Understanding Economics

• Economics is the study of scarce resources and how decisions are made to allocate these resources efficiently.
• Analyses both individual actions (Microeconomics) and broader economic activity (Macroeconomics).
• Involved in defining, gathering, and organising economic evidences.

Fundamental Concepts of Economics

• Scarcity: The fundamental economic problem of having seemingly unlimited human wants in a world with limited resources.
• Opportunity Cost: The cost of an alternative that must be forgone in order to pursue a certain action.
• Demand and Supply: Demand refers to how much of a product or service is wanted by buyers while supply represents how much the market can offer.

Key Economic Decisions

• What to produce: Economies need to decide what goods and services to produce based on consumer demands and resource availability.
• How to produce: Determining the most effective way to produce goods and services given the country's resources.
• For whom to produce: Decide who will receive and consume the goods and services produced.

Market Structures

• Perfect Competition: A market structure with many firms, homogeneous products and free entry and exit.
• Monopoly: A market structure where there is only one producer/seller for a product.
• Oligopoly: A market structure in which a small number of firms has the large majority of market share.
• Monopolistic Competition: A market structure with many firms selling products that are substitutes but not identical.

Determinants of Demand and Supply

• Demand is influenced by factors such as prices, income levels, consumer preferences, and expectations.
• Supply is determined by factors including prices, production costs, technology, and expectations of future price movements.

Concepts of Elasticity

• Price Elasticity of Demand (PED): Measures the responsiveness of the quantity demanded to a change in price.
• Price Elasticity of Supply (PES): Shows the relationship between changes in price and quantity supplied.
• Income Elasticity of Demand (YED): Measures response of demand when there's a change in the consumer’s income.
• Cross Elasticity of Demand (XED): Reflects how the quantity demanded of a good can be affected by change in the price of another good.

The Role of Government and Market Failure

• Governments can influence economies through policies, regulations, and taxation.
• Market failure refers to a situation where the free market fails to allocate resources in an optimum and efficient manner.

Interrelationships and Equilibrium

• Demand and supply interact to determine the market prices and quantities of goods and services.
• Equilibrium is achieved when supply equals demand, leading to a stable market situation.

Understanding and Interpreting Graphs

• Graphs play a vital role in economics to display data or illustrate concepts.
• Familiarise with various types of graphs including demand and supply curves, cost curves, and indifference curves.
• Develop the ability to read, interpret, and construct economic graphs.

Remember, successful economics study requires not just understanding the key concepts, but also applying and analysing them in a variety of contexts.