Book review

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Exam revision notes

This book divided to five units. I am going to tell you breathly what sort of information this book content’s. And is it useful or just wasting your money.
Ok, let’s start!

Unit 1 “An introduction to economics”

Economics- “ the science which studies human behaviour as a relationship between ands and scarce means which have alternative use”

Here the example of one definition. Don’t you think that it is easier to write in other way? More intelligible to express it in other words, which is more clearly to understand to students which are just started learning economics first time in their life.

Maybe this will be more clearly: ” Economics is the science of study how to allocate the scarce resources in a most efficient way”.
Yes! I think so! Let’s go futher

So, in this unit you can learn definitions and explanations such as: economic problem, economic of resource allocation, externalities, optimality and effiency, welfare aconomics, the opportunity cost of resource allocation.

I think most of students has problem with externalities. And a little bit through externalities.

Externalities is the third party effect by others choise.

· Private cost or private benefit + external cost or external benefit = social cost or social benefits.
It can occur as the result of either production or consumption. There is never a contract to pay for external cost or benefit. If there is it is not a social cost or benefit, it becomes a private cost or benefit.

Unit 2 “The industrial structure of the economy”
In tis chapter is more extended way of explanation.
The factors of production:
· Land
· Labour
· Capital
· Enterprice

The size and scale of production:
In the short run and in the long run.

P.S. Question on economies and diseconomies of scale are quite popular at A-level. And so a bit about Economies of scale.
· Economies of scale- is the advantage of producing large scale, in the form of lower long-run average cost.

P.S. there is a poster about economies of scale, so you can easily learn more deeper if you don’t want to open thousands of book and just finaly understand what does it mean.

The theory of demand and supply

· The PED, PES,YES,XED. All definitions in the book
· Shifts of the supply and demand curves
· Movements alond the demand and supply curves. (Important thing to remember: FEEL
THE DIFFERENCES BETWEEN MOVEMENT and SHIFT!!!)
If demand os supply shifts to the left that means they decreases, if the demand curve shift to the left supply- contracts, if the demand curve shift to the righ supply- extents
· The theories of supply and demand, definitions.

The theories of the firms
· The theory of monopoly
· The theories of imperfect competition
· Monopoly with competition

Price determinants and resource allocation
· Supply factors which affects the price: cost of production, taxes, subsidies, price of related goods etc.
· Demand factors which affects the price: tastes, fashion, income, substitutes, complements etc.

Unit 3 “The financial structure of the economy”
Money and its value
· The value of money

The UK banking system
· Private sector banking
· The Bank of England

Unit 4 “The economy as a whole”

Economic problems of imbalance
· Inflation- a rise in a price level
· Deflation- a fall in the normal price level
· Unemployment- are people who able to work and looking for a job

Problems of instability
· Economic growth- an increase in the productive capasity capital over time.

Government and the economy
· Government policies

Unit 5 “The international structure of the world economy”
International trade
· Advantages: enable to the country to specialise, because if the product doesn’ produce it can import. Consumer can benefit from the lower prices and higher quality
· Measuring the terms of trade
The balance of payments
· Definition

Foreign exchange
The less developed world


I just want to add that it is good book, but sometimes there are very complicated definitions and explanations... But maybe you don't think so....

1 comments:

chris sivewright said...

when will you be coming back to the UK?