At the introduction, you will explore the basics of Economics and how you can relate to its concepts. By studying Economics, you will learn to understand how individuals make decisions, either as a consumer or producer. Also, you will then proceed to large-scale decisions, seen in terms of firms and governments. Economics can be studied in two major aspects, namely Microeconomics and Macroeconomics.

In the topic of Central Economic Problem, you can search for the following key terms to understand the meaning of the economic definitions commonly used in CSQs and essays: scarcity, opportunity cost, utility, marginal utility, capital good, factors of production, production possibility curve (PPC), increasing opportunity cost, constant opportunity cost, decreasing opportunity cost, law of diminishing marginal utility.

For Price Elasticity of Demand and Supply, the concepts covered will be related to the preceding chapter that utilises the demand and supply analysis. Examine the following key terms to understand and apply the definition well: Price Elasticity of Demand (PED), Price Elasticity of Supply, magnitudes of PED, magnitudes of PES, determinants of PES, determinants of PED, using PED to maximise total revenue, uses of PED, uses of PES, limitations of PED and PES.

In the topic of Government Regulation, which is part of Theme 2 (Markets), you can examine the economic definitions, like producer surplus, price ceiling, floor price, direct tax, indirect tax, tax incidence, consumer tax burden, producer tax burden,black market, specific tax, subsidy, ad valorem tax, consumer surplus, minimum price, maximum price, deadweight loss, consumer benefit, producer benefit.

Market Structures is a chapter applicable only to H2 Economics students. In this chapter, students will learn how to identify the four different types of market structures that firms belong to, namely perfect competition, monopoly, monopolistic competition, and oligopoly.

To understand the characteristics and behaviour of firms in the respective market structures, it is important for students to understand the following economics definitions: perfect market structure, imperfect market structure, perfect competition, monopoly, oligopoly, monopolistic competition, perfect market competition, market concentration ratio, subnormal profit, normal profit, supernormal profit, market power, how market power affects price, output and production equilibrium, artificial and natural barriers to entry, how barriers to entry affect firms in monopolistic competition, production equilibrium and profit levels, price discrimination, contrived barriers, first degree price discrimination, second degree price discrimination, third degree price discrimination, negative impacts of price discrimination, positive impacts of price discrimination, conditions for price discrimination, price competition, benefits and limitations of price competition, predatory pricing, non-price competition, types of non-price competition, product differentiation, kinked-demand curve, allocative efficiency, production efficiency, aims of firms, x-efficiency, profit maximization, cost minimization, two-tier charge, marginal cost pricing (MC), natural monopoly, reasons for regulation of monopolies, consumer exploitation, nationalization, legalization, price regulation, Anti Trust Law, Free Competition Act, rival firm, collusive activity, dominant firm, collusive oligopoly, barometric price leader, low-cost price leader, patent right, how patent right affects market power, production equilibrium, consumers and firms, licensing, intellectual property right, collusion, growth maximisation, liberalization of market, mutual interdependency, price rigidity, perfect mobility of factors of production, cost condition.

In the topic of National Income Accounting, you will understand how economic performance is assessed through the use of various economic indicators. By doing so, governments and academics can identify and measure the qualitative and quantitative aspects of a country’s standard of living. The information gained from the study will help governments to make informed decisions and policymaking for the pursuit of different macroeconomic aims.

The study of National Income Accounting requires an in-depth and broad understanding of the following definitions: nominal and real Gross Domestic Product (GDP), nominal and real Gross National Product (GNP), GDP at 2000 base year price level, net property income from abroad, personal income, personal disposable income, qualitative and quantitative standard of living, real per capita income, Human Development Index (HDI), Measurement of Economic Welfare (MEW), Consumer Price Index (CPI), cost of living, cost of living index, labour force, working population, real and nominal GDP growth rate, balance of trade, current account, capital account, financial account, nominal and real effective exchange rate, Gini coefficient ratio, wage-to-GDP ratio, time comparison, space comparison, national income figures, actual and potential production capacity, limitation of GDP figures, problems of time and space comparison, purchasing power parity, GDP deflator, net factor income from abroad, export competitiveness, privatization, labour productivity, budget deficit

For the topic of Economic Growth, you examine the meaning of growth and its impacts on the economy. Given that the pursuit of economic growth is one of the many key aims of a government, it is imperative that you analyze the benefits and shortcomings that hinder countries from achieving this goal.

Your revision should encompass the recognition of the following key definitions: economic growth, potential and short-term growth, actual growth, sustainable economic growth, long-term growth, production possibility curve, desirable economic growth, inclusive growth, Gross Happiness Index (GHI), Genius Progress Indicator (GPI), life expectancy, jobless growth, technical recession, economic recession, inflationary condition, overheated economy, rising cost condition, subprime mortgage, capital flow, raw materials, physical capital, capital goods, foreign direct investment (FDI), literacy rate, child mortality rate, hot money.

The topic of unemployment relates to the understanding of jobs and how the utilization of labour resources within a country can affect economic development. Pay attention to the factors affecting unemployment to recognise the potential economic repercussions that can be positively or negatively related.

You are expected to understand the following definitions: unemployment, unemployment rate, labour force, active working population, working age population, labour participation rate, inactive working population, economically inactive labour force, equilibrium level of unemployment, disequilibrium level of unemployment, natural rate of unemployment, demand-deficient unemployment, cyclical unemployment, frictional unemployment, sector unemployment, displacement of workers, structural unemployment, regional unemployment, technological unemployment, seasonal unemployment, wage flexibility, Job Credit Scheme.

Balance of Payment refers to the statement of a country’s economic transactions with the rest of the world within a given time period. The study of this chapter allows students to understand how the transactions within and across borders are accounted for, which affects the external equilibrium as one of the four major aims of government.

Hence, pay attention to the following key terms to comprehend the topic: balance of payment, current account, capital account, financial account, balancing item, overall balance, official financial account, balance of payment equilibrium, J-curve effect, balance of payment deficit and surplus, balance of payment disequilibrium, invisible balance, income balance, visible balance, trade balance.

International Trade is a topic that relaxes the assumption of a closed economy, whereby countries can engage in trade with each other. The comprehension of international trade is important as you will recognise the benefits that are attainable. However, opening up a country to trade also implies that the economy is vulnerable to external fluctuations.

Therefore, it is imperative to understand the following definitions to understand how governments preempt and respond to potential challenges: Theory of Comparative Advantage, specialization, absolute advantage, trading price, dynamic comparative advantage, diversification, terms of trade, free trade agreement, import substitution strategy, protectionism, dumping, trade diversion, exchange controls, tariffs, quotas, embargoes, import expenditure, intellectual property rights, government procurement, custom union, trade creation, preferential trade agreement (PTA), common market, export revenue, balance of trade, infant industry argument, advanced economy, emerging economy, factor endowment, taxation, mobility of resources, deregulation, transaction, trade union, retaliation.