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 →

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 →

Types of market failure → Externalities → Public goods → Information gaps →

Government intervention in markets → Government failure →

Economic growth → Inflation → Employment and unemployment → Balance of payments →

The characteristics of AD → Consumption → Investment → Government expenditure → Net trade →

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

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

Causes of growth → Output gaps → Economic cycle → The impact of economic growth →

Possible macroeconomic objectives → Demand-side policies → Supply-side policies → Conflicts and trade-offs between objectives and policies →

Sizes and types of firms → Business growth → Demergers →

Business objectives →

Revenue → Costs → Economies and diseconomies of scale → Normal profits, supernormal profits and losses →

Efficiency → Perfect competition → Monopolistic competition → Oligopoly → Monopoly → Monopsony → Contestability →

Demand for labour → Supply of labour → Wage determination in competitive and non-competitive markets →

Government intervention → The impact of government intervention →

Globalisation → Specialisation and trade →