Higher Economics

Module 5.1 – Basic Economic Problem

Relationship between scarcity, choice and opportunity cost; universal scarcity, economic and free goods, unlimited wants, rational behaviour.

Module 5.2 – Demand

Behaviour of the rational consumer; theory of demand, price and income elasticity of demand.

Module 5.3 – Supply

Supply schedules, conditions of supply and elasticity.Explanation of returns and costs, economies of scale and the significance of long and short runs.

Module 5.4 – Markets

Definition, types and the factors affecting competition.

Module 5.5 – National Income

The workings of the national economy through the 4 sector circular flow diagram.

Module 5.6 – Inflation

Definition and examination of causes and effects.

Module 5.7 – Unemployment

The measurement and causes together with trends.

Module 5.8 – International Trade

The balance of payments, the theory of international trade and the significance of exchange rates. Examination of the arguments for joining a single currency.

Module 5.9 – The role of government in the economy

The objectives of government economic policy, together with the means to achieve them.

Module 5.10 – The International economic environment

Examination of the economies of newly industrialised and developing economies, together with international trading and monetary organisations.