Edexcel IGCSE Economics
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Paper 1 - Microeconomics and Business Economics
1.1 - The market system
1.1.1 - Scarcity, choice and opportunity costLearn why limited resources force choices, how to identify the best alternative sacrificed, and why opportunity cost matters to consumers, producers and governments.
1.1.1 - Production possibility curves and growthUse a production possibility curve to show productive limits, resource use and opportunity cost, then distinguish a change in output from a change in an economy's productive capacity.
1.1.2 - Consumer and business choicesUnderstand the assumptions that consumers maximise benefit and businesses maximise profit, then explain why actual choices may depart from these aims.
1.1.3 - Demand and changes in demandLearn what demand means, construct and interpret a demand curve, and distinguish a product's own price change from the six specified influences that can shift its demand.
1.1.3 - Supply and changes in supplyLearn what supply means, construct and read a supply curve, and explain how production costs, technology, indirect taxes, subsidies and natural factors shift it.
1.1.3 - Market equilibrium and changing marketsCombine demand and supply to find market equilibrium, construct it from data, and explain how shifts alter price and quantity in everyday market situations.
1.1.3 - Excess demand, excess supply and price adjustmentDefine and calculate shortages and surpluses at a given price, draw their horizontal gaps on a market diagram, and explain how freely adjusting prices can remove them.
1.1.4 - Measuring price elasticity of demandLearn how to measure consumers’ responsiveness to price, interpret the signed result and construct demand curves that show different degrees of responsiveness.
1.1.4 - Demand elasticity, determinants and revenueLearn why consumers respond differently to price changes, calculate total revenue and use the direction of revenue changes to identify elastic or inelastic demand.
1.1.4 - Price elasticity of supplyLearn how to calculate and interpret producers’ responsiveness to price, draw different supply responses and explain why manufacturing and primary production often respond differently.
1.1.4 - Income elasticity of demandLearn to calculate how demand responds to income and use the sign and size of the result to distinguish normal, luxury and inferior goods.
1.1.4 - Elasticity in business and tax decisionsUse price and income elasticities to explain how taxes, subsidies and income changes affect sales, revenue and decisions by businesses and government.
1.1.5 - Mixed economies, public goods and market failureLearn how public and private decisions allocate resources in a mixed economy, why markets sometimes allocate resources inefficiently and how public goods create a free rider problem.
1.1.5 - Privatisation and its effectsLearn what privatisation changes and trace its possible effects on consumers, workers, businesses and government, including the conditions that shape the result.
1.1.6 - External costs, benefits and social outcomesDistinguish costs and benefits to decision-makers from effects on others, use the social accounting formulas and explain the specified environmental, education and healthcare examples.
1.2 - Business economics
1.2.1 - Factors of production and economic sectorsLearn how businesses combine resources to produce goods and services, how economic activity is grouped into sectors, and how sector data can reveal changes as an economy develops.
1.2.2 - Productivity and division of labourLearn how to measure output per input, explain improvements in land, labour and capital, and weigh how dividing work into specialist tasks affects workers and businesses.
1.2.3 - Fixed, variable, total and average costsLearn to classify a business's costs, calculate fixed, variable and total costs, and explain what average total cost reveals about each unit produced.
1.2.3 - Revenue and profit calculationsLearn to calculate a firm's sales revenue and profit, distinguish a loss from a cost, and compare business decisions using both revenue and costs.
1.2.3 - Internal and external economies of scaleLearn why a larger scale of production can lower average costs, how each specified internal economy works, and how industry growth can benefit firms through external economies.
1.2.3 - Diseconomies of scale and long-run average costsLearn how organisational problems can raise a large firm's average costs, locate its most efficient scale on an LRAC curve, and construct an annotated curve from data.
1.2.4 - Competition and its consequencesLearn how rivalry affects price, efficiency, choice, quality and innovation, and why its consequences can differ for firms, consumers and the economy.
1.2.4 - Firm size, growth and staying smallLearn why a large firm can have advantages over a small rival, what enables or discourages growth, and why staying small can be a deliberate business choice.
1.2.4 - Monopoly and barriers to entryLearn how one business can dominate a market, why new rivals may struggle to enter, and how monopoly power can affect consumers and efficiency.
1.2.4 - Oligopoly, collusion and competitionLearn how a market dominated by a few large firms differs from monopoly, how those firms compete or cooperate, and why consumers may experience both benefits and costs.
1.2.5 - Labour demand, supply and wagesLearn why firms demand workers, what affects the number of people willing and able to work, and how to construct and interpret wage and employment diagrams.
1.2.5 - Human capital, pay and trade unionsLearn why businesses need both enough workers and suitable skills, how education and training improve labour, how gross pay becomes net pay, and how trade unions affect wages and working conditions.
1.2.6 - Policies for externalitiesLearn how taxes, subsidies, fines, regulation and pollution permits can change incentives, and why each policy has advantages and practical limitations.
1.2.6 - Regulating competition and mergersLearn how government can promote competition, limit monopoly power and protect consumers, and why a merger must be considered for both its benefits and its effect on rivalry.
1.2.6 - Minimum wages and labour-market interventionLearn why governments set minimum wages, how to draw the effects of introducing and increasing a wage floor, and why the gains and costs depend on how firms and workers respond.
Paper 2 - Macroeconomics and the Global Economy
2.1 - Government and the economy
2.1.1 - Economic growth and GDPLearn how GDP measures production, how to calculate real economic growth and output per person, and why a larger economy does not by itself prove that everyone is better off.
2.1.1 - The economic cycle and effects of growthLearn to construct and interpret an economic-cycle diagram, connect its stages to growth, inflation and unemployment, and explain the benefits and costs of economic growth.
2.1.1 - Inflation, deflation and CPILearn what inflation and deflation mean, how a consumer price index combines many prices, and how to distinguish an index level, an inflation rate and a percentage-point change.
2.1.1 - Causes and consequences of inflationLearn why demand and production costs can raise the general price level, how inflation and interest rates interact, and why inflation affects wages, trade, jobs and business decisions differently.
2.1.1 - Unemployment, measurement and consequencesLearn who counts as unemployed, how the ILO measure and unemployment rate work, why different types occur, and how unemployment affects households, businesses, government and society.
2.1.1 - The current account and external balanceLearn what the current account records, calculate its balance, explain how prices, quality and exchange rates affect trade, and examine the possible consequences of a deficit.
2.1.1 - Environmental protectionLearn how business activity can damage the environment and how taxes, subsidies, rules, fines, pollution permits and public parks can protect it.
2.1.1 - Poverty, inequality and redistributionLearn how poverty differs from income inequality, why reducing them is a macroeconomic objective, and how taxes, benefits, education and healthcare can change people's living standards.
2.1.2 - Fiscal policy, taxation and budgetsLearn how government revenue and expenditure form a budget, how fiscal deficits and surpluses affect the economy, and why the type and timing of tax and spending changes matter for macroeconomic objectives.
2.1.2 - Monetary policy and interest ratesLearn how central banks use interest rates and asset purchases, calculate interest on savings, and trace the effects of monetary policy through households and businesses to macroeconomic objectives.
2.1.2 - Supply-side policies and productive capacityLearn how supply-side policies can improve productivity and total output, how the seven specified policies work, and why their benefits depend on incentives, access, competition and time.
2.1.2 - Government controls and their trade-offsLearn the advantages and disadvantages of regulation, legislation, fines and pollution permits, and how enforcement, costs and incentives shape their effects on businesses and macroeconomic objectives.
2.1.3 - Conflicts between objectives and policiesLearn why policies can improve one macroeconomic objective while weakening another, and use causes, capacity, time and evidence to judge the four specified relationships between objectives.
2.2 - The global economy
2.2.1 - Globalisation and its effectsLearn why economies become more connected and how those connections affect consumers, businesses, workers, governments and the environment.
2.2.1 - Multinationals and foreign direct investmentLearn why firms invest abroad and how multinational activity can bring both benefits and costs to a host economy.
2.2.2 - Free trade and its consequencesLearn how removing trade barriers can benefit consumers and firms while causing difficult adjustment for domestic businesses and workers.
2.2.2 - Protection, tariffs, quotas and subsidiesLearn why governments protect domestic production, compare tariffs, quotas and subsidies, and construct supply-and-demand diagrams showing their effects.
2.2.2 - Trading blocs and the WTOLearn how trading blocs change market access for members and outsiders, and distinguish regional integration from the WTO's work on international trade rules.
2.2.2 - Trade patterns and economic developmentLearn how the composition and destinations of trade differ between economies, and use charts and data to explain those patterns without treating every country alike.
2.2.3 - Currency markets and exchange-rate determinationLearn to read an exchange-rate quote, convert between currencies, and explain how currency demand and supply determine a floating exchange rate.
2.2.3 - Appreciation, depreciation and tradeLearn how currency changes affect import and export prices, quantities and the current account, and why a price change does not guarantee a particular trade-balance result.