The allocation of resources

The allocation of resources

1. Economic systems

   • What is an economy?
     • People and firms produce, exchange and consume goods and services in an economy.
     • Any size, with any number of people and firms involved.
   • How economics determine what , how and for whom to produce
   • Different economic systems
   • The market economic system
   • The mixed economic system

2. How markets work

   • What is demand?
   • What is supply?
   • Market price
   • Price elasticity of demand
   • Price elasticity of supply
   • Impact of taxes and subsidies on market outcomes

3. Social costs and benefits

   • How the decisions of firms can affect others
   • Market failure and government intervention
   • Opportunity cost revisited
   • How consumer's decisions can affect others
   • Conservation or commercialisation