St.

Joseph’s College
Scheme of Work : A- Level Economics

Topics Contents / Outline Periods Reference Materials For Students Remarks

Micro : Topics 1 - 7 Needed &/Or Teachers
Macro : Topics 8 - 11
1
Introduction & I Nature of economics - definition, contents, scope. 16 * Brief introduction of some great economists.
Basic Concepts II Economic systems. * Newspaper extracts on basic concepts.
III Some basic concepts. * Paul Heyne, The Economic Way of Thinking. Chapters 1 &
4.
* Awh R., Microeconomics. Theory & Applications. Ch. 1.

2 Tutorial 1
Demand & Supply I Basic postulates of human behaviour. 16 * Steven E. Landsburg, Price Theory & Applications Chapter Assignment 1
Analysis II Concept of demand, demand function & curve. 1.
III Concept of supply, supply function & curve. * Paul Heyne, Chapter 2.
IV Concepts of equilibrium & elasticity.
V Market intervention & disequilibrium.

3
Consumer Theory Unit 1 : The Utility Theory 32 * Newspaper extracts on price, exchange and efficiency. 1st Quarterly
I Introduction. Test
II The two approaches in the utility theory. * Awh R., Chapters 3 & 4.
III The relevant concepts in consumer theory.
* Baumol & Blinder, Economics : Principles & Policy
Unit 2 : The MUV Approach In Consumer Theory 24 Chapter 18.
I Basic concept of use value. Tutorial 2
II The MUV curve & ordinary demand curve. * Glahe & Lee, Microeconomics. Theory & Applications Assignment 2
III Consumer’s surplus revisited. Chapter 4. P. 118 - 121.
IV Criticism of the utility (ordinal) theory.
* Culyer A. J. Economics Chapters 5 & 8.
Unit 3 : Market Exchange & Efficiency 16 Assignment 3
I Functions & implications of price.
II Functions of market. Half-Yearly
III Concept of exchange and efficiency. Exam.

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 Topics Contents / Outline Periods Reference Materials For Students Remarks
Needed
4
Production Theory I Concepts of costs - definition & types of costs. 24 * Scott & Nigro, Principles of Micro., Chapter 5. P.136-142.
II Theory of production. * Main & Baird, Elements of Micro., Chapter 5. P.124-128.
III Theory of costs and cost curves. * Newspaper extracts on opportunity cost.

5
Market Competition I Market competition and mechanism. 32 * Transparencies on the market equilibrium of a competitive Tutorial 3
II Price-taking competition & its equilibrium. firm. Assignment 4
III Price-searching competition. * Newspaper extracts on monopoly & price discrimination.
IV Monopoly & price discrimination.

6
Factor Market Unit 1 : Demand For Factors : Traditional Analysis 10 * Leung Man Por, AL Microeconomics. Chapters 12 & 16.
I Nature of factors and factor market.
II Labour market.
III Value of marginal product of labour.
IV The demand curve for factors in the short run.
V Factors affecting the shift of factor demand curve.
VI Supply of factor inputs.
Test 2
Unit 2 : Labour & Determination of Wage 8 * Wong Yuen Chi, HKAL Understanding Microeconomics.
I Different forms of wage. Chapter 10.
II The supply curve of a labour.
III The determination of wage.
IV Wage differentials
V Imperfect information.

Unit 3 : Rent & Land 8 Tutorial 4

I The origin of rent on land. * Main & Baird, Elements of Microeconomics. Chapter 9. Assignment 5
II Modern concept on ( economic ) rent. P. 234-250 ( on interest & profit ).
III Other types of rent. * Newspaper extracts on economic rent.
* Scott & Nigro, Chapter 13 ( on economic rent and
opportunity cost )

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 Topics Contents / Outline Periods Reference Materials For Students Remarks
Needed
6
Factor Market I Unit 4 : Interest & Capital 16 * Culyer A. J., Economics ( on present value ).
I Concept of capital & investment. * Paul Heyne.Chapter 11. P. 224 - 229. ( On profit,
II Meaning & existence of interest. interest & cost ).
III Employment decision of firms. * Extracts from H. K. Economic Journal Monthly. 1992
IV Determination of interest rate. Nov. Issue P. 49 - 51. ( On human capital investment )
V Interest differentials.
VI Investment on human capital.
8 * A summary of :- Assignment 6
Unit 5 : Profit & Entrepreneur S. Cheung, The Contractual Nature of The Firm.
I Nature of Firm. R. Coase, The Nature of Firm.
II Concept of profit & role of entrepreneur.

7
The Problem of I Introduction. 24 * Newspaper extracts on property rights, externality, Assignment 7
Social Cost II Externality. transport and airport.
III Solutions to externality. * S. Cheung, The Story on Lighthouse.
IV Public goods & economic efficiency : Pareto
Optimum. Final Examination
V Common property resources.

Total Periods Needed ( Microeconomics ) 234

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 Topics Contents / Outline Periods Reference Materials For Students Remarks
Macro : Topics 8 - 11 Needed
8
National Income Unit 1 : National Income 34 * Transparencies on approaches of GNP.
I Concepts & meaning of GNP. * Newspaper extracts on GDP, GNP.
II Approaches & formulae. * R. Waud, Macroeconomics. P. 180-197.
III Measurement of GNP. * Main & Baird, Macroeconomics. P. 130 - 133. ( On the
IV Economic analysis of GNP. paradox of thrift )
V Public Finance & Fiscal Policy * Stanlake G. F., Macroeconomics . An Introduction.
1 Concept of The budget finance. Chapters 3 & 4.
2 Taxation. * Relevant data from G.I.S. publications.
3 Budget & Fiscal Policy.
4 Aggregate macroeconomic model. * Newspaper extracts on the budget of H.K.
* The budget ( G.I.S. publications ).
* The H.K.CER Letters ( various issues ).

Unit 2 : Inflation 8
I Definition. * Newspaper extracts on CPI and inflation.
II Types/Various degrees of inflation. * Recent data from G.I.S. publications. Assignment 1
III Measurement of inflation. * H. S. Economic Monthly ( various issues ).
IV Effects and causes of inflation.

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9
Money & Banking I Nature & functions of money. 30 * Newspaper extracts on HKMA and central bank. Assignment 2
II Money demand. * H.K. Economic Report ( HK Bank publications ).
III Money supply. * Peebles Gavin, The H.K. Economy ( P.140 - 149 )
IV Commercial banks & credit creation. * Main & Baird. P. 125-137.
V Central bank & monetary policy. * Froyen R.T., Macroeconomics. Theories & Policies.
P. 61 - 67.
* Yam, Joseph, Central Banking & Monetary Policy in
H.K.

Topics Contents / Outline Periods Reference Materials For Students Remarks

Needed
8
National Income Unit 4 : The IS - LM Model 36 * Froyen selected from Chapters 8 - 12. Assignment 3
I The basic aim of the model. * Newspaper extracts on money supply.
II The basic analytic model of national income.
III The IS-LM curves & AD, AS curves.

10
Theory of I Introduction. 8 * H.S. Economic Monthly ( various issues ).
Unemployment II Search theory of unemployment. * Newspaper extracts.
III Unemployment and inflation : Phillips curve. * HK CER Letters ( HK CER publications ).

11
International Trade I Introduction. 28 * H.S. Economic Monthly ( various issues ). Revision
II Principles of exchange. * H.K. Economic Report ( HK Bank publications ). Assignment
III International finance. * Newspaper extracts.
IV Trade policy & fiscal policy. * Peebles, Gavin. Chapter 5.
V Free trade VS protectionism : trade barrier.

Total Periods Needed ( Macroeconomics ) 144

Total Periods Needed ( Micro. & Macro. ) 234 + 144 = 378

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