CRACKING

ECONOMICS

TEJVAN PETTINGER CONTENTS

INTRODUCTION CHARTER 3 LABOUR MARKETS The Orfgins of Economics 8 Wage Determination 74 Mereantilism 10 Division of Labour 78 Classioal Economics 12 Minimum Wages 80 Adam Smith and Monopsony 82 The Wealth ofNations 14 Lump of Labour Fallacy 84 Marxism 16 Gender Inequality 88 Keynesian Revolution 18 Economics of an Ageing Monetarism 20 Population 90 Mixed Economies 22 Ineome and Substitution Effect 94 Economics - Science or Art? 24 PUADTED A MIÜIMECC EMUMIIP« CHARTER 1MARKETS Efficiency 100 Supply and Demand 28 Economies of Scale 102 The Invlsible Hand 30 Price Discrimination 104 Underground Markets 32 Barriere to Entry 108 Utility Maximization 34 Monopoly 110 Paradox of Value 36 Collusion 114 Irrational Behaviour 38 Objectives of Companies 118 Vehlen Goods 40 Creative Destruction 120 Nudging 42 State Support of Industry 122 Opportunity Cost 44 CHARTER 5CONCEPTS Elasticity of Demand 46 Paradox of Thrift 126 Inferior Goods 50 Lifecycle Hypothesis 130 CHARTER 2 MARKET FAILURE Multiplier Effect 132 Externalities 54 Luddite Fallacy 136 Public Goods 58 Moral Hazard 138 Tragedy of the Commons 62 Trickle-down Economics 140 Pigouvian Tax 64 Laffer Curve 142 Agriculture 68 On the Other Hand 146 Government Pailure 70 Irrational Exuberance 148 Diminishing Returns 150

4 CRACKING ECONOMIC# Hysteresis 152 Economic Forecasting 232 Happiness Economics 336 CHARTER 6 MACROECONOMICS Inflation 156 CHARTER 8 FINANCIAL ECONOMICS Ganses of Inflation 158 Money - Function and Uses 340 Printing Money 160 Fiat Money 242 Hyperinflation 162 Bitcoins - Digital Money 244 Deflation 164 Bond Market 246 Unemployment 168 Stock Market 252 Budget Deficit 172 Stock Market Crashes 254 National Debt 174 1929 Wall Street Crash 256 Economic Growth 178 Great Depression 258 Chinese Economic Miraele ISO Housing Market 260 Economic Cycle 182 Credit Crunch 266 Secular Stagnation 184 CHARTER 9 GLOBAL ECONOMY Reeession 186 Globalization 272 Real Business Cycle 188 Free Trade 276 Balance of Payments 190 Protectionism 278 Current Account Deficit 194 Infant Industry Argument 280 Balance of Payments Crisis 196 Beggar My Neighbour 282 Exchange Rates 198 Global Savings Glut 284 202 Devaluation The Euro 286 Purchasing Power Parity 206 Problems of the Euro 288 CHARTER 7 ECONOMIC POLICY Optimal Currency Zone 292 Monetary Policy 210 Economic Development 294 Quantitative Easing 214 Washington Consensus 296 Helicopter Money Drop 218 Paradox of Plenty 298 Fiscal Policy 220 Breaking the Cycle of Poverty 300 Crowding Out 224 Austerity 236 Independent Central Banks 230

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