Scarcity and opportunity cost, the factors of production, and the production possibility frontier.
The laws of demand and supply, the causes of shifts, and how markets reach equilibrium price.
Price, income and cross elasticity of demand, and price elasticity of supply, with their calculations and uses.
When markets misallocate resources: externalities, public goods, and merit and demerit goods.
Indirect taxes, subsidies, price controls and regulation — how governments correct market failure.
Economic growth and GDP, inflation, unemployment and the balance of payments — the key macro indicators.
The components of aggregate demand, aggregate supply, and how they determine national output and the price level.
Fiscal, monetary and supply-side policies, and the trade-offs governments face between macroeconomic objectives.