Political economy or economics is a study of mankind in the ordinary business of life; it examines that part of
individual and social action which is most closely connected with the attainment and with the use of the material requisites
Thus it is on the one side a study of wealth; and on the other, and more important side, a part of the study of man. For
man's character has been moulded by his every-day work, and the material resources which he thereby procures, more than
by any other influence unless it be that of his religious ideals; and the two great forming...
Chapter 16 - Real-world competition and technology. After reading this chapter, you should be able to: Define the monitoring problem and state its implications for economics; discuss why competition should be seen as a process, not a state; summarize how firms protect monopoly; explain why oligopoly is the best market structure for technological change.
With the wide swings in the stock prices in recent years, students of money and banking have become increasingly interested in what drives the stock market. As a result, I have expanded the discussion of this market by describing simple valuation methods for stocks and examining recent developments in the stock market and the link between monetary policy and stock prices.
The Economics LTSN invited me to write a case study discussing the challenges and rewards of teaching economics to MBA (Master of Business Administration) students. Why a case study about MBA teaching? Certainly, it is an important market and has grown rapidly. More to the point, teaching MBA students poses particular challenges, but equally can be exceptionally rewarding
Discussion Questions & Answers: Cf: F & O (2005) and F, O, & F (2002) Q1. Why should a tax on gasoline provide a larger incentive to reduce air emissions from motor vehicles than an annual tax on owning a vehicle? Answer: The answer depends upon the magnitude of the fuel tax relative to the vehicle tax. A fuel tax targets the three components of emission reduction (i.e. a) number of vehicles on the road; b) miles per vehicle; and c) emissions per mile). On the other hand, an annual tax affects only the marginal decisions to put a car...
Economic thinking is all about making difficult choices. Critical economic
thinking is all about being aware of how you think about economic issues so
that you can make the best decisions possible. All of us engage in economic
thinking whether it is shopping for ourselves, making business decisions that affect
our fellow workers, or deciding on government policies that affect the entire
nation. Of course such decision making is not done solely from an economic
perspective. Shopping decisions are affected by a variety of cultural influences.
As we wrote in a previous preface, there are two main reasons for pro-
ducing a new edition of a textbook. First, the subject may have moved
on – this has certainly been true in the area of natural resource and envir-
onmental economics. Second, experience in using the text may suggest
areas for improvement. Both reasons warrant a third edition now.
We will say nothing here about the ways in which the subject area has
‘moved on’ except to note that it has and that you will ﬁnd those changes
reﬂected in this new edition.
An introduction to the study of environmental and natural resource economics, designed to be accessible to students who have completed a two-semester introductory course in economics or a one-semester introductory microeconomics course. Treats intertemporal optimization within a discrete-time, mathematical programming framework, relegating mathematics beyond simple algebra to appendices, and includes exercises, answers, and discussion questions.
This paper considers the main elements of the standard pattern of ﬁ nancial liberalization that
has become widely prevalent in developing countries. The theoretical arguments in favour of
such liberalization are considered and critiqued, and the political economy of such measures
is discussed. The problems for developing countries, with respect to ﬁ nancial fragility and the
greater propensity to crisis, as well as the negative deﬂ ationary and developmental effects, are
Discuss how incentives af fect people’s behavior
The word economy comes from the Greek word for “one who manages a household.” At first, this origin might seem peculiar. But, in fact, households and economies have much in common. A household faces many decisions.
A diserttation submitted in partial satisfacion of the requirments for the degree Doctor of Philosophy in economics I then present evidence that this measure represents a binding constraint on
parents ability to exercise Tiebout choice. Finally, I discuss the SAT data that are the
primary source of information on student outcomes across schools.
We do not find economically or statistically significant differences in fees (expenses,
loads, or a measure of the total ownership cost of mutual fund shares) between SRI and similar
conventional funds. Therefore, either there are no significant differences in the way fees are set
for SRI and conventional funds, or the effects of those differences cancel out on average.
Consistent with the results for before-fee performance and fees, we find that SRI funds
obtain a higher after-fee risk-adjusted performance in terms of four-factor alpha than similar
conventional funds. ...
Second, the sample period in this study covers a full business cycle, thereby
providing a better indication of the relative variability of lending activities experienced by
commercial banks over this period. Brewer, Minton, and Moser (2000) document a universal
downward trend of C&I lending over a sample period of 1985 to 1992, a period during which
the economy experienced a significant cyclical downturn.
Discovering Artificial Economics is an informal introduction to the ideas of modern systems theory and self-organization as they apply to problems in the economic realm. David Batten interleaves anecdotes and stories with technical discussions, in order to provide the general reader with a good feel for how economies
The audit work required for a live application review
is very similar to that undertaken for a system under
development with one main exception. When
auditing an application under development, there is
little opportunity for detailed audit testing. Audit
work will focus on evaluating the adequacy of
security and control using discussion and a review of
technical documentation. The testing phase of the
project may allow some scope for control testing, but
this is artificial.
We’ve modeled 2 ends of the market structure: Competitive market and monopoly. Now we look at cases in between ( N = small ). Oligopoly is market or industry dominated by a small number of firms, whose decisions (price, output, marketing) are interdependent. In chapter 5, we will discuss this problem.
Chapter 4 discuss the social costs of a monopoly and indicate its relevance for "deregulation", outline the characteristic features of a natural monopoly, discuss the case for and against regulating a natural monopoly, explain the meaning of the "structure-conductperformance" (SCP) hypothesis and discuss its relevance for competition policy in South Africa, explain Demsetz’s "efficiency hypothesis" and discuss its relevance for competition policy generally.
Chapter 9 - Production and cost in the long run. In this chapter students will be able to: Draw a graph of a typical production isoquant and use the definition of an isoquant to explain why isoquants must be downward sloping, discuss the properties of an isoquant, construct isocost curves for a given level of expenditure on inputs,...
Chapter 11 - Managerial decisions in competitive markets. In this chapter you will: Discuss three characteristics of perfectly competitive markets; apply the basic principles of marginal analysis to determine either (1) the profitmaximizing (or loss-minimizing) level of output, or (2) the profit-maximizing (or loss-minimizing) level of input usage; Explain why the demand curve facing an individual firm in a perfectly competitive industry is perfectly elastic, and why this demand curve is also the marginal revenue curve for a competitive firm;...
When you finish this chapter, you should be able to: Discuss the general idea of analysis of variance, discuss the general idea of analysis of variance, conduct a test of hypothesis to determine whether the variances of two populations are equal, organize data into a one-way and a two-way ANOVA table.