Actual growth versus potential growth in national output
Addressing the non-provision of public goods
Addressing the over-consumption of demerit goods and the under-consumption of merit goods
An understanding of other objectives of firms: survival
Autonomous and induced investment; the accelerator
Average and marginal propensities to consume (apc and mpc)
Average and marginal propensities to import (apm and mpm)
Average and marginal rates of tax (art and mrt)
Basic questions of resource allocation
Behavioural insights and ‘nudge’ theory
Business (trade) cycle: phases of the cycle
Calculation of effect of changing AD on national income using the multiplier
Calculation of: average and marginal propensities to save (aps and mps)
Causes and consequences of shifts in a PPC
Causes of a shift in the budget line
Causes of a shift in the demand curve (D)
Causes of a shift in the supply curve (S)
Causes of changes in consumer and producer surplus
Causes of market failure: missing markets
Causes of shifts in and movement along the demand curve for labour in a firm or an occupation
Causes of shifts in and movement along the supply curve of labour to a firm or to an occupation
Changes in the balance of payments
Changes in the exchange rate under different exchange rate systems
Characteristics of different market structures: perfect competition
Classification of economies in terms of their level of development
Classification of economies in terms of their level of national income
Comparison of economic growth rates and living standards: over time
Composite indicators: Human Development Index (HDI)
Consequences of government failure
Consequences of price discrimination
Cost-minimising choice of factor inputs
Decision-making in market, planned and mixed economies
Definition and calculation of total utility and marginal utility
Definition of market equilibrium and disequilibrium
Definition of price elasticity of supply (PES)
Definition of price elasticity, income elasticity and cross elasticity of demand (PED, YED, XED)
Definition, functions and characteristics of money
Demand for labour as a derived demand
Demand for money: liquidity preference theory
Derivation of an individual demand curve
Derivation of an individual firm’s demand for labour using marginal revenue product
Determination of exchange rates under fixed and managed systems
Determination of wage differentials by labour market forces
Difference between equity and efficiency
Difference between equity and equality
Difference between expenditure-switching and expenditure-reducing policies
Difference between human capital and physical capital
Distinction between a free trade area, a customs union, a monetary union and full economic union
Distinction between absolute poverty and relative poverty
Distinction between private, external and social costs and benefits
Distinction between revaluation and devaluation of a fixed exchange rate
Distinction between social optimum and market equilibrium
Distinction between the shift in the demand or supply curve and the movement along these curves
Division of labour and specialisation
Economic structure: employment composition: primary, secondary and tertiary sectors
Effects of shifts in demand and supply curves on equilibrium price and quantity
Equilibrium and disequilibrium unemployment (including hysteresis)
Existence of government failure in macroeconomic policies
Expectations-augmented Phillips curve (short- and long-run Phillips curve)
External growth (mergers and acquisitions): horizontal, vertical and lateral integration
Externalities: positive and negative
Factors affecting demand for labour in a firm or an occupation
Factors affecting labour mobility
Factors affecting price elasticity of supply
Factors affecting the supply of labour to a firm or to an occupation: wage and non-wage factors
Factors affecting transfer earnings and economic rent in an occupation
Factors affecting: cross elasticity of demand
Factors affecting: income elasticity of demand
Factors affecting: price elasticity of demand
Foreign Direct Investment (FDI): definition of FDI
Formula for and calculation of price elasticity of supply
Formulae for and calculation of price elasticity, income elasticity and cross elasticity of demand
Functions of commercial banks: providing deposit accounts (demand deposit account, savings account)
Fundamental economic problem of scarcity
Government failure in microeconomic intervention: definition of government failure
Holding or providing cash, securities, loans, deposits, equity
Impact of economic growth on equity and equality
Impact of economic growth on the environment and climate change
Implications for speed and ease with which firms react to changed market conditions
Importance of the time period (short run, long run, very long run)
Inclusive economic growth: definition of inclusive economic growth
Income distribution: calculation of Gini coefficient and Lorenz curve analysis
Individual and market demand and supply
Influence of monopsony employers on wage determination and employment in a labour market
Interest rate determination: loanable funds theory and Keynesian theory
Internal and external economies and diseconomies of scale
International aid: forms of aid
Issues of comparison using monetary indicators
Lending money (overdrafts, loans)
Limitations of marginal utility theory and its assumptions of rational behaviour
Marginal revenue product (MRP) theory: definition and calculation of marginal revenue product
Meaning and significance of consumer surplus
Meaning and significance of producer surplus
Meaning of an indifference curve and a budget line
Meaning of globalisation and its causes and consequences
Meaning of the term ceteris paribus
Measure of Economic Welfare (MEW)
Measurement of exchange rates: distinction between nominal and real exchange rates
Mobility of labour: forms of labour mobility: geographical and occupational
Multidimensional Poverty Index (MPI)
National income determination using AD and income approach with the multiplier process
Nationalisation and privatisation
Natural rate of unemployment: definition
Nature and definition of factors of production: land, labour, capital and enterprise
Nature and definition of free goods and private goods (economic goods)
Nature and definition of opportunity cost, arising from choices
Nature and definition of public goods
Nature and meaning of a production possibility curve (PPC)
Need to make choices at all levels (individuals, firms, governments)
Net exports (exports minus imports)
Objectives of commercial banks: liquidity, security, profitability
Other pricing policies: limit pricing
Pattern of trade at different levels of development
Patterns and trends in (un)employment
Policies to mitigate the impact of economic growth on the environment and climate change
Policies to promote economic growth and their effectiveness
Policies to promote inclusive growth
Policies to reduce inflation and their effectiveness
Policies to reduce unemployment and their effectiveness
Policies towards equity and equality, for example: negative income tax
Positive and negative output gaps
Positive and normative statements (the distinction between facts and value judgements)
Price discrimination – first, second and third degree: conditions for effective price discrimination
Problems and conflicts arising from the outcome of these policies
Profit maximisation as the main objective of a firm
Profit: normal profit, sub-normal profit and supernormal profit
Public goods and private goods
Quantity theory of money (MV = PT)
Reasons for the growth of firms
Reasons for the survival of small firms
Relationship between growth and inflation
Relationship between growth and the balance of payments
Relationship between inflation and unemployment: traditional Phillips curve
Relationship between price elasticity of demand and total expenditure on a product
Relationship between the balance of payments and inflation
Relationship between the internal value of money and the external value of money
Relationships between different markets: alternative demand (substitutes)
Relationships between different markets: derived demand
Relationships between different markets: joint demand (complements)
Relationships between different markets: joint supply
Reserve ratio and capital ratio
Resource allocation in these economic systems
Rewards to the factors of production
Role of multinational companies (MNCs): definition of MNC
Role of the International Monetary Fund (IMF)
Savings function: autonomous and induced savings
Shape of the PPC: constant and increasing opportunity costs
Short-run and long-run production
Significance of a position within a PPC
Significance of price elasticity of demand and of supply in determining the extent of these changes
Supply-side policy including market-based and interventionist policies
Sustainable economic growth: definition of sustainable economic growth
The concept of static and dynamic efficiency
The efficiency of different market structures
The multiplier process: definition of the multiplier
The types of growth: internal growth
The welfare loss resulting from consumption and production externalities
Trade creation and trade diversion
Traditional profit-maximising objective of firms
Transfer earnings and economic rent: definition of transfer earnings
Types of efficiency: productive, allocative and dynamic
Universal benefits and means-tested benefits
Using and conserving resources
Variation in price elasticity of demand along the length of a straight-line demand curve
Voluntary and involuntary unemployment
Wage determination in perfect markets: equilibrium wage rate and employment in a labour market