1. Introduction to Markets and Market Failure1.1 Nature of Economics0/01.1.1 Economics as a Social Science1.1.2 Economic Modelling and Assumptions1.1.3 Positive and Normative Economics1.1.4 Role of Value Judgements in Economics1.1.5 The Basic Economic Problem and Opportunity Cost1.1.6 Types of Resources and Sustainability1.1.7 Production Possibility Frontiers (PPFs)1.1.8 Specialisation, Division of Labour, and Money1.1.9 Economic Systems and Role of the State1.2 How Markets Work0/01.2.1 Rational Decision Making1.2.2 Demand1.2.3 Price, Income, and Cross Elasticities of Demand1.2.4 Supply1.2.5 Price Elasticity of Supply (PES)1.2.6 Price Determination1.2.7 The Price Mechanism1.2.8 Consumer and Producer Surplus1.2.9 Indirect Taxes and Subsidies1.2.10 Alternative Views of Consumer Behaviour1.3 Market Failure0/01.3.1 Understanding Market Failure1.3.2 Externalities and Welfare Effects1.3.3 Public Goods and the Free Rider Problem1.3.4 Information Gaps and Resource Misallocation1.4 Government Intervention0/01.4.1 Government Intervention in Response to Market Failure1.4.2 Other Government Intervention Methods1.4.3 Government Failure: Definition and Causes1.4.4 Government Failure in Practice1. Introduction to Markets and Market Failure1.1 Nature of Economics0/01.1.1 Economics as a Social Science1.1.2 Economic Modelling and Assumptions1.1.3 Positive and Normative Economics1.1.4 Role of Value Judgements in Economics1.1.5 The Basic Economic Problem and Opportunity Cost1.1.6 Types of Resources and Sustainability1.1.7 Production Possibility Frontiers (PPFs)1.1.8 Specialisation, Division of Labour, and Money1.1.9 Economic Systems and Role of the State1.2 How Markets Work0/01.2.1 Rational Decision Making1.2.2 Demand1.2.3 Price, Income, and Cross Elasticities of Demand1.2.4 Supply1.2.5 Price Elasticity of Supply (PES)1.2.6 Price Determination1.2.7 The Price Mechanism1.2.8 Consumer and Producer Surplus1.2.9 Indirect Taxes and Subsidies1.2.10 Alternative Views of Consumer Behaviour1.3 Market Failure0/01.3.1 Understanding Market Failure1.3.2 Externalities and Welfare Effects1.3.3 Public Goods and the Free Rider Problem1.3.4 Information Gaps and Resource Misallocation1.4 Government Intervention0/01.4.1 Government Intervention in Response to Market Failure1.4.2 Other Government Intervention Methods1.4.3 Government Failure: Definition and Causes1.4.4 Government Failure in Practice2. The UK Economy – Performance and Policies2.1 Measures of Economic Performance0/02.1.1 Measuring Economic Growth2.1.2 Measuring Inflation2.1.3 Employment and Unemployment2.1.4 Balance of Payments and Trade2.2 Aggregate Demand (AD)0/02.2.1 Understanding Aggregate Demand2.2.2 Consumption (C)2.2.3 Investment (I)2.2.4 Government Expenditure (G)2.2.5 Net Trade (X – M)2.3 Aggregate Supply (AS)0/02.3.1 Understanding the Aggregate Supply Curve2.3.2 Determinants of Short-Run Aggregate Supply2.3.3 Long-Run Aggregate Supply: Shapes and Influencing Factors2.4 National Income0/02.4.1 Circular Flow of Income and Key Concepts2.4.2 Injections and Withdrawals2.4.3 Equilibrium National Income2.4.4 The Multiplier Effect2.5 Economic Growth0/02.5.1 Causes and Types of Economic Growth2.5.2 Output Gaps and Spare Capacity2.5.3 The Trade (Business) Cycle2.5.4 Impact of Economic Growth2.6 Macroeconomic Objectives and Policies0/02.6.1 Macroeconomic Objectives and Policies2.6.2 Demand-Side Policies: Monetary and Fiscal Tools2.6.3 Supply-Side Policies and Long-Term Growth Strategies2.6.4 Conflicts and Trade-Offs Between Macroeconomic Objectives and Policies2. The UK Economy – Performance and Policies2.1 Measures of Economic Performance0/02.1.1 Measuring Economic Growth2.1.2 Measuring Inflation2.1.3 Employment and Unemployment2.1.4 Balance of Payments and Trade2.2 Aggregate Demand (AD)0/02.2.1 Understanding Aggregate Demand2.2.2 Consumption (C)2.2.3 Investment (I)2.2.4 Government Expenditure (G)2.2.5 Net Trade (X – M)2.3 Aggregate Supply (AS)0/02.3.1 Understanding the Aggregate Supply Curve2.3.2 Determinants of Short-Run Aggregate Supply2.3.3 Long-Run Aggregate Supply: Shapes and Influencing Factors2.4 National Income0/02.4.1 Circular Flow of Income and Key Concepts2.4.2 Injections and Withdrawals2.4.3 Equilibrium National Income2.4.4 The Multiplier Effect2.5 Economic Growth0/02.5.1 Causes and Types of Economic Growth2.5.2 Output Gaps and Spare Capacity2.5.3 The Trade (Business) Cycle2.5.4 Impact of Economic Growth2.6 Macroeconomic Objectives and Policies0/02.6.1 Macroeconomic Objectives and Policies2.6.2 Demand-Side Policies: Monetary and Fiscal Tools2.6.3 Supply-Side Policies and Long-Term Growth Strategies2.6.4 Conflicts and Trade-Offs Between Macroeconomic Objectives and Policies3. Business Behaviour and the Labour Market3.1 Business Growth0/03.1.1 Size and Objectives of Firm3.1.2 Types and Methods of Business Growth3.1.3 Demergers and Their Effects3.2 Business Objectives0/03.2.1 Types of Business Objectives and Their Rationale3.2.2 Diagrams and Formulae for Business Objectives3.3 Revenues, Costs and Profits0/03.3.1 Understanding Revenue Concepts3.3.2 Understanding Cost Concepts and Cost Curves3.3.3 Economies and Diseconomies of Scale3.3.4 Profit Conditions and Shut-Down Points3.4 Market Structures0/03.4.1 Types of Efficiency in Market Structures3.4.2 Perfect Competition3.4.3 Monopolistic Competition3.4.4 Oligopoly: Behaviour and Outcomes3.4.5 Monopoly and Price Discrimination3.4.6 Monopsony Power3.4.7 Contestable Markets and Barriers to Entry3.5 Labour Market0/03.5.1 Determinants and Nature of Labour Demand3.5.2 Determinants and Limitations of Labour Supply3.5.3 Wage Determination and Government Intervention3.6 Government Intervention0/03.6.1 Government Control of Mergers and Monopolies3.6.2 Policies to Promote Competition and Contestability3.6.3 Protection of Suppliers and Employees3.6.4 Evaluating the Impact of Government Intervention3. Business Behaviour and the Labour Market3.1 Business Growth0/03.1.1 Size and Objectives of Firm3.1.2 Types and Methods of Business Growth3.1.3 Demergers and Their Effects3.2 Business Objectives0/03.2.1 Types of Business Objectives and Their Rationale3.2.2 Diagrams and Formulae for Business Objectives3.3 Revenues, Costs and Profits0/03.3.1 Understanding Revenue Concepts3.3.2 Understanding Cost Concepts and Cost Curves3.3.3 Economies and Diseconomies of Scale3.3.4 Profit Conditions and Shut-Down Points3.4 Market Structures0/03.4.1 Types of Efficiency in Market Structures3.4.2 Perfect Competition3.4.3 Monopolistic Competition3.4.4 Oligopoly: Behaviour and Outcomes3.4.5 Monopoly and Price Discrimination3.4.6 Monopsony Power3.4.7 Contestable Markets and Barriers to Entry3.5 Labour Market0/03.5.1 Determinants and Nature of Labour Demand3.5.2 Determinants and Limitations of Labour Supply3.5.3 Wage Determination and Government Intervention3.6 Government Intervention0/03.6.1 Government Control of Mergers and Monopolies3.6.2 Policies to Promote Competition and Contestability3.6.3 Protection of Suppliers and Employees3.6.4 Evaluating the Impact of Government Intervention4. A Global Perspective4.1 International Economics0/04.1.1 Globalisation4.1.2 Specialisation and Trade4.1.3 Pattern of Trade4.1.4 Terms of Trade4.1.5 Trading Blocs and the WTO4.1.6 Restrictions on Free Trade (Protectionism)4.1.7 Balance of Payments4.1.8 Exchange Rates and Macroeconomic Impacts4.1.9 International Competitiveness4.2 Poverty and Inequality0/04.2.1 Understanding Absolute and Relative Poverty4.2.2 Understanding and Measuring Inequality4.3 Emerging and Developing Economies0/04.3.1 Measuring Development: HDI and Alternatives4.3.2 Economic and Non-Economic Factors Influencing Growth and Development4.3.3 Strategies to Promote Growth and Development4.3.4 Alternative and Institutional Strategies for Development4.4 The Financial Sector0/04.4.1 Functions of Financial Markets4.4.2 Market Failures in the Financial Sector4.4.3 Functions and Role of Central Banks4.5 Role of the State in the Macroeconomy0/04.5.1 Nature and Impact of Public Expenditure4.5.2 Taxation: Structure and Macroeconomic Effects4.5.3 Public Sector Finances and Fiscal Sustainability4.5.4 Global Context of Macroeconomic Policy4. A Global Perspective4.1 International Economics0/04.1.1 Globalisation4.1.2 Specialisation and Trade4.1.3 Pattern of Trade4.1.4 Terms of Trade4.1.5 Trading Blocs and the WTO4.1.6 Restrictions on Free Trade (Protectionism)4.1.7 Balance of Payments4.1.8 Exchange Rates and Macroeconomic Impacts4.1.9 International Competitiveness4.2 Poverty and Inequality0/04.2.1 Understanding Absolute and Relative Poverty4.2.2 Understanding and Measuring Inequality4.3 Emerging and Developing Economies0/04.3.1 Measuring Development: HDI and Alternatives4.3.2 Economic and Non-Economic Factors Influencing Growth and Development4.3.3 Strategies to Promote Growth and Development4.3.4 Alternative and Institutional Strategies for Development4.4 The Financial Sector0/04.4.1 Functions of Financial Markets4.4.2 Market Failures in the Financial Sector4.4.3 Functions and Role of Central Banks4.5 Role of the State in the Macroeconomy0/04.5.1 Nature and Impact of Public Expenditure4.5.2 Taxation: Structure and Macroeconomic Effects4.5.3 Public Sector Finances and Fiscal Sustainability4.5.4 Global Context of Macroeconomic Policy
