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Preface | |
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Introduction | |
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Microeconomics | |
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Are we living through a new industrial revolution? | |
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Living and working in the 'new economy' | |
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Introduction | |
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Understanding the new economy | |
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The benefits and costs of the new economy | |
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Conclusion | |
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Information technology: a new era? | |
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Introduction | |
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Technological change and economic growth | |
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Information technology, productivity and growth | |
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'Garage tinkerers': new economy or industry life cycle? | |
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Case study: Cars - from technological change to marketing and back? | |
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Conclusion | |
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Innovation, markets and industrial change | |
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Technological change, demand and costs | |
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Market demand | |
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Case study: Digital outsells film | |
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Firms, costs and technology | |
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Technological change and industrial structure | |
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Case study: BMW wants to make internal-combustion engines that run on hydrogen | |
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Conclusion | |
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How do firms compete? Markets and policy | |
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Monopoly power and innovation | |
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Monopoly, innovation and competition | |
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Case study: Breaking up Microsoft? | |
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Monopoly power and the firm's revenues | |
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Pure monopoly | |
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Contestability and barriers to entry | |
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Competition through innovation | |
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Monopoly power and competition policy dilemmas | |
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Conclusion | |
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Competitive markets | |
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Introduction | |
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The perfectly competitive firm | |
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The perfectly competitive industry | |
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Market demand, supply and equilibrium | |
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Case study: An economic history of chocolate | |
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Monopoly and perfect competition compared | |
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Conclusion | |
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Strategic competition: conflict and co-operation | |
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Introduction: strategy matters | |
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Introducing game theory | |
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Collusion to restrict output | |
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Pricing and strategic competition | |
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First-mover advantage | |
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Strategic alliances | |
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Strategic competition policy | |
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Case study: From collusion to art wars | |
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Conclusion: why strategy matters | |
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What makes an economy successful? Work, well-being and the state | |
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The labour market | |
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Introduction | |
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The perfectly competitive labour market | |
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From perfect to imperfect competition: minimum-wage legislation | |
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Case study: Should Florida introduce a minimum wage? | |
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Imperfectly competitive labour markets: trade unions and segmentation | |
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Imperfectly competitive labour markets: efficiency wages | |
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Conclusion | |
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Welfare: from income to well-being | |
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Introduction: Socrates and the Pot Noodle | |
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The economic wealth of nations | |
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Utility, welfare and markets | |
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Case study: The value of life and government policy | |
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Well-being | |
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Conclusion | |
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The economics of governance | |
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Markets, inequality and governance | |
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Shaping market incentives and providing public goods | |
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Governing the commons: the scope for collective action | |
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Inequality and redistribution | |
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Case study: Inequality measurement and the Lorenz curve | |
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The welfare state and economic efficiency | |
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Why do governments do what they do? | |
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Conclusion: governance with endogenous economists | |
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Health and health care: markets, ethics and inequality | |
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Introduction | |
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Market failure in health-care finance and delivery | |
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Ethics, rationing and redistribution | |
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Case study: Managed competition in the NHS | |
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Conclusion | |
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Macroeconomics | |
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National economies | |
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Macroeconomics and economic policy | |
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Introduction | |
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The Keynesian revolution | |
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The resurgence of economic liberalism | |
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Case study: Unemployment in Germany | |
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Conclusion | |
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The circular flow of income, national income and money | |
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Introduction | |
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The circular flow of income | |
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Case study: The US twin deficits | |
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Money and the economy | |
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Conclusion | |
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Aggregate demand | |
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Introduction | |
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The determinants of aggregate demand in a closed economy with no government sector | |
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The basic model of income determination | |
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The scope for government policy | |
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Case study: Has government spending been used to counteract fluctuations in investment? | |
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Conclusion | |
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Investment and capital accumulation | |
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Introduction | |
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Investment | |
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Case study: Financing investment in tourism | |
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Influences on investment | |
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Investment and output cycles | |
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Investment and policy | |
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Conclusion | |
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Winners and losers from globalization: the international economy | |
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International trade and production | |
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Introduction | |
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World trade | |
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Comparative advantage and the gains from trade | |
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Sources of comparative advantage | |
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Trade policy | |
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Case study: Trade liberalization and agricultural tariffs | |
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Trade and market structure | |
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Foreign direct investment and the multinational firm | |
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Conclusion | |
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Globalization, inequality and economic growth | |
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Introduction | |
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What is globalization? | |
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Case study: Global production of Lee Cooper LC10 jeans | |
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How much of a gain? | |
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Case study: Globalization and unemployment in developing countries | |
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Globalization and growing inequality: are they related? | |
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Globalization and economic growth: are they related? | |
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Conclusion | |
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National currencies and international money markets | |
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Introduction | |
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The balance of payments | |
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Exchange rates and factors influencing their determination | |
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Monetary and fiscal policies in an open economy | |
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The euro | |
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Case study: The UK and the euro | |
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Conclusion | |
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Looking into the long term | |
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Unemployment and inflation | |
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Introduction | |
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The trade-off between inflation and unemployment | |
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The costs of unemployment versus the costs of inflation | |
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Inflation, unemployment and expectations | |
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UK macroeconomic policy | |
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Case study: The UK Phillips curve 1991-2001 | |
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Conclusion | |
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Macroeconomic performance and stabilization | |
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Introduction | |
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Macroeconomic management: some perennial problems | |
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Case studies of stabilization failure | |
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Case study: German hyperinflation, 1918-23 | |
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Case study: The Great Depression of the early 1930s | |
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Case study: The Asian crisis of 1997-98 | |
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Interactions between trend growth and stabilization policy | |
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How growth and stabilization interact: case studies | |
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Case study: The Golden Age | |
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Case study: The new economy in 1990s USA | |
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Conclusion | |
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Environmental sustainability | |
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Introduction | |
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Physical limits to growth | |
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Case study: Cutting down on carbon | |
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Ethics and the social limits to growth | |
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Case study: Opportunities for ethical investment | |
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Beyond Kyoto: making a carbon market? | |
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Conclusion | |
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Answers to exercises | |
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References | |
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Acknowledgements | |
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Index | |