Economics is for Everyone

This unit introduces the key theories section of this course. At this point, the course aims to introduce the student to some of the most important and most applied theories in economics. This unit is not particularly detailed but aims to give the student a feel for the next 6 to 7 units in the course.

This unit investigates utility. Utility is one of the most important and applied concepts in economics. It is a key driving force behind demand. This unit provides a definition of utility, explains why it is important, explains what is meant by diminishing marginal utility, and considers courses of action when there is limited information to determine potential utility. After this unit, the student should have a good grasp of utility and have some idea of how it is applied.

This unit focuses on production and costs. Utility may drive our needs and wants but production addresses how these needs and wants are met. This unit looks at factors of production, combinations of factors, cost structures, and production on an economy wide scale. At the end of this unit, students should have a good understanding of production and costs.

This unit focuses on demand and supply. This unit pulls together some of the theory from the previous two units. Utility supports demand and production supports supply. The unit looks at the different shapes of demand and supply curves and considers the impact on price and quantity when demand or supply changes. At the end of the unit, students should have a good understanding of how demand and supply is used to determine price and quantity.

This unit explores market structure. Market structure is not typically viewed as one of the most critical units in economics. I tend to disagree, as market structure greatly influences the shapes of demand and supply curves. This ultimately determines the price and quantity of products sold. Four market structures are briefly discussed in this unit. They are perfect competition, monopoly, monopolistic competition, and oligopoly. On completing this unit, students should understand the different types of market structure and the effect they have on efficiency and equilibrium price and quantity.

In this unit, we revisit our observations from units 3, 4, 5, and 6. After exploring some economic theories, we can link how these theories apply to our previous observations. What theories link to daily choices? What theories link to how we handle other people? After completing this unit, students should be able to understand where different theories apply to their own lives.

Microeconomics and macroeconomics are often separated in courses. This could create the impression that they are fundamentally different. This unit explains the differences between the two areas but also explains how they are fundamentally supported by the same key theories. The unit provides the examples of demand and supply and efficiency to demonstrate how macroeconomics and microeconomics are linked. After this unit, students should be able to distinguish between macroeconomics and microeconomics. They should also be able to understand how they are connected.

In this unit, several important microeconomic concepts are briefly discussed. These concepts include opportunity costs, scarcity, externalities, and game theory. After this unit, students should have some general idea about these concepts but the unit is not sufficient for the student to be fully informed. I would recommend additional reading for a more complete understanding. However, this unit is an important guide to identifying theory that is most relevant to most people.

This unit investigates several important macroeconomic theories. These theories are national income, employment, and inflation. The unit explains the different types of national income. The unit explains the relationship between unemployment and inflation. The unit looks at a few important macro models such as the AD/AS model and the Phillips Curve. On completion of this unit, students should understand the causes of unemployment and inflation as well as some of the consequences.

This unit continues exploring macroeconomics. In this unit, intervention is explored. Monetary and Fiscal policies are explained. The unit explains when these policies are used as well as the expected effects of such policies. The unit takes a quick look at income inequality and how it is handled. The unit also briefly describes international trade and its importance to economic growth. The unit ends by providing some brief theory about economic growth. At the end of this unit, students should understand how economic policy is applied as well as some of the negative effects.

This unit focuses on money. It is very important to understand how money functions, and how it is created. This unit explains the types of money, characteristics of money, the functions of money and how it is created. The unit also considers the effects of increasing and decreasing the supply of money on the economy. After this unit, students should have a sound understanding of what money is and how its creation effects them.

This unit considers the broader application of economics. The unit takes much of what we have learnt so far and applies it to the real world. The unit looks at four important questions. These questions are whom produces, who it is produced for, what is produced, and how is it produced. These questions span across both microeconomics and macroeconomics. Knowledge of economics can help us address these questions. After this unit, students should have a fair understanding of how economics can be used to address these questions. They should be able to understand when to apply theories learnt in early units to address these questions.

This unit looks at how economics is applied in a negative way. Economics can be used for the benefit of people but sometimes it is used to benefit just a few people and at the expense of others. Investment decisions are made to increase power and standing and not public need. Money is created to distort the wealth of some. Prices are artificially raised to increase profits. Lending is made too appealing to raise prices and increase debt. Students should be able to understand the potential for abusing economics and be able to recognise when this is taking place.

This unit explores the potential abuse of economics further. The unit considers profiting at the expense of people’s health. The unit considers how wars can achieve both economic growth and profits but at the expense of other nations. The unit looks at how game theory can be applied to increase profits and power whilst increasing resistance with the illusion of choice. After units 19 and 20, the student should understand that economic theory could be used to the detriment of people and nations if the incentive to do so exists.

This unit provides a brief overview of economic modelling. The unit provides the reasons for economic modelling, how it is done, and when it should be done. The unit also links the principles behind economic modelling to possible real life application. The student should gain an appreciation of economic modelling and its application. This unit does not provide the tools for a student to conduct their own economic modelling.

This unit focuses on understanding economics and how simply understanding how it functions can improve the quality of your life. The unit still works around the themes of understand how economics affects you, those around you and the world in general. Students should gain a further appreciation of the extent of economics in the world. They should understand how economics influences their decisions as well as the decisions of those around them.

This unit looks at how economics can be applied to improve our lives. The unit looks at incorporating economics in decisions both basic and complex. The unit emphasises the importance of being able to investigate the world around us to find the answers we seek rather than just relying on others who may have other agendas. On completion of this unit, the student should have a much broader understanding of the application of economics as well as how it is used and can be used to improve the quality of their own lives. At this point, the student should be fully aware that economics is everywhere and everyone needs some basic understanding to obtain the most out of life.

This unit describes the scenario questions. The example from unit 2 is explained in detail. A possible answer to this question is explained. The unit contains two scenario questions for students to complete in their own time. These questions do not have fixed answers but require the application of economics to devise answers. The questions require knowledge from all areas of the course and I would recommend that students include their own knowledge and experience to produce the best answers.