The purpose of this section is to introduce the basic terminology and concepts of Economics. Students are encouraged to consider what markets and governments can and cannot do. This section of the syllabus gives them an early opportunity to begin to explain economic phenomena through the use of diagrams, data analysis and the evaluation of economic material. This section is intended to make students aware of the role of economics in real-world situations. Even at this initial stage teachers and students should consider the application of economic theories to developing countries, since development economics is integral to the course.
- Definitions of social science and economics
- Definitions of microeconomics and macroeconomics
- Definitions of growth, development, and sustainable development
- Positive and normative concepts
- Ceteris paribus
- Scarcity
- factors of production: land, labor, capital, and management/entrepreneurship
- payments to factors of production: rent, wages, interest, profit
- Choice
- utility: basic definition
- opportunity cost
- free and economic goods
- production possibility curves: definition
- diagrams showing opportunity cost, actual and potential output
- diagrams showing economic growth and economic development
- Rationing systems
- basic economic questions
- what to produce?
- how to produce?
- for whom to produce?
- mixed economies
- public
- private
- central planning versus free market
- economies in transition
- basic economic questions