This guide to the principles of economics draws attention to the important points upon which students should concentrate their study, tests their understanding of basic economic concepts and indicates how economic theory is applicable to the practical decisions of business and government. Answers to questions and exercises are provided at the end of the book to assist students who undertake a course of study without constant supervision. This fifth edition has been revised to include recent developments in economic policy and the institutional changes which have taken place over the past four years. The book is intended as a companion volume to the textbook "Modern Economics", also in its fifth edition.
Table of Contents
What economics is about
methods of allocating economic resources
how price is formed in the free market
applications of demand and supply analysis
a further look at demand
the firm
the organization 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