Economics Simplified
Subtitle: -
Publisher: Institute of Economic Research of Africa (IERA), University of Botswana, P.O. Box 70576, Gaborone, Botswana
Published: 2013
Place of publication: Gaborone, Botswana
Format: Paperback
Number of pages: 307
ISBN-13: 9789996800634
Description: -
Table of contents: title: Dedication v; title: Preface vi; title: PART ONE; title: CHAPTER 1 I INTRODUCTION TO ECONOMICS I 17; title: 1.1 Introduction 17; title: 1.2 Definition of Economics 17; title: 1.3 Microeconomics and Macroeconomics 21; title: 1.4 Scope of Economics 22; title: 1.4.1 Wants 22; title: 1.4.2 Scarcity 22; title: 1.4.3 Scales of Preference 22; title: 1.4.4 Choice 24; title: 1.4.5 Opportunity cost 24; title: 1.5 Basic Economic Problem 25; title: 1.5.1 What to produce 25; title: 1.5.2 How to produce 25; title: 1.5.3 For whom to produce 25; title: 1.6 Methodology in Economics 26; title: 1.6.1 Positive statement 27; title: 1.6.2 Normative statement 27; title: 1.7 Economic Systems 27; title: 1.7.1 Traditional and Command Systems 27; title: 1.7.2 Free Enterprises 27; title: 1.7.3 Mixed Economy 28; title: 1.8 Review Questions 28; title: Contents; title: CHAPTER 2 I BASIC TOOLS IN ECONOMICS ANALYSIS I 29; title: 2.1 Introduction 29; title: 2.2 Tables 29; title: 2.3 Equations and Graphs 30; title: 2.4 Symbols 32; title: 2.5 Measures of Central Tendency 33; title: 2.6 Review Questions 33; title: CHAPTER 3: PRODUCTION THEORY; title: 3.1 Introduction 35; title: 3.2 Stages of Production 36; title: 3.2.1 Primary Production 36; title: 3.2.2 Secondary Production 36; title: 3.2.3 Tertiary Production 36; title: 3.3 Factors of Production 37; title: 3.4 Division of Labour 38; title: 3.5 Isoquant Curve 40; title: 3.6 Ridge line 42; title: 3.7 Production Line 42; title: 3.8 Isocost Curve 43; title: 3.9 Equilibrium of the Firm 45; title: 3.10 Expansion Path 47; title: 3.11 Economies of Scale 48; title: 3.12 Economies of Scope 49; title: 3.13 Economies of Scale and Returns to Scale 49; title: 3.14 The Law of Diminishing Returns: Marginal Physical; title: Product (MPP) 50; title: 3.15 Short run and Long run 53; title: 3.16 The Law of Increasing Cost 53; title: 3.17 Production Possibility Curve (PPC) 55; title: 3.18 Review Questions 58; title: CHAPTER 4: THEORY OF CONSUMER BEHAVIOUR; title: 4.1 Introduction 60; title: 4.2 The Cardinal Method 60; title: 4.2.1 Assumptions of the Cardinalist Approach 61; title: 4.2.2 Total Utility and Marginal Utility 62; title: 4.2.3 Equilibrium of the Consumer under; title: Cardinal Method 64; title: 4.3 The Indifference Curve Analysis 66; title: 4.3.1 Indifference Map 66; title: 4.3.2 Assumptions of Indifference Curve 68; title: 4.3.3 Characteristics of Indifference Curve 69; title: 4.3.4 Diminishing Marginal Rate of Substitution 70; title: 4.3.5 Budget Constraint 71; title: 4.3.6 Equilibrium of the Consumer under; title: Indifference Curve 75; title: 4.4 Changes in Equilibrium Situation 76; title: 4.4.1 Income Consumption Curve 76; title: 4.4.2 Price Consumption Curve 77; title: 4.5 Total Price Effect/Impact 78; title: 4.5.1 Substitution Effect/Impact 81; title: 4.5.2 Income Effect/Impact 81; title: 4.6 Review Questions 82; title: CHAPTER 5: DEMAND FOR COMMODITIES; title: 5.1 Definition and Determinants of Demand 83; title: 5.2 Individual and Market Demand 85; title: 5.2.1 Individual demand 85; title: 5.2.2 Market demand 86; title: 5.3 Changes/Shifts in Demand 87; title: 5.4 Elasticity of Demand 93; title: 5.4.1 Categories of Price Elasticity of Demand 93; title: 5.4.2 Measurement of Elasticity of Demand 95; title: 5.4.3 Determinants of Elasticity of Demand 98; title: 5.4.4 Income Elasticity of Demand 100; title: 5.4.5 Cross Elasticity of Demand 101; title: 5.4.6 Elasticity of Demand and Revenue 101; title: 5.4.7 Income Changes and Quantity; title: Demanded (Engel curve) 103; title: 5.4.8 Giffen goods 105; title: 5.5 Review Questions 105; title: CHAPTER 6: SUPPLY OF COMMODITIES; title: 6.1 Definition of Supply 107; title: 6.2 Individual and Market Supply 108; title: 6.2.1 Individual Supply 108; title: 6.2.2 Market Supply 109; title: 6.3 Changes in Supply 110; title: 6.4 Elasticity of Supply 116; title: 6.4.1 Categories of Price Elasticity of Supply 116; title: 6.4.2 Determinants of Elasticity of Supply 117; title: 6.4.3 Measurement of Elasticity of Supply 117; title: 6.5 Determination of Equilibrium Price and Quantity 118; title: 6.6 Price Ceiling and Price Floor 123; title: 6.7 Review Questions 125; title: CHAPTER 7: THEORY OF COST; title: 7.1 Introduction 126; title: 7.2 Traditional Cost 126; title: 7.2.1 Cost Function 126; title: 7.2.2 Short run Costs 127; title: 7.2.2.1 Total cost 127; title: 7.2.2.2 Total Fixed Cost (TFC) 128; title: 7.2.2.3 Total Variable Cost (TVC) 129; title: 7.2.2.4 Average Fixed Cost versus Average; title: Variable Cost 130; title: 7.2.2.5 Marginal Cost 131; title: 7.2.3 Long run Cost (envelop curve) 132; title: 7.3 Review Questions 134; title: CHAPTER 8: BUSINESS ORGANISATIONS; title: 8.1 Introduction 136; title: 8.2 Private Enterprises 136; title: 8.2.1 Sole proprietorship 136; title: 8.2.2 Partnership 137; title: 8.2.3 A Joint stock company 138; title: 8.3 Public Enterprises: Types of Public Enterprises 139; title: 8.4 Sources of Funding 142; title: 8.5 Location of Industries 142; title: 8.4.1 Factors that influencing Location; title: of Industries 143; title: 8.4.2 Localization of Industries 144; title: 8.6 Review Questions 144; title: CHAPTER 9: MARKET STRUCTURES; title: 9.1 Definition of a Market 145; title: 9.1.1 Types of markets 145; title: 9.1.2 Market Structures 146; title: 9.2 Perfect Competition Market 147; title: 9.2.1 Characteristics of the Perfect Competition 147; title: 9.2.2 Short run Equilibrium of the Firm (TR/TC) 149; title: 9.2.3 Short run Equilibrium of the Firm (MR/MC) 150; title: 9.2.4 Equilibrium Conditions of the Firm 151; title: 9.2.5 Profits and Losses under Perfect Competition 151; title: 9.2.6 Closing down of the Firm (SR) 153; title: 9.2.7 Equilibrium of the Industry in the Short run (SR) 153; title: 9.2.8 Equilibrium of the firm in the Long run (LR) 154; title: 9.2.9 Optimal Capacity 155; title: 9.2.10 Equilibrium of the Industry in the Long run (LR) 155; title: 9.3 Review Questions 156; title: CHAPTER 10: MONOPOLY MARKET; title: 10.1 Definition of Monopoly 157; title: 10.1.1 Characteristics of Monopoly 157; title: 10.1.2 Causes of Monopoly 158; title: 10.1.3 Control of Monopoly 160; title: 10.1.4 Equilibrium of Monopoly (SR) 160; title: 10.1.5 Equilibrium of Monopoly (LR) 161; title: 10.1.6 Consumer Surplus and Deadweight loss 162; title: 10.1.7 Discrimination Monopoly 162; title: 10.2 Review Questions 163; title: CHAPTER 11: MONOPOLISTIC COMPETITION; title: 11.1 Definition of Monopolistic Competition 165; title: 11.1.1 Equilibrium of Monopolistic Competition (SR) 165; title: 11.1.2 Equilibrium of Monopolistic Competition (LR) 166; title: 11.2 Review Questions 167; title: CHAPTER 12: OLIGOPOLY MARKET; title: 12.1 Definition of Oligopoly Market 168; title: 12.2 Characteristics of Oligopoly Market 169; title: 12.3 Collusive action and kinked demand curve 169; title: 12.4 Market Structure Forms and Pricing Models 171; title: 12.5 Review Questions 171; title: PART TWO; title: CHAPTER THIRTEEN: MACROECONOMICS; title: 13.1 Introduction 172; title: 13.2 Microeconomics versus Macroeconomics 174; title: 13.3 Macroeconomic Policy Objectives 176; title: 13.3.1 Reducing Unemployment 176; title: 13.3.2 Maintains Low Level of Inflation 176; title: 13.3.3 Increasing National Output 177; title: 13.3.4 Maintaining Favourable Balance of Payments 177; title: 13.3.5 Equality and Equity in Allocation of Resources 178; title: Review Questions 178; title: CHAPTER FOURTEEN: MEASURING MACROECONOMIC; title: ACTIVITY; title: 14.1 Macroeconomic Activities 180; title: 14.2 Determining Macroeconomic Activities 182; title: 14.2.1 Gross Domestic Product (GDP) 183; title: 14.2.2 Determination of Gross Domestic Product 186; title: 14.3 Determination of Goods Market: Aggregate Demand and Supply 197; title: 14.3.1 Aggregate Supply and Shifts 197; title: 14.3.2 Aggregate Demand and shift 199; title: 14.3.3 Equilibrium positions of Aggregate Supply and Demand Curves.201; title: Review Questions 204; title: CHAPTER FIFTEEN: CONSUMPTION AND SAVING; title: 15.1 Introduction 206; title: 15.2 The Consumption Function Model 207; title: 15.2.1 Marginal Propensity to Consume (MPC) 210; title: 15.2.2 Marginal Propensity to Save (MPS) 212; title: 15.2.3 Average Propensity to Consume (APC) 213; title: 15.2.4 Average Propensity to Save (APS) 213; title: 15.3 Theories of Consumption 213; title: 15.3.1 Relative Income Hypothesis (RIH) 214; title: 15.3.2 Life-Circle Hypothesis (LCH) 214; title: 15.3.3 Permanent-Income Hypothesis (PIH) 215; title: Review Questions 215; title: CHAPTER SIXTEEN: THEORY OF MONEY; title: 16.1 Introduction 217; title: 16.2 Definition of money 218; title: 16.2.1 Characteristics of Money 219; title: 16.2.2 Functions of Money 220; title: 16.3 Categories of Money in Circulation 222; title: 16.4 The Quantity Theory of Money 223; title: 16.5 Keynesian Theory of Money: Liquidity Preference 226; title: 16.5.1 Transaction Demand for Money 226; title: 16.5.2 Precautionary Demand for Money 227; title: 16.5.3 Speculative Demand for Money 227; title: 16.6 Aggregate Demand for Money 230; title: 16.7 Transmission Mechanisms 232; title: 16.7.1 The Keynesian Transmission Mechanism 232; title: 16.7.2 The Monetary Transmission Mechanism 233; title: Review Questions 233; title: CHAPTER SEVENTEEN: BANKING AND MONEY SUPPLY; title: 17.1 Introduction 234; title: 17.2 Functions of the Central Bank 236; title: 17.3 Reviews of selected Central Banks across the World 238; title: 17.3.1 A Brief History of the Bank of Botswana 239; title: 17.3.2 The South African Reserve Bank 239; title: 17.3.3 The Central Bank of Nigeria (CBN) 239; title: 17.3.4 The Reserve Bank of Australia 240; title: 17.3.5 The Bank Negara Malaysia; title: 17.3.6 The Bank of Thailand (The Central Bank) 241; title: 17.4 Monetary policy 241; title: 17.4.1 Instruments of Monetary policy 242; title: 17.5 Commercial Bank 246; title: 17.5.1 The Role of a Commercial Bank 248; title: 17.6 The Money Creation 249; title: Review Questions 250; title: CHAPTER EIGHTEEN: THEORY OF UNEMPLOYMENT; title: 18.1 Introduction 252; title: 18.2 Natural Rate of Unemployment 255; title: 18.3 The cost of Unemployment 256; title: 240; title: 18.4 Types of Unemployment 256; title: 18.4.1 Frictional unemployment 257; title: 18.4.2 Structural Unemployment (Technological Unemployment) 258; title: 18.4.3 Seasonal Unemployment 259; title: 18.4.4 Demand Deficient Unemployment (Cyclical Unemployment) 259; title: 18.5 Remedies of Unemployment 262; title: 18.5.1 Demand Management Approach 262; title: 18.5.2 Supply-Side Policy 263; title: Review Questions 263; title: CHAPTER NINETEEN: THEORY OF INFLATION; title: 19.1 Introduction 264; title: 19.2 Measuring Inflation 265; title: 19.2.1 Price Indexes and Effects of Inflation 268; title: 19.2.2 Producer Price Index (PPI) 270; title: 19.2.3 Gross Domestic Product Deflator 270; title: 19.3 Causes of Inflation 271; title: 19.3.1 Demand- Pull/Excess Demand Inflation 272; title: 19.3.2 Cost-Push Inflation 274; title: 19.4 Consequences of Inflation 275; title: 19.5 Phillips Curve Analysis 279; title: Review Questions 281; title: CHAPTER TWENTY: INTERNATIONAL TRADE, BALANCE OF; title: PAYMENTS AND FOREIGN EXCHANGE RATES; title: 20.1 Introduction 282; title: 20.2 Domestic and International Trade 282; title: 20.3 Theories of Trade 285; title: 20.3.1 Adam Smith and Absolute Advantage of Trade 285; title: 20.3.2 David Ricardo and Comparative Advantage of Trade 285; title: 20.4 Terms of Trade 288; title: 20.5 Protectionism 291; title: 20.5.1 Tariffs and non-Tariffs Restrictions 291; title: 20.5.2 Consequences of Tariffs 292; title: 20.6 Balance of Payment 296; title: 20.6.1 Current and Capital Accounts 296; title: 20.7 Foreign Exchange Market 300; title: 20.7.1 Equilibrium in the Foreign Exchange Market 302; title: Review Questions 303; title: Bibliography and further readings 304; title: Index 305