Economics — PREVIEW Course: CIFA — Certified Investment & Financial Analysts | Level: Foundation Level This is a free preview covering the introduction and Section 1 only. Table of contents (full paper) 1. Nature and scope of economics — *included in this preview* 2. Demand, supply, and market equilibrium — full version only 3. Elasticity — full version only 4. Theory of the firm and market structures — full version only 5. National income and macroeconomic indicators — full version only 6. Money, banking, and inflation — full version only 7. Fiscal and monetary policy — full version only 8. International trade and the balance of payments — full version only 9. Economics and investment analysis — full version only 10. Full worked question — full version only 11. Self-assessment question bank, 10 original questions with model answers — full version only 12. Exam technique and revision checklist — full version only 1. Nature and scope of economics Economics is the study of how individuals, firms, and societies allocate scarce resources among competing uses to satisfy unlimited wants. 1.1 Microeconomics vs macroeconomics | Branch | Focus | Example question | |---|---|---| | Microeconomics | Individual decision-making units — consumers, firms, markets | Why does the price of a particular stock's underlying commodity rise? | | Macroeconomics | The economy as a whole | Why is Kenya's inflation rate rising? | 1.2 Basic economic problem Scarcity forces every economy to answer three questions: what to produce, how to produce it, and for whom to produce it. 1.3 Opportunity cost The value of the next best alternative forgone when a choice is made. Central to economic reasoning: every decision, by an individual, firm, or government, has an opportunity cost. Unlock the full paper The complete version includes demand/supply analysis, elasticity, market structures, national income, money and banking, fiscal and monetary policy, international trade, and the link between economics and investment analysis — plus a full worked question and a 10-question original self-assessment kit with model answers. Purchase the full paper to continue. CIFA Foundation — Economics (Preview) — Page 1 of 1