IAI CB2 study plan

Construct demand and supply schedules from tabulated data and plot the corresponding curves by hand, labelling axes, intercepts and equilibrium point.

Solve for equilibrium price and quantity algebraically from linear demand and supply functions, including cases with a per-unit tax or subsidy.

Distinguish clearly between a movement along a curve and a shift of a curve, and classify eight given scenarios into the correct category with a one-line justification each.

Explain how simultaneous shifts in demand and supply affect equilibrium price and quantity, covering all four directional combinations.

Compute price elasticity of demand using both the point formula and the arc (midpoint) formula, and state which is appropriate for which data type.

Relate elasticity magnitude to total revenue changes when price rises or falls, and verify the relationship numerically for three price ranges on one demand curve.

Calculate income elasticity and cross-price elasticity, and use the sign of each to classify goods as normal, inferior, substitutes or complements.

Compute price elasticity of supply and identify the factors that make supply elastic or inelastic in the short versus long run.

Apply elasticity reasoning to a tax incidence scenario, showing how the burden splits between buyers and sellers according to relative elasticities.

Derive and sketch total utility and marginal utility curves from a utility schedule, and identify the point of diminishing marginal utility.

Apply the equi-marginal principle to allocate a fixed budget across two goods and verify the optimum numerically.

Derive an individual demand curve from marginal utility analysis and explain the income and substitution effects of a price change.

Interpret indifference curves and budget lines, and locate the consumer optimum as a tangency point, explaining why other points are not optimal.

Distinguish fixed and variable inputs and state the law of diminishing returns, illustrating it with a numerical short-run production schedule.

Compute total, average and marginal product from a production table and identify the stages of production on the resulting curves.

Calculate total, average and marginal cost from output and cost data, and explain the shape of the short-run average cost curve.

Distinguish economies and diseconomies of scale from diminishing returns, and explain the difference between short-run and long-run cost curves.

Explain the profit-maximising condition and apply it to a simple numerical example, distinguishing normal from supernormal profit.

Compare perfect competition, monopolistic competition, oligopoly and monopoly on number of firms, product differentiation, barriers to entry and long-run profit outcomes.

Draw and interpret the short-run and long-run equilibrium of a perfectly competitive firm and of a monopolist, identifying the deadweight loss area in the monopoly case.

Explain price discrimination, its necessary conditions and its effect on output and surplus.

Describe oligopoly interdependence and explain the kinked demand curve and basic game-theoretic reasoning about collusion versus competition.

Evaluate pricing strategies such as limit pricing, predatory pricing and price leadership in terms of firm objectives.

Define GDP, GNP and national income, and distinguish them from one another with numerical examples.

Compute GDP using the expenditure approach and the income approach from given data, and reconcile the two results.

Distinguish nominal from real GDP and calculate a simple price index and real growth rate.

Explain the functions of money and describe the components of the money supply, including the distinction between narrow and broad money.

Explain how banks create credit through the money multiplier and calculate the multiplier from a given reserve ratio.

Explain the motives for holding money and how money supply and demand interact to determine the interest rate.

Distinguish demand-pull from cost-push inflation and identify the appropriate policy response to each.

Define and calculate the unemployment rate from labour-force data, and distinguish frictional, structural, seasonal and cyclical unemployment.

Explain the phases of the business cycle and identify likely indicator behaviour in each phase.

Explain how fiscal policy instruments (government spending, taxation, transfers) affect aggregate demand, including the multiplier effect.

Explain how monetary policy instruments (interest rates, reserve requirements, open market operations) affect aggregate demand and inflation.

Evaluate the trade-offs and lags in using fiscal versus monetary policy to stabilise the economy.

Complete a timed full-length mock under exam conditions and record the score by domain.

Re-derive from memory the core formulas for elasticity, costs, the multiplier and the unemployment rate, and check them against notes.

Re-teach the three weakest domains in short written summaries without referring to notes.

Redo every previously missed calculation type until each is completed correctly twice in a row.