ECONOMICS LEVEL 3
Unit 1: An Introduction to Economics
The economic problem and economic systems
Economic knowledge
- The concept of opportunity cost and the cost benefit model are fundamental tools used in economic analysis and decision-making.
Economic decision-making
- Decisions made by individuals, business and government should reflect a rational evaluation of costs and benefits.
Market failure and government policies
Economic policies and action
- Government policy options to correct market failure – the use of taxes and subsidies, assigning property rights, regulating the use of common property, providing public goods and services.
Unit 2: Economic Management
Macroeconomic activity
Economic knowledge
Roles of government in a modified market economy:
- regulation of business enterprises.