Lessons · A/L Economics

Unit 1 · Basic economic problems and economic systems

• The Foundation of Economics
• Wants, Resources and Factors of Production
• Scarcity, Choice and the Basic Economic Problems
• Economic Systems
• The Production Possibility Frontier

Unit 2 · Demand, supply, elasticity and market equilibrium

• Demand and the Law of Demand
• Price Elasticity of Demand
• Cross Price and Income Elasticity of Demand
• Supply and the Law of Supply
• Price Elasticity of Supply
• The Market and Market Equilibrium
• Changes in Market Equilibrium

Unit 3 · Government intervention in the market

• Government Intervention and the Unit Tax
• Tax Incidence
• Unit Subsidy
• Price Control and Price Stabilisation

Unit 4 · Production, costs, market structures and factor markets

• Production in the Short Run and Long Run
• Costs of Production
• Market Structures
• The Perfectly Competitive Firm and Industry
• The Factor Market

Unit 5 · National accounting

• Macroeconomic Objectives and the Business Cycle
• The Circular Flow and the Three Approaches
• Preparing for the Output Approach: Final Output and Value Added
• GDP, GNI, Real GDP, the Deflator and Per Capita Income
• GDP by the Income Approach and National Disposable Income
• GDP by the Expenditure Approach, Saving and Total Resources
• Importance and Limitations of National Accounting

Unit 6 · Macroeconomic equilibrium

• Macroeconomic Equilibrium and Disequilibrium
• Components of Aggregate Expenditure
• Equilibrium Income: Y = E and W = J Approaches
• Changes in Equilibrium and the Multiplier

Unit 7 · Money, prices and banking

• Money: Characteristics, Functions and Types
• Demand for Money (Liquidity Preference)
• Money Supply, Reserve Money and the Money Multiplier
• The Price Level, Inflation and Price Indices
• The Financial System of Sri Lanka
• The Central Bank of Sri Lanka and Monetary Policy
• Commercial Banks, the Balance Sheet and Money Creation

Unit 8 · Public finance

• Market Failure
• Externalities and Market Failure
• The Role of Government and Government Failure
• Fiscal Policy, Government Revenue and Taxation in Sri Lanka
• Government Expenditure: Composition and Trends
• The Government Budget and Budgetary Policy
• Financing the Deficit and Government Debt
• Supply-Side Policies

Unit 9 · International trade

• Basis of International Trade: Absolute and Comparative Advantage
• Protectionism: Tariffs, Quotas and Other Trade Barriers
• Terms of Trade
• Globalisation, Regionalisation and Trade Agreements
• Sri Lanka's Foreign Trade and Trade Policy

Unit 10 · Balance of payments and exchange rates

• The Balance of Payments and its Accounts
• Balance of Payments Imbalances in Sri Lanka
• The Foreign Resource Gap and Foreign Assets
• Foreign Direct and Portfolio Investment
• The Foreign Exchange Market and the Exchange Rate
• Exchange Rate Systems, Effective and Real Exchange Rates
• Depreciation, Appreciation and their Effects
• The IMF, the World Bank and the ADB

Unit 11 · Economic growth and development

• Economic Growth: Measures, Determinants, Importance and Costs
• Economic Development, Human Development and Sustainable Development
• Measuring Development: Per Capita Income, the HDI and the Happiness Index
• Income Inequality: the Lorenz Curve, the Gini Coefficient and the Quintile Ratio
• Poverty: Concepts, Forms and Measurement
• Poverty in Sri Lanka: Levels, Regional Patterns, Causes and Policies
• Population of Sri Lanka: Growth, Distribution, Age Structure and the Demographic Transition
• The Labour Force of Sri Lanka: Definitions, Calculations and the Participation Rate
• Employment, Underemployment and Unemployment in Sri Lanka

Unit 12 · The Sri Lankan economy

• The Sri Lankan Economy Since Independence
• New Trends in the Sri Lankan Economy
• The 2022 Economic Crisis and Sovereign Default
• Recovery and Contemporary Economic Policies, 2023-2025