The Market System

The Economic Problem

The Nature of the Economic Problem

Opportunity Cost

Production Possibility Curves

Economic Assumptions

The Underlying Economic Assumptions

Reasons why the Assumptions may be Flawed

Demand, Supply & Market Equilibrium

Demand

Factors that Shift the Demand Curve

Supply

Factors that Shift the Supply Curve

Equilibrium & Disequilibrium

Market Equilibrium: Real-world Situations

Elasticity

Price Elasticity of Demand (PED)

The Significance of PED

Price Elasticity of Supply (PES)

The Significance of PES

Income Elasticity of Demand (YED)

The Mixed Economy

Characteristics of Mixed Economies

Resource Allocation in Mixed Economies

Inefficient Resource Allocation & Market Failure

Public Goods: The Free Rider Problem

The Importance of the Public & Private Sectors

Privatisation

Externalities

Understanding Externalities

External Costs of Production

External Benefits of Consumption

Business Economics

Production & Productivity

The Factors of Production

Economic Sectors & Their Relative Importance Over Time

Factors Affecting Productivity

The Division of Labour

Business Costs, Revenues & Profit

Costs, Revenues & Profit

Economies & Diseconomies of Scale

Market Structures

Competitive Markets

Competitive Markets: Small Firms & Large Firms

Monopoly

Oligopoly

The Labour Market

An Introduction to the Labour Market

Factors Influencing the Demand for Labour

Factors Influencing the Supply of Labour

Wage Determination

The Impact of Trade Unions

Government Intervention

Government Intervention: Taxation & Subsides

Government Intervention: Fines, Regulation & Permits

Government Intervention: Competition Policy

Government Intervention: Labour Market

Government & the Economy

The Macroeconomic Objectives

Economic Growth

Economic Growth: The Economic Cycle

Low & Stable Rate of Inflation

Types of Inflation

Low Unemployment

The Impact of Unemployment

The Current Account

The Impact of Exchange Rates on the Current Account

Environmental Protection

Government Intervention to Protect the Environment

The Redistribution of Income

Government Intervention to Redistribute Income

Government Policies

Fiscal Policy

Fiscal Deficits & Surpluses

The Impact of Fiscal Policy on Macroeconomic Objectives

Monetary Policy

Types of Monetary Policy

The Impact of Monetary Policy on Macroeconomic Objectives

Supply-Side Policy

The Impact of Supply-Side Policy on Macroeconomic Objectives

Government Controls

The Relationships Between Government Objectives & Policies

The Global Economy

Globalisation

Globalisation

The Impacts of Globalisation

Multinational Corporations (MNCs)

International Trade

Free Trade

Protectionism

Protectionist Tariffs

Protectionist Subsidies

Trading Blocs & the World Trade Organization (WTO)

Trade Patterns

Exchange Rates

Exchange Rates

Exchange Rate Appreciation

Exchange Rate Depreciation

Exam Skills

Understanding Your Papers

Introducing Paper 1 & Paper 2