Econ Infinity Teaching Schedule

CSEC Economics

September: Videos

SECTION 1: THE NATURE OF Full introduction to Economic:

ECONOMICS https://www.youtube.com/watch?
v=3ez10ADR_gM

Full Introduction to CSEC Economics

https://www.youtube.com/watch?
v=bK1tm3foqY4&list=RDCMUCG0azjvQuO
ubLVHIvmQvBOA&start_radio=1&rv=bK1t
m3foqY4&t=1336
Watch this video before starting the subject.
Make copious notes

SECTION 2: PRODUCTION,
ECONOMIC RESOURCES AND
RESOURCE
ALLOCATION

October:

SECTION 2: PRODUCTION,
ECONOMIC RESOURCES AND
RESOURCE
ALLOCATION
SECTION 3: DEMAND AND SUPPLY

November

SECTION 3: DEMAND AND SUPPLY

December:
SECTION 4: MARKET STRUCTURE
AND MARKET FAILURE

January:

SECTION 4: MARKET STRUCTURE

AND MARKET FAILURE
SECTION 5: THE FINANCIAL SECTOR

February:

SECTION 6: ECONOMIC
MANAGEMENT: POLICIES AND
GOALS

March

SECTION 7: INTERNATIONAL TRADE

April:

SECTION 8: CARIBBEAN ECONOMIES

IN A GLOBAL ENVIRONMENT
SECTION ONE: THE NATURE OF ECONOMICS

LESSON ONE - INTRODUCTION TO ECONOMICS

Economics is the study of human behaviour as individuals, firms and governments seek to satisfy
unlimited wants with limited resources.
Economic study is often done on two levels:
Microeconomics studies economic behaviour of individuals, markets, and firms
Macroeconomics looks on the entire economy or its major aggregates and sectors. It is the sum
of all the individuals, market, and firms.
Microeconomics and Macroeconomics Topics within syllabus

Economic Statements
Economic perspective can be expresses as positive statements or normative statements.
 Positive statements focus on facts and is concerned with “what is data” These statements
are based on empirical investigations
 Normative statements are concepts and issues of economics based upon opinion which
cannot be tested. Normative statements suggest what ought to be and answer policy
statements based on value judgement
Economist view people as rational decision makers who make choices based on self-interest:
(The foundation of economics assumes that the people, firm, consumers are
rational human beings-meaning that they behave like normal people with sense
and thus they can be predicted; they do not make unexpected or bizarre
decisions)
Economist use the scientific method to arrive at the generalization contained in the principles,
laws, theories or models put forward. Hypothesis to explain observed phenomenon → empirical
data→ theories principles and laws
Economist construct these models and theories to explain and predict economic behaviour.
Abstraction is a necessary part of building economic theories etc. . This means ignoring many
details in order to focus on the most important factors in a problem Abstractions are necessary to
understand the functioning of anything as complex as the economy For example the ceteris
paribus or “other things being equal” assumption is used to limit the influence of other factors
when making generalizations.
Ceteris Paribus:
Ceteris paribus or all other factors being equal simple means that when you’re trying to establish
a relationship between two variables (eg. Price and quantity), to establish a sensible relationship,
economist have to say ceteris paribus so that all other factors that may affect price and quantity
are being suppressed (like income, taste, preference, brand loyalty, price of other goods etc.).
This means that, yes, we know that people’s income may affect how much quantity of goods
they buy, and this would affect price, however, since we’re only trying to look at the relationship
between price and quantity only we have to assume that the effect of income on price and
quantity is held constant or equal (means that income does not change, so it won’t affect price or
quantity)

Theories
Theories are simplified means of explaining the mechanism behind observed phenomena.
Models are simplified means of representing a real-world situation. Theories/models are often
expressed in graphs, equations or words for example: What phenomenon is observed as to how
people respond to changes in prices. This is explained by the theory of demand

Definition of Economics 
The study of the issuing of limited resources used to produce goods and services to satisfy the
unlimited needs and wants of consumers

Microeconomics and Macroeconomics

Microeconomics is how and individual firm, establishment or household would make decision
and how they operate in markets.

Macroeconomics is economy on a wide perspective. The economics in the nation. Eg: how many
people have jobs, economic growth

Meaning of economy

(answers what, how and for whom)

The systems that organises the scarce resources to produce goods and services for the different
groups in the economy.

The three main agents in the economy

Household: Buys what is produced by the firm. Labours are from this agent. Eg: Entrepreneurs,
employees, etc

Firm: a business, a private institution. Produces the goods and services the household uses.

Government: Provides framework of laws and rules. Runs the economy and sometimes is
involved in its production.

What is circular Flow chart?

A diagram which display the cycle of the economy’s dollar flow. It shows this flow through
market among households and firms and how they are structured by the government through
rules and laws. The flow chart outlines the flow of inputs and outputs and the flow of dollars.
Concepts of

Scarcity: When the limited resources exceed the unlimited wants of consumers

Choice: Decision made in order to avoid shortage due to limited resources.

Opportunity Cost:
The outcome of a decision that causes the highest valued alternative to be given up. 
The cost of something given up to get something else.

Efficiency and Inefficiency:

Efficiency is when resources are used effectively and can satisfy the needs and the wants of
consumers while Inefficiency is when resources are not used effectively and cannot satisfy the
needs and the wants of consumers.

Distinguish between free goods and economic goods

Free goods are resources that have no cost. These are mostly found in nature. Examples are
sunlight and air. They are unlimited. 
Economic goods are products that are scarce, they have a cost, they are manufactured and are
limited. 
CREATE A DICTIONARY WITH THE FOLLOWING TERMS. THE DEFINITIONS
ARE TO BE WRITTEN IN YOUR NOTEBOOKS.

1. Economy

2. Micro-economics

3. Scarcity

4. Macro-economics

5. Normative Economics

6. Positive Economics

7. Wants

9. Needs

10. Choice

11. Opportunity cost

12. Money Cost

13. Production

14. Employment

15. consumer goods

16. capital goods

17. Merit Good

18. Free rider

19. efficiency

20. Income

21. Consumption

22. Free goods

23. Demerit Good

24. Public Good

25. Barter

26. Economic Good

29. Resources

30. Production Possibility Curve

31. Economic system

Barter

To exchange goods and services without the use of currency.

Capital Goods

The assets used by businesses in the course of producing their products and services, and can

include buildings, tools, machinery and equipment.

Choice

The ability of a consumer or producer to decide which good, service or resource to purchase

or provide a range of possible options.

Consumer Goods

Any tangible commodity produced and subsequently purchased to satisfy the current wants

and perceived needs of the buyer.

Consumption

The final purchase of goods and services by the consumer.

Demerit Good

A good or service whose consumption is considered unhealthy, degrading or otherwise

socially undesirable, due to perceived negative effects on the consumer.

Economic Good
A commodity or service that is of benefit to society with no opportunity cost.

Economic System

The means by which societies and governments organize and distribute available resources,

goods and services across a geographic region, state or country.

Economy

A complex system of interrelated production, consumption and exchange activities that

ultimately determine how resources are allocated among all participants.

Efficiency

An economic state in which every resource is optimally allocated to serve each individual in

the best way while minimizing wastage.

Employment

Anyone aged 16, or over, who has completed at least one hour of work in the period being
measured, or are temporarily away from his or her job, such as being on holiday.

Free Goods

A good that does not require scarce resources for its production, and thus has no opportunity

cost.

Free Rider

Someone who wants others to pay for a public good that they plan to utilize.

Income

The amount of money, property and other transfers of value received over a set period in

exchange for services and products.

Macroeconomics

The study of how an overall economy (the markets, businesses and governments) behave. It
examines phenomena such as inflation, national income, gross domestic product and rate of

economic growth.

Merit Good

Goods are thought to be socially desirable and are likely to be under-produced and under-

consumed through the market mechanism.

Microeconomics

The study of individuals and firms to allocate resources of production, exchange and

consumption.

Money Cost

The actual cash cost incurred in the production and sale of marketable goods and services.

Needs

Commodities that are essential for human survival.

Normative Economics

The branch of economics that aims to determine people’s desirability, or the lack thereof to

various economic programs and conditions by asking what the economy ought to be.

Opportunity Cost

The forgone benefit that would have been derived from choosing one alternative over

another.

Positive Economics

The objective analysis in the study of economics. Conclusions drawn from positive

economics can always be tested and are backed by factual data.

Production
An activity carried out under the control and responsibility of an institutional unit that uses

inputs of labor, capital, goods and services to produce outputs of goods and services.

Production Possibility Curve

A graph that shows all the different combinations of output that can be produced given

current resources and technology.

Public Good

A commodity or service that is made available to all members of society.

Resources

A commodity used to produce goods and services to satisfy human wants and needs.

Scarcity

He limited nature of natural and human resources. That is: When the demand for a resource is
greater than the supply of that resource, as resources are limited.

Wants

Any non-essential commodity that an individual may desire.

Term Definition
(also called a production possibilities frontier) a graph
that represents all of the different combinations of
production two goods that a country can be produced when all its
possibilities resources are efficiently employed; the PPC captures
curve (PPC) scarcity of resources and opportunity costs.
Term Definition
an increase in an economy's ability to produce goods
and services over time; economic growth in the PPC
growth model is illustrated by a shift out of the PPC.

a decrease in output that occurs due to the under-

utilization of resources; in a graphical model of the
PPC, a contraction is represented by moving to a
point that is further away from, and on the interior of,
contraction the PPC.

when the opportunity cost of a good remains constant

as output of the good increases, which is represented
as a PPC curve that is a straight line; for example, if
Colin always gives up producing 2 fidget spinners
constant every time he produces a Pokemon card, he has
opportunity costs constant opportunity costs.

when the opportunity cost of a good increases as

output of the good increases, which is represented in a
graph as a PPC that is bowed out from the origin; for
example Julissa gives up 222 fidget spinners when
she produces the first Pokemon card, and fidget
increasing spinners for the second Pokemon card, so she has
opportunity costs increasing opportunity costs.

productivity (also called technology) the ability to combine

economic resources; an increase in productivity
causes economic growth even if economic resources
have not changed, which would be represented by a
 Term Definition
shift out of the PPC.

The Production Possibilities Curve (PPC) is a model that captures scarcity

and the opportunity costs of choices when faced with the possibility of
producing two goods or services. Points on the interior of the PPC are
inefficient, points on the PPC are efficient, and points beyond the PPC are
unattainable. The opportunity cost of moving from one efficient combination
of production to another efficient combination of production is how much of
one good is given up in order to get more of the other good.