The Foundations of Economics
- The economic problem: scarcity choice and opportunity cost
- Production possibility and utility
- Microeconomics and macroeconomics
- Alternative economic systems
- Growth and sustainable development
Microeconomics: The Theory of Price Determination
- Demand
- Supply
- Market equilibrium, the price mechanism and market efficiency
- Concept of elasticity
- Indirect taxes, subsidies and price controls
Microeconomics: Costs and Revenues
- Short and long run costs
- The scale of production and economies of scale
- Average, marginal and total revenues
- Profit theory
- Perfect competition: the short and long run
- Productive and allocative efficiency
Microeconomics: Imperfect Markets
- Monopoly, sources and profit maximisation
- Comparison of perfect competition and monopoly
- Advantages and disadvantages of monopoly
- Monopolistic competition
- Oligopoly, sources, collusive activity and non-price competition
- Price discrimination
Microeconomics: Market Failure
- Public goods and merit goods
- Externalities
- Sustainability and government response
- Imperfect information and imperfect competition
Macroeconomics: The Level of Economic Activity
- The circular flow of income, leakages and injections
- The measurement of national income
- Limitations of national income data
- The business cycle
- Aggregate demand and its components
- Government policies affecting aggregate demand (fiscal and monetary)
- Aggregate supply in the short and long run
- Supply side policies
Macroeconomics: Equilibrium, Employment and Inflation
- Short and long run equilibrium
- The multiplier effect
- The measurement and costs of unemployment
- Causes of unemployment
- Solutions to unemployment
- Measurement and costs of inflation and deflation
- Demand pull and cost push inflation
- Reducing inflation
- The inflation-unemployment trade off
Macroeconomics: Growth and Equity
- Definition of economic growth
- Consequences of growth
- The distribution of national income
- Taxation and income distribution
International Economics: Trade
- Why countries trade
- The principle of free trade. Absolute and comparative advantage
- The world trade organisation
- The arguments for and against protection
- Types of protection
- Economic integration and trade blocs
- The terms of trade
International Economics International Monetary Issues
- Exchange rate determination
- Fixed, floating and managed exchange rate systems
- The balance of payments, current, capital and financial account
- Balance of payments and the exchange rate
- Correcting a current account deficit
Development Economics
- Sources of growth and economic development
- Characteristics and diversity of developing countries
- Measuring development
- Domestic factors affecting development
- International trade and development
- The role of foreign direct investment
- Aid, debt and development
- Market aid and interventionist strategies
Maintaining and Developing Your Economic Skills
- An analytical framework
- Planning reading
- Reading the industry literature
Example Candidate Response Booklet
Example Candidate Response (ECR) Booklets are a source of crucial information for Centres and Candidates as they use real candidate responses. We ask Senior Examiners to comment on five or more responses in terms of why the mark was awarded with commentary about how to improve the answer (if necessary).
