"Foundations of
Economics:
Principles and
Applications"
CRYSTAL DELA CRUZ
, Table of contents
Microeconomics
1. Introduction to Microeconomics
o Basic economic concepts: scarcity,
opportunity cost, and trade-offs.
o The role of incentives and marginal
analysis.
2. Supply and Demand
o Law of demand and supply.
o Market equilibrium and price
determination.
o Elasticity of demand and supply.
3. Consumer Behavior
o Utility theory and consumer choice.
o Budget constraints and indifference
curves.
4. Production and Costs
o Production functions and the law of
diminishing returns.
o Short-run and long-run costs.
o Economies of scale.
5. Market Structures
o Perfect competition: characteristics,
price determination, and efficiency.
o Monopoly: sources of market power,
pricing, and welfare implications.
o Oligopoly and monopolistic
competition: strategic interactions
and market outcomes.
6. Market Failures and Public Goods
o Externalities and government
intervention.
2
, o Public goods and the free-rider
problem.
o Information asymmetry and adverse
selection.
Macroeconomics
1. Introduction to Macroeconomics
o Key economic indicators: GDP,
inflation, and unemployment.
o The circular flow of income and
expenditure.
2. National Income Accounting
o Measuring GDP: expenditure,
income, and production approaches.
o Real vs. nominal GDP and the GDP
deflator.
3. Economic Growth
o Factors affecting economic growth:
capital, labor, and technology.
o The Solow growth model and
convergence theory.
4. Aggregate Demand and Aggregate Supply
o Components of aggregate demand:
consumption, investment,
government spending, and net
exports.
o Short-run and long-run aggregate
supply curves.
o Macroeconomic equilibrium.
5. Money and Banking
o The functions of money and the
money supply.
o The role of central banks and the
creation of money.
o Monetary policy tools and objectives.
6. Fiscal Policy
o Government spending and taxation.
3
, o The impact of fiscal policy on
aggregate demand.
o Budget deficits and public debt.
7. Inflation and Unemployment
o The Phillips curve and the trade-off
between inflation and unemployment.
o Types of inflation: demand-pull and
cost-push.
o Natural rate of unemployment and
hysteresis.
8. International Economics
o Comparative advantage and the gains
from trade.
o Exchange rates and the balance of
payments.
o Trade policies and their effects on the
economy.
Specialized Topics (Optional)
1. Behavioral Economics
o Departures from rationality: biases,
heuristics, and framing effects.
o Implications for consumer behavior
and public policy.
2. Environmental Economics
o The economics of pollution and
resource management.
o Market-based solutions to
environmental problems.
3. Development Economics
o Theories of economic development
and growth.
o The role of institutions, education,
and health in development.
4
Economics:
Principles and
Applications"
CRYSTAL DELA CRUZ
, Table of contents
Microeconomics
1. Introduction to Microeconomics
o Basic economic concepts: scarcity,
opportunity cost, and trade-offs.
o The role of incentives and marginal
analysis.
2. Supply and Demand
o Law of demand and supply.
o Market equilibrium and price
determination.
o Elasticity of demand and supply.
3. Consumer Behavior
o Utility theory and consumer choice.
o Budget constraints and indifference
curves.
4. Production and Costs
o Production functions and the law of
diminishing returns.
o Short-run and long-run costs.
o Economies of scale.
5. Market Structures
o Perfect competition: characteristics,
price determination, and efficiency.
o Monopoly: sources of market power,
pricing, and welfare implications.
o Oligopoly and monopolistic
competition: strategic interactions
and market outcomes.
6. Market Failures and Public Goods
o Externalities and government
intervention.
2
, o Public goods and the free-rider
problem.
o Information asymmetry and adverse
selection.
Macroeconomics
1. Introduction to Macroeconomics
o Key economic indicators: GDP,
inflation, and unemployment.
o The circular flow of income and
expenditure.
2. National Income Accounting
o Measuring GDP: expenditure,
income, and production approaches.
o Real vs. nominal GDP and the GDP
deflator.
3. Economic Growth
o Factors affecting economic growth:
capital, labor, and technology.
o The Solow growth model and
convergence theory.
4. Aggregate Demand and Aggregate Supply
o Components of aggregate demand:
consumption, investment,
government spending, and net
exports.
o Short-run and long-run aggregate
supply curves.
o Macroeconomic equilibrium.
5. Money and Banking
o The functions of money and the
money supply.
o The role of central banks and the
creation of money.
o Monetary policy tools and objectives.
6. Fiscal Policy
o Government spending and taxation.
3
, o The impact of fiscal policy on
aggregate demand.
o Budget deficits and public debt.
7. Inflation and Unemployment
o The Phillips curve and the trade-off
between inflation and unemployment.
o Types of inflation: demand-pull and
cost-push.
o Natural rate of unemployment and
hysteresis.
8. International Economics
o Comparative advantage and the gains
from trade.
o Exchange rates and the balance of
payments.
o Trade policies and their effects on the
economy.
Specialized Topics (Optional)
1. Behavioral Economics
o Departures from rationality: biases,
heuristics, and framing effects.
o Implications for consumer behavior
and public policy.
2. Environmental Economics
o The economics of pollution and
resource management.
o Market-based solutions to
environmental problems.
3. Development Economics
o Theories of economic development
and growth.
o The role of institutions, education,
and health in development.
4
