1. The Basic Economic Problem

1.1 The Nature of the Economic Problem

1.1.1 Scarcity

1.2 The Factors of Production

1.2.1 The Factors & Their Rewards

1.2.2 Changes to the Factors of Production

1.3 Opportunity Cost

1.3.1 Opportunity Cost in Decision Making

1.4 Production Possibility Curves

1.4.1 PPC & Economic Growth

2. The Allocation of Resources

2.1 Microeconomics & Macroeconomics

2.1.1 Differences Between Micro & Macro

2.2 The Role of Markets in Allocating Resources

2.2.1 The (Free) Market System

2.3 Demand

2.3.1 Demand, Price & Quantity

2.3.2 Conditions of Demand

2.4 Supply

2.4.1 Supply, Price & Quantity

2.4.2 Conditions of Supply

2.5 Price Determination

2.5.1 Equilibrium & Disequilibrium

2.6 Price Changes

2.6.1 Changing Market Conditions

2.7 Price Elasticity of Demand (PED)

2.7.1 Calculation & Determinants of PED

2.7.2 The Significance of PED

2.8 Price Elasticity of Supply (PES)

2.8.1 Calculation, Determinants & Significance of PES

2.9 Market Economic System

2.9.1 The (Free) Market System

2.10 Market Failure

2.10.1 Market Failure Terminology

2.10.2 Causes & Consequences

2.10.3 Government Intervention to Address Market Failure

2.11 Mixed Economic System

2.11.1 Characteristics of a Mixed Economic System

3. Microeconomic Decision Makers

3.1 Money & Banking

3.1.1 Understanding Money

3.1.2 Central & Commercial Banks

3.2 Households

3.2.1 Spending, Saving & Borrowing

3.3. Workers

3.3.1 Factors Affecting Choice of Occupation

3.3.2 Wage Determination

3.3.3 Wage Differentials

3.3.4 Division of Labour & Specialisation

3.4 Trade Unions

3.4.1 Types of Trade Unions

3.4.2 The Role of Trade Unions

3.4.3 Advantages & Disadvantages of Trade Unions

3.5 Firms

3.5.1 Classification of Firms

3.5.2 Small Firms

3.5.3 The Growth of Firms

3.5.4 Economies & Diseconomies of Scale

3.6 Firms & Production

3.6.1 Demand for the Factors of Production

3.6.2 Labour & Capital-intensive Production

3.6.3 Production & Productivity

3.7 Firms’ Costs, Revenue & Objectives

3.7.1 Costs & Revenue

3.7.2 Objectives of Firms

3.8 Market Structure

3.8.1 Competitive Markets

3.8.2 Monopoly Markets

4. Government & the Macroeconomy

4.1 The Role of Government

4.1.1 Local, National & International

4.2 The Macroeconomic Aims of Government

4.2.1 The Five Macroeconomic Aims

4.2.2 Conflicts Between Macroeconomic Aims

4.3 Fiscal Policy

4.3.1 The Government Budget

4.3.2 Taxation

4.3.3 Fiscal Policy Measures

4.4 Monetary Policy

4.4.1 Monetary Policy Measures

4.5 Supply-side Policy

4.5.1 Supply-side Policy Measures

4.6 Economic Growth

4.6.1 Measures of Economic Growth

4.6.2 Causes & Consequences of Growth

4.6.3 Causes & Consequences of Recessions

4.6.4 Policies to Generate Economic Growth

4.7 Employment & Unemployment

4.7.1 Understanding Employment

4.7.2 Measurement of Unemployment

4.7.3 Types of Unemployment

4.7.4 Consequences of Unemployment

4.7.5 Policies to Reduce Unemployment

4.8 Inflation & Deflation

4.8.1 Definitions & Measurement

4.8.2 Causes & Consequences of Inflation

4.8.3 Causes & Consequences of Deflation

4.8.4 Policies to Control Inflation & Deflation

5. Economic Development

5.1 Living Standards

5.1.1 Indicators of Living Standards

5.1.2 Living Standards & Income Distribution

5.2 Poverty

5.2.1 Causes of Poverty

5.2.2 Policies to Alleviate Poverty

5.3 Population

5.3.1 Population Growth

5.3.2 Effects of Changing Population Sizes

5.4 Differences in Economic Development

5.4.1 Reasons for Differences in Development

6. International Trade & Globalisation

6.1 International Specialisation

6.1.1 Reasons for National Specialisation

6.2 Globalisation, Free Trade & Protection

6.2.1 Globalisation

6.2.2 Free Trade

6.2.3 Protection

6.3 Foreign Exchange Rates

6.3.1 Introduction to Exchange Rates

6.3.2 Exchange Rate Fluctuations

6.4 Current Account of Balance of Payments

6.4.1 Components of the Current Account

6.4.2 Deficits & Surpluses

6.4.3 Stabilisation Policies