Economics
All 253 specification statements from the official Cambridge International specification, as printed.
1. Scarcity, choice and opportunity cost
basic questions of resource allocation:
2. Economic methodology
3. Factors of production
4. Resource allocation in different economic systems
5. Production possibility curves
6. Classification of goods and services
1. Demand and supply curves
2. Price elasticity, income elasticity and cross elasticity of demand
significance of relative percentage changes, the size and sign of the coefficient of:
factors affecting:
3. Price elasticity of supply
4. The interaction of demand and supply
relationships between different markets:
5. Consumer and producer surplus
1. Reasons for government intervention in markets
2. Methods and effects of government intervention in markets
3. Addressing income and wealth inequality
measuring income and wealth inequality:
policies to redistribute income and wealth:
1. National income statistics
measurement of national income:
2. Introduction to the circular flow of income
3. Aggregate Demand and Aggregate Supply analysis
4. Economic growth
5. Unemployment
6. Price stability
measurement of changes in the price level:
1. Government macroeconomic policy objectives
2. Fiscal policy
taxation:
government spending:
3. Monetary policy
4. Supply-side policy
1. The reasons for international trade
exports, imports and the terms of trade:
2. Protectionism
different tools of protection and their impact:
3. Current account of the balance of payments
components of the current account of the balance of payments:
calculation of:
4. Exchange rates
5. Policies to correct imbalances in the current account of the balance of payments
1. Utility
2. Indifference curves and budget lines
3. Efficiency and market failure
4. Private costs and benefits, externalities and social costs and benefits
5. Types of cost, revenue and profit, short-run and long-run production
short-run production function:
short-run cost function:
long-run production function:
long-run cost function:
6. Different market structures
barriers to entry and exit:
performance of firms in different market structures:
7. Growth and survival of firms
external growth of firms – integration (mergers and takeovers):
cartels:
8. Differing objectives and policies of firms
an understanding of other objectives of firms:
price discrimination – first, second and third degree:
other pricing policies:
relationship between price elasticity of demand and a firm’s revenue:
1. Government policies to achieve efficient resource allocation and correct market failure
application and effectiveness of measures to tackle different forms of market failure:
government failure in microeconomic intervention:
2. Equity and redistribution of income and wealth
policies towards equity and equality, for example:
3. Labour market forces and government intervention
marginal revenue product (MRP) theory:
factors affecting the supply of labour to a firm or to an occupation:
wage determination in perfect markets:
wage determination in imperfect markets:
transfer earnings and economic rent:
1. The circular flow of income
the multiplier process:
components of Aggregate Demand (AD) and their determinants:
full employment level of national income and equilibrium level of national income:
2. Economic growth and sustainability
business (trade) cycle:
inclusive economic growth:
sustainable economic growth:
3. Employment/unemployment
natural rate of unemployment:
mobility of labour:
4. Money and banking
functions of commercial banks:
causes of changes in the money supply in an open economy:
1. Government macroeconomic policy objectives (10.1)
2. Links between macroeconomic problems and their interrelatedness
relationship between inflation and unemployment:
3. Effectiveness of policy options to meet all macroeconomic objectives
effectiveness of different policies in relation to different macroeconomic objectives:
1. Policies to correct disequilibrium in the balance of payments
2. Exchange rates (11.2)
measurement of exchange rates:
3. Economic development
indicators of living standards and economic development:
comparison of economic growth rates and living standards:
4. Characteristics of countries at different levels of development
population growth and structure:
income distribution:
economic structure:
5. Relationship between countries at different levels of development
international aid:
role of multinational companies (MNCs):
Foreign Direct Investment (FDI):
external debt:
6. Globalisation