spectrum, namely,
monopoly. We look at what neoclassical economic theory says about monopoly, critically
assess this and provide an alternative view.
This diagram should be familiar to you
In this part we continue the discussion of economic growth using the production function
framework and note its limitations.
We then turn to a discussion of price indexes as measures of inflation.
Economists have used the production function logic to es
In this lesson we begin with the formal theory of economic growth and then turn to
economic development more generally.
The theory of growth is a part of the traditional neoclassical theory of the firm.
Thus, to begin the discussion of economic growth w
In this lesson we examine in a little more detail the consumer decisions behind the demand
We begin with a familiar diagram, one that was introduced in our discussion of production
possibility curves the straight line productio
In this second part of lesson 3, we use S and D analysis to examine another very
common type of economic policy taxes and subsidies. Though we cannot say that
the effects are completely the opposite of what is intended, there are definitely
Welcome back to Business Economics. This is Lesson 2 part A.
Here you see the agenda we will follow for Lesson 2. There are three parts.
In part A we will examine the concept of demand. In part B we will extend our
examination of dema
In lesson 3 part A we are going to discuss price controls more specifically price
fixing. Without any legal restrictions on the movement of prices, the amount
available to be sold at any point in time will be rationed among those who would like
to buy the
Welcome to Business Economics. This is Lesson One, Part A. In it we will
discuss definitions, assumptions and implications. This will provide some
very necessary background for what is to follow in the subsequent lessons.
In this final section we discuss the theory of supply and the interaction of supply and
demand to produce equilibrium and/or market clearing.
To complete our discussion of supply demand we need to discuss supply. In some
ways, the sup
In this part of lesson two we examine the concept of elasticity of demand.
We will examine three types of elasticity of demand: price-elasticity of
demand, income-elasticity of demand, and cross-price-elasticity of demand.
We have exa
In this part of lesson 1, we will examine a concrete way of representing some of the
ideas examined in the previous part. We will look at a common graphical
representation of the concepts of choice, scarcity, efficiency and opportunity cost.