Thinking Like an Economist

Topic 1 Introduction to Economics

1.1 The Economic Problem

1.2 The Three Fundamental Questions (Choices)

1.3 The Problem of Choice – Opportunity Cost

1.4 Economic Systems

1.5 Modelling the Economic Problem
Introduction to The Production Possibility Curve (Frontier)
Using the PPC to demonstrate Opportunity Cost
Factors that Shift the PPC

Topic 2: Data Analysis in Economics

2.1 Using Data in Economic Decision Making

2.2 Using Graphs and Charts to Visualise Data

2.3 Using Statistical Measures to Analyse Data
Mean
Median
Using Mean or Median – The Importance of Data Skew
Quantile
Variance

2.4 Interpreting Linear Regression
Correlation Coefficient – r
Coefficient of Determination – R-squared

2.5 Correlation verse Causation

Microeconomics

Topic 3: Interaction between Consumers and Producers

3.1 Markets

3.2 Needs of Consumers and Producers

3.3 Demand and Supply Model
Market Equilibrium
Consumer Surplus, Producer Surplus, and Allocative Efficiency
Demand
Supply
Impacts on the Market of Changes in Demand and Supply

3.4 Elasticity
Price Elasticity of Demand (PED)
Price Elasticity of Supply (PES)

Topic 4: Market Structures

4.1 Defining Market Structures

4.2 Types of Market Structures
Perfect Competition
Monopolistic Competition
Oligopoly
Monopoly

4.3 Evaluating Market Structures

4.4 Behaviours of Duopolies
The Prisoner’s Dilemma
Game Theory and Pay-Off Matrices
Nash Equilibrium and Pareto Optimum
Game Theory and the Behaviour of Duopolies

Topic 5: Market Failure

5.1 Defining Market Failure

5.2 Uncompetitive Markets – Abuse of Monopoly Power

5.3 Externalities
Consumption Externalities
Production Externalities

5.4 Undersupply of Public Goods

5.5 Asymmetric Information

5.6 Solutions to Market Failures
Solving Uncompetitive Markets
Solving Negative Externalities of Consumption and Production
Solving Positive Externalities of Consumption and Production
Solving the Undersupply of Public Goods
Solving Asymmetric Information
Evaluating the Effectiveness of Solutions to Market Failures

Topic 6: Government Intervention

6.1 Reasons for Government Intervention

6.2 Methods of Intervention
Price Controls
Taxes
Subsidies

Topic 7: Microeconomics Revision Questions

Macroeconomics

Topic 8: Government objectives

8.1 Full Employment
8.2 Price Stability
8.3 Economic Growth
8.4 Consequence of not attaining objectives

Topic 9: The Macroeconomy in Models

9.1 The Business Cycle
9.2 Five Sector Circular-flow Model
9.3 Monetarist Aggregate Demand and Aggregate Supply Model
9.4 Consequence of not attaining objectives

Topic 10: Macroeconomic Policies

10.1 Demand Management Policies
10.2 Assessing Policy Effectiveness
10.3 Supply Side Policies
Topic 11: Exchange Rates

11.1 Exchange Rate
11.2 The FOREX Market and Floating Exchange Rate Systems
Appreciations and Depreciations
Factors Influencing the Demand and Supply of Currency

11.3 Impacts of a Change in a Countries Exchange Rate
Impacts of an Appreciation
Impacts of a Depreciation

Topic 12: Macroeconomics Revision Questions

Answers
Index
Glossary