What you'll learn
- Economic concepts - Understand the definitions of various economic concepts in Microeconomics, Macroeconomics, and International Economics
- Economic Illustrations - illustrate demand and supply curves, Consumer Choice graphs, and other economic graphs
- Economic Structures - Be able to explain Economic Systems, Market Structures, and the different Factors of Production
- Key Economic Sectors - Understand the various sectors, such as the Monetary Sector, the Fiscal Sector, and the Foreign Sector.
- Macroeconomic Objectives - Know what makes an economy grow by understanding the variables that is relevant to the macroeconomic objectives, such as Economic Growth, Inflation, Unemployment, and the Balance of Payments
Diploma in Economics
What is Economics?
In the first lesson of the course, we first want to understand what exactly economics is all about. We also ask what the main economic problem that each country face, and delve into the thinking that different economists use to provide a solution to this problem. We then cover the ten main principles of economics, and take a look back into history and describe what the world has learned from previous crises like the Great Depression, the 2008 Financial Crisis, and the 2020 COVID-19 Pandemic.
Before jumping into supply and demand in the next lesson, some basic concepts in economics must first be covered. When talking about economics, the concept of opportunity cost always comes up, and it leads to the discussion and illustration of indifference curves. Budget Constraint curves also goes hand in hand with indifference curves. Then, we show that in each economy, their are several key roleplayers that has a trade off of their own, and how this flow production, income, and spending is the lifeblood of an economy.
Supply and Demand
Supply and demand are the key pillars of economics. Many economic concepts includes these two terms as they show how a sensitive balance can be acheived in the market of any good or service where the consumers pay what they are willing to pay and suppliers sell their good or service at the price they are willing to sell it at, given a certain quantity. We will also name all of the determinants of demand and supply and explain in what way they affect the demand and supply curves.
Obtaining Market Equilibrium
In this lesson, we bring supply and demand together to show how the price of a product is determined. When these two curves meet, we can obtain equilibrium in the market. We will also illustrate how, if the price of a product isnt correct, a shortage or surplus can occur instead of equilibrium. We then also show on the demand and supply curves the formation of consumer and producer surplus, and how one increases while the other decreases when the price of a good or service changes.
Elasticity shows that not all goods and services are treated the same in Economics. Here we will study the mechanics of elasticity for both demand and supply, as well as investigate the elasticities of relational goods and services
The Public Sector
Here we investigate how the government affects the economy at the micro level. All businesses are affected by the body that governs them, and this is done so using price control and taxation. Taxation causes a deadweight loss effect, which we will cover. We will also look at the different types of goods and how government controls some of these goods.
In this lesson, we look at the supplier's side of trading by looking at the production function as well as production over the long-run as well as short-run. We then introduce the concept of returns to scale.
The biggest challenge suppliers face is costs. In this lesson we study the different cost structures over different lenghts of time, and we illustrate Marginal Product, Average Product, Marginal Cost and Average Costs on the Costs curves graph.
Intermediate in Economics
Economic Systems and Market Structures
Every country acts as their own economy, and not all economies are the same. Here we take a look at the different economic systems that has been observed around the world. Then, we also briefly look at the different market structures we will be looking at in the next three lessons.
In this lesson, we will study the first market structure: Perfect competition. Here, we will first discuss what the primary goal of every business is, and cover what the conditions are for a market to be perfectly competitive. We will also revisit the demand and supply curves and see what is different if the market is perfectly competitive.
Here we will look at the second type of market structure: Monopolies. We will define and study the characteristics of a monopolistic market, as well as illustrate how their demand and supply structures are different from perfectly competitive markets. We will also be covering the different types of price discrimination.
In this lesson, we will look at the other two market structures: Oligopolies and monopolistic competitive markets. We will define and study the characteristics of both of these market structure types. Then, we will study the basic concepts of Game Theory, seeing as this is a theory relevant to Oligopolies.
The Labour Market
Labour is one of the primary factors of production, and is a precious resource in any economy. Here we will take a look at how the different market structures discussed in the previous three lessons use labour, and we will also define various key concepts in labour economics, such as a Monopsony and Labour Unions. We will also take a look at minimum wage and labour laws and how this helps to define discrimination within the labour market.
The Capital, Land, and Technology
Capital, just like labour, is a resource that is critically used in production. We will first distinguish between financial capital and real capital, then we will illustrate the demand for capital. Then, we will study the relationship between capital/money and interest rates.
Barriers to entry
Sometimes, staring a business is hard, and it is thanks to various barriers to enter the market. In this lesson, we will define what is a barrier to entry, as well as differentiate between and discuss endogenous and exogenous barriers.
Revisiting Indifference curves
For our final lesson that look into microeconomics, we will revisit Indifference curves and further study theories on consumer choice. We will also introduce utility as an economic concept and investigate its mechanics in the choices consumers make to buy or trade with goods.
Advanced in Economics
Macroeconomic Objectives and Measurements
After briefly covering what macroeconomics are, the module will start with the five macroeconomic objectives and briefly touch on how each of them can be measures. Each objective will also have their own lesson later in the module. At the end of this lesson, the student will be able to apply the five objectives to measure the performance of an economy, as well as analyzing the dynamic relationship between the objectives.
The Monetary Sector
This lesson will cover how the monetary authority, namely the Reserve Bank or Central Bank, completes its objectives by controlling money and interest rate in the economy. After completing the lesson, the student will be able to name the functions of money as well as its different forms, and explain/illustrate the demand and supply of money, and how that impacts the economy.
More on the Monerary Sector
In this lesson, we will study how the Monetary sector uses interest rates to affect the economy. We will then look at the demand and supply curves for money, and then also cover the IS-LM model. Take note that the IS-LM model will be extended in the next module into the IS-LM-BP model.
The Fiscal Sector
This lesson covers the role of the government in an economy and its objectives. After completing the lesson, the student will be able to discuss what the governments’ objectives are by explaining what fiscal policy entails, when government intervention is necessary, the mechanics of government spending and taxation, and the difference between privatisation and nationalisation.
The Simple Keynesian Model
This lesson will study the simple version of the Keynesian model. After completing the lesson, the student should be able to illustrate and explain how the Keynesian model indicates the impact of an event on production and therefore economic income levels, as well as describe the consumption function and the investment function that forms part of this model.
Here we will cover two more models that covers the theory of growth. We will start with the Aggregate Demand and supply model, showing that each economy can use its overall demand and supply of all goods and services to determine its overall GDP levels. Then, we will introduce the Solow Growth model, which is a more sophisticated model that uses the factors of production as well as increases in technology to determine economic growth.
Inflation and Unemployment
This lesson is going to cover the concept of inflation and unemployment and how one measures it. After completing the lesson, the student should be able to illustrate and discuss the effect that inflation has on economic performance, as well as be able to discuss the different types of unemployment. They will then be able to illustrate the Philips curve and explain how it describes the relationship between unemployment and inflation
Other Economic Problems
For the last lesson of Module 3, we will look at some other factors that hinders the economy from growing. First, we will look at how the monetary and fiscal sectors can come into conflict in acheiving the macroeconomic objectives. We then study further why countries would have low economic growth, and also define inclusive and sustainable growth.
Proficient in Economics
Why Nations Trade
In the first lesson of module 4, which covers mainly international economics, we will first ask why nations have the need to trade. We will then differentiate between absolute, comparitive, and equal advantage between two trading countries. We will then take a look at the PPF and indifference curves from suppliers' view, and finally define the terms of trade for a country.
More on Trade Theory
In this lesson, we extend trade theory by discussing several theories, including the Ricardian explanation, the Heckscher-Ohlin theory, and the Leontief Paradox. We also take a look at new approaches and extensions to trade theory, like Linder's spillover theory.
Trade under Changing Conditions
Trade is a delicate flow between two countries. In this lesson, we look at how changes to factor endowments and technology has on trading, and also study the concept of Direct Foreign Investment (DFI). Then, we also take a look at the effect barriers to trade has on trading, which includes tarrifs, transport costs, and quotas.
This lesson is all about globalisation and how some countries can come together to form as one well oiled machine. We study ther concepts of economic integration and co-operation, as well as the different forms of economic integration. However, cointegration isnt easy for all countries, as developing countries struggle to keep up with others in order to trade. We will also be looking into these policy issues developing countries face.
Foreign Exchange Markets
In this lesson, we are going to study the concepts of foreign exchange rates and markets. We will also take a look at different activities that occur in foreign exchange markets, and we also examine how exchange rates are determined as well.
Keynesian Model Extended
The Keynesian model will now be extended to also include the foreign sector. We will of course first do a quick revision of the simple model before extending it to fit into international economics. We also go back to the flow diagram that showed the relationships between the main roleplayers in the economy, and also add in the foregin sector as well as all of the economy's leakages and injections.
The Balance of Payments
Trading with other countries naturally comes at a cost. In this lesson we look at the balance of payments every country needs to be weary of. We will also see what changes the economy experience when one simple variable changes, whether it is internal or external to the economy. Finally, we extend the IS-LM model to form the IS-LM-BP model.
Final notes on Economics
For the final lesson of this module and this course, we look at any final conecepts and theories not yet covered. This include Macroeconomic policy for an open economy, as well as look as some aspects of the international monetary system, such as the gold standard and the Bretton Woods system.