Modern Economics

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.