1. The Basic Economic Problem

1.1 The Nature of the Economic Problem

Scarcity

1.2 The Factors of Production

The Factors & Their Rewards

Changes to the Factors of Production

1.3 Opportunity Cost

Opportunity Cost in Decision Making

1.4 Production Possibility Curves

PPC & Economic Growth

2. The Allocation of Resources

2.1 Microeconomics & Macroeconomics

Differences Between Micro & Macro

2.2 The Role of Markets in Allocating Resources

The (Free) Market System

2.3 Demand

Demand, Price & Quantity

Conditions of Demand

2.4 Supply

Supply, Price & Quantity

Conditions of Supply

2.6 Price Changes

Changing Market Conditions

2.7 Price Elasticity of Demand (PED)

Calculation & Determinants of PED

The Significance of PED

2.8 Price Elasticity of Supply (PES)

Calculation, Determinants & Significance of PES

2.9 Market Economic System

The (Free) Market System

2.10 Market Failure

Market Failure Terminology

Causes & Consequences

Government Intervention to Address Market Failure

2.11 Mixed Economic System

Characteristics of a Mixed Economic System

3. Microeconomic Decision Makers

3.1 Money & Banking

Understanding Money

Central & Commercial Banks

3.2 Households

Spending, Saving & Borrowing

3.3. Workers

Factors Affecting Choice of Occupation

Wage Determination

Wage Differentials

Division of Labour & Specialisation

3.4 Trade Unions

Types of Trade Unions

The Role of Trade Unions

Advantages & Disadvantages of Trade Unions

3.5 Firms

Classification of Firms

Small Firms

The Growth of Firms

Economies & Diseconomies of Scale

3.6 Firms & Production

Demand for the Factors of Production

Labour & Capital-intensive Production

Production & Productivity

3.7 Firms’ Costs, Revenue & Objectives

Costs & Revenue

Objectives of Firms

3.8 Market Structure

Competitive Markets

Monopoly Markets

4. Government & the Macroeconomy

4.1 The Role of Government

Local, National & International

4.2 The Macroeconomic Aims of Government

The Five Macroeconomic Aims

Conflicts Between Macroeconomic Aims

4.3 Fiscal Policy

The Government Budget

Taxation

Fiscal Policy Measures

4.4 Monetary Policy

Monetary Policy Measures

4.5 Supply-side Policy

Supply-side Policy Measures

4.6 Economic Growth

Measures of Economic Growth

Causes & Consequences of Growth

Causes & Consequences of Recessions

Policies to Generate Economic Growth

4.7 Employment & Unemployment

Understanding Employment

Measurement of Unemployment

Types of Unemployment

Consequences of Unemployment

Policies to Reduce Unemployment

4.8 Inflation & Deflation

Definitions & Measurement

Causes & Consequences of Inflation

Causes & Consequences of Deflation

Policies to Control Inflation & Deflation

5. Economic Development

5.1 Living Standards

Indicators of Living Standards

Living Standards & Income Distribution

5.2 Poverty

Causes of Poverty

Policies to Alleviate Poverty

5.3 Population

Population Growth

Effects of Changing Population Sizes

5.4 Differences in Economic Development

Reasons for Differences in Development

6. International Trade & Globalisation

6.1 International Specialisation

Reasons for National Specialisation

6.2 Globalisation, Free Trade & Protection

Globalisation

Free Trade

Protection

6.3 Foreign Exchange Rates

Introduction to Exchange Rates

Exchange Rate Fluctuations

6.4 Current Account of Balance of Payments

Components of the Current Account

Deficits & Surpluses

Stabilisation Policies