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In-depth distance learning course of 10 units

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Economics is the study of scarcity and the consequences of scarcity. Individuals, households, businesses and nations all experience some level of scarcity, in that they do not possess all the resources to satisfy all their wants and needs. Decisions have to be made to balance those scarce resources in order to improve what can be achieved with them. Individuals have to decide how to spend their income, household budgets have to be managed, business need to deploy their resources in order to ensure their profitability and governments need to consider the best possible balance of spending to meet the needs of competing groups within society. Economics is concerned with how these decision are made, with how the resources of a nation or a business are allocated and utilised in the production of goods and services, and with how the rewards of these activities are distributed.

Tutor Support

With this course you will have unlimited access to your own personal tutor who specialises in their field of study. It is your personal tutor's role to ensure that you receive constructive feedback and to deal with any queries you may have. You are more than welcome to telephone, fax or email your personal tutor.

You will also have access to a dedicated and friendly team of administrators and course advisors who offer sound and professional guidance and advice when you need it. This ensures that you will never feel neglected and that you will always succeed!

Assessment Method

After each lesson there will be a question paper, which needs to be completed and submitted to your personal tutor for marking. This method of continual assessment ensures that your personal tutor can consistently monitor your progress and provide you with assistance throughout the duration of the course.

What's Included

All study materials

Study Guide

Full Tutor and Admin support

Unit 1: An Introduction to Economics

Section 1: The Content of Economics
1.1 Defining economics
1.2 The fundamental economic problem: scarcity
1.3 The implications of scarcity
1.4 Types of economy
1.5 The general economic questions
1.6 The distinction between microeconomics and macroeconomics
1.7 Positive and normative statements

Section 2: The Production Possibility Boundary and its Implications
2.1 The Production Possibility Boundary (PPB)
Recommended reading

Unit 2 The Elementary Theory of Allocation

Section 1: The Market and the Market Economy
1.1 Demand
1.2 Supply
1.3 Price

Section 2 Elasticity
2.1 Price elasticity of demand (PED)
2.2 The income elasticity of demand (YED)
2.3 Cross-elasticity of demand (CED)
2.4 Price-elasticity of supply (PES)

Section 3: Market Failure
3.1 Types of market failure
3.2 Types of government intervention
3.3 Price-regulation (floors and ceilings)
3.4. Taxes and subsidies
3.5 A final note
Review Activity for Units 1 and 2
Recommended reading
Answer to Unit Review Activity for Units 1 and 2

Unit 3 The Theory of Production

Section 1: The Production Function
1.1 A simple production function
1.2 Short-run and long-run production functions
Review Activity

Section 2: The Short Run
2.1 Output and factor inputs
2.2 The relationship between marginal and average product
2.3 The law of diminishing returns
2.4 The relationship between total, average and marginal product
Review Activity

Section 3: Costs of production
3.1 Total cost of production
3.2 Average total cost of production
3.3 Marginal cost of production
Review Activity

Section 4: Short-run Cost Curves
4.1 Converting output data into cost data
4.2 Total cost and total fixed cost
4.3 Average variable cost and average product of labour
4.4 Combining average variable cost and average fixed cost to calculate average total cost
4.5 The marginal product of labour and marginal cost
4.6 Average total cost and marginal cost
Review Activity

Section 5: Long-run Cost Curves
5.1 Marginal and average cost in the long run
Review Activity
Unit Review Activity
Recommended Reading
Answers to Review Activities

Unit 4 Market Structures

Section 1: The Model of Perfect Competition
1.1 Assumptions about the model of perfect competition
1.2 The perfectly competitive firm as a price taker
1.3 What output will the individual firm produce?
1.4 How much profit is made?
1.5 Short-run equilibrium for the perfectly competitive firm
1.6 Long-run equilibrium for the perfectly competitive firm
1.7 The marginal cost curve, short-run supply and the shut-down condition
1.8 The market supply curve and perfect competition
1.9 Perfect competition and efficiency
1.10 Reconsidering long-run equilibrium
Review Activity

Section 2: Monopoly
2.1 Monopoly and revenue curves
2.2 Output and price under monopoly
2.3 How much profit does the monopolist make?
2.4 Sources of monopoly power
2.5 An evaluation of monopoly and perfect competition
2.6 Monopoly and price discrimination
Review Activity

Section 3: Imperfect Competition
3.1 Oligopoly and collusion
3.2 The breakdown of collusion: �to cheat or not to cheat�
Review Activity

Section 4: Privatisation
4.1 The three forms of privatisation
4.2 The objectives of privatisation
Review Activity
Unit review Activity
Unit Summary
References
Recommended Reading
Answers to Review Activities

Unit 5 The Theory of Distribution

Section 1: The income factors of production
1.1 Distribution of income in perfect markets
1.2 Distribution of income in imperfect markets
Review Activity

Section 2: Wage determination in perfectly competitive labour markets
2.1 The supply of labour
2.2 Elasticity of labour supply
2.3 Economic rent and transfer earnings
2.4 The demand for labour
2.5 Will any workers be employed?
2.6 The determinants of the demand for labour
Review Activity

Section 3: Wage determination in imperfect labour markets
3.1 Monopoly demand for labour
3.2 Monopoly supply of labour
Review Activity

Section 4: The price of capital
4.1 The demand for capital
4.2 Internal rate of return
4.3 Supply of capital
Review activity

Section 5: The price of land
Recommended Reading
Answers to Review Activities

Unit 6 Introduction to the Macroeconomy
Section 1: National income accounts and measurement of national income
1.1 National income accounts
1.2 Measurement of national income
1.3 National income statistics and economic welfare
Review Activity

Section 2: National income determination and the circular flow of income
2.1 Circular flow of income
2.2 Equilibrium national income
Review Activity

Section 3: Macroeconomic issues and controversies
3.1 Macroeconomic issues
3.2 Objectives of government economic policy
3.3 Macroeconomic debate
Unit Review Activity
References
Answers to Review Activities

Unit 7 National Income Determination

Section 1: Basic Keynesian model of national income determination
1.1 Components of aggregate demand

1.2 Aggregate demand and equilibrium national income 1.3 The multiplier
Review Activity

Section 2: Consumption and investment demand
2.1 Consumption demand
2.2 Investment demand
Review Activity

Section 3: Keynesian model and fiscal policy
3.1 Keynesian model and unemployment
3.2 Government budget
3.3 Fiscal policy debate
Review Activity

Section 4: Imports and exports in the Keynesian model
4.1 Imports, exports and aggregate demand
Review Activity
Unit Review Activity
Recommended Reading
Answers to Review Activities

Unit 8 The Role of Money and the Financial System

Section 1: Money and the Financial System
1.1 Money and the functions of money
1.2 Outline of a financial system
1.3 A model of credit creation
1.4 The financial system
1.5 The London money market
1.6 The money supply
Review Activity

Section 2: Money Demand, Aggregate Demand and Money Market Equilibrium
2.1 Theories of the demand for money
2.2 Money market equilibrium and aggregate demand
2.3 Theories of inflation
Review Activity

Section 3: Monetary Policy
3.1 Monetary control techniques
3.2 Interest rate control
3.3 Problems of monetary control
3.4 The monetarist experiment
Review Activity
Unit Review Activity
References
Recommended Reading
Answers to Review Activities

Unit 9 National Income Determination and Aggregate Supply/

Section 1: Theories of aggregate supply
1.1 Classical theory of aggregate supply
1.2 Keynesian theory of aggregate supply
Review Activity

Section 2: Short-run and long-run aggregate supply
2.1 Short-run aggregate supply
2.2 Long-run aggregate supply
2.3 Shifts in aggregate supply
2.4 Macroeconomic equilibrium 537
Review Activity

Section 3: The Phillips curve
3.1 The Keynesians and the Phillips curve
3.2 Monetarists and the Phillips curve
3.3 Supply side policy
Review Activity
Unit Review Activity
References
Answers to Review Activities

Unit 10 International Trade

Section 1: Why do Countries Trade?
1.1 Gains from trade
1.2 The UK pattern of trade
1.3 Trade restrictions
Review Activity

Section 2: The Exchange Rate
2.1 What is the exchange rate?
2.2 Exchange rate quotes
2.3 Alternative exchange rate regimes
2.4 The real exchange rate
2.5 The effective exchange rate
2.6 The demand for exports and imports
2.7 Foreign trade and income determination
Review Activities

Section 3: The Balance of Payments
3.1 What is the balance of payments?
3.2 The current account
3.3 The capital account
3.4 Change in reserves
3.5 General principles of correcting balance of payments problems
3.6 Deficit problems
3.7 The problem of a balance of payments surplus
3.8 Surplus problems
Review Activity

Section 4: Recent Exchange Rate History
4.1 The Bretton Woods system
4.2 The oil price shock
4.3 The rise of sterling: 1976�81
4.4 Reagonomics�: 1981�5
4.5 The shadowing of the DM
4.6 The European Monetary System
4.7 The exchange rate debate
Review Activity
Unit Review Activity
Recommended Reading
Answer to Review Activities
Resources
1.1 Some reflections on morality and capitalism
8.1 The Demand for Money: Problems and Issues
8.2 Monetary targets � a short history
8.3 Macroeconomic Policy since 1979
9.1 Schools brief: A Cruise around the Phillips curve