Use of government policy to achieve macroeconomic objectives: - price stability, low unemployment, economic growth (policy conflicts and trade-offs are not required)

Meaning of government budget - Defining the government budget as a plan for government spending and revenue collection.

Distinction between a government budget deficit and a government budget surplus - Differentiating between budget deficit and surplus.

Meaning and significance of the national debt - Explaining the national debt and its implications.

Fundamental economic problem of scarcity - The core concept that resources are finite while wants are infinite.

Need to make choices at all levels (individuals, firms, governments) - Explanation of how individuals, firms, and governments must make choices due to scarcity.

Nature and definition of opportunity cost, arising from choices - Defining opportunity cost as the value of the next best alternative forgone.

Basic questions of resource allocation: - What to produce? - How to produce? - For whom to produce?

Economics as a social science - Discussing the nature of economics as a social science that studies human behaviour in relation to scarce resources.

Positive and normative statements (the distinction between facts and value judgements) - Explaining the difference between positive statements (factual) and normative statements (opinion-based).

Meaning of the term ceteris paribus - Introducing the concept of "all other things being equal" used in economic analysis.

Importance of the time period (short run, long run, very long run) - Examining the impact of time on economic decisions and outcomes.