Scarcity, choice and opportunity cost, the factors of production, and the production possibility curve.
The laws of demand and supply, their determinants, market equilibrium, and how price changes clear a market.
Price elasticity of demand and supply, their calculation, determinants, and the link to total revenue.
Externalities, merit and demerit goods, public goods, and how governments intervene to correct market failure.
The functions and characteristics of money, and the roles of commercial banks and the central bank.
How and why households spend, save and borrow, and the influences on each.
How wages are set, why wages differ between occupations, the role of trade unions, and specialisation.
Types and sizes of firms, production and productivity, costs and revenue, and economies of scale.
Competitive markets, monopoly, the features and effects of each, and the consequences for consumers.
The four main macroeconomic aims — growth, low unemployment, price stability and balance of payments — and conflicts between them.
The three main policy tools and how governments use them to control inflation, unemployment and growth.
Measuring living standards, comparing developed and developing economies, poverty, and population.
Specialisation and trade, protectionism, the balance of payments, exchange rates, and globalisation.