S4 | S5 | S6

S5 Economics Subject Structure
Cycle No.	Contents / Key Points
1 – 5	1. Competition and Market Structure -          Perfect competition and imperfect competition (monopolistic competition, oligopoly and monopoly ) -          Profit maximization and output determination
6 – 12	2.   Efficiency, Equity and the Role of Government -           Consumer surplus and producer surplus -            Competition and efficiency -            The roles of government :    -   market failure    -   equity and income inequality
13 - 14	3 Measurement of Economic Performance – National Income -   Meaning of national income (GDP / GNP)      -   Circular flow of economic activities      -   GDP at current and constant market prices      -   GDP at factor cost      -   Per capita GDP: growth rate of GDP      -   GNP = GDP + income from abroad -   Uses and limitations of national statistics as      an indicator of economic welfare and for      international comparison -          measurement of the general price level
15 – 18	4.   Macroeconomic Problems -          Inflation and deflation -          Unemployment and underemployment -          Business Cycle
19 - 24	5.   National Income Determination and Price Level -          Aggregate demand -   Reasons for a downward sloping AD curve -   Determinants of aggregate demand      -   Aggregate supply          -   Reasons for an upward sloping SR AS curve          -   Reasons for a vertical long run AS curve          -   Factors affecting short run and long run AS      -   Determination of level of output and price         -    Determination of the equilibrium level of output              and price level in the AS – AD model         -    Change in the equilibrium level of output and              price level caused by change(s) in the AD and /  or AS.
During the summer holiday, the following topics must be covered : 1)         Fiscal policy