Scope and method of economics; the economic problem: scarcity and choice; the question of what to produce, how to produce and how to distribute output; science of economics; the basic competitive model; incentives and information- prices, property rights and profits; rationing; opportunity sets; economic systems; reading and working with graphs.

Determinants of individual demand/supply; demand/supply schedule and demand/supply curve; market versus individual demand/supply; shifts in the demand/supply curve, demand and supply together; elasticity and its application; taxes and the costs of taxation; consumer surplus; producer surplus and the efficiency of the markets.

The consumption decision - budget constraint; representing preferences with indifference curves, properties of indifference curves; consumer‘s optimum choice; income, price and substitution effects

Perfect Competition: Behaviour of profit maximizing firms and the production process; short run costs and output decisions; costs and output in the long run.

 Imperfect Competition: Monopoly; government policies towards competition; imperfect competition.

Basic concepts-derived demand, productivity of an input, marginal productivity, marginal revenue product of labour; demand for labour; input demand curves; shifts in input demand curves; competitive labour markets