1.1.1 Economics as a social science1.1.2 Positive and normative economic statements1.1.3 The economic problem1.1.4 Production possibility frontiers1.1.5 Specialisation and the division of labour1.1.6 Free market economies, mixed economy and command economy
The increase in the value of real output in an economy over time It is a key measure of performance. There are two measures of economic growth: Gross Domestic Product (GDP) GDP per capita
A general rise in prices over a period of time or a fall in the purchasing power of money
Downward pressure on prices in an economy
The number of people in the economy who are economically active i.e. willing and able to work and have a job
The number of economically active people who cannot find a job at a point in time
A record of a country’s trade and transactions with the rest of the world
The total demand for all goods and services in an economy at any given price level over a period of time
The amount of personal income an individual has after direct tax e.g. income tax
The addition to the capital stock of the economy
Spending on capital assets such as buildings, machinery and equipment having taken into account depreciation of assets
Expenditure by the state e.g. infrastructure and education
The difference between exports minus imports: Exports (X) – Imports (M) = Net exports
Student will have the opportunity to understand the reason why scarcity of resources exist and understand the role of entrepreneurs.
Through group and individual work the student will start to learn the skills of analysis and evaluation.
1.2.1 Rational decision-making1.2.10 Alternative views of consumer behaviour 1.2.2 Demand1.2.3 Price, income and cross elasticities of demand1.2.4 Supply1.2.5 Elasticity of supply1.2.6 Price determination1.2.7 Price mechanism1.2.8 Consumer and producer surplus1.2.9 Indirect taxes and subsidies1.2.10 Alternative views of consumer behaviour
When decisions made by economic agents are based on reason
The amount of a good or service that consumers are willing and able to buy at any given price
A measure of the responsiveness of demand to a change in income
A perfectly price elastic product will have a PED coefficient of ∞ (infinity)
A measure of the responsiveness of demand for one good, x to a change in price of another good, y
The amount of a good or service that producers are willing and able to sell at any given price
A measure of the responsiveness of supply to a change in price
Market equilibrium where demand is equal to supply
The method by which prices for goods and services are achieved in an economy
The difference between the price a consumer is willing to pay for a product and the price that they actually pay
The difference between the price a producer is willing to supply a product at and the price actually received for the product
Taxes charged by the government on a good or a service
Finance provided to producers to encourage them to produce goods and services
The study of economic agents such as individuals and the reasons why they make decisions
When people follow the same routines, repeating actions on a regular basis
Actions undertaken by economic agents such as individuals that are based on reason
Actions undertaken by economic agents such as individuals that are not based on reason
The student will gain an insight into basic supply and demand and factor that influence price giving them a great understanding of the economy.
Through group work the student will learn how to challenge assumptions and understand other peoples point of view.
1.3.1 Types of market failure1.3.2 Externalities1.3.3 Public goods1.3.4 Information gaps
When the market is unable to efficiently allocate scarce resources to meet the needs of society
The costs and benefits to a third party created by economic agents when undertaking their activities These costs and benefits can be either negative or positive
A good where its use by an individual does not stop others from using it whilst its consumption does not reduce the amount available for consumption by others
A good where its use by an individual stops others from using it whilst its consumption reduces the amount available for consumption by others
The difference in information between two parties
The use of regulatory frameworks to improve the working of individual markets
When government intervention in markets leads to a net welfare loss in comparison to the free market operating alone
Gain an understanding of government policy and the positive and negative effect action can have on people, the economy and the environment.
Through group work and independent study the student will gain life long transferable skills.
2.1.1 Economic growth 2.1.2 Inflation 2.1.3 Employment and unemployment 2.1.4 Balance of payments
A measurement of the value or volume of goods and services produced in an economy over a period of time
The annual GDP of a country divided by the average population in that year
The increase in the value of real output in an economy over time
Gross Domestic Product plus net property income from abroad such as dividends, interest and profit
The value of income of domestic economic agents minus that of income sent home by foreigners plus that of UK citizens repatriated from abroad
A general rise in prices over a period of time or a fall in the purchasing power of money
Downward pressure on prices in an economy
When the inflation rate is positive but falling
The number of people in the economy who are economically active i.e. willing and able to work and have a job
The number of economically active people who cannot find a job at a point in time
The number of people claiming Job Seekers Allowance (JSA)
A specialist United Nations agency that looks to promote the workforce worldwide
A record of a country’s trade and transactions with the rest of the world
A BoP surplus is when the sum of exports of goods, services, investment income and transfers is greater than imports
When the sum of exports of goods, services, investment income and transfers is less than imports
The individual will gain insight into the four macroeconomic objectives and how they work within an economy.
The student will learn how to develop balanced arguments and see economic policy form various angles.
2.2.1 The characteristics of AD2.2.2 Consumption (C)2.2.3 Investment (I)2.2.4 Government expenditure (G)2.2.5 Net trade (X-M) 2.3.1 The characteristics of AS2.3.2 Short-run AS2.3.3 Long-run A
The period of time in which the rewards paid for the factors of production are fixed e.g. wages for labour
The time period where all factors of production are variable and can be increased over time
The total demand for all goods and services in an economy at any given price level over a period of time
Consumer spending on goods and services
Business spending on capital equipment to provide future output e.g. factories and machinery
Expenditure by the state e.g. infrastructure and education
The difference between exports minus imports
The total value of output of the economy at any given price level at a given point in time
Students understand factors that impact both AD and AS and how they show diagrammatically to shape the UK econonomy.
Through group work and challenging themselves to come up with alternative view and ideas student will develop evaluative skills.
2.4.1 National income2.4.2 Injections and withdrawals2.4.3 Equilibrium levels of real national output2.4.4 The multiplier
The total annual value of all goods and services produced within an economy
An economic model showing the flow of goods and services, the factors of production and their payments between households and firms within an economy
An initial injection into the economy is multiplied by the amount of economic activity to create an overall boost to the economy
The total value of all goods and services produced in an economy after taking into account inflation
Spending in the economy from sources other than households that adds to the circular flow
Expenditure in the economy that does not flow back to firms and leaves the circular flow
Understand how national income is used within the UK economy with various models to highlight this.
Group work and individual study develops team working and independent working.