1.

define the term “economics”;

2. explain what is meant by an economy;

3. list the main sectors in an economy;

4. explain the concepts of scarcity and choice within an

economy;

5. define “opportunity cost” and “money cost”;

6. illustrate opportunity cost and efficiency, using the

production possibility frontier;

7. list the main influences on individuals in making

economic decisions;

8. list the main influences on firms in making economic

decisions.

CONTENT

1. Economics as a Social Science:

(a) the creation of wealth out of scarce resources;

(b) the production and distribution of goods and

services;

(c) the behaviour, interactions and welfare of those

involved in the process;

(d) economics as a trade off.

2. An economy as a mechanism:
(a) organization of resources for production of goods
and services;

(b) satisfaction of society’s needs and wants.

3. Main sectors in an economy.

4. Concepts of scarcity and choice.

5. Opportunity cost and money cost.

THE NATURE OF ECONOMICS (cont’d)

6. Illustration of Production Possibility Curve.

7. Influences on consumers in making economic decisions.

8. Influences on producers in making economic decisions.

◆ SECTION 2: PRODUCTION, ECONOMIC RESOURCES
AND
RESOURCE ALLOCATION

SPECIFIC OBJECTIVES

Students should be able to:

1. define “production”;

2. distinguish between production and productivity;

3. define the term “factors of production”;

4. identify the economic resources referred to as “factors

of production”;

5. state the rewards of the factors of production;

6. describe the factors of production;

7. identify the costs associated with production;

8. differentiate between short run and long run;

9. distinguish between goods and services;

10. explain the concept of resource allocation;

11. list the types of economic systems;

12. describe the characteristics of each economic system;

13. assess the merits and demerits of each economic

system;
14. identify the main types of business organizations in a
free market;

15. describe the features of each type of business

organization;

16. explain the concept of economies of scale;

17. give examples of economies of scale;

18. explain the concept of diseconomies of scale;

19. outline the advantages and disadvantages of division of

labour.

PRODUCTION, ECONOMIC RESOURCES AND

RESOURCE ALLOCATION (cont’d) CONTENT

1. Definition of production.

2. Differences between production and productivity.

3. Factors of production: resources, both human and non-

human, required to produce goods.

4. Types of economic resources as factors of production:

(a) land;

(b) labour;

(c) capital;

(d) entrepreneurial talent.

5. Rewards of factors of production:

(a) rent;

(b) wages and salaries;

(c) interest;

(d) profit.

6. Description of the factors of production:

(a) Land

(i) definition;

(ii) characteristics;

(iii) types;

(iv) importance;

productivity.
(v)

PRODUCTION, ECONOMIC RESOURCES AND

RESOURCE ALLOCATION (cont’d)

(b) Labour

(i) definition;

(ii) characteristics;

(iii) functions;

(iv) division of labour;

(v) specialization of labour;

(vi) productivity;

(vii) efficiency;

(viii) supply.

(c) Capital

(i) definition;

(ii) characteristics;

(iii) types;

(iv) accumulation;

(v) importance as a substitute for labour.

(d) Entrepreneurial Talent: public and private

enterprises

(i) definition;

(ii) importance;

(iii) functions.

7. Fixed, variable, total, average and marginal costs.

8. Differences between short run and long run.

9. Goods (tangible) and services (intangible).

PRODUCTION, ECONOMIC RESOURCES AND
RESOURCE ALLOCATION (cont’d)

10. Resource allocation: what to produce; how much to

produce and for whom to produce.

11. Types of economic systems:

(a) traditional (subsistence farming, bartering);

(b) command or planned (socialist);

(c) free or capitalist (market);

(d) mixed (public and private).

12. Characteristics of each economic system in relation to

ownership of the factors of production, role of
government and role of the private sector; how each
economic system allocates resources.

13. Merits and demerits of each economic system in terms

of its efficiency in allocating scarce resources and in
providing goods and services to each sector of the
population.

14. Types of business organizations in a free market.

15. Features of each type of business organization.

16. Concept of economies of scale.

17. Technical, Marketing, Financial and Risk-bearing

economies.
18. Concept of diseconomies of scale.

19. Advantages and disadvantages of division of labour.

◆ SECTION 3: MARKETS AND PRICES

SPECIFIC OBJECTIVES

Students should be able to:

1. explain the term “market”;

2. identify the market forces;

3. describe the relationship between price and demand,

and price and supply;

4. explain the concept of ceteris paribus;

5. illustrate the concepts of demand and supply by using

demand and supply curves;

6. explain the determinants of demand and supply;

7. illustrate how changes to the determinants affect

demand and supply curves;

8. explain the concept of market equilibrium;

9. illustrate market equilibrium diagrammatically;

10. explain changes in the market equilibrium;

11. illustrate changes in the market equilibrium;

12. explain the concept of price elasticity of demand;

13. outline factors affecting price elasticity of demand;

14. illustrate price elasticity of demand, using simple

calculations;

15. illustrate other types of elasticities of demand, using

simple calculations;

16. explain price elasticity of supply;

17. illustrate price elasticity of supply, using simple

calculations;

18. define the term ‘market structure’;

19. outline the characteristics of market structures;

20. identify the main types of market structures;

MARKETS AND PRICES (cont’d)

21. define the term “market failure”;

22. outline the main causes of market failure;

23. state the main consequences of market failure.

CONTENT

1. Concept of a market.

2. Definitions of supply and demand.

3. The relationship between price and quantity demanded,
and price and quantity supplied (the four laws of
demand and supply).

4. The concept of ceteris paribus.

5. Diagrammatic representation of demand curve and

supply curve.

6. Demand and supply conditions: factors determining the

environment for price movements.

7. Diagrammatic representations and analyses of how

changes to the determinants affect demand and supply
curves.

8. Market equilibrium: agreement between consumer and

supplier on the price and quantity of goods demanded
and offered.

9. Diagrammatic representation of market equilibrium.

10. The impact of changes in market conditions on market

equilibrium.

11. Illustration of the market equilibrium.

12. Price elasticity of demand:

(a) concept of price elasticity of demand and its

determinants;

(b) concept of income and cross elasticity of demand.

13. Factors affecting price elasticity of demand.

14.Illustration, by graphs and tables, of changes in

conditions of demand and supply.
MARKETS AND PRICES (cont’d)

15. Illustration, by graphs, of elastic and inelastic demand.

16. Price elasticity of supply: what happens to quantity

supplied following a change in price.

17. Illustration, by graphs and tables, of elastic and inelastic

supply.

18. Definition of market structure.

19. Market structure: behavior and performance of firms in

a variety of situations:

(a) number of buyers and sellers;

(b) types of goods;

(c) freedom of entry and exit;

(d) control on price.

20. Main types of market structures:

(a) perfect competition;

(b) monopoly;

(c) oligopoly;

(d) monopolistic competition.

21. Definition of market failure.

22. Causes of market failure:

(a) monopoly;

(b) merit goods and public goods;

(c) negative or positive externalities.

23. Consequences of market failure:

(a) retrenchment;

(b) unemployment;

(c) economic depression;

(d) rise in levels of poverty;

(e) decline in provisions for societal welfare.

◆ SECTION 4: THE FINANCIAL SECTOR

SPECIFIC OBJECTIVES

Students should be able to:

1. explain the concept of the Financial Sector;

2. state the role of the Financial Sector;

3. identify the functions of the Financial Sector;

4. explain the concept of the Informal Sector;

5. explain the concept of money;

6. describe the development of money;

7. explain the functions of money;

8. describe the qualities of money;

9. explain the phrase “money supply”;

10. describe the role of the Central Bank and other financial
institutions;

11. distinguish between the types of financial instruments.

CONTENT

1. The Financial Sector: The complex mix or

network of markets, households, businesses,
governments, laws and institutions interacting with one
another.

2. The role of the Financial Sector in mobilizing and making

loanable funds available from savers to spenders for
consumption and investment purposes.

3. Functions of the financial sector.

4. Economic activities that are not officially regulated and

which take place outside the formal norms of business
transactions.

5. Money as any item considered acceptable to be used as

payment for goods and services.
6. From bartering to modern forms of payments.

THE FINANCIAL SECTOR (cont’d)

7. Four main functions of money.

8. Four main qualities of money.

9. Money supply: the total stock of money in the economy

at any moment.

10. Roles of the Central Bank and the following financial

institutions:

(a) Commercial Bank;

(b) Stock Exchange;

(c) Share Market;

(d) Credit Union;

(e) Development Bank;

(f) Insurance Company;

(g) Mutual Fund;

(h) Building Society;

(i) Investment Trust Company;

(j) Informal credit institutions (Sou Sou, Box, Partner,

Sindicatos, Meeting Turns).
11. Financial instruments:

(a) treasury notes and bonds;

(b) corporate bonds;

(c) municipal bonds;

(d) equity securities.

◆ SECTION 5: ECONOMIC MANAGEMENT:

POLICIES AND GOALS

SPECIFIC OBJECTIVES

Students should be able to:

1. explain the role of government in stabilizing the

economy;

2. explain the meaning of terms and concepts associated

with economic policies and goals;

3. explain the concept of the circular flow of income;

4. illustrate the circular flow of income;

5. distinguish between Gross Domestic Product (GDP) and

Gross National Product (GNP);

6. distinguish among nominal output, real output and

potential output;

7. distinguish between economic growth and economic

development;
8. distinguish between inflation and recession;

9. state the main causes and consequences of inflation

and recession on an economy;

10. state ways used by governments to reduce inflation;

11. state ways used by governments to relieve recession;

12. explain the different types of unemployment;

13. outline the role of trade unions in an economy.

CONTENT

1. Role of government, for example, in taxation and

expenditure, and transfer policies.

2. Definition of the following terms and concepts:

(a) national budget;

(b) national income;

(c) disposable income;

(d) national debt;

ECONOMIC MANAGEMENT: POLICIES AND

GOALS (cont’d)

(e) fiscal policy;

(f) fiscal deficit;

(g) monetary policy;

(h) economic growth;

(i) economic development;

(j) developing economy;

(k) developed economy;

(l) balance of payments;

(m) GDP;

(n) GNP;

(o) employment;

(p) unemployment;

(q) inflation;

(r) deflation;

(s) savings;

(t) investment.

3. Flows of goods and services and factors of production

between firms and households.

4. Illustration of a basic flow diagram consisting of

households, firms, government and financial
institutions.
5. GDP: a measure of national output; GNP: a measure of
the increase or decrease in the standard of living;
Calculation of GDP and GNP.

6. Nominal output, real output and potential output.

7. Economic growth and economic development.

ECONOMIC MANAGEMENT: POLICIES AND
GOALS (cont’d)

8. Inflation and recession.

9. The major causes and consequences of inflation and

recession.

10. Government’s role in reducing inflation.

11. Government’s role in relieving recession.

12. Types of unemployment:

(a) structural;
(b) cyclical;

(c) frictional;

(d) seasonal;

(e) real-wage.

13. Causes and measures to reduce each type of

unemployment.

14. The role of Trade Unions in a free market economy.

◆ SECTION 6: INTERNATIONAL TRADE

SPECIFIC OBJECTIVES

Students should be able to:

1. explain the meaning of terms and concepts associated

with international trade;

2. explain the rationale for international trade;

3. describe the primary factors that influence the level of

international trade;

4. explain the concept of gains from trade;

5. explain the concept of terms of trade;

6. state the factors that influence the level of an exchange

rate;

7. distinguish between the various types of exchange rate

regimes;

8. distinguish between exchange rate appreciation and

exchange rate depreciation;

9. distinguish between exchange rate devaluation and

exchange rate revaluation;

10. distinguish between balance of payments and balance of

trade;
11. list the constituent components of the balance of
payments;

12. describe the entries that would appear in the balance of

payments account;

13. distinguish between balance of payments surpluses and

balance of payments deficits;

14. describe the factors that give rise to balance of

payments surpluses and deficits;

15. state the possible consequences of balance of payments

surpluses and deficits;

16. describe the possible remedies for balance of payments

surpluses and deficits.

SECTION 6: INTERNATIONAL TRADE (cont’d)

CONTENT

1. Definition of the following terms and concepts:

(a) balance of trade;

(b) current account;

(c) capital account;

(d) balance of payments;

(e) balance of payments disequilibria;

(f) tariff;

(g) Common External Tariff (CET);

(h) quota (non-tariff barriers);

(i) exchange rate;

(j) exchange rate regimes;

(k) World Trade Organisation (WTO).

2. The concept of comparative advantage and gains from

trade. International trade as a “win-win” situation.

3. Factors that influence International Trade:

(a) on the import side;

(b) on the export side.

4. Terms of trade.

5. Factors that influence the level of an exchange rate.

6. Fixed, Floating and Managed exchange rate regimes.

7. Appreciation and depreciation of a currency.

INTERNATIONAL TRADE (cont’d)

8. Downward and upward adjustments to the value of a

currency.

9. Balance of payments as a balance sheet indicating all

the international transactions with the rest of the
world.

10. Balance of Trade as the difference between the

values of exports and imports of visible and
invisible.
11. Current Account, Capital Account and the Official
Financing Account.

12. Entries that would appear in the balance of payments

account.

13. Surplus as excess of receipts over payments; deficit as

excess of expenditure over receipts.

14. Factors that give rise to surpluses.

15. Factors that give rise to a deficit.

16. Possible consequences of balance of payments

surpluses and deficits.

17. Possible remedies for balance of payments surpluses

and deficits.
◆ SECTION 7: CARIBBEAN ECONOMIES IN A
GLOBAL ENVIRONMENT

SPECIFIC OBJECTIVES

Students should be able to:

1. list the main characteristics of Caribbean economies;

2. state the major economic problems associated with

Caribbean economies;

3. explain the meaning of terms and concepts associated

with Caribbean economies;

4. explain the concept of preferential tariff arrangements;

5. identify the benefits and costs derived from

CARICOM’s participation in preferential trade
arrangements;

6. explain the concept of trade liberalization;

7. explain the concept of globalization;

8. state the major economic features of globalization;

9. list the benefits to be derived from large scale

production of goods;

10. list the benefits to be derived from the Caribbean Single

Market and Economy (CSME);
11. state the effects of globalization and trade
liberalization on territories, firms, consumers and
governments in the Caribbean;

12. identify development strategies that Caribbean

governments may use in a globalised economic
environment;

13. explain the concept of e-commerce;

14. list the benefits of e-commerce;

15. outline the challenges of e-commerce.

CARIBBEAN ECONOMIES IN A GLOBAL

ENVIRONMENT (cont) CONTENT

1. Main characteristics of Caribbean economies: market

size, resources, nature of dependency.

2. Economic problems associated with Caribbean

economies.

3. Definition of the following terms and concepts:

(a) debt burden;

(b) structural adjustment;

(c) economic integration;

(d) protectionism;

(e) laissez-faire;

(f) common market;

(g) economic union;

(h) customs union;

(i) globalization;

(j) trade liberalization;

(k) bi-lateral agreement;

(l) multi-lateral agreement;

(m) International Monetary Fund (IMF);

(n) Caribbean Community (CARICOM);

(o) African, Caribbean and Pacific (ACP);

(p) Free Trade Area of America (FTAA);

(q) Association of Caribbean States (ACS);

(r) Caribbean and Canadian Association (CARIBCAN)

CARIBBEAN ECONOMIES IN A GLOBAL

ENVIRONMENT (cont)
(s) Caribbean Single Market and Economy (CSME);

(t) World Bank;

(u) Organisation of Eastern Caribbean States (OECS);

(v) European Union (EU);

(w) Caribbean Basin Initiative (CBI);

(x) Caribbean Development Bank (CDB);

(y) Foreign Direct Investment (FDI).

4. Definition and explanation of preferential tariffs

including those offered by the European Union (EU).

5. Benefits and costs of preferential tariff arrangements in

light of discussions within the World Trade Organisation
(WTO).

6. Trade liberalization in the context of the termination

of all preferential tariff arrangements worldwide.

7. Globalization in the context of open competition on a

world scale.

8. The free movement of goods, capital, labour and

technology.

9. Social and economic benefits of producing goods in large

quantities.
10. Possible social and economic benefits to be derived from
the free movement of capital, goods and labour within
CARICOM.

11. Effects of globalization and trade liberalization on

firms, consumers and the sovereignty of territories.
12. Concept and challenges of e-commerce.

13. Definition of e-commerce or e-business.

14. Benefits of e-commerce or e-business.

15. Challenges of e-commerce or e-business.