Economics — Cambridge IGCSE

Calculation of PES using the formula

Price Elasticity of Supply (PES) 📦

Disadvantages of the mixed economic system

Disadvantages of the Mixed Economic System

Causes of decreases and increases in supply

The Allocation of Resources – Supply

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

The Allocation of Resources – Market Failure

Impact on GDP, employment, inflation and foreign exchange rate

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

Causes of changes in the occupational and geographical mobility of labour

Microeconomic Decision‑Makers – Workers

Causes of inflation: cost-push

Government and the Macroeconomy – Inflation

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

Economic Development – Poverty

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

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

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

Economic Development - Living Standards

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

The Basic Economic Problem – Factors of Production

Definition of recession

Government and the Macroeconomy – Economic Growth

Definition of the basic economic problem

The Basic Economic Problem – The Nature of the Basic Economic Problem

Monetary policy measures: changes in money supply

Government and the Macroeconomy – Monetary Policy

Definitions of death rate

Economic Development – Population

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

Economic Development – Living Standards

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

International Trade & Globalisation – Foreign Exchange Rates

Definitions of birth rate

Economic Development – Population

Policies to alleviate poverty and redistribute income: improved healthcare provision

Economic Development – Poverty

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

Microeconomic Decision‑Makers: Firms’ Costs, Revenue and Objectives

Examples of markets

The Allocation of Resources – The Role of Markets

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

The Basic Economic Problem – Resource Allocation Decisions

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

International Trade & Globalisation – Foreign Exchange Rates 🌍💱

Reasons for current account deficits and surpluses

📈 International Trade & Globalisation: Current Account of the Balance of Payments

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

Government and the Macroeconomy – Fiscal Policy

Definition of the market economic system

The Allocation of Resources – Market Economic System

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

Microeconomic Decision‑Makers – Workers

Influences on production and productivity

Microeconomic Decision‑Makers: Firms and Production

Influences on households' spending, saving and borrowing: confidence

Microeconomic Decision‑Makers: Households

Definition of free trade

International Trade & Globalisation – Specialisation & Free Trade

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

📈 Government and the Macroeconomy – Economic Growth

Definition of foreign exchange rate

International Trade and Globalisation – Foreign Exchange Rates

Definitions, advantages and disadvantages of nationalisation

The allocation of resources – Mixed economic system

Definition of market equilibrium

The Allocation of Resources – Price Determination

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

📈 Current Account: Primary Income

Role and importance of central banks

Microeconomic Decision‑makers – Money and Banking

Causes of extensions and contractions in demand

The Allocation of Resources – Demand

Causes of extensions and contractions in supply

The Allocation of Resources – Supply

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

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

Drawing and interpretation of diagrams illustrating national minimum wages

Microeconomic Decision‑Makers – Workers

Definitions of floating exchange rate, appreciation and depreciation

International Trade & Globalisation – Foreign Exchange Rates

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

The Basic Economic Problem

Causes of foreign exchange rate fluctuations: speculation

International Trade and Globalisation – Foreign Exchange Rates

The range of policies available to reduce unemployment and their effectiveness

Government and the Macroeconomy – Employment & Unemployment 📈

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

Economic Development – Living Standards

Drawing and interpretation of the PPC diagram

The Basic Economic Problem & the Production Possibility Curve (PPC) 📊

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

The Allocation of Resources – Mixed Economic System

Reasons for trade restrictions: avoid dumping

International Trade & Globalisation: Trade Restrictions & Dumping

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

Government and the Macroeconomy – Government Macroeconomic Intervention

Calculation of TR and AR

Microeconomic Decision‑Makers: Firms’ Costs, Revenue & Objectives

Differences in natural resources

Economic Development: The Role of Natural Resources

Drawing and interpretation of the demand diagram

The Allocation of Resources – Demand

Drawing and interpretation of supply curve diagrams to show different PES

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

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

International Trade & Globalisation – Specialisation & Free Trade 🚀

Reasons for trade restrictions: protect infant (sunrise) industries

International Trade and Globalisation – Globalisation and Trade Restrictions

Effects of changes in globalisation on economic development

🌍 Globalisation & Trade Restrictions

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

Population and Economic Development

Reasons for differences in wages: relative bargaining strengths

Microeconomic Decision‑Makers – Workers

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

The Allocation of Resources – Mixed Economic System

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

International Trade & Globalisation – Globalisation & Trade Restrictions 🌍

Definition of fiscal policy

📚 Government and the Macro‑Economy – Fiscal Policy

Effects of changes in globalisation on migration

International Trade and Globalisation – Globalisation and Trade Restrictions

Policies to alleviate poverty and redistribute income: progressive taxation

Economic Development – Poverty

Definition of PES

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

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

Government and the Macroeconomy – Fiscal Policy 🚀

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

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

Effects of changes in globalisation on income distribution

Globalisation and Trade Restrictions

Differences in healthcare

Economic Development: Differences in Healthcare

The macroeconomic aims of government: stable prices/low inflation

Government and the Macroeconomy – Macroeconomic Intervention

Fiscal policy measures: changes in taxes

Fiscal Policy: Changing Taxes 📊

Differences in productivity

Economic Development: Differences in Productivity

Advantages of the market economic system

📈 Advantages of the Market Economic System

Differences in population growth

Economic Development – Differences in Population Growth

Definition of market disequilibrium

The Allocation of Resources – Price Determination

Definition of demand

The Allocation of Resources – Demand

Effects of changes in globalisation on the environment

International Trade and Globalisation

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

Government and the Macroeconomy – Supply‑Side Policy

Reasons for trade restrictions: restrict the import of demerit goods

International Trade & Globalisation – Trade Restrictions

Advantages and disadvantages of free trade

International Trade and Globalisation – Specialisation & Free Trade

Supply-side policy measures: deregulation

Government and the Macroeconomy – Supply‑Side Policy: Deregulation

Supply-side policy measures: lower direct taxes

📈 Government and the Macro‑economy – Supply‑Side Policy

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

📚 The Allocation of Resources – Mixed Economic System

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

Microeconomic Decision‑Makers: Workers

Difference between absolute poverty and relative poverty

Economic Development – Poverty

Definitions of government budget deficit

Government and the Macroeconomy – Fiscal Policy

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

The Allocation of Resources – Market Failure

Causes/types of unemployment: frictional unemployment

Government and the Macroeconomy – Employment and Unemployment

The difference between economic goods and free goods

The Basic Economic Problem: Economic Goods vs Free Goods

Formula for the unemployment rate

Government and the Macroeconomy – Employment and Unemployment

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

The Allocation of Resources – Market Failure

The demand for and supply of a currency

International Trade & Globalisation – Foreign Exchange Rates

Definition of PED

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

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

Government and the Macroeconomy – Economic Growth

The significance of the location of different production points

📈 The Basic Economic Problem: Production Possibility Curve (PPC) Diagrams

Causes of decreases and increases in demand

The Allocation of Resources – Demand

Causes of poverty: environmental factors

Economic Development – Poverty

The concept of an optimum population

Economic Development – Population

The macroeconomic aims of government: full employment/low unemployment

Government and the Macroeconomy – Macroeconomic Intervention

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

Effects of changes in globalisation on international trade

Globalisation and Trade Restrictions

Advantages and disadvantages of small and large firms

Microeconomic Decision‑Makers: Firms – Advantages & Disadvantages

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

Microeconomic Decision‑Makers: Firms' Costs, Revenue and Objectives

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

Foreign Exchange Rates: How They Affect Prices and Demand

Influences on households' spending, saving and borrowing: income

Microeconomic Decision‑Makers: Households 🏠

Reasons for trade restrictions: raise tax revenue

Globalisation & Trade Restrictions – Raising Tax Revenue

Advantages and disadvantages of restricting free trade

International Trade & Globalisation – Globalisation & Trade Restrictions

The determination of the equilibrium foreign exchange rate

International Trade and Globalisation – Foreign Exchange Rates

Measurement of inflation using the Consumer Prices Index (CPI)

Measurement of Inflation using the Consumer Prices Index (CPI)

Main influences on whether supply is elastic or inelastic

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

Advantages and disadvantages of economic growth

Government and the Macroeconomy – Economic Growth 📈

The difference between production and productivity

Microeconomic Decision‑Makers – Firms and Production

Consequences of changes in the occupational and geographical mobility of labour

Microeconomic Decision‑Makers: Workers

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

Microeconomic Decision‑Makers – Households

Definition of globalisation

International Trade and Globalisation – Globalisation and Trade Restrictions

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

📚 Government and the Macroeconomy – Fiscal Policy

Trade unions and their relative bargaining power on wage determination

Microeconomic Decision‑Makers – Workers

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

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

The range of policies available to control inflation and their effectiveness

📊 Government and the Macroeconomy: Inflation

Definition of specialisation by country

International Trade & Globalisation – Specialisation & Free Trade

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

The Basic Economic Problem: The Nature of the Basic Economic Problem

Characteristics, advantages and disadvantages of competitive markets

Microeconomic Decision‑Makers – Types of Markets

Definition of the mixed economic system

The Allocation of Resources – Mixed Economic System

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

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

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