Yr 13 Economics

Previous study of Economics is useful but not essential.

The course involves a significant amount of graphical analysis. The course is divided into three sections :

• Resource allocation via the market system.
• Resource allocation via the public sector.
• Aggregate economic activity and policy.

The general aim of the Level 3 course is to enable students to attain a level of economic literacy and understanding which would allow them to develop a continuing and critical interest in contemporary economic issues. In order to achieve this aim, concepts are to be understood at an intuitive level without an overemphasis on the rigorous development of theoretical arguments.

Achievement Objectives

Students will be able to:

• Understand the economic problem of scarcity and allocation
• Explain shifts in market demand curves
• Define & calculate price & income & cross elasticity of demand & show their applications
• Derive an upward-sloping supply curve for an individual perfectly competitive firm, and for the market supply curve
• Explain shifts in individual firms’ supply curves
• Define and show graphically elasticity of supply
• Apply marginal analysis to perfectly competitive firms’ output decisions
• Define average, marginal and total revenue and explain their relationships