Economics

⭐ 0 of 10 topics mastered

1. 1The basic economic problemWants are unlimited but resources are finite, so every economy faces scarcity and must make choices. Choices have an opportunity cost, which a production possibility curve can show.Not triedNotesQuiz
2. 2Demand, supply and priceIn a market, the price mechanism uses demand and supply to set an equilibrium price. Changes in the conditions of demand or supply shift the curves and change price and quantity.Not triedNotesQuiz
3. 3Price elasticity of demand and supplyElasticity measures how much quantity demanded or supplied responds to a change in price. It helps firms set prices and governments choose what to tax.Not triedNotesQuiz
4. 4Market failure and government interventionMarkets can fail to allocate resources efficiently because of externalities, merit and demerit goods, public goods and monopoly. Governments in mixed economies intervene to correct this.Not triedNotesQuiz
5. 5Money, banking, households and workersMoney and banks help households spend, save and borrow. Workers choose jobs for wage and non-wage reasons, wages are set by demand and supply, and trade unions represent workers.Not triedNotesQuiz
6. 6Firms, costs, revenue and market structureFirms grow, combine and produce using different methods. Their costs and revenue determine profit, and the market structure they work in affects prices and choice.Not triedNotesQuiz
7. 7Government aims and policiesGovernments aim for growth, low unemployment, stable prices, balance of payments stability and fairer incomes. They use fiscal, monetary and supply-side policies to achieve these aims.Not triedNotesQuiz
8. 8Economic growth, employment and inflationGovernments measure economic growth with real GDP, unemployment with surveys and claimant counts, and inflation with a consumer prices index. Each has causes and consequences.Not triedNotesQuiz
9. 9Economic developmentLiving standards are compared using real GDP per head and the Human Development Index. Development is linked to poverty, population changes and differences between countries.Not triedNotesQuiz
10. 10International trade and globalisationCountries specialise and trade, but may protect their industries. Exchange rates and the current account of the balance of payments link a country to the rest of the world.Not triedNotesQuiz