Economics

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MICROECONOMICS

Module 1

Scarcity and Choice

Preferences, Resources and Economic Efficiency

                “What”, ”How”, ”For Whom”

Marginal Analysis and Opportunity Cost

Different Economic Systems

                Tradition

                Command

                Market

Production Possibilities Curve


Module 3

Theory of consumer choice

Individual Household demand

Market Demand

                Price Inelasticity

                Price elasticity

                Unitary Price Elasticity

                Variation in Price Elasticity of Demand

                Other Elasticities of Demand

Theory of Consumer Behaviour and the Real world

Module 4

Productivity

Costs

Firm Supply in the Short Run

Market Supply

                Market Supply in the short run          Shifting market supply curve

                Equilibrium of the Firm

                The Firm in Long Run

                Market Supply in the Long Run

Real- World Applications

                Estimating Production Frontier

                Labour Productivity

                Factor Returns and Scale Returns

                Supply Elasticity

 

Module 5

Market Supply and Demand

The Operation of Markets

Change in Market Equilibrium

Intervention in the Market

                Price Ceiling

                Price Floor

                Taxes and Subsidies

Dynamic Adjustments in the Market

                Effect of changes in Short Run

                Effect of changes in Long Run

                Cyclical Patterns in Market

 

Module 6

Marginal Equivalency Conditions

Resource Allocation and Profit-Maximizing Behaviour in the Short Run

Resource Allocation and Profit-Maximizing Behaviour in the Long Run

The Wonderful World of Adam Smith versus the Real world

 

Module 7

Perfect Competition

Monopoly

Imperfect Competition

Oligopoly

Regulation and Economic Efficiency

 

Module 8

Private Goods and Public Goods

Externalities: Positive and Negative

Externalities, Collective Action and Economic Efficiency

The Problem of Collective Decision Making

 

Module 9

Marginal Productivity

Economic Rent

Monopsony

Trade Unions

Income Distribution, Collective Action and Economic Equity

 

Module 10

The Theory of Absolute Advantage

The Theory of Comparative Advantage

The Terms of Trade and Voluntary Exchange

Tariffs and Quota

Argument for Trade Restrictions

Exchange Rates

The Balance of Payments

The Operation of the International Sector (Simplified Model)

 

MACROECONOMICS

Module 11

Potential and Actual Output

Demand for Gross National Product

Policy Tools

 

Module 12

Introduction

Potential Output in the Long Run

Measuring Potential Output

                Types of Unemployment

Relationship between the Unemployment Rate (U), Potential Output (Q), Actual Output (Y)

Output and Inflation

                Inflation Rate

                Philips curve

 

Module 13

Production Possibilities Frontier (PPF)

Circular Flow of Income 2 sector Model

Theory of Income Determination

Flow of Money

                GNP

                GNE

                GNI or Y

National Output

                Closed Economy

                Open Economy

National Income and Expenditure Equality

National Income

Investment

                Gross Investment

                Net Investment

Module 14

The Development of Macroeconomic Models

The Consumption Function

The Solution to the Simple Model

The Multiplier

Average Propensity to Consume (APC)

Marginal Propensity to Consume (MPC)

Potential Output

                Labour Force

                Capital Stock

                Technology Change

Multiplier

Economic Model Variables

 

Module 15

Equilibrium Income

Income Expenditure Model

Multiplier Effect

Accelerator Principle

Investment Expenditure Curve

Shift in Investment Level

Simple Accelerator Model

Household Saving

Built in Stabilizer

Imports \ Exports

Gross National Product (GNP)

 

Module 16

Introduction

Deflation Gap

Inflation Gap

Real Money GNP

Fiscal Policy

 

Module 17

Function of Money

Money as Medium of Exchange

Unit of Account

Store of Wealth

Bank Credit Creation Credit Multiplier

Central Bank

Monetary Policy

The value of Money

 

Module 18

Quantity Theory

                Naive Theory

                Modern Theory

Keynesian Theory

Types of Demand for Money

                Transactional

                Precautionary

                Speculative

Keynes vs. Quantity Theory

 

Module 19

Equilibrium Interest Rates and National Income Levels

The Monetary Sector (LM Curve)

The Real Goods Sector (IS Curve)

The Expanded Model: Shifting the Curves

                Effect of Monetary Policy

                Effect of Fiscal Policy

 

Module 20

Introduction

Cause and Effects of Inflation

                Demand Pull

                Cost Push

Anti-Inflationary Policies

Modern Quantity Theory versus Keynes Policy Implications

National Goals: Policy Implications

                Good and the Bad

Definitions

 

Macroeconomic Relationships

1. Definition of National Output

                Aggregate Demand

                Gross Domestic expenditure (GDE)

                National Income and Expenditure Equality

                Open Economy

                National Income Identity

2. Current and Constants Prices

                Nominal Gross National Product (GNP)

                Real Gross National Product

3. Multiplier

                Conditions for an Expenditure Multiplier to exist

                Common Misconceptions about Multiplier

4. Potential Output

5. Managing the Components of Gross National Product

            Main policy task to manage Aggregate Demand

                Managing Actual Output (Y)

Consumption Expenditure

Managing Consumption

Investment Expenditure                          

Managing Investment

Inventories

                Investment in the Welfare Function

                Indirect effects of Policy changes

6. The Budget

                Managing the Budget

7. Interest Rate

            Managing Interest Rate

                Real and Nominal Interest Rates can Differ

8. Unemployment Rate

            Type of Unemployment

9. Inflation Rate

            The Cause of Inflation

                Demand for Final Goods and Services

                Labour Markets

                Wage Rate inflation affects Inflation Rate

                Expectations

                Indexing

                Exchange Rate Movements

                Inflation Policies

                                Issues

10. Operation of the International Sector

            The Balance of Trade

                Factors Affecting Exports

                                Managing Exports

                                Foreign Demand

                                Domestic vs. Foreign Prices

                                Exchange Rate

                                Combination of Changes

                                Exports will Grow When

Factors Affecting Imports

Managing Imports

Imports will Grow When

Estimating the Balance of Trade

Net Capitol Flows

The Determination of the Exchange Rate

A Final word on Policy Making

Fiscal Policy

Monetary Policy