Introduction to Markets and Market Failure

The Economic Problem

• [x] Assumptions in economics
• [x] Positive and normative economic statements
• [x] The problem of scarcity
• [x] Renewable and non-renewable resources
• [x] Opportunity cost
• [x] Production possibility frontiers
• [x] Specialisation and the division of labour
• [x] Functions of money
• [x] Free market economies, mixed economy and command economy

How Markets Work

• [x] Rational decision making
• [x] Utility maximisation
• [x] Theory of demand
• [x] Price elasticity of demand
• [x] Income elasticity of demand
• [x] Cross price elasticity of demand
• [x] Theory of supply
• [x] Elasticity of supply