Economics: some introductory topics

Abstract

The days when industrial relations was considered a branch of economics thankfully have passed. But nevertheless, there is a strong relationship between the industrial relations and economic systems. The economy, and the Government's attempts at managing it, impose constraints upon the industrial relations system. At the same time, the industrial relations system, in determining wage rates and conditions of work, affects the economy. This is the first of two papers which are designed to help industrial relations practitioners and students gain an insight into some aspects of economics. This paper presents some basic concepts: the working of markets, supply and demand, the pricing of industrial products, foreign trade, money, and Gross Domestic Product. These concepts are basic to a study of the labour market and to the issues of employment and inflation. The latter two topics are discussed in the subsequent Seminar Working Paper No. 9 Unemployment and inflation. The labour market will be discussed in a later volume. The issues in this paper are presented as simply as possible. Some may say that complicated issues have been oversimplified, our aim however is to introduce concepts. It is hoped that this introduction will provide further discussion of the issues. Take your time over each section and master the main ideas before you move on to the next section. Each section has a number of review questions at its conclusion; answers are provided at the end of the paper so you can check your understanding.