–          Course Introduction

–          Review and Prospect

1/2 week

–          Recall the key economic concepts we have learnt so far

–          Understand what we will learn this semester

–          Understand the expectations and rules before class, in class and after class

–          Understand the assessment procedure, including assignment forms, exams and grading procedure.

–          Know the teaching materials and references

–          Identify the key units which will be covered this semester

Section 3: Macroeconomics

–          Macroeconomic Equilibrium

–          Macroeconomic Equilibrium

1 week

–          Identify the equilibrium level of national income/output

–          Use a diagram to explain the determination of equilibrium output in the short run

–          Use a diagram to explain the determination of equilibrium output in the long run

a>     from the new classical perspective

b>     from Keynesian perspective

–          Fiscal Policies and Monetary Policies(1)

–          Approaches to Economic Stabilization: Fiscal Policies and Monetary Policies

1 week

–          Define and explain the fiscal policies

–          Explain the arguments of Keynes

–          Define and explain the monetary policies

–          Explain the arguments of Friedman/monetarism: monetary rule

–          Discuss the difference between Keynesian(interventionist) and new classical(free market) economists in the view of macroeconomic equilibrium in the long run

–          Explain and illustrate that the difference between the equilibrium level of national income and the full employment level of national income will result in an inflationary or deflationary gap

–          Fiscal Policies and Monetary Policies(2)

–          The Keynesian Multiplier Effect

1/2 week

–          Explain the nature and importance of the Keynesian multiplier effect of injections on national income(HL)

–          Calculate the value of the multiplier(HL)

–          Illustrate the Multiplier effect using AD/AS analysis(HL)

–          Fiscal Policies and Monetary Policies(3)

–          The Money Multiplier

1 week

–          Illustrate how money is created

–          Understand the fractional-reserve banking system

–          Calculate the value of the money multiplier

–          Unemployment(1)

–          Labor force

–          “Unemployed” and “not in the labor force”

–          Unemployment rate

1 week

–          Understand the concept of unemployment rate

–          Understand the concept of labor force

–          Differentiate “unemployed” from “not in the labor force”

–          Measure unemployment rate

–          Understand how Bureau of Labor Statistics get the data

–          Calculate the unemployment rate(u-rate) given the data

–          Interpret the u-rate

–          Explain the difficulties involved in measuring unemployment

–          Unemployment(2)

–          Causes of Unemployment

–          Types of Unemployment

–          Full Employment

–          Natural Unemployment Rate

1 week

–          Explain and illustrate the main factors affecting the level of unemployment

–          Distinguish between different causes of unemployment and name the type of unemployment

a>     Disequilibrium unemployment: real-wage unemployment, demand-deficient unemployment/cyclical unemployment,

b>     Equilibrium unemployment/Natural unemployment: structural unemployment, seasonal unemployment, frictional unemployment

–          Explain the concept of full employment

–          Explain the concept of natural unemployment rate(HL)

–          Unemployment(3)

–          Costs of Unemployment

–          Measures to Reduce Unemployment

1/2 week

–          Discuss the costs of unemployment

–          Evaluate the measures that may be taken to reduce different types of unemployment

–          Inflation(1)

–          Inflation

–          Disinflation

–          Deflation

–          Costs of Inflation and Deflation

1/2 week

–          Explain the concepts of inflation, disinflation, and deflation

–          Discuss the costs of inflation and deflation

–          Inflation(2)

–          Measurement of inflation

–          CPI and Inflation Rate

1/2 week

–          Explain how inflation is measured

–          Calculate the rate of inflation using data(HL)

–          Discuss the problems in measuring inflation

–          Inflation(3)

–          Causes of inflation

–          Measures to Reduce Inflation

1 week

–          Explain the causes of inflation

a>     Demand-pull inflation

b>     Cost-push inflation

c>      Excess Monetary Growth

–          Explain and illustrate how government and central bank policies may be used to reduce inflation

–          Inflation-unemployment Trade-off

–          Trade-off between Inflation and Unemployment

1/2 week

–          Explain and illustrate the short-run Philips curve(HL)

–          Explain and illustrate the long-run Philips curve(HL)

–          Evaluate the extent to which there might be a trade-off between inflation and unemployment(HL)

–          Economic Growth

–          Economic Growth

–          Consequences of Economic Growth

–          The Rate of economic growth

1 week

–          Use a PPC curve to explain how a movement from a point inside a PPC curve to a point on a PPC curve illustrates economic growth

–          Use a PPC curve to explain how an outwards shift in a PPC curve illustrates economic growth

–          Use an LRAS diagram to explain how an outwards shift in the LRAS curve illustrates growth

–          Evaluate the possible consequences of economic growth

–          Calculate the rate of economic growth from a set of data(HL)

–          Distribution of Income(1)

–          Poverty

–          Measurements of Poverty: single indicators

1.5 week

–          Distinguish between absolute poverty and relative poverty

–          Define, explain, give examples of , and illustrate poverty

–          Explain possible causes and consequences of poverty

–          Explain and give examples of the single indicators used to measure poverty

–          Compare and contrast GDP per capita figures and GNI per capita figures for different countries

–          Compare and contrast GDP per capita figures and GNI per capita figures, at purchasing power parity prices, for different countries

–          Compare and contrast health indicators and education indicators for different countries

–          Distribution of Income(2)

–          Poverty

–          Measurements of Poverty: composite indicators

1/2 week

–          Explain and give examples of composite indicators of economic development

–          Explain the components of the human development index(HDI)

–          Compare and contrast HDI figures for different countries

–          Explain the difference between GNI per capita global rankings and HDI global rankings

–          Distribution of Income(3)

–          Equity and Inequality

–          Income redsitribution

1/2 week

–          Distinguish between equity and equality

–          Explain and draw a Lorenz curve

–          Explain the Gini coefficient

–          Analyze data on relative income shares of the population

–          Understand the concept of income redistribution

–          Distribution of Income(4)

–          Income redistribution

1 week

–          Explain two ways that a government might redistribute income in an economy

a>     Tax system

b>     Transfer payment

–          Distinguish between and give examples of direct taxes and indirect taxes

–          Explain how government can alter the distribution of income thought the use of direct tax policies

–          Distinguish between and give examples of progressive, regressive, and proportional taxation

–          Calculate the average rate of tax and the marginal rate of tax

–          Explain how government can use tax revenue to provide goods and services for those on low incomes

–          Explain how government can alter the distribution of income through the use of transfer payments

–          Evaluate the use of government policies to redistribute income

–          Course Introduction

–          Review and Prospect

1/2 week

–          Recall the key economic concepts we have learnt so far

–          Understand what we will learn this semester

–          Understand the expectations and rules before class, in class and after class

–          Understand the assessment procedure, including assignment forms, exams and grading procedure.

–          Know the teaching materials and references

–          Identify the key units which will be covered this semester

Section 4: International Economics

–          International Trade

–          Why Trade Internationally?

–          Comparative Advantage

–          Absolute Advantage

1 week

–          Define international trade

–          Identify and explain the gains from trade

–          Define and give examples of specialization and the division of labor

–          Define, explain, illustrate, and give examples of absolute advantage(HL)

–          Define, explain, illustrate, and give examples of comparative advantage(HL)

–          Calculate opportunity costs to identify comparative advantage(HL)

–          Explain the limitations of comparative advantage theory

–          Free Trade and Protectionism(1)

–          Arguments for Free Trade and Protectionism

–          Types of Trade protection

1/2 week

–          Explain and illustrate free trade

–          Explain, give examples of , and evaluate the arguments for protectionism

–          Explain, give examples of, and evaluate the arguments against protectionism

–          Define, explain, illustrate , and give examples of types of protectionism

–          Free Trade and Protectionism(2)

–          The Effect of Trade Protection

1 week

–          Evaluate the effect of different types of trade protection

–          Calculate, from diagrams, the effects of imposing a tariff, setting a quota, or giving a subsidy, on different stakeholders

–          Exchange Rate(1)

–          Exchange Rate

–          Exchange Rate System and Regime

–          Fixed Exchange Rate System

–          Floating Exchange Rate System

1 week

–          Define, explain, and give examples of an exchange rate

–          Understand the quoting method of foreign exchange

–          Understand the concept of exchange rate regime

–          Define, explain, illustrate, and give examples of a fixed exchange rate system

–          Distinguish between a devaluation and a revaluation of a currency

–          Define, explain, illustrate, and give examples of a floating exchange rate system

–          Distinguish between depreciation and appreciation of a currency

–          Compare and contrast a fixed exchange rate system with a floating exchange rate system

–          Exchange Rate(2)

–          Calculation of Exchange Rate

–          Equilibrium Exchange Rate

–          Changes in the Demand for, and Supply of a Currency

1 week

–          Calculate exchange rates and changes in exchange rates(HL)

–          Identify the equilibrium exchange rate using linear demand and supply functions(HL)

–          Describe factors leading to changes in the demand for, and supply of a currency

–          Exchange Rate(3)

–          Managed Exchange Rate System

1 week

–          Define, explain, illustrate, and give examples of a managed exchange rate system

–          Evaluate the advantages and disadvantages of high and low exchange rates

–          Explain government measures to intervene in the foreign exchange market

–          Evaluate the advantages and disadvantages of fixed exchange rate system and a floating exchange rate system

–          Balance of Payment(1)

–          Balance of Payment

–          Current Account

–          Capital Account

1 week

–          Define and explain the balance of payments account

–          Define and explain the current account

–          Define and explain the elements that make up the current account

–          Define and explain the capital account

–          Define and explain the elements that make up the capital account

–          Balance of Payment(2)

–          Current/Capital Accounts Deficits and Surpluses

1 week

–          Calculate elements of the balance of payments from a set of data(HL)

–          Understand that the current account balance is equal to the sum of the capital account and financial account balances

–          Identify current/capital accounts deficits and surpluses

–          Balance of Payment(3)

–          Expenditure-switching Policies

–          Expenditure-reducing policies

1 week

–          Explain how imbalances in the current/capital account of a country may have effects on the exchange rate of a country’s currency(HL)

–          Explain the implications of, and methods to correct, persistent current account imbalances(HL)

–          Define, explain, and give examples of expenditure-switching policies(HL)

–          Define, explain, and give examples of expenditure-reducing policies

–          Balance of Payment(4)

–          Marshal-Lerner condition

–          J-curve effect

1/2 week

–          Define and explain the Marshal-Lerner condition(HL)

–          Define, explain, and illustrate the J-curve effect(HL)

–          Explain the link between the Marshall-Lerner condition and the J-curve with the help of a diagram(HL)

–          Economic Integration(1)

–          Economic Integration

–          Bilateral and Multilateral trade agreements

–          Different Types of Trading Blocs

1 week

–          Define and explain economic integration

–          Distinguish between bilateral and multilateral trade agreements

–          Define, explain, and give examples of different types of trading blocs

–          Economic Integration(2)

–          Trade Creation

–          Trade Diversion

1/2 week

–          Discuss advantages and disadvantages of a trading bloc for its members

–          Define, explain, illustrate, and give examples of trade creation

–          Define, explain, illustrate, and give examples of trade diversion

–           

–          WTO

1 week

–          Describe the objectives and functions of the World Trade Organization(WTO)

–          Make an annotated time line to how the steps involved in its establishment and evolution

–          Pick one country in the WTO and evaluate how it has been affected by membership of the WTO

–          Course Introduction

–          Review and Prospect

1/2 week

–          Recall the key economic concepts we have learnt so far

–          Understand what we will learn this semester

–          Understand the expectations and rules before class, in class and after class

–          Understand the assessment procedure, including assignment forms, exams and grading procedure.

–          Know the teaching materials and references

–          Identify the key units which will be covered this semester

–          Research and Analysis

–          Comment on Economic Articles

1.5 weeks

–          Access variety of resources and media for research, information analysis

–          Evaluate and annotate information sources for accuracy, relevance, and appropriateness

–          Pick an article and comment based on what have been learnt so far

–          Achieve balance between research information and original ideas in a research report

–          Analyze Economic Events

1.5 weeks

–          Apply sophisticated search techniques to collect, interpret information and write a research project.

–          Revision

See Previous Syllabus

9 weeks

–          Recall all their three years of learning

–          Prepare for university entrance