Summary Principles of economics
International Business
Parkin textbook summary of:
chapter 1 (page 1 - 13)
chapter 3 (page 53 - 73)
chapter 5 (page 103 - 113)
chapter 6 (page 125 - 131)
chapter 10 (page 219 - 239 but exclude pages 232 to 236)
chapter 11 (page 249 - 269)
chapter 12 (page 275 - 284)
chapter 13 (page 301 - 307)
chapter 14 (page 319 - 321)
chapter 15 (page 355 - 361)
chapter 16 (page 367 - 371)
1
,Table of Contents
CH1: What is Economics?...........................................................3
CH3: Demand & Supply..............................................................7
CH5: Efficiency & Equity.............................................................8
CH6: Government action in markets...........................................9
CH10: Output & Costs..............................................................10
CH11: Perfect Competition.......................................................12
CH12: Monopoly......................................................................14
CH13: Monopolistic Competition...............................................16
CH14: Oligopoly....................................................................... 17
CH15: Positive externalities.....................................................18
CH16: Negative externalities....................................................19
All formulas, surplusses and key terms.....................................20
2
, CH1: What is Economics?
A definition of economics
Scarcity refers to our inability to obtain everything we want. It is a
universal condition that affects all living things.
Example: Birds competing for pieces of bread experience scarcity because
the food available is limited.
In human society, what we can afford to buy depends on our income, and
what governments can provide depends on the taxes they collect.
Similarly, what society as a whole can produce is limited by the resources
available.
Because we cannot have everything we want, we must make choices -
and economics is the study of those choices. Our individual decisions must
also align with the decisions of others. For example, if you choose to buy a
laptop, someone else must choose to sell one. Incentives help coordinate
and reconcile these choices, guiding people’s decisions in the economy.
Incentive = Something that motivates or encourages a person to take a
certain action. It can be a reward or a penalty that influences behavior.
Economics = the social science that studies the choices that individuals,
businesses, governments and entire societies make as they cope with
scarcity and the incentives that influence and reconcile those choices.
Divided in two main parts:
1. Microeconomics: the study of the choices that individuals and
businesses make, the way these choices interact in markets and the
influence of governments.
2. Macroeconomics: the study of the performance of the national
economy and the global economy.
.
Two big economic questions summarise the scope of economics:
1. How do choices end up determining what, how and for whom goods
and services get produced?
2. When do choices made in the pursuit of self-interest also promote
the social interest?
3
International Business
Parkin textbook summary of:
chapter 1 (page 1 - 13)
chapter 3 (page 53 - 73)
chapter 5 (page 103 - 113)
chapter 6 (page 125 - 131)
chapter 10 (page 219 - 239 but exclude pages 232 to 236)
chapter 11 (page 249 - 269)
chapter 12 (page 275 - 284)
chapter 13 (page 301 - 307)
chapter 14 (page 319 - 321)
chapter 15 (page 355 - 361)
chapter 16 (page 367 - 371)
1
,Table of Contents
CH1: What is Economics?...........................................................3
CH3: Demand & Supply..............................................................7
CH5: Efficiency & Equity.............................................................8
CH6: Government action in markets...........................................9
CH10: Output & Costs..............................................................10
CH11: Perfect Competition.......................................................12
CH12: Monopoly......................................................................14
CH13: Monopolistic Competition...............................................16
CH14: Oligopoly....................................................................... 17
CH15: Positive externalities.....................................................18
CH16: Negative externalities....................................................19
All formulas, surplusses and key terms.....................................20
2
, CH1: What is Economics?
A definition of economics
Scarcity refers to our inability to obtain everything we want. It is a
universal condition that affects all living things.
Example: Birds competing for pieces of bread experience scarcity because
the food available is limited.
In human society, what we can afford to buy depends on our income, and
what governments can provide depends on the taxes they collect.
Similarly, what society as a whole can produce is limited by the resources
available.
Because we cannot have everything we want, we must make choices -
and economics is the study of those choices. Our individual decisions must
also align with the decisions of others. For example, if you choose to buy a
laptop, someone else must choose to sell one. Incentives help coordinate
and reconcile these choices, guiding people’s decisions in the economy.
Incentive = Something that motivates or encourages a person to take a
certain action. It can be a reward or a penalty that influences behavior.
Economics = the social science that studies the choices that individuals,
businesses, governments and entire societies make as they cope with
scarcity and the incentives that influence and reconcile those choices.
Divided in two main parts:
1. Microeconomics: the study of the choices that individuals and
businesses make, the way these choices interact in markets and the
influence of governments.
2. Macroeconomics: the study of the performance of the national
economy and the global economy.
.
Two big economic questions summarise the scope of economics:
1. How do choices end up determining what, how and for whom goods
and services get produced?
2. When do choices made in the pursuit of self-interest also promote
the social interest?
3
