Section 1

The Nature and Purpose of Economic Activity
- case study - Traditional (subsistence) economy
Economic Resources
The Economic Objectives of Individuals, Firms and Governments
Scarcity, Choice and the Allocation of Resources
Free markets v. Central Planning
Production Possibility Diagrams
Value Judgements, Positive and Normative Statements
The Demand Curve and the Law of Demand
Movements of the Demand Curve
Giffen Goods
Veblen Goods

Section 2

The Determinants of the Supply of Goods and Services
Movements of the Supply Curve
The Determination of Equilibrium Market Prices
Price, Income and Cross Elasticities of Demand
Incidence of tax in video format
Incidence of tax
The Interrelationship Between Markets
Applications of Demand and Supply Analysis to Particular Markets
Commodity Markets
The Housing Market
How Markets and Prices Allocate Resources

Section 3

Specialisation, Division of Labour and Exchange
Consumer surplus and producer surplus
Economies and Diseconomies of Scale

Section 4

The Meaning of Market Failure
Public Goods
Positive and Negative Externalities in Consumption and Production
Merit and Demerit Goods
Imperfect knowledge
Monopoly and the allocation of resources
Immobility of Factors of Production
Inequalities in the Distribution of Income and Wealth

Section 5

Government Intervention and market v planned
Methods of Government Intervention to Correct Distortions in Individual Markets
agricultural stabilisation policies
Government Failure
The Impact of Government Intervention on Market Outcomes