Core Economic Principles

Explain scarcity and opportunity cost as the basis for economic decision-making.

Describe how supply and demand interact to determine market equilibrium.

Analyze the effects of government interventions like price controls and taxes on market outcomes.

Define Gross Domestic Product (GDP) and distinguish between nominal and real GDP.

Define inflation and unemployment and explain their core economic consequences.

Explain the concept of the business cycle and its distinct phases.

Describe different types of market failures, including externalities, public goods, and information asymmetries.

Explain the rationale for government intervention to correct market failures.