Microeconomics

Note from tutor: Microeconomics is less context heavy than macroeconomics, and the concepts build on each other in a sequential manner. As Economics is a new subject for most students, lessons are focused on building a solid foundation and clear understanding of the few key concepts, as well as applications to different markets so that students gain familiarity and confidence.

In my experience, students who start lessons with me early in the first year will do significantly better at the end of the year one.

SCARCITY, CHOICE, AND OPPORTUNITY COST

  • Key Understanding Points
    • Concept of Opportunity Cost. (This is a common source of confusion)
    • Cost and Benefit analysis
    • Introduction to marginal analysis
  • Key Exam Focus
    • Using the PPC to illustrate Scarcity, Choice, and Opportunity Cost

DEMAND AND SUPPLY

THEORY OF THE FIRM (H2 ONLY)

  • Key Understanding Points
    • Marginal analysis (Part 3)
    • Cost
      • Marginal costs (MC)
      • ATC
      • AVC
      • AFC
      • Fixed and variable
      • Short and long run
      • Internal and external economies of scale
    • Revenue
      • Marginal revenue (MR)
      • AR
    • Firm Behaviour
      • Profit maximisation condition (MC = MR)
      • Alternative theories
    • Market Structures
      • Price and non-price competition
      • Shut down and exit conditions
      • Perfect Competition
      • Monopolistic Competition
      • Oligopoly
      • Monopoly
  • Key Exam Focus
    • Key features of market structures
    • How firms compete based on analysis of market structure
    • Application of models to real markets
    • Analysis of efficiencies
      • Productive
      • Allocative
      • Dynamic

MARKET FAILURE AND GOVERNMENT INTERVENTION

Two big topics here, but they are always tested in tandem

  • Key Understanding Points
    • Meaning of market failure
    • Concept of deadweight loss
    • Efficiencies
      • Productive
      • Allocative
      • Dynamic
    • Types of market failures
      • Externalities
      • Market dominance
      • Imperfect information
      • Factor immobility
      • Public good
      • Income inequality
    • Government interventions in market failures
      • Taxes and subsidies
      • Legislation
      • Tradeable permits
      • Public education
      • Concept of government failure
  • Key Exam Focus
    • Explanation and graphical illustration of market failures, especially externalities in both production and consumption
    • Explanation of welfare loss
    • Analyse various means of government intervention