Economics

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This subtopic explores how responsive the quantity demanded of a good or service is to a change in its price. Students will learn to calculate and interpret price elasticity of demand (PED) and understand its significance for businesses and government policy. The concept is crucial for evaluating the impact of pricing strategies and taxation.

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Introduction to Economics

Introduction to Economics (Component 01) covers fundamental economic concepts, the role of economic agents (consumers, producers, government), the basic economic problem of scarcity, and the operation of markets, including demand, supply, price determination, competition, production, the labour market, and the role of money and financial institutions.

Main economic groups and factors of production

This topic introduces the fundamental economic agents (consumers, producers, and the government) and their interdependence, alongside the four factors of production (land, labour, capital, and enterprise) and how they are combined in the production process.

The basic economic problem

This topic introduces the fundamental economic problem of scarcity, where unlimited wants exceed finite resources. It covers the necessity of making choices, the concept of opportunity cost, and the central economic questions of what, how, and for whom to produce, while evaluating the sustainability of these choices.

The role of markets and money

This topic explores the fundamental mechanisms of markets, including the roles of consumers and producers, the determination of price through supply and demand, the nature of competition, production processes, the labour market, and the essential role of money and financial institutions in the economy.

The role of markets

This topic covers the fundamental role of markets in an economy, including the definition of a market, the classification of economic sectors, the distinction between factor and product markets, and the evaluation of specialisation and exchange.

Demand

This topic covers the concept of demand, including the graphical representation of demand curves, movements along and shifts of the curve, and the analysis of price elasticity of demand (PED) and its significance for consumers and producers.

Supply

This topic covers the concept of supply in a market economy, including the definition of supply, the construction and interpretation of supply curves, factors causing shifts in and movements along the supply curve, the concept of price elasticity of supply, and its importance to producers and consumers.

Price

This topic explores the role of price in a market economy, focusing on how price acts as a reflection of worth, its function in resource allocation, and the determination of equilibrium price and quantity through the interaction of demand and supply.

Competition

This topic explores the nature of competition within a market economy, focusing on why producers compete, the impact of competition on prices and consumers, and the characteristics of different market structures such as monopoly and oligopoly.

Production

This topic covers the role of producers in an economy, the importance of production and productivity, the calculation and analysis of costs, revenues, and profits, and the concept of economies of scale.

The labour market

This topic covers the operation of the labour market, focusing on the interaction between workers and employers, the determination of wages through supply and demand, and the calculation of pay including deductions.

The role of money and financial markets

This topic covers the fundamental role of money as a medium of exchange and the function of the financial sector within the economy. It examines the roles of various financial institutions, the impact of interest rates on economic agents, and the importance of the financial sector for consumers, producers, and the government.

Economic objectives and the role of government

This topic covers the main economic objectives of the government, including economic growth, low unemployment, fair distribution of income, and price stability. It also examines the role of government in achieving these objectives through fiscal, monetary, and supply-side policies, as well as addressing market limitations such as externalities.

Economic growth

This topic covers the definition, measurement, and analysis of economic growth, including the factors that drive it and an evaluation of its costs and benefits regarding sustainability.

Low unemployment

This topic covers the definition and measurement of employment and unemployment, including the Claimant Count and unemployment rate. It explores the different types of unemployment (cyclical, frictional, seasonal, and structural) and requires an evaluation of the causes and consequences of unemployment for individuals, regions, and the government.

Fair distribution of income

This topic covers the concept of income distribution, distinguishing between income and wealth, and evaluating the causes and consequences of inequalities in their distribution within an economy.

Price stability

This topic covers the concept of price stability, the definition and measurement of inflation using the Consumer Price Index (CPI), the distinction between real and nominal values, and the analysis of inflation's causes and consequences for various economic agents.

Fiscal policy

This topic covers the role of fiscal policy as a government tool to manage the economy. It includes the study of government spending and revenue sources (direct and indirect taxes), the concepts of budget balances (surplus, deficit, and balanced budget), and the evaluation of fiscal policy's impact on achieving economic objectives and redistributing income.

Monetary policy

Monetary policy involves the use of interest rates and other monetary tools by the central bank to influence the economy and achieve government economic objectives such as price stability, economic growth, and employment levels.

Supply side policies

Supply side policies are government strategies designed to increase the productive capacity of the economy by improving the efficiency and competitiveness of markets, thereby helping to achieve economic objectives.

Limitations of markets

This topic explores the limitations of markets, specifically focusing on market failure through positive and negative externalities, and the various government interventions used to correct these failures.

International trade and the global economy

This topic explores the role of international trade in the global economy, focusing on why countries trade, the balance of payments, exchange rates, and the impact of globalisation on different types of economies.

Importance of international trade

This topic covers the fundamental reasons why countries engage in international trade, focusing on the motivations for importing and exporting goods and services, and the resulting benefits for both consumers and producers.

Balance of payments

This topic covers the balance of payments on current account, including the concepts of balanced, surplus, and deficit accounts, the role of international trade, and the analysis of trade data.

Exchange rates

This topic covers the determination of exchange rates through the interaction of supply and demand, the calculation of currency conversions, the analysis of historical and recent exchange rate data, and the evaluation of the effects of exchange rate changes on consumers and producers.

Globalisation

This topic covers the concept of globalisation, including its driving factors, methods of measuring development, and an evaluation of the costs and benefits of globalisation for various stakeholders in both developed and less developed countries, with a focus on sustainability.