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Microeconomics – Year 1 ............................................................................................................... 3
Economics as a Social Science .................................................................................................................. 3
Positive and Normative Statements ........................................................................................................ 4
The Economic Problem ............................................................................................................................. 5
Specialisation and the Division of Labour................................................................................................ 6
Free Market, Mixed and Command Economies ...................................................................................... 9
Price, Income and Cross Elasticities of Demand .................................................................................... 13
Consumer and Producer Surplus ............................................................................................................ 19
Indirect Taxes and Subsidies .................................................................................................................. 23
Market Failure and Externalities ............................................................................................................ 31
Behavioural Economic Policies ............................................................................................................... 40
Information Gaps .................................................................................................................................... 44
Government Failure ................................................................................................................................ 49
Microeconomics – Year 2 ............................................................................................................. 54
Sizes and Types of Firms ......................................................................................................................... 54
Business Growth ..................................................................................................................................... 56
Revenue................................................................................................................................................... 60
Costs ........................................................................................................................................................ 65
Perfect Competition ............................................................................................................................... 70
Monopoly ................................................................................................................................................ 75
Monopolistic Competition...................................................................................................................... 81
Oligopoly ................................................................................................................................................. 86
Price Discrimination ................................................................................................................................ 94
Business Objectives ................................................................................................................................ 99
Monopsony ........................................................................................................................................... 104
Labour Demand..................................................................................................................................... 106
Labour Supply ....................................................................................................................................... 112
Minimum Wage .................................................................................................................................... 118
Macroeconomics – Year 1 .......................................................................................................... 125
Inflation ................................................................................................................................................. 125
Aggregate Demand ............................................................................................................................... 131
Aggregate Supply .................................................................................................................................. 135
Monetary Policy .................................................................................................................................... 142
Fiscal Policy ........................................................................................................................................... 147
Supply Side Policies .............................................................................................................................. 152
Conflicts and Tradeoffs Between Objectives and Policies .................................................................. 158
Macroeconomics – Year 2 .......................................................................................................... 162
Specialisation and Trade....................................................................................................................... 162
Restrictions on Free Trade.................................................................................................................... 170
Balance of Payments ............................................................................................................................ 177
Exchange Rates ..................................................................................................................................... 184
Monetary Union.................................................................................................................................... 190
Inequality .............................................................................................................................................. 194
Factors Influencing Growth and Development ................................................................................... 199
Development Strategies Part 2: Other Strategies ............................................................................... 205
Role of Financial Markets ..................................................................................................................... 210
Market Failure in the Financial Sector ................................................................................................. 214
Financial Market Regulation ................................................................................................................ 217