Basic Economics Course

Lesson 1 • Positive vs. Normative Economics

Positive statements describe facts; normative statements express value judgments. Distinguishing them prevents confusion between analysis and advocacy.

Lesson 2 • Core Economic Questions

Every economy must answer what, how, and for whom to produce. Recognising these questions frames the scope of economic inquiry.

Lesson 3 • Economic Agents and Incentives

Households, firms, and governments act as primary decision-makers driven by incentives. Understanding agent behaviour is prerequisite to market analysis.

Lesson 1 • Deductive and Inductive Approaches

Deduction derives conclusions from axioms; induction generalises from data. Both approaches are used in economic science and have distinct strengths.

Lesson 2 • The Scientific Method in Economics

Economics applies observation, hypothesis formation, and testing to social phenomena. This section shows how rigour distinguishes economics from casual opinion.

Lesson 3 • Common Logical Fallacies in Economics

Fallacies such as post hoc reasoning and the fallacy of composition distort economic conclusions. Recognising them sharpens analytical precision.

Lesson 4 • Data and Empirical Evidence

Empirical economics relies on data to confirm or refute theoretical predictions. This section connects theory to measurable real-world outcomes.

Lesson 1 • Market Structures Overview

Competition, monopoly, and intermediate structures produce different outcomes. This overview prepares students for deeper analysis of market power.

Lesson 2 • Market Equilibrium and Price Mechanism

Equilibrium occurs where quantity supplied equals quantity demanded. The price mechanism coordinates decentralised decisions without central direction.

Lesson 3 • Consumer Choice and Demand

Consumer preferences and budget constraints determine demand. This section links individual utility maximisation to the demand curve.

Lesson 4 • Elasticity and Market Sensitivity

Elasticity measures how responsive quantity is to price or income changes. It predicts the magnitude of market adjustments and policy effects.

Lesson 1 • Employment and Unemployment

Labour market outcomes are captured by employment rates and unemployment categories. These indicators signal economic health and guide stabilisation policy.

Lesson 2 • Aggregate Demand and Supply

The aggregate demand and supply model explains short-run fluctuations and long-run equilibrium. It integrates micro foundations into a macro framework.

Lesson 3 • Price Level and Inflation

Inflation erodes purchasing power and distorts economic decisions. Price indices quantify inflation and enable real-value comparisons over time.

Lesson 4 • National Output and Income Measurement

Gross domestic product measures total economic activity through expenditure, income, and output approaches. Accurate measurement is essential for policy evaluation.

Lesson 1 • Corrective Policy Instruments

Taxes, subsidies, regulation, and tradable permits are tools for internalising externalities. Selecting the right instrument depends on the type and scale of failure.

Lesson 2 • Public Goods and Free-Rider Problem

Non-excludable, non-rival goods are undersupplied by private markets due to free-riding. Public provision or subsidy addresses this structural failure.

Lesson 3 • Information Asymmetry and Adverse Selection

When one party holds superior information, markets may collapse or misprice goods. Adverse selection and moral hazard are the primary manifestations.

Lesson 4 • Externalities and Social Efficiency

Negative externalities cause overproduction; positive externalities cause underproduction relative to the social optimum. Correcting them restores allocative efficiency.

Lesson 1 • Policy Trade-offs and Constraints

Inflation-unemployment trade-offs and crowding-out effects limit policy effectiveness. Recognising constraints prevents overconfidence in policy prescriptions.

Lesson 2 • Public Choice and Government Failure

Political incentives can lead governments to produce inefficient outcomes, mirroring market failure. Public choice theory explains why intervention sometimes worsens welfare.

Lesson 3 • Fiscal Policy Fundamentals

Government spending and taxation influence aggregate demand and resource allocation. Expansionary and contractionary stances address different cyclical conditions.

Lesson 4 • Regulatory Economics and Market Oversight

Regulation corrects market power, protects consumers, and enforces standards. Effective oversight balances efficiency with equity and safety objectives.

Lesson 1 • Balance of Payments and Exchange Rates

The balance of payments records all international transactions; exchange rates clear currency markets. Both indicators reflect a country's external economic position.

Lesson 2 • Comparative Advantage and Trade Gains

Comparative advantage explains why specialisation and trade raise total output. This principle underpins the case for open international markets.

Lesson 3 • Globalisation and Economic Integration

Economic integration through trade agreements and capital mobility reshapes national economies. Students assess both the benefits and distributional consequences.

Lesson 4 • International Economic Institutions

Multilateral institutions coordinate trade rules, financial stability, and development finance. Understanding their mandates clarifies the governance of the global economy.

Lesson 1 • Integrating Micro and Macro Perspectives

Micro foundations underpin macro models; macro constraints shape micro decisions. Synthesis enables coherent analysis of complex real-world economic problems.

Lesson 2 • Growth Theory and Long-Run Development

Growth theory explains sustained increases in living standards through capital, technology, and institutions. Long-run analysis complements short-run stabilisation frameworks.

Lesson 3 • Behavioural Economics and Decision Biases

Behavioural economics challenges the rational-agent assumption by documenting systematic cognitive biases. These insights refine predictions and improve policy design.

Lesson 4 • Information Economics and Mechanism Design

Mechanism design asks how institutions can be structured to elicit truthful behaviour. It extends information asymmetry analysis to optimal contract and auction design.