ECONOMICS

• SECTION 1 - The Nature of Economics 0/7

  • define the term “economics”;
  • explain the branches of economics
  • explain the meaning of an economy
  • describe the main economic agents in an economy
  • explain the concepts of scarcity, choice and opportunity cost within an economy
  • use the production possibility frontier to illustrate basic economic concepts, principles and approaches
  • describe the main factors that affect the decisions made by economic agents

• SECTION 2 - Production, Economic Resources and Resource Allocation 0/13

  • explain the difference between production and productivity
  • describe the factors of production
  • describe the main sectors in an economy
  • explain the difference between short run and long run
  • identify the costs associated with production
  • calculate the costs associated with production
  • illustrate the curves associated with the cost of production
  • explain the difference between goods and services
  • explain the concept of resource allocation
  • describe the main types of economic systems
  • discuss the merits and demerits of each economic system
  • describe how firms operate under different market structures
  • explain the concepts of economies of scale and diseconomies of scale

• SECTION 3 - Demand and Supply 0/16

  • explain the term “market”
  • identify the market forces
  • use diagrams to describe the relationship between price and demand and price and supply
  • explain the concept of ceteris paribus
  • explain the concept of market equilibrium and disequilibrium
  • illustrate market equilibrium and disequilibrium
  • use diagrams to explain the non-price determinants of demand and supply
  • illustrate how changes to the determinants affect equilibrium, price and quantity
  • explain the concept of price, income and cross-price elasticities of demand
  • calculate the price, income and cross-price elasticities of demand
  • interpret the price, income and cross-price elasticities of demand
  • outline the factors affecting price, income and cross-price elasticities of demand
  • explain the concept of price elasticity of supply
  • calculate price elasticity of supply
  • interpret price elasticity of supply
  • outline the factors affecting price elasticity of supply

• SECTION 4 - Market Structure and Market Failure 0/7

  • define the term “market structure”
  • describe the main types of market structures
  • illustrate graphs related to the main market structures
  • interpret graphs related to the main market structures
  • define the term “market failure”
  • outline the main causes of market failure
  • discuss the main consequences of market failure

• SECTION 5 - The Financial Sector 0/7

  • explain the concept of the Financial Sector
  • discuss the role of the Financial Sector
  • discuss the concept of money
  • explain the concepts “demand for money” and “money supply”
  • describe the role of the Central Bank
  • describe the role of financial institutions and arrangements other than the Central Bank
  • explain the differences among the types of financial instruments

• SECTION 6 - Economic Management: Policies and Goals 0/14

  • discuss the role of government in stabilizing the economy
  • explain the concepts, principles and approaches associated with economic policies and goals
  • discuss measures used to correct macro-economic problems in an economy
  • use diagrams to describe the concept of the circular flow of income
  • discuss the differences among Gross Domestic Product (GDP), Gross National Product (GNP), and National Income (NI)
  • calculate Gross Domestic Product (GDP) and Gross National Product (GNP); National Income (NI)
  • interpret Gross Domestic Product (GDP) and Gross National Product (GNP); National Income (NI)
  • explain the differences among nominal output, real output and potential output
  • explain the difference between economic growth and economic development
  • explain the difference between inflation and recession
  • discuss the main causes, consequences, and solutions associated with inflation and recession in an economy
  • explain the different types of unemployment
  • discuss the causes and consequences of, and solutions to the different types of unemployment
  • explain the role of trade unions in an economy

• SECTION 7 - Internal Trade 0/7

  • discuss the meaning of concepts principles and approaches associated with international trade
  • explain the rationale for international trade
  • discuss the concepts, principles and approaches associated with balance of payments
  • *Calculate balance of payments surpluses and deficits
  • interpret balance of payments, surpluses and deficits
  • discuss the consequences of and remedies for balance of payments surpluses and deficits
  • discuss the concepts, principles and approaches associated with exchange rates

• SECTION 8 - Caribbean Economies in a Global Environment 0/6

  • describe the main characteristics of Caribbean economies
  • discuss the major economic challenges and possible solutions associated with Caribbean economies
  • discuss the concepts, principles and approaches associated with Caribbean economies
  • explain the benefits and costs derived from the participation of CARICOM countries in preferential trade arrangements
  • discuss the benefits to be derived from the Caribbean Single Market and Economy (CSME)
  • discuss the concepts, principles, approaches, and issues associated with e-commerce