Summary of Economics

Economics Notes

Curriculum: International Baccalaureate
Grade: 11 - 12

Simplified notes to help learn the key components of Economics!!

,Context page

Chapter 1: Introduction to Economic
- Definition of Economics
- Basic Economic Concepts (Scarcity, Choice, Opportunity Cost)
- Economic Systems (Capitalism, Socialism, Mixed Economy)

Chapter 2: Microeconomics

Section 1: Demand and Supply
- Law of Demand and Supply
- Factors Affecting Demand and Supply
- Market Equilibrium and Price Mechanism

Section 2: Elasticity
- Price Elasticity of Demand
- Income Elasticity of Demand
- Cross-Price Elasticity of Demand

Section 3: Market Structures
- Perfect Competition
- Monopoly
- Oligopoly
- Monopolistic Competition

Section 4: Production and Costs
- Production Function
- Types of Costs (Fixed Costs, Variable Costs, Total Costs)
- Short-Run and Long-Run Costs
- Economies of Scale

, Chapter 3: Macroeconomics

Section 1: National Income Accounting
- Gross Domestic Product (GDP)
- Components of GDP (Consumption, Investment, Government Spending, Net
Exports)
- GDP vs. GNP

Section 2: Aggregate Demand and Aggregate Supply
- Determinants of Aggregate Demand and Supply
- Equilibrium Output and Price Level

Section 3: Fiscal Policy
- Government Expenditure
- Taxation
- Budget Deficits and Surpluses
- Fiscal Policy Tools (Expansionary and Contractionary)

Section 4: Monetary Policy
- Money Supply
- Interest Rates
- Central Bank Operations
- Tools of Monetary Policy (Open Market Operations, Reserve Requirements,
Discount Rate)

Chapter 4: International Economics

Section 1: International Trade
- Absolute and Comparative Advantage
- Terms of Trade
- Trade Barriers (Tariffs, Quotas, Embargoes)