First published in 1977, this is an applied economics text, in which the basic theory of any introductory economics couurse is applied to a whole range of UK macro- and micro-economic policy issues. The book is designed specifically for first and second year university students, with the aim of demonstrating the relevance of theory to policy, how theory can be applied to policy problems and, in the process, to improve their understanding of the theory itself.
Part 1: Methodology 1. The Economists' Approach to Policy Problems 2. Why do Governments Intervene in the Economy 3. An Alternative Explanation of Public Policies: An Economic Theory of Politics Part 2: Macro-Economic Policy 4. Unemployment 5. Inflation 6. The Balance of Payments 7. Economic Growth Part 3. Micro-Economic Policy 8. Price Controls, Markets and Income Distribution 9. Large Firms, Mergers and Public Policy 10. Monopoly, Mergers and Public Policy 1. Monopoly, Bureaucracy and Competition in the Public Sector 12. Subsidy Policy and the Regions 13. Subsidy Policy and Lame Ducks