1 Introduction: The Basic Economic Problem
Explain with examples the meaning of opportunity cost as it is faced by individuals, firms and governments.
Concepts: Scarcity, Choice, Opportunity Cost, Production Possibility Curves.
2 The Price Mechanism
Describe and explain the effects on equilibrium price and output of changes in demand and supply.
Concepts: Determinants of demand and supply, price elasticity of demand, elasticity of supply
3 Types of Market
Describe and analyse oligopolistic competition with reference to a current example.
Concepts: Characteristics of oligopoly, Kinked demand curve, differentiation.
4 Describe and explain the effect of investment in a large project (the building of dams, bridges, roads, railways, airports, car factories and so on) on an economy of your choice.
Circular Flow of Income, injections, withdrawals, multiplier, national income.
5 Explain the causes of inflation and the effect of high inflation and measures the government can take to control inflation.
Demand-pull, cost-push, monetary. Effects on individuals, firms and the economy.
6 Explain the causes and effects of unemployment.
Structural, Cyclical, Technological, Seasonal. Effects on individuals, firms and the economy.