Machine generated contents note: 1. Introduction -- Case Study -- What is an economy? -- Why all business managers should want to be economists -- Business as a transformation process -- Classifying production -- Sectors of the economy -- Business as an open system -- PESTEL analysis -- Stakeholders -- The economic environment -- Microeconomics and macroeconomics -- Current issues -- Summary -- Checklist -- Short Answer Questions -- Discussion Questions -- One Step Further -- 2. Thinking like an economist -- Case Study -- Introduction -- What does an economist do? -- Economic models -- The marginal condition -- Rational decision-making -- Normative and positive economics -- Distinguishing fairness and efficiency -- Distinguishing cause and effect -- Are economists scientists? -- Why do economists disagree? -- Summary -- Checklist -- Short Answer Questions -- Discussion Questions -- One Step Further -- 3. The fundamental economic problems -- Case Study -- Introduction. Contents note continued: Economic resources -- Scarcity and choice -- The production possibility frontier [PPF] -- Economic growth -- The output gap -- The three fundamental economic questions -- The free market -- The planned [or command] economy -- The mixed economy -- Summary -- Checklist -- Organizations And Economics -- Short Answer Questions -- Discussion Questions -- One Step Further -- 4. Demand -- Case Study -- Introduction -- Understanding demand -- Marketing and demand -- Price and demand -- Consumer surplus -- To what extent is a change in price likely to affect demand for products? -- Price and revenue -- How does the price elasticity of demand vary along a demand curve? -- Apart from the price, what else can affect the demand for products? -- Shifts in demand -- How might a fall in demand affect a business? -- The income elasticity of demand -- The cross-price elasticity of demand -- Other forms of elasticity of demand. Contents note continued: How much should you care if you lose one of your customers? -- The demand for a business and the market demand -- Summary -- Checklist -- Organizations And Economics -- Short Answer Questions -- Discussion Questions -- One Step Further -- 5. Costs and revenues -- Case Study -- Introduction -- Profits -- The short run and long run -- Types of costs -- Average and marginal costs -- The law of diminishing returns and marginal costs -- The relationship between average and marginal costs -- Analysing average costs -- Internal economies of scale -- Internal diseconomies of scale -- The minimum efficient scale -- External economies and diseconomies of scale -- Problems reducing costs -- Revenue -- Determining the profit-maximizing price and output-the marginal condition -- Measuring the profits or losses made-the average condition -- Producing in the short run-the shutdown point -- Contribution -- Producing in the long run-the break-even point -- Summary. Contents note continued: Checklist -- Short Answer Questions -- Discussion Questions -- One Step Further -- 6. Supply -- Case Study -- Introduction -- The supply curve -- Producer surplus -- Shifts in supply versus movements along the supply curve -- The importance of labour productivity to supply -- The impact of lean production on supply -- The price elasticity of supply -- The industry supply curve -- Joint supply -- Government influences on supply conditions -- Summary -- Checklist -- Short Answer Questions -- Discussion Questions -- One Step Further -- 7. Markets -- Case Study -- Introduction -- Reaching the equilibrium price and quantity in a market -- What happens if demand conditions change? -- Changes in supply conditions -- Movements along versus shifts in supply and demand curves -- The speed of market adjustment -- Different market conditions -- The effect of an indirect tax on equilibrium -- The effect of a subsidy on equilibrium -- Markets and managers. Contents note continued: Equilibrium, social welfare, and community surplus -- Summary -- Checklist -- Short Answer Questions -- Discussion Questions -- One Step Further -- 8. Market analysis: shares, currency, and labour markets -- Case Study -- Introduction -- The foreign exchange market -- Reaching equilibrium in the currency markets -- Shifts in demand for a currency -- Shifts in supply of the currency to the foreign currency market -- Changes in supply of and demand for a currency -- Why do changes in exchange rates matter? -- The McBurger index -- Overcoming exchange rate problems -- The impact of an exchange rate change -- Government intervention in the foreign currency markets -- The euro -- The market for shares -- Why do changes in share prices matter? -- The market for capital goods -- Why is investment important? -- The labour market -- What determines the price of labour? -- The wage elasticity of demand -- The supply of labour -- Equilibrium in the labour market. Contents note continued: Wage differences -- Changes in labour market conditions -- Trade unions -- Other factors influencing wages -- The equi-marginal condition -- Summary -- Checklist -- Organizations And Economics -- Short Answer Questions -- Discussion Questions -- One Step Further -- 9. Perfect competition, monopoly, and price discrimination -- Case Study -- Introduction -- The concentration ratio -- Barriers to entry -- Types of market -- Price discrimination -- Summary -- Checklist -- Organizations And Economics -- Short Answer Questions -- Discussion Questions -- One Step Further -- 10. Imperfect competition and alternative theories of the firm -- Case Study -- Introduction -- Monopolistic competition -- Oligopoly -- How to protect your success -- Contestability -- Market structure and profits -- Regulation of markets -- Business objectives -- Forms of growth -- Limitations of models that assume maximization -- Profits and risk -- Summary -- Checklist. Contents note continued: Organizations And Economics -- Short Answer Questions -- Discussion Questions -- One Step Further -- 11. Market failures and imperfections -- Case Study -- Introduction -- Monopoly power -- Externalities -- Cost-benefit analysis -- Property rights -- Merit and demerit goods -- Public goods -- Factor immobility -- Price instability -- Imperfect information -- Inequality -- Government intervention -- Government failure -- Problems with financing intervention -- The theory of the second best -- Failures, imperfection, and managers -- Summary -- Checklist -- Short Answer Questions -- Discussion Questions -- One Step Further -- 12. Macroeconomics -- Case Study -- Introduction -- The circular flow of income -- Measures of national income: gross domestic product versus gross national product -- Aggregate demand and aggregate supply -- Aggregate demand -- Aggregate supply -- Macroeconomic equilibrium: aggregate demand and supply. Contents note continued: Shifts in aggregate demand and aggregate supply -- The global downturn 2008 -- Summary -- Checklist -- Short Answer Questions -- Discussion Questions -- One Step Further -- 13. Government macroeconomic policy -- Case Study -- Introduction -- Government economic policies -- Fiscal policy -- Monetary policy -- Fiscal versus monetary policies -- Demand-side policies -- Supply-side policies -- Supply-side versus demand-side policies -- Keynesian and monetarist views of the economy -- Problems for the government intervening in an economy -- Summary -- Checklist -- Organizations And Economics -- Short Answer Questions -- Discussion Questions -- One Step Further -- 14. Macroeconomic issues: unemployment and inflation -- Case Study -- Introduction -- Unemployment -- Inflation -- Keynesians and classical economists -- Can the government reduce unemployment below its natural rate? -- Summary -- Checklist -- Organizations And Economics -- Short Answer Questions. Contents note continued: Discussion Questions -- One Step Further -- 15. Macroeconomic issues: growth and balance of payments -- Case Study -- Introduction -- Economic growth -