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Economics A (8EC0)

10個單元

Nature of economics

Economics as a social science
Positive and normative economic statements
The economic problem
Production possibility frontiers
Specialisation and the division of labour
Free market economies, mixed economy and command economy

How markets work

Rational decision making
Demand
Price, income and cross elasticities of demand
Supply
Elasticity of supply
Price determination
Price mechanism
Consumer and producer surplus
Indirect taxes and subsidies
Alternative views of consumer behaviour

Market failure

Types of market failure
Externalities
Public goods
Information gaps

Government intervention

Government intervention
Government failure

Measures of economic performance

Economic growth
Inflation
Employment and unemployment
Balance of payments

Aggregate demand (AD)

The characteristics of AD
Consumption (C)
Investment (I)
Government expenditure (G)
Net trade (X-M)

Aggregate supply (AS)

The characteristics of AS
Short-run AS
Long-run AS

National income

National income
Injections and withdrawals
Equilibrium levels of real national output
The multiplier

Economic growth

Causes of growth
Output gaps
Trade (business) cycle
The impact of economic growth

Macroeconomic objectives and policies

Possible macroeconomic objectives
Demand-side policies
Supply-side policies
Conflicts and tradeoffs between objectives and policies

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