Micro Economics

In this theme students will consider how markets work,
looking at how supply and demand interact to allocate
resources in local, national and international markets.

They will learn how to apply supply and demand analysis to
real-world situations and be able to offer explanations of
consumer behaviour. This will involve looking at both how
consumers act in a rational way to maximise utility and how
firms maximise profit, but also why consumers may not
behave rationally.

Having investigated how markets work, students will then
look at market failure. They will look at the nature and
causes of market failure before considering the strengths
and weaknesses of possible government intervention to
remedy market failures.

 

Glossary:

Y12 Micro Glossary

1.1 THE NATURE OF ECONOMICS

1.1.1-Economics-as-a-social-science

1.1.2 Positive Normative Statements – JF

1.1.3-The-Economic-Problem-and-Efficiency -JF

1.1.3b Fundamental economic problem OC and Factors of Production

Renewables sustainables free goods

1.1.4 Opportunity costs PPF JF

1.1.5 Division of Labour, Specialisation and functions of money JF2

1.1.6 Types of economic systems jf

Economic History Timeline

1.2 HOW MARKETS WORK

1.2.1 Rational decision making

1.2.2 Intro-to-demand

1.2.3 Intro to Supply

1.2.4 Market equilibrium

1.2.5 Consumer and Producer surplus

1.2.6 Price Elasticity of Demand

 

1.3 MARKET FAILURE