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Possible supply-side policy measures include education and training, labour market reforms, lower direct taxes, deregulation, improving incentives to work and invest, and privatisation. How supply-side policy measures may enable the government to achieve its macroeconomic aims. Review of Unit 4 Questions and suggested answers

The key terms associated with market failure: public good, merit good, demerit good, social benefits, external benefits, private benefits, social costs, external costs, private costs. With respect to public goods, merit and demerit goods, external costs and external benefits, abuse of monopoly power and factor immobility. Examples of market failure with respect to these areas only. The implications of misallocation of resources in respect of the over consumption of demerit goods and goods with external costs, and the under consumption of merit goods and goods with external benefits. Note: demand and supply diagrams relating to market failure are not required. Market failure review - PPT Supply and demand review - PPT Questions and suggested solutions doc

PPT covering Unit 7.5: 7.5 Types of cost, revenue and profit, short-run and long-run production 7.5.1 short-run production function: • fixed and variable factors of production • definition and calculation of total product, average product and marginal product • law of diminishing returns (law of variable proportions) 7.5.2 short-run cost function: • definition and calculation of fixed costs (FC) and variable costs (VC) • definition and calculation of total, average and marginal costs (TC, AC, MC), including average total cost (ATC), total and average fixed costs (TFC, AFC) and total and average variable costs (TVC, AVC) • explanation of shape of short-run average cost and marginal cost curves 7.5.3 long-run production function: • no fixed factors of production • returns to scale 7.5.4 long-run cost function: • explanation of shape of long-run average cost curve • concept of minimum efficient scale 7.5.5 relationship between economies of scale and decreasing average costs 7.5.6 internal and external economies of scale 7.5.7 internal and external diseconomies of scale 7.5.8 definition and calculation of revenue: total, average and marginal revenue (TR, AR, MR) 7.5.9 definition of normal, subnormal and supernormal profit 7.5.10 calculation of supernormal and subnormal profit video links to key topics

The effect of having a high number of firms on price, quality, choice, profit. Characteristics, advantages and disadvantages of monopoly. *Unit 3 review Note: diagrams are not required. Note: the theory of perfect and imperfect competition and diagrams are not required Questions with suggested solutions

Influences to include demand for the product, the price of different factors of production, their availability and their productivity. The reasons for adopting the different forms of production and their advantages and disadvantages. The difference between, and influences on, production and productivity. *Unit 3 review Questions with suggested solutions

IGCSE Econ - 8 mark past paper questions and structured answers. 77 past paper questions (8 mark) across the syllabus with detailed answers providing clear “discuss…” points with evident evaluation. Ideal for revision purposes or end of chapter review.

Real Gross Domestic Product (GDP) and how it can be used to measure economic growth. GDP per head (capita). Meaning of recession and how a recession moves the economy within its PPC. How changes in total demand may increase the utilisation of resources and GDP resulting in a movement from inside toward the PPC. How economic growth shifts the economy’s PPC to the right and is caused by changes in investment, technology, and the quantity and quality of the factors of production. The costs and benefits of economic growth in the context of different economies. The range of policies available to promote economic growth and how effective they might be. Review of Unit 4 Questions and suggested answers

Definitions, drawing and interpretation of appropriate diagrams showing the effects of three government microeconomic policy measures: maximum and minimum prices in product, labour and foreign exchange markets; indirect taxation; and subsidies. Definition only of government microeconomic policy measures: regulation; privatisation and nationalisation and direct provision of goods. The effectiveness of government intervention in overcoming the drawbacks of a market economic system. Questions and suggested solutions

Floating and fixed systems. The demand for and supply of a currency in the foreign exchange market and the determination of the equilibrium foreign exchange rate. Including changes in demand for exports and imports, changes in the rate of interest, speculation, and the entry or departure of MNCs. The effects of foreign exchange rate fluctuations on export and import prices and spending on imports and exports via the PED. The difference between, and the advantages and disadvantages of, a floating foreign exchange rate and a fixed foreign exchange rate system. Questions and suggested solutions

The basis for specialisation at national level in broad terms of: superior resource allocation and/or cheaper production methods. For consumers, firms and the economy. Questions and suggested solutions

Birth rate, death rate, net migration, immigration and emigration. How and why birth rates, death rates and net migration vary between countries. The concept of an optimum population. The effects of increases and decreases in population size and changes in the age and gender distribution of population. Note: interpretation of a population pyramid is required, but drawing is not. Questions and suggested answers

**Definition of opportunity cost The influence of opportunity cost on decision making** Questions and proposed solutions

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

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