Calculation of PED using the formula

Price Elasticity of Demand (PED)

The difference between economic goods and free goods

Topic: The Basic Economic Problem – Economic Goods and Free Goods

Link between individual supply and market supply

Topic: Allocation of Resources – Supply

Implications of PED for decision-making by consumers, workers, producers/firms and government

Price Elasticity of Demand (PED)

How these reasons influence the wages of workers, depending on discrimination between workers, e.g. male/female

Cambridge IGCSE Economics 0455 – Micro‑economic Decision‑Makers: Workers

Diagrams that illustrate shifts of a supply curve

Cambridge IGCSE Economics (0455) – Supply‑Side and Market Concepts

Causes of inflation: demand-pull

Government and the Macro‑economy – Inflation

Drawing and interpretation of equilibrium using demand and supply curves

Allocation of Resources – Price Determination (0455)

Private sector/public sector firms

Micro‑Economic Decision‑Makers – Firms

Advantages and disadvantages of real GDP per head and HDI as indicators

Cambridge IGCSE Economics (0455) – Complete Syllabus Notes

Advantages of the market economic system

Market Economic System – Advantages, Disadvantages and Evaluation (2.8)

Reasons for current account deficits and surpluses

International Trade and Globalisation – Current Account of the Balance of Payments

The concept of an optimum population

Economic Development – Key Concepts for Cambridge IGCSE 0455

Reasons for trade restrictions: raise tax revenue

IGCSE Economics – Complete Syllabus Overview (Cambridge 0455)

Definitions of floating exchange rate, appreciation and depreciation

International Trade and Globalisation – Foreign Exchange Rates

Definition of PED

The Allocation of Resources – Price Elasticity of Demand (PED)

Supply-side policy measures: education and training

Government and the Macro‑economy – Supply‑side Policy

Causes of foreign exchange rate fluctuations: changes in demand for exports and imports

International Trade and Globalisation – Foreign‑Exchange Rates

Causes of changes in globalisation: changes in transport costs

International Trade and Globalisation

Interpretation of the significance of the PED value: perfectly inelastic, inelastic, unitary, elastic, perfectly elastic

Price Elasticity of Demand (PED)

Reasons for trade restrictions: protect declining (sunset) industries

IGCSE/A‑Level Economics – Globalisation and Trade Restrictions: Protecting Declining (Sunset) Industries

Influences on households' spending, saving and borrowing: confidence

Micro‑economic decision‑makers: Households

Drawing and interpretation of average total cost (ATC) diagrams to illustrate economies and diseconomies of scale

Firms – Economies and Diseconomies of Scale (IGCSE / A‑Level)

Measurement of economic growth: real Gross Domestic Product (GDP)

Measurement of Economic Growth – Real Gross Domestic Product (GDP)

Definitions of terms associated with market failure: public goods, merit goods, demerit goods, private benefits, external benefits, social benefits, private costs, external costs, social costs, monopoly

Cambridge IGCSE/A‑Level Economics – 0455 Syllabus Overview

Causes and consequences of shifts of a PPC in terms of an economy's growth

Cambridge IGCSE Economics 0455 – Complete Quick‑Reference Guide

How price changes are caused by changes in demand and supply

IGCSE / A‑Level Economics – Revision Notes (Cambridge 0455)

Influences of the demand for labour and the supply of labour on wage determination

Micro‑economic Decision‑Makers – Workers

The significance of the location of different production points

The Cambridge IGCSE Economics Syllabus – Core Concepts

Definitions of government budget

Government and the Macro‑economy – Fiscal Policy (Cambridge 0455)

Fiscal policy measures: changes in taxes

Government and the Macro‑economy – Fiscal Policy (Taxation)

Effects of changes in globalisation on income distribution

6.1 Specialisation, Free Trade and Trade Restrictions – IGCSE Economics (0455)

Influences on households' spending, saving and borrowing: culture

Cambridge IGCSE Economics (0455) – Syllabus Notes

Advantages and disadvantages of economic growth

Government and the Macro‑economy – Economic Growth, Development and Trade

Effects of changes in foreign exchange rates on prices and demand for exports and imports

International Trade & Globalisation – Foreign‑Exchange Rates (IGCSE 0455 6.3)

Effects of changes in globalisation on economic development

International Trade & Globalisation – Effects of Changes in Globalisation on Economic Development

Reasons behind the choice of aims and the criteria that governments may set for meeting each aim

Government and the Macro‑economy – Why Governments Choose Particular Aims and How They Try to Meet Them

Effect of price changes on the amount spent by consumers and revenue raised by firms, shown both in a diagram and as a calculation

0455 Allocation of Resources – Effect of Price Changes on Consumer Spending and Firm Revenue

The difference between production and productivity

Cambridge IGCSE Economics 0455 – Complete Syllabus Notes

Components of the current account of the balance of payments: trade in goods

International Trade & Globalisation – Current Account of the Balance of Payments

Reasons for trade restrictions: avoid dumping

IGCSE Economics 0455 – Topic 6: Globalisation, Trade Restrictions and the Balance of Payments

Supply-side policy measures: deregulation

Government and the Macro‑economy – Supply‑Side Policy

Influences on the demand for factors of production: demand for the product, the price of different factors of production, their availability and their productivity

Micro‑economic Decision‑Makers – Firms and Production

Supply-side policy measures: labour market reforms

Supply‑side Policy – Labour‑Market Reforms

Reasons for taxation: raising revenue, discouraging consumption of demerit goods, reducing imports, redistributing income, influencing total demand, encouraging environmental sustainability

Government and the Macro‑economy – Fiscal Policy

Supply-side policy measures: lower direct taxes

Cambridge IGCSE Economics 0455 – Supply‑Side Policy: Lower Direct Taxes

Examples of the different classifications of tax: progressive, regressive, proportional; direct, indirect

Government and the Macro‑economy – Fiscal Policy

Definition of division of labour (worker specialisation)

Micro‑economic Decision‑makers – Workers

Implications of misallocation of resources in relation to the over-consumption of demerit goods and goods with external costs

1. The Basic Economic Problem (Syllabus 1.1‑1.4)

Primary/secondary/tertiary sector firms

Micro‑economic Decision‑Makers – Firms

Reasons for differences in wages: government policy

Workers – Government Policy and Wage Differentials (Cambridge IGCSE 0455)

Implications of misallocation of resources in relation to the non-provision of public goods

1. The Basic Economic Problem

Drawing and interpretation of supply curve diagrams to show different PES

IGCSE Economics (0455) – Complete Revision Notes

How these reasons influence the wages of workers, depending on level of skills of workers

Micro‑economic Decision‑makers: Workers

The macroeconomic aims of government: redistribution of income

Government Macro‑economic Aims (Syllabus 4.1)

Difference between absolute poverty and relative poverty

Economic Development – Poverty (Cambridge IGCSE 0455)

Possible conflicts between macroeconomic aims: full employment and balance of payments stability

Government Macro‑economic Intervention – Conflicts Between Full Employment and Balance‑of‑Payments Stability

Diagrams that illustrate movements along a supply curve

Cambridge IGCSE Economics (0455) – Allocation of Resources: Supply

Advantages and disadvantages of specialisation

International Trade, Specialisation and Free Trade (Syllabus 6.1)

Definitions, advantages and disadvantages of nationalisation

2.10 Mixed Economic System

Causes of changes in globalisation: changes in trade restrictions

International Trade and Globalisation – Trade Restrictions

Effects of changes in globalisation on competition

International Trade and Globalisation – Globalisation and Trade Restrictions

Definition of specialisation by country

International Trade and Globalisation – Specialisation, Free Trade, Restrictions & Foreign‑exchange

Characteristics, advantages and disadvantages of monopoly markets

Cambridge IGCSE Economics (0455) – Complete Revision Notes

Influences on production and productivity

Micro‑economic Decision‑Makers – Firms and Production

The three basic economic questions which determine resource allocation: who to produce for

The Basic Economic Problem – Resource Allocation Decisions

Definition of a market

The Allocation of Resources – The Role of Markets in Allocating Resources

Drawing and interpretation of diagrams that show how changes in output affect costs of production

IGCSE Economics 0455 – Cambridge Syllabus (2027‑2029) – Quick‑Reference Guide

Reasons for buying and selling foreign currencies: workers' remittances

International Trade & Globalisation – Foreign‑Exchange Rates (Section 6.3)

Advantages and disadvantages of division of labour

Micro‑economic decision‑makers: Workers

The demand for and supply of a currency

International Trade and Globalisation – Foreign‑Exchange Rates

Shortages (demand exceeding supply) and surpluses (supply exceeding demand)

Allocation of Resources – Price Determination (Cambridge 2.4)

Causes of poverty: age

IGCSE Economics 0455 – Economic Development: Poverty (Causes – Age)

The macroeconomic aims of government: economic growth

Government Macro‑Economic Intervention – Economic Growth

Reasons for differences in wages: demand for and supply of labour

Micro‑economic Decision‑Makers – Workers

Consequences of recession for consumers, workers, producers/firms and the government

Government and the Macro‑economy – Economic Growth

How these reasons influence the wages of workers, depending on whether the worker is working in the private sector or public sector

1. Introduction

Calculations of the size of a government budget deficit/surplus

Government and the Macro‑economy – Fiscal Policy (IGCSE 0455)

The range of policies available to promote economic growth and their effectiveness

Cambridge IGCSE/A‑Level Economics – Syllabus Notes

Differences in size of primary, secondary and tertiary sectors

Economic Development – Differences in the Size of Primary, Secondary and Tertiary Sectors

Definition of fiscal policy

Government and the Macro‑economy – Fiscal Policy

Components of the current account of the balance of payments: primary income

International Trade & Globalisation – Current Account of the Balance of Payments

How monetary policy measures may enable a government to achieve its macroeconomic aims

Government and the Macro‑economy – Monetary Policy (Cambridge IGCSE 0455)

Definition of foreign exchange rate

International Trade and Globalisation – Foreign‑Exchange Rates

Causes/types of unemployment: frictional unemployment

Government and the Macro‑economy – Employment and Unemployment (Syllabus 4.6)

Causes of poverty: illness

Economic Development – Poverty

Causes of market failure relating to public goods, merit goods, demerit goods, external costs and external benefits, abuse of monopoly power

2.9 Market Failure – Allocation of Resources

The macroeconomic aims of government: stable prices/low inflation

Government Macro‑economic Intervention – Stable Prices / Low Inflation

The significance of movements along a PPC and opportunity cost

The Basic Economic Problem

Definition of the basic economic problem

1. The Basic Economic Problem

Drawing and interpretation of the PPC diagram

Production Possibility Curve (PPC) – Cambridge IGCSE 0455

Use of demand and supply diagrams to illustrate the impact of changes in market conditions

Allocation of Resources – Price Changes (Cambridge IGCSE/A‑Level Economics 0455)

The effects of increases and decreases in population size and changes in the age and gender distribution of population

Economic Development – Population (Cambridge IGCSE 0455 5.3)

Effect of having a high number of firms on price, quality, choice, profit

IGCSE 0455 – Microeconomics: Decision‑Makers and Market Structures

Examples of the basic economic problem in the context of workers

The Basic Economic Problem – Focus on Workers (Cambridge IGCSE 0455)

Differences in saving and investment

IGCSE Economics (0455) – Full Syllabus Notes

Implications of misallocation of resources in relation to restricted supply causing higher prices under a monopoly

1 The Basic Economic Problem & Factors of Production

Differences in productivity

Economic Development – Differences in Productivity between Countries (Cambridge IGCSE 0455 5.4)

Definitions of government budget surplus

IGCSE Economics – Full Topic Notes (Cambridge 0455)

Policies to alleviate poverty and redistribute income: more generous state benefits

Economic Development – Poverty

Causes of extensions and contractions in supply

Allocation of Resources – Supply (IGCSE 0455 2 Supply)

Causes of changes in globalisation: changes in communication costs

International Trade & Globalisation – Topic 6 (IGCSE Economics 0455)

Disadvantages of the market economic system

Allocation of Resources – Market Economic System (Syllabus 2.8)

Forms, functions and characteristics of money

Money and Banking (Cambridge IGCSE Economics 0455)

Components of the current account of the balance of payments: trade in services

International Trade & Globalisation – Current Account of the Balance of Payments

Policies to alleviate poverty and redistribute income: promoting economic growth

Economic Development – Poverty (Cambridge IGCSE 0455)

Interpretation of the significance of the PES value: perfectly inelastic, inelastic, unitary, elastic, perfectly elastic

Price Elasticity of Supply (PES)

Drawing and interpretation of the supply diagram

Cambridge IGCSE Economics (0455) – The Allocation of Resources: Supply

Definitions of factors of production: land, labour, capital and enterprise

Cambridge IGCSE Economics (0455) – The Basic Economic Problem & Factors of Production

Interpretation of disequilibrium using demand and supply schedules

1. The Basic Economic Problem

Effects of changes in globalisation on international trade

International Trade and Globalisation – Effects of Changes in Globalisation on Trade

Diagrams that illustrate movements along a demand curve

Allocation of Resources – Demand

Reasons for differences in living standards and income distribution within and between countries

Economic Development – Living Standards

Role and importance of commercial banks

Micro‑economic Decision‑Makers: Money and Banking

Definition of the mixed economic system

Allocation of Resources – Mixed Economic System

Effects of changes in investment on productivity

Micro‑economic Decision‑Makers: Firms and Production

Influences on households' spending, saving and borrowing: age

Households – definition and role in the economy

Reasons for buying and selling foreign currencies: investment in capital goods between countries

Cambridge IGCSE Economics (0455)

The determination of the equilibrium foreign exchange rate

International Trade and Globalisation – Foreign‑Exchange Rates

Reasons for trade restrictions: promote environmental sustainability

International Trade & Globalisation (Cambridge IGCSE 0455)

Examples of markets

Allocation of Resources – The Role of Markets

Monetary policy measures: changes in money supply

IGCSE Economics (0455) – Complete Syllabus Overview & Revision Notes

Differences in income

Economic Development – Differences in Income Between Countries

Definitions, drawing and interpretation of diagrams, advantages and disadvantages of maximum and minimum prices in product markets

Cambridge IGCSE Economics 0455 – Complete Syllabus Overview

How fiscal policy measures may enable a government to achieve its macroeconomic aims

Government and the Macro‑economy – Fiscal Policy

Impact of taxation on consumers, workers, producers/firms, the government and the economy

Government and the Macro‑economy – Fiscal Policy

Definitions, advantages and disadvantages of direct provision of goods and services

Mixed Economic System – Definition

Main influences on whether demand is elastic or inelastic

Price Elasticity of Demand (PED) – Cambridge IGCSE/A‑Level (2.6)

The influence of sales on revenue

Micro‑economic Decision‑Makers – Firms’ Costs, Revenue and Objectives

Definition of production possibility curves (PPC)

Cambridge IGCSE Economics 0455 – The Basic Economic Problem

Policies to alleviate poverty and redistribute income: improved education

Economic Development – Poverty (0455)

Types of trade restrictions / methods of protection: import quotas

International Trade and Globalisation – Import Quotas

Definitions, advantages and disadvantages of privatisation

1. The Basic Economic Problem

Impact on GDP, employment, inflation and foreign exchange rate

International Trade and Globalisation – The Current Account of the Balance of Payments

Reasons for trade restrictions: protect strategic industries

IGCSE Economics 0455 – International Trade & Globalisation

Monetary policy measures: changes in foreign exchange rate

Government and the Macro‑economy – Monetary Policy, Fiscal Policy, Supply‑side Policy and the Foreign‑exchange Rate

Causes of foreign exchange rate fluctuations: speculation

International Trade and Globalisation – Foreign Exchange Rates

Causes of decreases and increases in supply

Allocation of Resources – Supply

Causes/types of unemployment: seasonal unemployment

Government and the Macro‑economy: Employment and Unemployment (Cambridge 0455)

Reasons for buying and selling foreign currencies: government intervention in currency markets

IGCSE/A‑Level Economics – Complete Syllabus Notes

Consequences of inflation for consumers, workers, producers/firms and the economy

Government and the Macro‑economy – Inflation

Definitions of net migration, immigration and emigration

Economic Development – Population (IGCSE 0455)

Definition of economic growth

Government and the Macro‑economy (Cambridge IGCSE 0455)

Types of trade restrictions / methods of protection: tariffs

International Trade and Globalisation

Drawing and interpretation of diagrams that illustrate the effects of changes in demand and supply in the labour market

Micro‑economic Decision‑Makers: Workers

Policies to alleviate poverty and redistribute income: national minimum wage (NMW)

Economic Development – Poverty & National Minimum Wage (NMW)

Drawing and interpretation of disequilibrium using demand and supply curves

IGCSE Economics (0455) – Price Determination, Allocation of Resources & Macro‑Economic Context

How inflation affects savers, lenders and borrowers

Government and the Macro‑economy – Inflation

Fiscal policy measures: changes in government spending

Government and the Macro‑Economy – Fiscal Policy

Components of the current account of the balance of payments: secondary income

International Trade & Globalisation – Current Account of the Balance of Payments

Indicators of living standards: real Gross Domestic Product (GDP) per head

Economic Development – Living Standards

Effect of having only one firm on price, quality, choice, profit

Learning Objective

Reasons for trade restrictions: reduce a deficit on the current account of the balance of payments

International Trade & Globalisation – Trade Restrictions (Cambridge IGCSE Economics 0455, Topic 6)

Definition of market equilibrium

Allocation of Resources – Price Determination

Effect of price changes on sales

Allocation of Resources – Price Changes (IGCSE Economics 0455)

Drawing and interpretation of demand curve diagrams to show different PED

IGCSE Economics (0455) – Complete Revision Notes (2027‑2029 Syllabus)

Causes/types of unemployment: structural unemployment

Government and the Macro‑economy: Employment and Unemployment

Relationship between PED and the amount spent by consumers and revenue raised by firms

Allocation of Resources – Price Elasticity of Demand (PED)

Definition of supply-side policy

Government and the Macro‑economy – Supply‑side Policy

Reasons for adopting labour-intensive and capital-intensive production

Micro‑economic Decision‑makers – Firms and Production (IGCSE 0455 Topic 3.5)

Causes of poverty: unemployment

Economic Development – Poverty and Unemployment (Cambridge IGCSE 0455)

Definitions of total revenue (TR) and average revenue (AR)

Firms’ Costs, Revenue and Objectives (Cambridge IGCSE Economics 0455 – Topic 3.6)

How internal and external economies and diseconomies of scale can affect a firm/industry as the scale of production changes

Micro‑economic Decision‑Makers – Firms

Causes of inflation: cost-push

Government and the Macro‑economy – Inflation

Effects of changes in globalisation on migration

International Trade, Globalisation and Migration

Government policy, including national minimum wage (NMW) on wage determination

Micro‑economic Decision‑makers: Workers

Definition of market failure

Allocation of Resources – Market Failure

Types of trade restrictions / methods of protection: embargoes

6.2 Trade Restrictions – Overview

Examples of the basic economic problem in the context of governments

The Basic Economic Problem

Policies to alleviate poverty and redistribute income: progressive taxation

Unit 1 – The Basic Economic Problem & Production Possibilities

How the price mechanism provides answers to the basic resource allocation decisions of what, how and for whom to produce

The Allocation of Resources – Price Determination (IGCSE 0455)

Definition of supply

Allocation of Resources – Supply

Examples of opportunity cost in different contexts

1.3 Opportunity Cost

Roles of buyers and sellers

Allocation of Resources – The Role of Markets

Supply-side policy measures: improving incentives to work and invest

Government and the Macro‑economy – Supply‑Side Policy

Calculation of PES using the formula

Price Elasticity of Supply (PES) – Cambridge IGCSE Economics (0455)

Definitions of government budget deficit

Government Budget – Key Concepts (Cambridge 0455)

The basis for specialisation by country in terms of the best resource allocation and/or low-cost production

International Trade, Globalisation and Foreign Exchange – IGCSE Economics (Syllabus 6.1‑6.4)

Possible conflicts between macroeconomic aims: economic growth and environmental sustainability

Government Macro‑economic Intervention (Cambridge IGCSE 0455)

Causes of changes in the quantity and quality of factors of production

Basic Economic Problem and the Factors of Production

Advantages and disadvantages of labour-intensive and capital-intensive production

Micro‑economic Decision‑makers: Firms and Production (Cambridge IGCSE 0455)

Definitions of costs of production: total cost (TC), average total cost (ATC), fixed cost (FC), average fixed cost (AFC), variable cost (VC), average variable cost (AVC)

Micro‑economic Decision‑Makers – Firms’ Costs, Revenue and Objectives (Cambridge 3.6)

MNCs and their advantages and disadvantages to host countries and home countries

International Trade & Globalisation (IGCSE 0455 – Topic 6)

Diagrams that illustrate shifts of a demand curve

Allocation of Resources – Demand

Calculation of TC, ATC, FC, AFC, VC and AVC

Micro‑economic Decision‑Makers – Firms’ Costs, Revenue and Objectives

Definition of recession

Government and the Macro‑economy – Economic Growth (Syllabus 4.5 – 4.7)

Reasons for differences in wages: discrimination, e.g. male/female

Micro‑economic Decision‑Makers: Workers

Advantages and disadvantages of small and large firms

Micro‑economic Decision‑makers – Firms (Cambridge IGCSE 0455)

Characteristics, advantages and disadvantages of competitive markets

Micro‑economic Decision‑Makers – Types of Markets

Factors affecting an individual's choice of occupation: wage and non-wage factors

3.3 Workers – Factors affecting an individual’s choice of occupation and wage determination

The range of policies available to control inflation and their effectiveness

Inflation – Definition and Measurement

Reasons for buying and selling foreign currencies: trade in goods and services

International Trade and Globalisation – Foreign‑Exchange Rates (Cambridge 0455 / 9709)

How these reasons influence the wages of workers, depending on economic sector workers operate in: primary/secondary/tertiary

Micro‑economic Decision‑Makers: Workers

Main influences on whether supply is elastic or inelastic

Price Elasticity of Supply (PES)

Definition of globalisation

International Trade and Globalisation (Cambridge IGCSE 0455)

Reasons for buying and selling foreign currencies: payment of profit, interest and dividends between countries

International Trade and Globalisation – Foreign‑Exchange Rates

Examples of the basic economic problem in the context of producers/firms

The Basic Economic Problem – The Nature of the Problem for Producers (Firms)

The three basic economic questions which determine resource allocation: what to produce

IGCSE/A‑Level Economics – The Basic Economic Problem: “What to Produce?”

Differences in education

Economic Development – Differences Between Countries (IGCSE Economics 0455 – Sub‑topic 5.4)

Causes of poverty: environmental factors

Economic Development – Poverty and Living Standards

How a recession may be caused by a decrease in total demand, a decrease in the quantity of resources or a decrease in the quality of resources

Economic Growth and Recession – Cambridge IGCSE 0455

How birth rates, death rates and net migration can vary between countries

Economic Development – Population (IGCSE Economics 5.3)

Influences on households' spending, saving and borrowing: rate of interest

Households – How the Rate of Interest Influences Spending, Saving and Borrowing

How economic growth may be caused by an increase in total demand, an increase in the quantity of resources or an increase in the quality of resources

Government and the Macro‑economy – Economic Growth

Decisions made by consumers, workers, producers/firms and governments when allocating their resources

Opportunity Cost and the Allocation of Resources

The macroeconomic aims of government: balance of payments stability

Government Macro‑economic Intervention – Balance of Payments (BoP) Stability

Definitions, examples, advantages and disadvantages of different types of mergers: horizontal, vertical and conglomerate

Micro‑economic Decision‑makers – Firms

Measurement of inflation using the Consumer Prices Index (CPI)

IGCSE Economics (0455) – Revision Notes

Drawing and interpretation of diagrams illustrating national minimum wages

Micro‑economic Decision‑Makers: Workers (Cambridge IGCSE 0455 – 3.3)

Interpretation of equilibrium using demand and supply schedules

IGCSE Economics (0455) – Complete Syllabus Notes

Definitions of birth rate

Economic Development – Population (IGCSE 0455 5.3)

Differences in natural resources

Economic Development – Differences in Natural Resources (IGCSE Economics 0455)

Reasons why birth rates, death rates and net migration rates can vary between countries

Economic Development – Population

Influences on households' spending, saving and borrowing: income

Micro‑economic Decision‑makers – Households

Definition of free trade

International Trade and Globalisation

How supply-side policy measures may enable a government to achieve its macroeconomic aims

Government and the Macro‑economy – Supply‑side Policy

The concept of scarcity

Cambridge IGCSE Economics (0455) – Quick‑Reference Notes

Definitions of employment, unemployment and full employment

Government and the Macro‑economy

Disadvantages of the mixed economic system

Mixed Economic System – Disadvantages (and wider IGCSE context)

Advantages of the mixed economic system

Mixed Economic System – Advantages, Disadvantages, Government Intervention & Evaluation (Cambridge IGCSE/AS A‑Level)

Link between individual demand and market demand

Allocation of Resources – Demand and Supply

Effects of changes in globalisation on the environment

IGCSE Economics 0455 – Globalisation, Trade Restrictions & the Environment

Reasons for buying and selling foreign currencies: speculation

International Trade & Globalisation – Foreign‑Exchange Rates (IGCSE 6.3)

Differences in population growth

Economic Development – Differences in Economic Development Between Countries

Definition of opportunity cost

Contents – Cambridge IGCSE Economics (0455)

Trade unions and their relative bargaining power on wage determination

Micro‑economic Decision‑Makers – Workers (Cambridge IGCSE 0455 3.3)

Definition of market disequilibrium

Allocation of Resources – Price Determination

Causes/types of unemployment: cyclical unemployment

Government and the Macro‑economy – Employment and Unemployment (Section 4.6)

Possible conflicts between macroeconomic aims: full employment and stable prices

Government macro‑economic intervention – conflicts between full employment and stable prices

Definition of the market economic system

Market Economic System – Cambridge IGCSE 0455

Implications of misallocation of resources in relation to the under-consumption of merit goods and goods with external benefits

Allocation of Resources – Market Failure

How unemployment is measured (labour force survey)

Government and the Macro‑economy – Employment and Unemployment (Cambridge IGCSE/A‑Level 0455 §4.6)

Definitions, advantages and disadvantages of quotas, e.g. for the extraction of natural resources

Cambridge IGCSE Economics – Quotas for Natural‑Resource Extraction (Syllabus 2.10.3)

Causes of changes in globalisation: movement of multinational companies (MNCs)

International Trade and Globalisation (Cambridge IGCSE 0455 – Section 6)

Rewards to factors of production: rent, wages, interest and profit

1. The Basic Economic Problem

Reasons for differences in wages: relative bargaining strengths

Cambridge IGCSE Economics (0455) – Microeconomic Decision‑makers: Workers

Drawing and interpretation of the demand diagram

Allocation of Resources – Demand (2.2)

Definitions of death rate

Economic Development – Population (Cambridge IGCSE 0455)

Causes of poverty: low wages

IGCSE Economics 0455 – Economic Development

Advantages and disadvantages of restricting free trade

International Trade and Globalisation – Globalisation and Trade Restrictions

Definitions, advantages and disadvantages of regulation

Mixed Economic System – Regulation (Cambridge IGCSE Economics 0455 – Section 2.10)

Consequences of unemployment for the individual, producers/firms, the government and the economy

Government and the Macro‑economy – Employment and Unemployment

The range of policies available to reduce unemployment and their effectiveness

Government and the Macro‑economy – Employment and Unemployment

Definition of PES

The Allocation of Resources – Price Elasticity of Supply (PES)

Causes of extensions and contractions in demand

Allocation of Resources – Demand

Causes of foreign exchange rate fluctuations: changes in the interest rate

International Trade and Globalisation – Foreign‑Exchange Rates

Definitions, drawing and interpretation of diagrams, advantages and disadvantages of subsidies

0455 IGCSE Economics – Core Notes

Definitions of inflation and deflation

Government and the Macroeconomy – Inflation

Supply-side policy measures: infrastructure spending

Supply‑Side Policy (SSP) – 4.4

Calculation of TR and AR

Microeconomic Decision‑Makers: Firms’ Costs, Revenue and Objectives (Cambridge IGCSE/A‑Level Economics 0455)

Types of trade restrictions / methods of protection: subsidies

Specialisation & Free‑Trade

Impact of trade restrictions on the home country and its trading partners

International Trade and Globalisation – Globalisation and Trade Restrictions

The macroeconomic aims of government: full employment/low unemployment

Government Macro‑economic Intervention

Role and importance of central banks

Money and Banking – Cambridge IGCSE Economics (0455)

Objectives of firms: survival, social welfare, profit maximisation and growth

Firms’ Costs, Revenue and Objectives (Cambridge IGCSE Economics 0455 – Sub‑topic 3.6)

The range of policies available to achieve balance of payments stability and their effectiveness

Cambridge IGCSE / A‑Level Economics – Complete Syllabus Notes

Reasons for trade restrictions: protect infant (sunrise) industries

International Trade and Globalisation – 6.2

Formula for the unemployment rate

Government and the Macro‑economy

The three basic economic questions which determine resource allocation: how to produce

The Basic Economic Problem – How to Produce

Causes of changes in the occupational and geographical mobility of labour

Micro‑economic Decision‑Makers – Workers

Differences in healthcare

Economic Development – Differences in Healthcare Between Countries

Advantages and disadvantages of free trade

International Trade & Globalisation – Specialisation, Free Trade, Globalisation, Trade Restrictions, Foreign‑Exchange Rates and the Current Account

Definitions of money supply and monetary policy

Government and the Macro‑economy

Consequences of changes in the occupational and geographical mobility of labour

Micro‑economic decision‑makers – Workers

Causes of decreases and increases in demand

Allocation of Resources – Demand

Reasons for trade restrictions: restrict the import of demerit goods

International Trade and Globalisation

The macroeconomic aims of government: environmental sustainability

Government Macro‑economic Aims and Environmental Sustainability – Cambridge IGCSE/AS Level (0455)

Examples of the basic economic problem in the context of consumers

Basic Economic Problem – Consumers (Cambridge IGCSE Economics 0455)

Main areas of government spending and the reasons for and effects of spending in these areas

Government and the Macro‑economy – Fiscal Policy

Definitions, drawing and interpretation of diagrams, advantages and disadvantages of indirect taxation

Mixed Economic System (Syllabus 2.8)

Indicators of living standards: Human Development Index (HDI) and its components

Economic Development – Living Standards (Cambridge IGCSE 0455)

Definition of demand

2.2 – Demand (Allocation of Resources)

Monetary policy measures: changes in interest rate

Monetary Policy – Interest‑Rate Measures (IGCSE/A‑Level)

Calculation of deficits and surpluses on the current account of the balance of payments and its component sections

International Trade & Globalisation – Current Account of the Balance of Payments (Cambridge IGCSE 0455)

Supply-side policy measures: privatisation

Government and the Macro‑economy – Supply‑Side Policy

Policies to alleviate poverty and redistribute income: improved healthcare provision

Cambridge IGCSE Economics (0455) – Revision Notes