51ºÚÁÏ

4.1.1 The meaning of production: • Managing resources effectively to produce goods and services • Difference between production and productivity • Benefits of increasing efficiency and how to increase it, e.g. increasing productivity by automation and technology, improved labour skills • Why businesses hold inventories • The concept of lean production: how to achieve it, e.g. just-in-time inventory control and Kaizen; benefits of lean production 4.1.2 The main methods of production: • Features, benefits and limitations of job, batch and flow production • Recommend and justify an appropriate production method for a given situation 4.1.3 How technology has changed production methods, e.g. using computers in design and manufacturing Sample questions and answers

PPT covering: 8.1 Government policies to achieve efficient resource allocation and correct market failure continued 8.1.2 government failure in microeconomic intervention: • definition of government failure • causes of government failure • consequences of government failure 8.2 Equity and redistribution of income and wealth 8.2.1 difference between equity and equality 8.2.2 difference between equity and efficiency 8.2.3 distinction between absolute poverty and relative poverty 8.2.4 the poverty trap 8.2.5 policies towards equity and equality, for example: • negative income tax • universal benefits and means-tested benefits • universal basic income Links to relevant videos

PPT covering the topics of Utility and indifference curves. Each page is question based to determine prior knowledge - good for flipped learning. 7.1 Utility 7.1.1 definition and calculation of total utility and marginal utility 7.1.2 diminishing marginal utility 7.1.3 equi-marginal principle 7.1.4 derivation of an individual demand curve 7.1.5 limitations of marginal utility theory and its assumptions of rational behaviour 7.2 Indifference curves and budget lines 7.2.1 meaning of an indifference curve and a budget line 7.2.2 causes of a shift in the budget line 7.2.3 income, substitution and price effects for normal, inferior and Giffen goods 7.2.4 limitations of the model of indifference curve

The forms, functions and characteristics of money. The role and importance of central banks and commercial banks for government, producers and consumers. Questions and suggested solutions

Covering the objectives of the syllabus Finite resources and unlimited wants Economic and free goods Questions and proposed solutions

The difference between microeconomics and macroeconomics and the decision makers involved in each.

Including income, the rate of interest and confidence between different households and over time. Questions with suggested solutions

PPT covering the following: • Concepts of needs, wants, scarcity and opportunity cost • Importance of specialisation • Purpose of business activity • The concept of adding value and how added value can be increased

Why people work and what motivation means • The benefits of a well-motivated workforce: labour productivity, reduced absenteeism and labour turnover • The concept of human needs, e.g. Maslow’s hierarchy • Key motivational theories: Taylor and Herzberg 2.1.2 Methods of motivation: • Financial rewards, e.g. wage, salary, bonus, commission and profit sharing • Non-financial methods, e.g. job enrichment, job rotation, teamworking, training, opportunities for promotion • Recommend and justify appropriate method(s) of motivation in given circumstances Sample questions and answers

The main areas of government spending and the reasons for and effects of spending in these areas. Taxation as the main source of government revenue and the reasons for levying taxation. Examples of the different classifications of tax; progressive, regressive, proportional; and direct, indirect. The qualities of a good tax. The impact of taxation on consumers, producers, government and economy as a whole. The tax and spending changes, in the form of fiscal policy, that cause budget balance or imbalance. Including calculations of the size of a budget deficit or surplus. How fiscal policy measures may enable the government to achieve its macroeconomic aims. Note: aggregate demand and aggregate supply are not required. Review of Unit 4 Questions and suggested answers

3.1.1 The role of marketing: • Identifying customer needs • Satisfying customer needs • Maintaining customer loyalty • Building customer relationships 3.1.2 Market changes: • Why customer/consumer spending patterns may change • The importance of changing customer needs • Why some markets have become more competitive • How businesses can respond to changing spending patterns and increased competition 3.1.3 Concepts of niche marketing and mass marketing: • Benefits and limitations of both approaches to marketing 3.1.4 How and why market segmentation is undertaken: • How markets can be segmented, e.g. according to age, socio-economic grouping, location, gender • Potential benefits of segmentation to business • Recommend and justify an appropriate method of segmentation in given circumstances sample questions and answers

How a market system works; including buyers, sellers, allocation of scarce resources, market equilibrium, and market disequilibrium. Establishing that the economic problem creates three key questions about determining resource allocation What, how, and for whom to produce? How the price mechanism provides answers to these key allocation questions. Questions and suggested solutions

6.1.1 Business cycle: • Main stages of the business cycle, e.g. growth, boom, recession, slump • Impact on businesses of changes in employment levels, inflation and Gross Domestic Product (GDP) 6.1.2 How government control over the economy affects business activity and how businesses may respond: • Identify government economic objectives, e.g. increasing Gross Domestic Product (GDP) • Impact of changes in taxes and government spending • Impact of changes in interest rates • How businesses might respond to these changes Questions and suggested answers

5.1.1 The need for business finance: • The main reasons why businesses need finance, e.g. start-up capital, capital for expansion and additional working capital • Understand the difference between short-term and long-term finance needs 5.1.2 The main sources of finance: • Internal sources and external sources with examples • Short-term and long-term sources with examples, e.g. overdraft for short-term finance and debt or equity for long-term finance • Importance of alternative sources of capital, e.g. micro-finance, crowd-funding • The main factors considered in making the financial choice, e.g. size and legal form of business, amount required, length of time, existing loans • Recommend and justify appropriate source(s) of finance in given circumstances questions and suggested answers

Definitions of the factors of production and their rewards Mobility of the factors of production Quantity and quality of the factors of production Questions and proposed solutions

Real GDP per head and the Human Development Index (HDI). The components of real GDP and HDI. The advantages and disadvantages of real GDP and HDI. Reasons for differences in living standards and income distribution within and between countries. Questions and suggested answers

Economic growth, full employment/low unemployment, stable prices/low inflation, balance of payments stability, redistribution of income. Reasons behind the choice of aims and the criteria that governments set for each aim. Possible conflicts between aims: full employment versus stable prices; economic growth versus balance of payments stability; and full employment versus balance of payments stability Review of Unit 4 Questions and suggested answers

Definition of PPC points under, on and beyond a PPC movements along a PPC shifts of a PPC Questions and proposed solutions

Definition, drawing and interpretation of appropriate diagrams. A demand curve to be drawn and used to illustrate movements along a demand curve with appropriate terminology, for example extensions and contractions in demand. The link between individual and market demand in terms of aggregation. The causes of shifts in a demand curve with appropriate terminology, for example increase and decrease in demand Supply and demand review doc Questions and suggested solutions

The difference between absolute and relative poverty. The causes of poverty including unemployment, low wages, illness and age. Policies including those promoting economic growth, improved education, more generous state benefits, progressive taxation, and national minimum wage. Questions and suggested answers