Topic 1. Demand and supply curves for a product in a perfect competitive market and the demand curve that results for firms that supply the product to that market.

a)Be able to draw demand and supply curves identifying the equilibrium price (the price the firms receive and buyers pay for the product and the equilibrium quantity (the total number of the products that is traded )

b)Be able to draw the product demand curve for a firm in that market (the price it would receive for various quantities of the product that it can produce.

c)Be able to describe and explain the shape of the demand curve for a firm supplying product to that market, and explain why it is that shape in a Monopoly market and a perfectly competition market- referring to the characteristics of the perfectly competitive and monopoly markets - eg PC v Monopoly: PC: number of firms too many for a single firm to have any influence over the market supply curve (all firms are price takers - must accept equilibrium price to sell all of their production in the market so at every quantity the firm can supply it will receive the market equilibrium price for each unit of product supplied - demand curve is flat - perfectly elastic because the price it gets is the same for whatever quantity produces/supplies), Monopoly?

d)Be able to explain what else the PC's firm's demand curve represents/measures besides demand. Price of product = revenue from sale so curve can show average revenue for the firm's product in the market: P*Q=Total Revenue TR/Q=Average Revenue=Price Marginal Revenue - revenue Firm gets for sale of the last unit of product to sell equals market price so curve

e)and also, what the Monopolist's demand curve shows that is not the same as the PC Firm.

Topic 2 Aggregate Demand and Supply

a)level of prices and the level of output in the short run?

b)level of prices and the level of output in the long run without any intervention

Case a) Aggregate demand shock decrease Graph and explain - short run and long run effects (with no intervention)

Case b) Short run aggregate supply increase Graph and explain - short run and long run effects (with no intervention)

PART B:

a)Topic 5 GDP define measure GDP per capita individual welfare

b)Topic 6 externality example negative externality in production and how to deal with it in economics

c)Topic 7 Explain Fiscal Policy and mechanisms government implements it.

d)Topic 8 unemployment is definition / causes of three different types / explain why full employment is not zero unemployment rate.

e)Topic 9 Monetary Policy primary functions of money / mechanisms explain how RBA implements Monetary Policy