Economics Intermediate level

The study area IM (Intermediate) Economics is informed by the National Curriculum Framework (NCF).

The syllabus seeks to equip students with the basic tools necessary for an understanding and interpretation of economic issues relevant to Malta and the wider international community. It attempts to stimulate interest and demonstrate the relevance of economic theory in exercising the skills required when rational decisions have to be made.

At the end of the programme, the student will be able to: 

• appreciate the nature of the free market and the rationale of government intervention in a mixed economy
• explain how the price mechanism functions to determine the equilibrium price and quantity of a good, and how variations in demand and/or supply affect equilibrium price and quantity
• identify the main aim of the firm as being that of profit maximization and that this is achieved by producing that output level at which TR after deducting TC is at its greatest
• be examined to be introduced to the types of market structures within imperfect competition and the different characteristics in imperfectly competitive market situations
• discuss the circular flow of income is a model meant to explain how money flows between firms and households and know that not all incomes get passed on directly since some income is withdrawn and some is injected from outside.
• understand what is Aggregate Demand including its graphical explanation
• understand  that the economy is in equilibrium where AD=AS
• explain economic growth both in nominal and real terms. An understanding of how economic growth can be increased is also necessary
• obtain an understanding of the meaning of unemployment as well as the causes of different types of unemployment together with the costs of unemployment
• understand fiscal policy that affects Aggregate Demand, Inflation, Unemployment, the Balance of Payments and Economic Growth. Students should be familiar with fiscal measures and how these can be applied to influence the economy
• have a good grasp of what are supply side policies and how these can be used to increase the average rate of growth, reduce inflation and reduce unemployment
• understand that changing the interest rate can influence the economy. They should be able to explain how the interest rate affects AD, Inflation, Unemployment, Economic Growth and the Current account of the Balance of Payments