Economics

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This subtopic explores the concept of price elasticity of demand, measuring the responsiveness of quantity demanded to a change in price. It equips students to apply elasticity calculations to real-world business and policy decisions, such as pricing strategies and taxation impacts. Understanding PED helps explain market dynamics and consumer behavior.

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Nature of economics

This topic introduces the fundamental microeconomic nature of economics, focusing on how economic agents make decisions under conditions of scarcity. It covers the methodology of economic thinking, the distinction between positive and normative statements, the allocation of resources, the role of specialisation, and the different types of economic systems.

How markets work

This topic explores the microeconomic foundations of how markets function, focusing on the interaction of supply and demand to allocate resources. It covers rational decision-making, the mechanics of demand and supply, price determination, elasticities, consumer and producer surplus, the impact of indirect taxes and subsidies, and alternative theories of consumer behaviour.

Market failure

Market failure occurs when the free market mechanism fails to allocate resources efficiently, leading to a net welfare loss. This topic covers the nature and causes of market failure, including externalities, public goods, and information gaps, as well as the methods and potential failures of government intervention.

Government intervention

This topic covers the rationale for government intervention in markets to address market failure, the methods used to intervene, and the concept of government failure where intervention leads to a net welfare loss.

Measures of economic performance

This topic covers the key measures of economic performance in the UK economy, specifically focusing on economic growth, inflation, unemployment, and the balance of payments. It introduces students to the methods of calculating these indicators, their limitations, and their significance for various economic agents.

Aggregate demand (AD)

This topic covers the components of Aggregate Demand (AD), the factors influencing these components, and the graphical representation of the AD curve, including movements along and shifts of the curve.

Aggregate supply (AS)

This topic covers the Aggregate Supply (AS) curve, the distinction between short-run and long-run AS, the factors that cause shifts in these curves, and the different theoretical perspectives on the shape of the long-run AS curve.

National income

This topic covers the circular flow of income, the distinction between income and wealth, the impact of injections and withdrawals, the concept of equilibrium real national output, and the multiplier process including its calculation and significance for shifts in aggregate demand.

Economic growth

This topic covers the determinants and characteristics of economic growth, including the distinction between actual and potential growth, the trade cycle, and the costs and benefits of economic growth.

Macroeconomic objectives and policies

This topic covers the primary macroeconomic objectives of the UK government, the instruments of monetary and fiscal policy used to achieve them, the role of supply-side policies, and the potential conflicts and trade-offs between these objectives.

Business growth

This topic explores the growth of firms, including the reasons for growth, methods of expansion, and the constraints faced by businesses. It also covers the distinction between ownership and control, the nature of different business sectors, and the impact of demergers.

Business objectives

This topic explores the various objectives firms may pursue beyond simple profit maximisation, including revenue maximisation, sales maximisation, and satisficing, and the theoretical models used to represent these goals.

Revenues, costs and profits

This topic explores the relationship between a firm's revenue, costs, and profits. It covers the calculation and interpretation of revenue and cost concepts, the impact of diminishing marginal productivity on cost curves, economies and diseconomies of scale, and the conditions for profit maximisation and shut-down points.

Market structures

This topic explores the nature of market structures, focusing on how the number and size of firms, barriers to entry, and contestability influence pricing and competition. It covers various market models including perfect competition, monopolistic competition, oligopoly, and monopoly, as well as the concepts of efficiency and monopsony.

Labour market

This topic focuses on the labour market, specifically the factors influencing the demand for and supply of labour, the concept of labour as a derived demand, market failure in labour markets due to mobility issues, and the role of government intervention through wage controls and mobility policies.

International economics

This topic covers the global economic environment, focusing on globalisation, international trade, balance of payments, exchange rates, economic development, the financial sector, and the role of the state in the macroeconomy.

Poverty and inequality

This topic explores the concepts of poverty and inequality, distinguishing between absolute and relative poverty, and examining the measurement and causes of income and wealth inequality, including the role of capitalism.

Emerging and developing economies

This topic focuses on the indicators of development, the economic and non-economic factors influencing growth and development in emerging and developing economies, and the various strategies (market-orientated, interventionist, and others) used to promote development. It also covers the role of international institutions and NGOs.

The financial sector

This topic explores the functions of the financial sector within the economy, including its role in facilitating saving, lending, exchange, and providing markets for currencies, commodities, and equities. It also covers the key functions of central banks.

Role of the state in the macroeconomy

This topic examines the role of the state in the macroeconomy, focusing on public expenditure, taxation, and the management of fiscal deficits and national debt. It also covers the application of various macroeconomic policies in a global context, including responses to external shocks and the regulation of transnational corporations.