Economics - Advanced Level - Course Outline

This is a suggested course outline based on the syllabus of the advanced level examination. All major topics are included to give students a bird's eye but comprehensive view on the contents of economics.

It should be stressed that the topics are by no means independent so students are strongly advised to build up their logical framework on reasoning and thinking upon studying the subject.

The textbooks and references are listed below, but in all cases, any appropriate references are to be searched for your own pursuit. All of them are stored in the school library. Students asking for exercises may observe those published by: the Academy Press, Goodman, and Longman which are also stored in the library. There are some relevant Chinese books & periodicals to be included with your notes.

General Textbooks:

Lam Pun Lee, A-Level Micro. & A-Level Macro. (the latest edition) Macmillan.

References:

The School Curriculum

Microeconomics

  1. Introduction & Basic Concepts

    1. Nature of economics - definition, contents, scope.
    2. Economic systems - a comparison.
    3. Some basic concepts.

    * Text: Chapter 1 / Awh / Lipsey / Baumol / Wonnacott

  2. Demand & Supply Analysis

    1. Basic postulates of human behaviour.
    2. Concepts of demand, demand function and demand curve.Concepts of supply, supply function and supply curve
    3. Concepts of equilibrium & elasticity - price, income and cross elasticity.
    4. Market intervention & disequilibrium - taxes & forms of price control.

    * Text: Chapter 5.

  3. Consumer Theory

    Unit 1: The Utility Theory

    1. Introduction
    2. The cardinal & ordinal approaches in utility theory
    3. The relevant concepts on consumer theory

    * Text: Chapter 4.

    Unit 2: The Marginal Use Value Approach

    1. Basic Concepts
    2. The MUV curve & the demand curve
    3. Consumer's surplus revisited
    4. Criticism of the utility ( ordinal ) theory

    * Text: Chapter 2.

    Unit 3: Market Exchange & Efficiency

    1. Functions & implications of price
    2. Functions of market
    3. Concept of exchange & efficiency

    * Text: Chapter 3.

  4. Production Theory

    1. Concepts on costs - definition & types of costs
    2. Theory of production
    3. Theory of costs & cost curves

    * Text: Chapters 6, 7.

  5. Market Competition

    1. Market competition & mechanism
    2. Price-taking & its equilibrium
    3. Price-searching (Imperfect competition)
    4. Monopoly & price discrimination

    * Text: Chapters 8, 9.

  6. Factor Market

    Unit 1: Demand for factors - traditional analysis

    Unit 2: Labour & wage determination

    Unit 3: Rent & Land

    Unit 4: Interest & Capital

    Unit 5: Profit & Entrepreneur - nature of firm

    * Text: Chapters 10, 11, 12, 13, 16.

  7. The Problem of Social Cost

    1. Introduction - concept of externality
    2. Externality - the benefit-cost analysis, solutions of externality
    3. Public good, economic efficiency & common property resources

    * Text: Chapters 14, 15, 17, 18.

Macroeconomics

  1. National Income

    Unit 1: National Income

    * Text: Chapters 1, 2, 3, 4, 5.

    Unit 2: Inflation

    * Text: Chapter 12.

    Unit 3: IS-LM model of national income determination

    * Text: Chapters 8, 9.

    *Leung / Waud / Gordon

  2. Money & Banking

    1. Nature & functions of money
    2. Money Demand: the Quantity Theory
    3. Money Supply
    4. Commercial Bank & Credit Creation
    5. Central Bank & Monetary Policy

    * Text: Chapters 6, 7 / Assigned Readings

  3. Theory of Unemployment

    1. Introduction
    2. Search Theory of Unemployment
    3. Unemployment & inflation

    * Text: Chapters 10, 11, 13.

  4. International Trade

    1. Introduction
    2. Principles of Exchange
    3. International Finance
    4. Trade Theory & Fiscal Policy
    5. Free Trade Versus Protectionism: trade barriers

    * Text: Chapters 14, 15, 16, 17 / Baumol / Assigned Readings.