TO THE REVIEW CONTENT IN ECONOMICS
for the VNP Entrance Examination
This set of materials consists of chapters selected from the Principles of Economics of Gregory Mankiw. The material is divided into three parts. Part 1 is the introduction to economics, while Parts 2 and 3 are on microeconomics and macroeconomics. Exam questions in economics for the VNP Entrance Examination are limited to these chapters. Reading these chapters carefully will help you reviewing basic principles of economics and preparing for the exam. In addition, the economics knowledge in this material is also very helpful for your future studying at VNP. And it is interesting as well.
Part 1 reminds you with some big ideas that guide the studying of economics. This part is mainly about how people make decisions and the role of market and government, where you will see familiar concepts such as trade-off, opportunity cost, marginality, resource allocation, and market failures. In addition, you will also read about why economists need assumptions to build economic models, why economics is a science and at the same time it can help recommend policies. The principles in this part are quite interesting in the sense that they explain things that are familiar with you: how people behave, how market works, and how the government can intervene to improve market outcomes. The text is easy to follow, and many exam questions are based on this part.
Part 2 includes very basic content in microeconomics: demand and supply, elasticity, and market equilibrium. In addition, the effects of various government policies on the market outcomes are also described in a very interesting way. Basic concepts of production and costs are also covered. This part provides tools for you to analyze market activities, and it may also improve the way you think about your surrounding world.
Macroeconomics in Part 3 is even more familiar with concepts you heard everyday: GDP, CPI, unemployment, growth, and how these indicators can be affected by macroeconomic policies. This part provides with you basic knowledge on how macroeconomic indicators are related, and helps you better understanding the macroeconomic policies you heard everyday in the media.
This material will be helpful for your preparation for the VNP Entrance Exam, and we hope you enjoy reading it as well.
We look forward to seeing you at VNP.