Economics 101 (#21) Capital and Interest

December 1, 2011

The 3rd Factor of Production (FOP) we’ll go through is Capital (and the reward for providing it, interest). Capital is defined as anything made by man and used in the production of goods/services

Heres the PDF PIIGSTY Econ 101 #21 Capital and Interest Rates

 

How do interest rate changes affect the wider economy?

 


Economics 101 (#20) Labour and Wages

December 1, 2011

The 2nd Factor of Production (FOP) we’ll go through is Labour (and the reward for providing it, wages). Labour is defined as any human effort which goes into the production of goods/services.

Heres the PDF PIIGSTY Econ 101 #20 Labour and Wages


Economics 101 (#19) Land and Rent

December 1, 2011

The 1st Factor of Production (FOP) we’ll go through is Land (and the reward for providing it, rent). Land is defined as anything supplied by nature and used in the production of goods/services i.e. forests, farmland, rivers, seas and mineral wealth.

Heres the PDF PIIGSTY Econ 101 #19 Land and Rent

 


Economics 101 (#18) Markets for Factors of Production

November 4, 2011

Whenever you produce a good/service, you need a certain combination of each of the 4 factors of production (FOPs). Some are more labour intensive than others (such as manufacturing). Some are more land intensive (such as farming). Some are more enterprise intensive (such as new technology ideas i.e. IPods).

Heres the PDF PIIGSTY Econ 101 #18 Markets for FOPs

 


Economics 101 (#17) Price Discrimination

November 4, 2011

Next up in our Econ 101 classes is Price Discrimination. This is defined as the selling of a good (or service) to different consumers at different prices, where such prices aren’t caused by differences in cost.

Heres the PDF PIIGSTY Econ 101 #17 Price Discrimination



Economics 101 (#16) Monopoly (Market Structure 4)

November 4, 2011

The final market structure is ‘Monopoly‘ (and no, nothing to do with passing ‘GO’ and receiving €200). In fact, there are no competing players…theres only one firm which can use its unhindered market power to control price and quantity supplied – to earn maximum profitability and exclude other firms from competing with it.

After you study this, refer back to Econ 101 #11 to compare the short run (SR) and long run (LR) graphs of all 4 market structures.

Heres the PDF PIIGSTY Econ 101 #16 Monopoly



Economics 101 (#15) Oligopoly (Market Structure 3)

October 28, 2011

An often overlooked market structure is that of Oligopoly. This is far less competitive (and efficient) than the previous two. This is where a small number of large firms supply similar products in an industry. Each firms actions is influenced by the potential (forecast) retaliatory actions of its rival – which usually results in price stability (because noone wants to start a costly price war with its rivals!)

This one has quite an unusual SR equilibrium graph (the ‘Kinked’ Demand curve)…

Heres the PDF PIIGSTY Econ 101 #15 Oligopoly