Scarcity, choice and opportunity cost, the production possibility curve, the basic economic questions, factors of production, and thinking at the margin.
The laws of demand and supply, their determinants, shifts versus movements, and equilibrium price and quantity.
Price, income and cross elasticities of demand and price elasticity of supply, their calculation, determinants and applications.
Consumer and producer surplus, how the price mechanism allocates resources through signalling, incentives and rationing, and the effects of changes.
Indirect taxes and subsidies, the incidence of tax, maximum and minimum price controls, buffer stocks and direct provision.
Externalities, merit and demerit goods, public goods, information failure and the resulting misallocation of resources.
Measuring national income, the circular flow, GDP and GNI, real versus nominal, and an introduction to aggregate demand and supply.
Components and shifts of AD and AS, short-run and long-run AS, and the multiplier process.
Measuring and causes of inflation, types and causes of unemployment, economic growth and the business cycle, and the trade-offs between them.
Demand-side policies (fiscal and monetary), supply-side policies, how each works through AD/AS, and their strengths and limitations.
Absolute and comparative advantage, the gains from trade, terms of trade, and the structure of the balance of payments.
Exchange-rate determination and systems, depreciation/appreciation and their effects, and the methods and arguments around protectionism.
Short-run and long-run costs, returns to scale and economies of scale, revenue concepts, and profit maximisation.
Perfect competition, monopoly, monopolistic competition and oligopoly — their assumptions, equilibria, and evaluation of efficiency.
Demand for and supply of labour, wage determination, wage differentials, and the effects of trade unions and minimum wages.
Growth versus development, indicators including the HDI, the causes and policies for inequality and poverty, and trade-offs between policy objectives.