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 of Terms

Nature of EconomicsImage result for economics

1.1.1 Economics as a social science

1.1.2 Positive & Normative Statements

1.1.3 The Economic Problem

1.1.4 PPF

1.1.4 Opportunity costs and PPF

1.1.5 Specialisation and division of labour

1.1.5 The functions of money

1.1.7 Types of economic systems

How Markets work

1.2.1 Rational Decision Making

1.2.2 Intro to demand

1.2.3 Diminishing Marginal Utility

1.2.4 Supply

1.2.5 Market Equilibrium

1.2.6 Consumer and Producer Surplus

1.2.7 Price elasticity of demand

1.2.8 PES

1.2.9 XED

1.2.10 YED

1.2.11 Indirect Taxes & Subsidies

1.2.12 Price Mechanism

Market Failure

1.3.1 Types of Market failure

1.3.2 Externalities

1.3.3 Government Intervention for externalities

1.3.3 Public goods

1.3.4 Information failure

1.3.5 Government Intervention

1.3.6 Government Failure

Revision Resources

Diagrams Revision Exercise

MCQs – Market Failure