Economics SL

Chapter 1: Introduction to Economics

• Key Concepts

Chapter 2: The Fundamental Economic Problem

Chapter 3: Market Equilibrium and Resource Allocation

• Demand
• Supply
• How demand and supply interact to establish market equilibrium

Chapter 4: Elasticity of Demand and Supply

• Price elasticity of demand (PED)
• Income elasticity of demand (YED)
• Price elasticity of supply (PES)
• Applications of elasticity

Chapter 5: Government Intervention in the market

• Price controls
• Indirect taxes
• Subsidies
• Evaluation of government intervention in the market

Chapter 6: Market Failure

• Externalities
• Government policies to reduce market failure resulting from externalities
• Public goods
• Common access or pool resources

Chapter 7: Equity and Equality

Chapter 8: Macroeconomics

• The measurement of economic activity
• The concept of the circular flow
• How to analyse macroeconomic equilibrium
• How to apply the AD/AS model
• Objectives of government policy (Causes of problem)
• Government policy to achieve the objectives (Cures)
• Applying the cures to the causes
• Consequences of failing to achieve the objectives

Chapter 9: The Global Economy

• The gains from trade
• Restrictions on the freedom of trade: Protection
• Types of protection
• Trading blocs
• Exchange rates (ER)
• The effects of exchange rate changes
• Alternative ER systems
• Balance of payments
• Current Account disequilibria
• How to correct a current account deficit
• Some additional points
• Development economics
• Barriers to development
• Strategies to promote economic growth and development

Chapter 10: Additional topics

• Numerical questions
• Inflation revisited
• Fiscal policy revisited

A Final Bit of Advice