Unit 2512: Principles of Microeconomics and Market Analysis

1. Introduction to Microeconomics

• 1.1 The Basic Economic Problem
  • Scarcity and choice
  • Opportunity cost
• 1.2 Role of Markets
  • Definition and functions of markets
  • Market participants
• 1.3 Principles of Supply and Demand
  • Law of demand and supply
  • Determinants of supply and demand
  • Market equilibrium

2. Consumer Behavior

• 2.1 Consumer Decision Making
  • Preferences and budget constraints
  • Utility and utility maximization
• 2.2 Consumer Equilibrium
  • Marginal utility and optimal choice
• 2.3 Indifference Curves and Budget Lines
  • Properties of indifference curves
  • Deriving consumer equilibrium graphically
• 2.4 Price Elasticity of Demand
  • Definition and calculation
  • Factors affecting elasticity
  • Applications of elasticity

3. Producer Theory

• 3.1 Production Decisions
  • Production functions: short run and long run
  • Law of diminishing returns
• 3.2 Cost Concepts and Curves
  • Fixed, variable, total, average, and marginal costs
  • Short-run and long-run cost curves
• 3.3 Revenue and Profit Maximization
  • Total, average, and marginal revenue
  • Profit maximization rule

4. Market Structures

• 4.1 Perfect Competition
  • Characteristics
  • Firm behavior and market outcomes
• 4.2 Monopoly
  • Sources and characteristics
  • Pricing and output decisions
• 4.3 Monopolistic Competition
  • Product differentiation
  • Short-run and long-run equilibrium
• 4.4 Oligopoly
  • Characteristics and examples
  • Strategic behavior and game theory basics

5. Market Equilibrium

• 5.1 Determination of Equilibrium Price and Quantity
  • Interaction of supply and demand
• 5.2 Surplus and Shortage
  • Causes and effects
• 5.3 Shifts in Supply and Demand
  • Impact on equilibrium
• 5.4 Price Controls
  • Price ceilings and floors
  • Effects on markets

6. Externalities and Public Goods

• 6.1 Market Failures from Externalities
  • Positive and negative externalities
  • Social vs private costs and benefits
• 6.2 Public Goods
  • Characteristics: non-excludability and non-rivalry
  • Free rider problem
• 6.3 Government Intervention
  • Taxes, subsidies, and regulation
  • Tradable permits and Coase theorem

7. Income Distribution and Market Failure

• 7.1 Income Inequality and Poverty
  • Measurement methods (Lorenz curve, Gini coefficient)
  • Causes and consequences
• 7.2 Market Failures Related to Income Distribution
  • Equity vs efficiency trade-offs
• 7.3 Policy Responses
  • Progressive taxation, welfare programs
  • Minimum wage laws

8. International Trade and Globalization

• 8.1 Benefits of International Trade
  • Comparative advantage theory
  • Gains from trade
• 8.2 Trade Restrictions
  • Tariffs, quotas, and subsidies
  • Economic impact of protectionism
• 8.3 Trade Agreements and Organizations
  • WTO, regional trade agreements
• 8.4 Impact of Globalization
  • Economic integration
  • Effects on industries and consumers

9. Economic Policy and Regulation

• 9.1 Role of Government in Markets
  • Promoting competition
  • Addressing market failures
• 9.2 Taxation Principles
  • Types of taxes
  • Economic effects of taxation
• 9.3 Antitrust Laws and Regulation
  • Preventing monopolies and collusion
  • Regulatory agencies and their functions
• 9.4 Policies for Economic Efficiency and Equity
  • Balancing growth and fairness