Notes | IGCSE ECONOMICS REVISION

Notes: Blog2

The Basic Economic Problem

Definition: The scarcity of resources relative to human needs and wants. Goods - tangible items that are purchased by the people or firms...

IGCSE Economics Revision

Economic Growth

Economic Growth Increase in the real GDP of a country over a period of time. GDP is the market value of all final goods and services...

IGCSE Economics Revision

Supply-Side Policies

Policy aimed to increase aggregate supply in an economy. Total output rises, which leads to a rise in real GDP. Through this, the country...

IGCSE Economics Revision

Demand-Side Policies

Fiscal Policy Designed by the government and is a part of the budgetary policy. It is initiated by the government of the country and...

IGCSE Economics Revision

Role of Government in an Economy

Acts as a producer - produces public goods at an affordable price, provides basic services Government acts as an employer in different...

IGCSE Economics Revision

Firms' costs, revenues and objectives

Costs: Cost is essentially cost of production. It is from the producers angle as to how much they spent to produce the product. There are...

IGCSE Economics Revision

Firms and Production

Production and Productivity: Production: Production is an economic activity that deals with the production of goods and services as...

IGCSE Economics Revision

Market Structure

Perfect competition: Perfect competition is a market structure that contains a large number of small sellers that produce a homogenous...

IGCSE Economics Revision

The influences on spending, saving, and borrowing

What is disposable income? The income a person has left after all income related charges and taxes have been deducted. What is consumer...

IGCSE Economics Revision

Banking

Business organisations that allow one to borrow money, make investments, exchange their money used in their country for a currency used...

IGCSE Economics Revision

Money

Problems in Barter System Fixing a rate of exchange-the value of each and every good must be expressed in terms of another good which is...

IGCSE Economics Revision

Market failure

Market failure occurs when resources in a free market economy are misallocated on allocated inefficiently. Advantages of the market...

IGCSE Economics Revision

Market Economic System

A free market economy is one in which the allocation of resources and the three basic economic questions are decided by firms, households...

IGCSE Economics Revision

Supply

Supply refers to the amount of a good or service firms or producers are willing to make and sell and different prices. Quantity supplied...

IGCSE Economics Revision

Price Mechanisms and Determination

How is resource allocation decided? Free Market Economic System: the action of individual consumers, firms and households in the private...

IGCSE Economics Revision

Price Elasticity of Supply (PES)

PES measures the responsiveness of quantity supplied to a change in price. Price Elastic Supply: If a small change in price causes a...

IGCSE Economics Revision

Allocation of Resources

An economic system is a national economy that answers the questions that decide the allocation of resources. 1. What to produce? What...

IGCSE Economics Revision

Microeconomics and Macroeconomics

Microeconomics - the study of the economic decisions and actions of individual consumers, producers and households, and how these...

IGCSE Economics Revision

Factor Mobility

Factor mobility is the ability or ease with which factors of production can be moved or reallocated between different productive uses....

IGCSE Economics Revision

Factors of Production

The resources used to produce goods and resources Types - Land, Labour, Capital and Enterprise Land - all the natural resources and...

IGCSE Economics Revision