The economic policy consensus......Page 25
Why policy changed......Page 28
Implications for the future......Page 29
Criticisms of the new consensus......Page 30
Will the consensus last?......Page 32
Questions for discussion......Page 34
Further reading......Page 35
Introduction......Page 36
Trends in economic growth......Page 37
Growth theories......Page 40
Human welfare and sustainable growth......Page 49
Policy prescriptions for growth......Page 56
Conclusions......Page 59
Summary......Page 60
Questions for discussion......Page 61
Exercises......Page 62
Appendix 2.1 The economics of the new economy......Page 63
Part I: The market system and competition......Page 66
Introduction to Part I......Page 67
Introduction......Page 70
The market system......Page 71
The role of prices......Page 76
Movements in demand and supply......Page 79
The role of traders and arbitrage......Page 84
The efficiency of the market system......Page 86
The free market system in social context......Page 88
Conclusions......Page 90
Summary......Page 91
Questions for discussion......Page 92
Exercises......Page 93
Further reading......Page 94
What is a ‘rational’ consumer?......Page 95
Elasticities of demand......Page 98
Estimating the demand function......Page 105
Price elasticities and the pricing decision......Page 111
Conclusions......Page 113
Summary......Page 114
Questions for discussion......Page 115
Exercises......Page 116
Further reading......Page 117
Introduction......Page 118
Profit maximisation......Page 119
Rules for maximising profit......Page 124
Cost structure of the firm......Page 130
The transaction costs approach......Page 138
From cost structure to supply curve......Page 140
Conclusions......Page 142
Summary......Page 143
Questions for discussion......Page 144
Exercises......Page 145
Further reading......Page 147
Introduction......Page 148
Firm size......Page 149
The economics of market power......Page 156
How to sustain monopoly power......Page 164
Market power with few firms – the case of oligopoly......Page 165
Conclusions......Page 169