The Economic System
May 2005, ©2005
The purpose of the approach is to allow the student to understand the economy as a system of complex and inter-related features incorporating: consumers, producers, markets and governments based on an understanding of the roles of prices and markets and exchange. This structure provides a context whereby students understand that to analyse issues from an economic perspective often requires the use of both micro- and macroeconomic tools and an appreciation of the interrelationships that exist between them.
The academic and pedagogical logic underlying the structure of the book arises from the author’s extensive experience in lecturing and discussions with other lecturers in economics. One of the main problems experienced by students of economics is that even those who appear to grasp concepts and models often display weaknesses in using them to better understand or analyse problems. Transferability of concepts is a real problem especially for a subject that focuses on being a problem-solving discipline where students should learn skills useful to support decision-making. An explicit aim in the book is to clarify how models and concepts in economics are useful as tools that support rigorous, methodical and logical analysis and not simply useful to solve mathematical ‘puzzles’ by providing one ‘correct’ answer. This requires being explicit in explaining what the economic approach is about, regarding the role of theories and models to support economic analysis and also regarding how these theories and models support decision making based on economic analysis.
Chapter 2: Market Analysis: Demand And Supply.
Chapter 3: Beyond Demand: Consumers in the Economic System.
Chapter 4: Beyond Supply: Firms in the Economic System.
Chapter 5: Economic Activity: The Macroeconomy.
Chapter 6: Competition in the Economic System.
Chapter 7: Money and Financial Markets in the Economic System.
Chapter 8: Challenges for the Economic System: Unemployment and Inflation.
Chapter 9: Developing the Economic System: Growth and Income Distribution.
- A focus on the relationships between microeconomic and macroeconomic analysis means students gain a clearer understanding of their intrinsic relationships and a better appreciation of how The Economic System works.
- Comprehensive standard treatments are also provided, based on principles of both micro and macroeconomics.
- Nine chapters constitute the essential building blocks of the principles of economics, for use with specialist students and non-specialists alike. The focused selection of material is designed for use on both one-semester and two semester undergraduate courses.
- An early
- Two colour text
- Web-based supplements will be provided for lecturers adopting the text.