I. Introductory Concepts (1–4%)

A. Scarcity

B. Opportunity costs and production possibilities

C. Incentives and property rights

D. Economic modeling

II. Microeconomics (42–47%)

A. Supply and Demand

1. Market equilibrium
2. Consumer and producer surplus
3. Comparative statics

B. Elasticity

1. Demand elasticity (price elasticity; income elasticity; cross-price elasticity; price elasticity, marginal revenue and total revenue)
2. Supply elasticity

C. Consumer Theory

1. Utility function and indifference curve analysis
2. Budget constraint
3. Utility maximization
4. Income and substitution effects
5. Individual and market demand

D. Production Theory

1. Production Function (short-run; long-run)
2. Accounting vs. Economic Costs
3. Short-run costs
4. Isoquant and isocost analysis (static equilibrium; effects of changes in factor prices; factor substitution)
5. Long-run costs (returns to scale; returns to scope)

E. Market Structures

1. Theory of the firm and transaction costs
2. Concept of profit maximization
3. Perfect competition
4. Monopoly
5. Monopolistic competition
6. Oligopoly and game theory
7. Efficiency and welfare

F. Factor Markets

1. Marginal revenue product and labor demand
2. Labor supply
3. Labor markets (competitive market; monopsony)
4. Capital market
5. Economic rent
6. Income distribution

G. General Equilibrium and Welfare Analysis (Edgeworth Box; Pareto Optimality)

H. Government Intervention

1. Price ceilings and price floors
2. Taxes and subsidies
3. Regulation and anti-trust laws
4. Externalities
5. Public goods
6. Public Choice Theory
7. Equity

I. International Trade

1. Absolute and comparative advantage
2. Trade restrictions – tariff and non tariff

J. Information Economics

1. Risk and uncertainty
2. Asymmetric information

III. Macroeconomics (38–43%)

A. Circular Flow

B. Economic Measurement

1. GDP (accounting methods – expenditure, income and value added; real and nominal; business cycles)
2. Price indices and inflation
3. Labor force and unemployment

C. Aggregate Demand and Aggregate Supply Analysis

1. Aggregate demand (definition and components; derivation)
2. Aggregate supply (definition; short run; long-run)
3. Macroeconomic equilibrium (wage and price flexibility; role of expectations; classical model; short- and long-run equilibrium; short- and long-run Phillips Curves)
4. IS/LM analysis

D. Money and Financial Markets

1. Definition and role of money
2. Supply of money (definitions; commercial banks/financial institutions; role of central bank authority; deposit creation)
3. Demand for money
4. Money market equilibrium
5. Interest rates and present value
6. Quantity theory of money
7. Loanable funds market

E. Macroeconomic Policy Analysis

1. Policy objectives
2. Fiscal policy
3. Monetary policy
4. Economic policy in an open economy

F. Economic Growth and Development

1. Sources of economic growth
2. Solow model
3. Convergence
4. Growth policies

G. International Finance

1. Balance of payments accounts
2. Exchange rates and capital flows (flexible exchange rates; fixed exchange rates)

IV. Statistics and Econometrics (10–15%)

A. Concepts of probability

B. Descriptive statistics

C. Hypothesis testing

D. Regression analysis

V. Quantitative Analysis (25–30% across all content areas)