Content

Notes

Unit 1
Scarcity

Understand the proble

and non-renewable re

Production Possibility Frontier

Use production possib

Marginal analysis is re
outwards or inwards.

Specialisation

Understand the advan

Division of Labour

Understand the advan

Free Market and Mixed

Economies

Understand the advan

Positive and Normative

Statements

Distinguish between o

Demand Curve - Movements and Understand how a cha

Shifts
complementary goods
PED

Explain price, income

numerical values of pr
XED
firms and government
YED (Normal and Inferior Goods) See Revision Sheet
Supply Curve - Movements and
Shifts

Understand how a cha

introduction of new te
specific and ad valore

PES

Explain price elasticity

supply.Students may

Equilibrium

Explain equilibrium pr
demand and supply cu

Consumer and Producer Surplus

Distinguish between c

consumer and produc

Functions of the Price
Mechanism

Understand the ration

markets.

Price Mechanisms

Apply the price mecha

market shares, oil, pre

Indirect Tax and Subsidies

Use supply and deman

demand and supply, fo

Labour Demand and Supply

Understand the factor

influencing the supply

Market Failure

Define and understand

considered at AS leve

Externalities

Illustrate external cos

illustrate the external
infrastructure improve

Public Goods

Explain why public go

Imperfect Market Information

Distinguish between s
alcohol.

Labour Immobility

Understand geographi
labour and the skills s

Unstable Commodity Markets

Understand the cause

diagrammatic analysis
income elasticity of de

Methods of Government
Intervention

Understand the differe

provision and regulati
in various contexts, fo

Government Failure

Define and explain dif

Students should unde