1. ECON5335 - International Economics
Chapter 1
Economic Basics

2. Some economic basics Definition of economics Scarcity Opportunity cost
Factors of production
PPC
Positive vs normative
Economic systems
Approaches in economics
Economic modelling
Difference between macro and micro?
9/12/2018

3. Some economic basics - micro
Difference between macro and micro
“Law” of demand
Shifts along vs shifts in demand
“Law” of supply
Shifts along vs shifts in supply
Market equilibrium
Government intervention
Market failure – examples
Industry structure – PC thru to monopoly

4. Demand

5. Supply

6. Equilibrium

7. Some economics basics - macro
National income accounting identity
GDP
GNP
Economic growth
Productivity definition
Inflation
Unemployment
Business cycles and phases
Exchange rates

8. The circular flow diagram