| Topic # | Topic | Outcome |
| 2.1 | The allocation of resources | Describe the allocation of resources in: • market economic systems • mixed economic systems |
| 2.2 | Sectors of an Economy | Describe the terms used for sectors in an economy: • Primary • Secondary • Service (tertiary) |
| 2.3 | The principle of equilibrium price | • Demonstrate the principle of equilibrium price • Analyse simple market situations with changes in demand and supply |
| 2.4 | Changes in demand and supply conditions | • Describe the causes of changes in demand and supply conditions • Analyse such changes to show effects in the market |
| 2.5 | Price elasticity of demand and supply | • Define price elasticity of demand • Define price elasticity of supply • Perform calculations |
| 2.6 | Usefulness of price elasticity of demand and supply | Demonstrate the usefulness of price elasticity in particular situations, such as in relation to: • revenue changes • consumer expenditure |
| 2.7 | The market system | Evaluate the merits of the market system |
| 2.8 | Market failure | • Describe the concept of market failure • Explain the reasons for its occurrence |
| 2.9 | Private and social costs and benefits | • Define private and social costs • Define private and social benefits • Discuss conflicts of interest in relation to these costs and benefits in the short-term and long-term through studies of the following issues: (i) conserving resources versus using resources (ii) public expenditure versus private expenditure |
