Scarcity, choice and opportunity cost - fundamental economic problem of scarcity

Scarcity, choice and opportunity cost - need to make choices at all levels (individuals, firms, governments)

Scarcity, choice and opportunity cost - nature and definition of opportunity cost, arising from choices

Scarcity, choice and opportunity cost - basic questions of resource allocation

Economic methodology - economics as a social science

Economic methodology - positive and normative statements (the distinction between facts and value judgements)

Economic methodology - meaning of the term ceteris paribus

Economic methodology - importance of the time period (short run, long run, very long run)

Factors of production - nature and definition of factors of production: land, labour, capital and enterprise

Factors of production - difference between human capital and physical capital

Factors of production - rewards to the factors of production

Factors of production - division of labour and specialisation

Factors of production - role of the entrepreneur in contemporary economies: risk and organisation of the other factors of production

Resource allocation in different economic systems - decision-making in market, planned and mixed economies

Resource allocation in different economic systems - resource allocation in these economic systems

Production possibility curves - nature and meaning of a production possibility curve (PPC)

Production possibility curves - shape of the PPC: constant and increasing opportunity costs

Production possibility curves - causes and consequences of shifts in a PPC

Production possibility curves - significance of a position within a PPC

Classification of goods and services - nature and definition of free goods and private goods (economic goods)

Classification of goods and services - nature and definition of public goods

Classification of goods and services - nature and definition of merit goods: under-consumption as a result of imperfect information in the market

Classification of goods and services - nature and definition of demerit goods: over-consumption as a result of imperfect information in the market

Demand and supply curves - effective demand

Demand and supply curves - individual and market demand and supply

Demand and supply curves - determinants of demand

Demand and supply curves - determinants of supply

Demand and supply curves - causes of a shift in the demand curve (D)

Demand and supply curves - causes of a shift in the supply curve (S)

Demand and supply curves - distinction between the shift in the demand or supply curve and the movement along these curves

Price elasticity, income elasticity and cross elasticity of demand - definition of price elasticity, income elasticity and cross elasticity of demand (PED, YED, XED)

Price elasticity, income elasticity and cross elasticity of demand - formulae for and calculation of price elasticity, income elasticity and cross elasticity of demand

Price elasticity, income elasticity and cross elasticity of demand - significance of relative percentage changes, the size and sign of the coefficient of: price elasticity of demand

Price elasticity, income elasticity and cross elasticity of demand - significance of relative percentage changes, the size and sign of the coefficient of: income elasticity of demand

Price elasticity, income elasticity and cross elasticity of demand - significance of relative percentage changes, the size and sign of the coefficient of: cross elasticity of demand

Price elasticity, income elasticity and cross elasticity of demand - descriptions of elasticity values: perfectly elastic, (highly) elastic, unitary elasticity, (highly) inelastic, perfectly inelastic

Price elasticity, income elasticity and cross elasticity of demand - variation in price elasticity of demand along the length of a straight-line demand curve

Price elasticity, income elasticity and cross elasticity of demand - factors affecting: price elasticity of demand

Price elasticity, income elasticity and cross elasticity of demand - factors affecting: income elasticity of demand

Price elasticity, income elasticity and cross elasticity of demand - factors affecting: cross elasticity of demand

Price elasticity, income elasticity and cross elasticity of demand - relationship between price elasticity of demand and total expenditure on a product

Price elasticity, income elasticity and cross elasticity of demand - implications for decision-making of price elasticity, income elasticity and cross elasticity of demand

Price elasticity of supply - definition of price elasticity of supply (PES)

Price elasticity of supply - formula for and calculation of price elasticity of supply

Price elasticity of supply - significance of relative percentage changes, the size and sign of the coefficient of price elasticity of supply

Price elasticity of supply - factors affecting price elasticity of supply

Price elasticity of supply - implications for speed and ease with which firms react to changed market conditions

The interaction of demand and supply - definition of market equilibrium and disequilibrium

The interaction of demand and supply - effects of shifts in demand and supply curves on equilibrium price and quantity

The interaction of demand and supply - relationships between different markets: joint demand (complements)

The interaction of demand and supply - relationships between different markets: alternative demand (substitutes)

The interaction of demand and supply - relationships between different markets: derived demand

The interaction of demand and supply - relationships between different markets: joint supply

The interaction of demand and supply - functions of price in resource allocation; rationing, signalling (transmission of preferences) and incentivising

Consumer and producer surplus - meaning and significance of consumer surplus

Consumer and producer surplus - meaning and significance of producer surplus

Consumer and producer surplus - causes of changes in consumer and producer surplus

Consumer and producer surplus - significance of price elasticity of demand and of supply in determining the extent of these changes

Reasons for government intervention in markets - addressing the non-provision of public goods

Reasons for government intervention in markets - addressing the over-consumption of demerit goods and the under-consumption of merit goods

Reasons for government intervention in markets - controlling prices in markets

Utility - definition and calculation of total utility and marginal utility

Utility - diminishing marginal utility

Utility - equi-marginal principle

Utility - derivation of an individual demand curve

Utility - limitations of marginal utility theory and its assumptions of rational behaviour

Indifference curves and budget lines - meaning of an indifference curve and a budget line

Causes of a shift in the budget - Causes of a shift in the budget line

Efficiency and market failure - Types of efficiency: productive, allocative and dynamic

Efficiency and market failure - The concept of static and dynamic efficiency

Efficiency and market failure - Causes of market failure: missing markets

Efficiency and market failure - merit goods and demerit goods

Efficiency and market failure - public goods and private goods

Efficiency and market failure - externalities: positive and negative

Efficiency and market failure - imperfect information

Efficiency and market failure - market dominance

Private costs and benefits, externalities and social costs and benefits - distinction between private, external and social costs and benefits

Private costs and benefits, externalities and social costs and benefits - distinction between social optimum and market equilibrium

Private costs and benefits, externalities and social costs and benefits - the welfare loss resulting from consumption and production externalities

Types of cost, revenue and profit, short-run and long-run production - Short-run and long-run production

Types of cost, revenue and profit, short-run and long-run production - Short-run and long-run costs

Types of cost, revenue and profit, short-run and long-run production - Internal and external economies and diseconomies of scale

Types of cost, revenue and profit, short-run and long-run production - Cost-minimising choice of factor inputs

Types of cost, revenue and profit, short-run and long-run production - Revenue

Types of cost, revenue and profit, short-run and long-run production - Profit: normal profit, sub-normal profit and supernormal profit

Types of cost, revenue and profit, short-run and long-run production - Profit maximisation as the main objective of a firm

Different market structures - Characteristics of different market structures: perfect competition

Different market structures - monopolistic competition

Different market structures - oligopoly

Different market structures - monopoly

Different market structures - The efficiency of different market structures

Growth and survival of firms - Reasons for the growth of firms

Growth and survival of firms - The types of growth: internal growth

Growth and survival of firms - external growth (mergers and acquisitions): horizontal, vertical and lateral integration

Growth and survival of firms - Reasons for the survival of small firms

Differing objectives and policies of firms - traditional profit-maximising objective of firms

Differing objectives and policies of firms - an understanding of other objectives of firms: survival

Differing objectives and policies of firms - profit satisficing

Differing objectives and policies of firms - sales maximisation

Differing objectives and policies of firms - revenue maximisation

Differing objectives and policies of firms - price discrimination – first, second and third degree: conditions for effective price discrimination

Differing objectives and policies of firms - consequences of price discrimination

Differing objectives and policies of firms - other pricing policies: limit pricing

Differing objectives and policies of firms - predatory pricing

Differing objectives and policies of firms - price leadership

Differing objectives and policies of firms - relationship between price elasticity of demand and a firm’s revenue: in a normal downward sloping demand curve

Differing objectives and policies of firms - in a kinked demand curve

Government policies to achieve efficient resource allocation and correct market failure - application and effectiveness of measures to tackle different forms of market failure: specific and ad valorem indirect taxes

Government policies to achieve efficient resource allocation and correct market failure - subsidies

Government policies to achieve efficient resource allocation and correct market failure - price controls

Government policies to achieve efficient resource allocation and correct market failure - production quotas

Government policies to achieve efficient resource allocation and correct market failure - prohibitions and licences

Government policies to achieve efficient resource allocation and correct market failure - regulation and deregulation

Government policies to achieve efficient resource allocation and correct market failure - direct provision

Government policies to achieve efficient resource allocation and correct market failure - pollution permits

Government policies to achieve efficient resource allocation and correct market failure - property rights

Government policies to achieve efficient resource allocation and correct market failure - nationalisation and privatisation

Government policies to achieve efficient resource allocation and correct market failure - provision of information

Government policies to achieve efficient resource allocation and correct market failure - behavioural insights and ‘nudge’ theory

Government policies to achieve efficient resource allocation and correct market failure - government failure in microeconomic intervention: definition of government failure

Government policies to achieve efficient resource allocation and correct market failure - causes of government failure

Government policies to achieve efficient resource allocation and correct market failure - consequences of government failure

Equity and redistribution of income and wealth - difference between equity and equality

Equity and redistribution of income and wealth - difference between equity and efficiency

Equity and redistribution of income and wealth - distinction between absolute poverty and relative poverty

Equity and redistribution of income and wealth - the poverty trap

Equity and redistribution of income and wealth - policies towards equity and equality, for example: negative income tax

Equity and redistribution of income and wealth - universal benefits and means-tested benefits

Equity and redistribution of income and wealth - universal basic income

Labour market forces and government intervention - demand for labour as a derived demand

Labour market forces and government intervention - factors affecting demand for labour in a firm or an occupation

Labour market forces and government intervention - causes of shifts in and movement along the demand curve for labour in a firm or an occupation

Labour market forces and government intervention - marginal revenue product (MRP) theory: definition and calculation of marginal revenue product

Labour market forces and government intervention - derivation of an individual firm’s demand for labour using marginal revenue product

Labour market forces and government intervention - factors affecting the supply of labour to a firm or to an occupation: wage and non-wage factors

Labour market forces and government intervention - causes of shifts in and movement along the supply curve of labour to a firm or to an occupation

Labour market forces and government intervention - wage determination in perfect markets: equilibrium wage rate and employment in a labour market

Labour market forces and government intervention - wage determination in imperfect markets: influence of trade unions on wage determination and employment in a labour market

Labour market forces and government intervention - influence of government on wage determination and employment in a labour market using a national minimum wage

Labour market forces and government intervention - influence of monopsony employers on wage determination and employment in a labour market

Labour market forces and government intervention - determination of wage differentials by labour market forces

Labour market forces and government intervention - transfer earnings and economic rent: definition of transfer earnings

Labour market forces and government intervention - definition of economic rent

Labour market forces and government intervention - factors affecting transfer earnings and economic rent in an occupation

The circular flow of income - the multiplier process: definition of the multiplier

The circular flow of income - formulae for and calculation of multiplier in a closed and open economy, with and without a government sector

The circular flow of income - calculation of: average and marginal propensities to save (aps and mps)

The circular flow of income - average and marginal propensities to consume (apc and mpc)

The circular flow of income - average and marginal propensities to import (apm and mpm)

The circular flow of income - average and marginal rates of tax (art and mrt)

The circular flow of income - national income determination using AD and income approach with the multiplier process

The circular flow of income - calculation of effect of changing AD on national income using the multiplier

The circular flow of income - components of Aggregate Demand (AD) and their determinants: consumption function: autonomous and induced consumer expenditure

The circular flow of income - savings function: autonomous and induced savings

The circular flow of income - autonomous and induced investment; the accelerator

The circular flow of income - government spending

The circular flow of income - net exports (exports minus imports)

The circular flow of income - full employment level of national income and equilibrium level of national income: inflationary and deflationary gaps

Economic growth and sustainability - actual growth versus potential growth in national output

Economic growth and sustainability - positive and negative output gaps

Economic growth and sustainability - business (trade) cycle: phases of the cycle

Economic growth and sustainability - causes of the cycle

Economic growth and sustainability - role of automatic stabilisers

Economic growth and sustainability - policies to promote economic growth and their effectiveness

Economic growth and sustainability - inclusive economic growth: definition of inclusive economic growth

Economic growth and sustainability - impact of economic growth on equity and equality

Economic growth and sustainability - policies to promote inclusive growth

Economic growth and sustainability - sustainable economic growth: definition of sustainable economic growth

Economic growth and sustainability - using and conserving resources

Economic growth and sustainability - impact of economic growth on the environment and climate change

Economic growth and sustainability - policies to mitigate the impact of economic growth on the environment and climate change

Employment/unemployment - definition of full employment

Employment/unemployment - equilibrium and disequilibrium unemployment (including hysteresis)

Employment/unemployment - voluntary and involuntary unemployment

Employment/unemployment - natural rate of unemployment: definition

Employment/unemployment - determinants

Employment/unemployment - policy implications

Employment/unemployment - patterns and trends in (un)employment

Employment/unemployment - mobility of labour: forms of labour mobility: geographical and occupational

Employment/unemployment - factors affecting labour mobility

Employment/unemployment - policies to reduce unemployment and their effectiveness

Money and banking - definition, functions and characteristics of money

Money and banking - definition of money supply

Money and banking - quantity theory of money (MV = PT)

Money and banking - functions of commercial banks: providing deposit accounts (demand deposit account, savings account)

Money and banking - lending money (overdrafts, loans)

Money and banking - holding or providing cash, securities, loans, deposits, equity

Money and banking - reserve ratio and capital ratio

Money and banking - objectives of commercial banks: liquidity, security, profitability

Money and banking - causes of changes in the money supply in an open economy: commercial banks as sources of credit creation and the bank credit multiplier

Money and banking - role of a central bank

Money and banking - government deficit financing

Money and banking - quantitative easing

Money and banking - changes in the balance of payments

Money and banking - policies to reduce inflation and their effectiveness

Money and banking - demand for money: liquidity preference theory

Money and banking - interest rate determination: loanable funds theory and Keynesian theory

Government macroeconomic policy objectives - objectives in terms of inflation, balance of payments, unemployment, growth, development, sustainability and redistribution of income and wealth

Links between macroeconomic problems and their interrelatedness - relationship between the internal value of money and the external value of money

Links between macroeconomic problems and their interrelatedness - relationship between the balance of payments and inflation

Links between macroeconomic problems and their interrelatedness - relationship between growth and inflation

Links between macroeconomic problems and their interrelatedness - relationship between growth and the balance of payments

Links between macroeconomic problems and their interrelatedness - relationship between inflation and unemployment: traditional Phillips curve

Links between macroeconomic problems and their interrelatedness - expectations-augmented Phillips curve (short- and long-run Phillips curve)

Effectiveness of policy options to meet all macroeconomic objectives - effectiveness of different policies in relation to different macroeconomic objectives: fiscal policy including Laffer curve analysis

Effectiveness of policy options to meet all macroeconomic objectives - monetary policy

Effectiveness of policy options to meet all macroeconomic objectives - supply-side policy including market-based and interventionist policies

Effectiveness of policy options to meet all macroeconomic objectives - exchange rate policy

Effectiveness of policy options to meet all macroeconomic objectives - international trade policy

Effectiveness of policy options to meet all macroeconomic objectives - problems and conflicts arising from the outcome of these policies

Effectiveness of policy options to meet all macroeconomic objectives - existence of government failure in macroeconomic policies

Policies to correct disequilibrium in the balance of payments - components of the balance of payments accounts: current account, financial account and capital account

Policies to correct disequilibrium in the balance of payments - effect of fiscal, monetary, supply-side, protectionist and exchange rate policies on the balance of payments

Policies to correct disequilibrium in the balance of payments - difference between expenditure-switching and expenditure-reducing policies

Exchange rates - measurement of exchange rates: distinction between nominal and real exchange rates

Exchange rates - trade-weighted exchange rates

Exchange rates - determination of exchange rates under fixed and managed systems

Exchange rates - distinction between revaluation and devaluation of a fixed exchange rate

Exchange rates - changes in the exchange rate under different exchange rate systems

Exchange rates - the effects of changing exchange rates on the external economy using Marshall-Lerner and J curve analysis

Economic development - classification of economies in terms of their level of development

Economic development - classification of economies in terms of their level of national income

Economic development - indicators of living standards and economic development: monetary indicators including real per capita national income statistics (GDP, GNI, NNI) and purchasing power parity

Economic development - issues of comparison using monetary indicators

Economic development - non-monetary indicators

Economic development - composite indicators: Human Development Index (HDI)

Economic development - Measure of Economic Welfare (MEW)

Economic development - Multidimensional Poverty Index (MPI)

Economic development - the Kuznets curve

Economic development - comparison of economic growth rates and living standards: over time

Economic development - between countries

Characteristics of countries at different levels of development - population growth and structure: measurement and causes of changes in birth rate, death rate, infant mortality and net migration

Characteristics of countries at different levels of development - optimum population

Characteristics of countries at different levels of development - level of urbanisation

Characteristics of countries at different levels of development - income distribution: calculation of Gini coefficient and Lorenz curve analysis

Characteristics of countries at different levels of development - economic structure: employment composition: primary, secondary and tertiary sectors

Characteristics of countries at different levels of development - pattern of trade at different levels of development

Relationship between countries at different levels of development - international aid: forms of aid

Relationship between countries at different levels of development - reasons for giving aid

Relationship between countries at different levels of development - effects of aid

Relationship between countries at different levels of development - importance of aid

Relationship between countries at different levels of development - trade and investment

Relationship between countries at different levels of development - role of multinational companies (MNCs): definition of MNC

Relationship between countries at different levels of development - activities of MNCs

Relationship between countries at different levels of development - consequences of MNCs

Relationship between countries at different levels of development - Foreign Direct Investment (FDI): definition of FDI

Relationship between countries at different levels of development - consequences of FDI

Relationship between countries at different levels of development - external debt: causes of debt

Relationship between countries at different levels of development - consequences of debt

Relationship between countries at different levels of development - role of the International Monetary Fund (IMF)

Relationship between countries at different levels of development - role of the World Bank

Globalisation - meaning of globalisation and its causes and consequences

Globalisation - distinction between a free trade area, a customs union, a monetary union and full economic union

Globalisation - trade creation and trade diversion