H1 Economics Syllabus (8823)

In the introductory theme, students will understand the underlying reasons behind the economic decisions made by individuals as consumers, producers, as well as governments. In view of the scarcity problem, there is a need to allocate resources efficiently. The analysis of resource allocation can be viewed with various tools, such as the production possibility curve (PPC). In the process, governments can achieve maximisation of utility, profits and social welfare.

In the second theme, students will understand how the decision-making processes are made by individuals in the markets, seen in terms of the price mechanism. The price mechanism can be seen in the interactions of demand and supply factors that determine the market equilibrium. However, as the price mechanism may not function efficiently all the time, this development gives rise to market failure, which necessitates government intervention.

In the third theme, students will examine how governments conduct policymaking at the national level to raise standard of living. The policy decisions are made based on the analysis of factors affecting aggregate demand (AD) and aggregate supply (AS), which determines the equilibrium level of national output and general price level. In addition, students will identify the indicators that affect the standard of living of an economy, such as GDP per capita. Following the comprehension of economic performance, governments will implement policies to achieve specific macroeconomic aims, like improvements in standard of living and sustainable economic growth.