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Economic theory

Beyond A-level

First-year university and Oxbridge-interview economics: consumer theory, games, information, and the models that come after A-level.

Start: Budget constraints and utility maximisation

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The 14 modules

Each module teaches one idea: a definition, how it works, and questions through the page. Take them in any order.

1Budget constraints and utility maximisationChoose the best bundle a budget allows, where marginal utility per pound is equalDiagram · 8 min · Free 2Indifference curvesDraw indifference curves and a budget line and find the consumer's optimumDiagram · 9 min 3Income and substitution effects on a diagramSplit a price change into its substitution and income effectsDiagram · 9 min 4The labour-leisure choiceShow why a wage rise can make people work more or lessDiagram · 8 min 5Nash equilibrium and the prisoner's dilemmaFind a Nash equilibrium and say why it can leave both players worse offHow it works · 9 min 6Repeated games and cooperationSay why repeating a game can sustain cooperation, and when it breaks downHow it works · 9 min 7The Coase theoremJudge when bargaining can fix an externality without a taxDebate · 9 min 8Adverse selection and the market for lemonsExplain how hidden quality can shrink or destroy a marketHow it works · 9 min 9Present value and discountingWork out what a future sum is worth todayCalculation · 9 min 10The Keynesian crossFind equilibrium income where planned spending equals outputDiagram · 8 min 11The IS-LM modelShow how fiscal and monetary policy move output and interest rates in IS-LMDiagram · 7 min 12The Solow growth modelExplain the steady state and why poor countries may catch upDiagram · 8 min 13Behavioural economics beyond the textbookJudge what prospect theory and present bias add to the rational modelDebate · 9 min 14Public choice and the median voterExplain why majority voting can produce outcomes few people wantHow it works · 9 min

Practise this category: 10 quick questions