Some Basic Concepts in Economics

There are some concepts used by economists which it is appropriate should be explained at the outset, in order that the flow of the argument in later chapters is not interrupted by a digression to explain their meaning. First, the meaning of market as opposed to industry is considered. There follows a discussion of various types of cost, and of price and profit. The nature of marginal analysis and the concepts of supply and demand are then explained and, finally, two ways of handling economic data for analysis are described. For further definitions of terms, the reader is referred to the index where page references to definitions and explanations of the use of a term are shown in heavy type.