e-Consult | Notes

Economics | 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)

Definitions of death rate

Definitions of employment, unemployment and full employment

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

Definitions of floating exchange rate, appreciation and depreciation

Definitions of government budget

Definitions of government budget deficit

Definitions of government budget surplus

Definitions of inflation and deflation

Definitions of money supply and monetary policy

Definitions of net migration, immigration and emigration

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

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

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

Definitions, advantages and disadvantages of nationalisation

Definitions, advantages and disadvantages of privatisation

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

Definitions, advantages and disadvantages of regulation

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

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

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

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

Diagrams that illustrate movements along a demand curve

Diagrams that illustrate movements along a supply curve

Diagrams that illustrate shifts of a demand curve

Diagrams that illustrate shifts of a supply curve

Difference between absolute poverty and relative poverty

Differences in education

Differences in healthcare

Differences in income

Differences in natural resources

Differences in population growth

Differences in productivity

Differences in saving and investment

Differences in size of primary, secondary and tertiary sectors

Disadvantages of the market economic system

Disadvantages of the mixed economic system

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

Drawing and interpretation of demand curve diagrams to show different PED

Drawing and interpretation of diagrams illustrating national minimum wages

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

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

Drawing and interpretation of disequilibrium using demand and supply curves

Drawing and interpretation of equilibrium using demand and supply curves

Drawing and interpretation of supply curve diagrams to show different PES

Drawing and interpretation of the demand diagram

Drawing and interpretation of the PPC diagram

Drawing and interpretation of the supply diagram

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

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

Effect of price changes on sales

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

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

Effects of changes in globalisation on competition

Effects of changes in globalisation on economic development

Effects of changes in globalisation on income distribution

Effects of changes in globalisation on international trade

Effects of changes in globalisation on migration

Effects of changes in globalisation on the environment

Effects of changes in investment on productivity

Examples of markets

Examples of opportunity cost in different contexts

Examples of the basic economic problem in the context of consumers

Examples of the basic economic problem in the context of governments

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

Examples of the basic economic problem in the context of workers

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

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

Fiscal policy measures: changes in government spending

Fiscal policy measures: changes in taxes

Forms, functions and characteristics of money

Formula for the unemployment rate

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

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

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

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

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

How inflation affects savers, lenders and borrowers

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

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

How price changes are caused by changes in demand and supply

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

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

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

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

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

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

How unemployment is measured (labour force survey)

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

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

Impact on GDP, employment, inflation and foreign exchange rate

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

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

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

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

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

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

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

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

Influences on households' spending, saving and borrowing: age

Influences on households' spending, saving and borrowing: confidence

Influences on households' spending, saving and borrowing: culture

Influences on households' spending, saving and borrowing: income

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

Influences on production and productivity

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

Interpretation of disequilibrium using demand and supply schedules

Interpretation of equilibrium using demand and supply schedules

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

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

Link between individual demand and market demand

Link between individual supply and market supply

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

Main influences on whether demand is elastic or inelastic

Main influences on whether supply is elastic or inelastic

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

Measurement of inflation using the Consumer Prices Index (CPI)

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

Monetary policy measures: changes in foreign exchange rate

Monetary policy measures: changes in interest rate

Monetary policy measures: changes in money supply

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

Policies to alleviate poverty and redistribute income: improved education

Policies to alleviate poverty and redistribute income: improved healthcare provision

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

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

Policies to alleviate poverty and redistribute income: progressive taxation

Policies to alleviate poverty and redistribute income: promoting economic growth

Possible conflicts between macroeconomic aims: economic growth and environmental sustainability

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

Possible conflicts between macroeconomic aims: full employment and stable prices

Primary/secondary/tertiary sector firms

Private sector/public sector firms

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

Reasons for adopting labour-intensive and capital-intensive production

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

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

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

Reasons for buying and selling foreign currencies: speculation

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

Reasons for buying and selling foreign currencies: workers' remittances

Reasons for current account deficits and surpluses

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

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

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

Reasons for differences in wages: government policy

Reasons for differences in wages: relative bargaining strengths

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

Reasons for trade restrictions: avoid dumping

Reasons for trade restrictions: promote environmental sustainability

Reasons for trade restrictions: protect declining (sunset) industries

Reasons for trade restrictions: protect infant (sunrise) industries

Reasons for trade restrictions: protect strategic industries

Reasons for trade restrictions: raise tax revenue

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

Reasons for trade restrictions: restrict the import of demerit goods

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

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

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

Role and importance of central banks

Role and importance of commercial banks

Roles of buyers and sellers

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

Supply-side policy measures: deregulation

Supply-side policy measures: education and training

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

Supply-side policy measures: infrastructure spending

Supply-side policy measures: labour market reforms

Supply-side policy measures: lower direct taxes

Supply-side policy measures: privatisation

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

The concept of an optimum population

The concept of scarcity

The demand for and supply of a currency

The determination of the equilibrium foreign exchange rate

The difference between economic goods and free goods

The difference between production and productivity

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

The influence of sales on revenue

The macroeconomic aims of government: balance of payments stability

The macroeconomic aims of government: economic growth

The macroeconomic aims of government: environmental sustainability

The macroeconomic aims of government: full employment/low unemployment

The macroeconomic aims of government: redistribution of income

The macroeconomic aims of government: stable prices/low inflation

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

The range of policies available to control inflation and their effectiveness

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

The range of policies available to reduce unemployment and their effectiveness

The significance of movements along a PPC and opportunity cost

The significance of the location of different production points

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

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

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

Trade unions and their relative bargaining power on wage determination

Types of trade restrictions / methods of protection: embargoes

Types of trade restrictions / methods of protection: import quotas

Types of trade restrictions / methods of protection: subsidies

Types of trade restrictions / methods of protection: tariffs

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