Self-study guide for Grade 12 Economics, focusing on the dynamics of markets. Keep in mind that the specific topics covered may vary depending on your curriculum, so be sure to align this guide with your course requirements.
Module 1: Introduction to Markets
1.1 Definition of Markets
- Understand the concept of markets in economics.
- Differentiate between goods and services markets.
1.2 Types of Markets
- Explore different market structures: perfect competition, monopoly, oligopoly, and monopolistic competition.
1.3 Demand and Supply
- Learn the law of demand and the law of supply.
- Analyze factors influencing demand and supply.
Module 2: Market Equilibrium
2.1 Equilibrium Price and Quantity
- Define and understand the concept of market equilibrium.
- Analyze the impact of shifts in demand and supply on equilibrium.
2.2 Disequilibrium
- Explore situations of excess demand (shortage) and excess supply (surplus).
- Understand how prices adjust to restore equilibrium.
Module 3: Elasticity
3.1 Price Elasticity of Demand
- Define and calculate price elasticity of demand.
- Understand the factors influencing the price elasticity of demand.
3.2 Cross-Price Elasticity and Income Elasticity
- Explore cross-price elasticity of demand and income elasticity of demand.
- Understand the implications of these elasticities for different goods.
Module 4: Market Structures
4.1 Perfect Competition
- Define perfect competition and its characteristics.
- Analyze the efficiency of perfect competition.
4.2 Monopoly
- Understand the characteristics of a monopoly.
- Analyze the advantages and disadvantages of monopoly.
4.3 Oligopoly and Monopolistic Competition
- Explore the features of oligopoly and monopolistic competition.
- Analyze how firms behave in these market structures.
Module 5: Government Intervention
5.1 Price Controls
- Explore the effects of price ceilings and price floors.
- Understand the reasons for implementing price controls.
5.2 Taxes and Subsidies
- Analyze the impact of taxes and subsidies on market outcomes.
- Understand how government intervention can affect market efficiency.
Module 6: Global Markets
6.1 International Trade
- Explore the benefits and drawbacks of international trade.
- Understand the concept of comparative advantage.
6.2 Exchange Rates
- Analyze the impact of exchange rates on international trade.
- Understand the factors influencing exchange rates.