Free trade
The benefits of free trade are examined in this program. The program expands on the concept of specialization by distinguishing between absolute advantage and comparative advantage. The need for adjustment assistance for displaced workers is also ex...
The issues and methods of economics
This program describes economics as the study of choices: the concept of opportunity cost illustrates how society makes choices. Other key topics are the trade-off between efficiency and equity objectives; positive and normative statements; and supp...
Demand Theory: Household Behavior
This program explains the theory of household behavior, outlines the law of diminishing marginal utility, and introduces the household's optimal purchase rule. The program also shows how diminishing marginal utility contributes to consumer surplus, ...
Supply and demand
This program explains how economists use elasticity to measure how demand responds to price. The program also discusses factors that cause shifts in supply and demand and how "the invisible hand" works in free markets and what happens when price con...
Supply theory: the behavior of profit-maximizing firms
This program examines the theory of the firm, which is based on the assumption of profit maximization. The program explains the optimal hiring rule and the optimal output decision, and explores several methods of illustrating a firm's revenue and co...
Stabilization policy for a small open economy
This program analyzes a small, open economy, such as Canada's, where financial markets are integrated with world financial markets. The program shows that the interest rate of a small, open economy is determined by the rest of the world, and looks a...