Your SlideShare is downloading. ×
Unit 1: Specification with links to notes
Unit 1: Specification with links to notes
Unit 1: Specification with links to notes
Unit 1: Specification with links to notes
Unit 1: Specification with links to notes
Unit 1: Specification with links to notes
Unit 1: Specification with links to notes
Unit 1: Specification with links to notes
Unit 1: Specification with links to notes
Unit 1: Specification with links to notes
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Unit 1: Specification with links to notes

1,257

Published on

Published in: Technology, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
1,257
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
18
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. AS Economics Specification Map Edexcel AS Economics ECON1Key specification requirements mapped to tagged resources on the tutor2u Economics Blog
  • 2. Unit 1 Competitive Markets — How They Work and Why They Fail1.3 Unit content1.3.1 What is the nature of economics?What students need to learn: Content Students should be able to: Additional guidance notes Scarcity Understand the problem of Students should understand that unlimited wants and finite the economic problem is faced resources. by consumers, producers and the government. Distinguish between renewable Students should understand the and non-renewable resources. meaning of sustainable resources. Production Use production possibility Marginal analysis is required to possibility frontiers to depict opportunity depict opportunity cost. A basic frontiers cost, economic growth and the definition of economic growth is efficient allocation of resources. required along with knowledge of the factors which might cause the Distinguish between movements production possibility frontier to along and shifts in production shift outwards or inwards. possibility frontiers. Specialisation and Understand the advantages and AS students are not expected the division of disadvantages of specialisation to have an understanding of labour and the division of labour. international specialisation and comparative advantage. Free market and Understand the advantages and Students are not expected mixed economies disadvantages of a free market to have an understanding of economy and why there are centrally planned economies. mixed economies. Positive and Distinguish between objective Students should know that value normative statements and value judgements influence economic economics judgements on economic issues. decision making and policy. 1 Section C © Edexcel Limited 2010 Edexcel GCE in Economics
  • 3. Competitive Markets — How They Work and Why They Fail Unit 11.3.2 What determines the demand for a good or service in a market?What students need to learn: Content Students should be able to: Additional guidance notes Movement along Understand how a change in Students are not expected to the demand curve price causes a movement along have an understanding of utility a demand curve. theory or indifference curve analysis. Shifts in the Understand factors which may demand curve cause a shift in the demand curve, for example, changes in the price of substitutes or complementary goods; changes in real income and tastes. Price, income and Explain price, income and Students may have to calculate cross elasticities of cross elasticities of demand. and interpret numerical values demand Understand factors that of price, income and cross influence elasticities of demand elasticity of demand. and their significance to firms and government. Understand the relationship Students should understand between price elasticity of the significance of elasticity to demand and total revenue. firms and government in terms of the imposition of indirect taxes and subsidies; changes in real income and changes in the price of substitute and complementary goods.Edexcel GCE in Economics © Edexcel Limited 2010 Section C 1
  • 4. Unit 1 Competitive Markets — How They Work and Why They Fail1.3.3 What determines the supply of a good or service in a market?What students need to learn: Content Students should be able to: Additional guidance notes Movement along Understand how a change in AS students are not expected the supply curve price causes a movement along to understand the relationship the supply curve. between marginal costs and supply. Shifts in the supply Understand the factors which Producer cartels may be a curve may cause a shift in the supply significant determinant of supply curve, for example, changes in some markets, for example, in the costs of production, the oil. introduction of new technology, indirect taxes and government Students should be able to apply subsidies. both specific and ad valorem taxes to a market. Price elasticity of Explain price elasticity of Students may have to calculate supply supply; understand factors and interpret numerical values that influence price elasticity of of price elasticity of supply. supply. Distinguish between the short run and long run in economics and understand its significance to price elasticity of supply. 1 Section C © Edexcel Limited 2010 Edexcel GCE in Economics
  • 5. Competitive Markets — How They Work and Why They Fail Unit 11.3.4 What determines the price of a good or service in a market?What students need to learn: Content Students should be able to: Additional guidance notes Determination of Explain equilibrium price and Students should understand market equilibrium quantity and how they are that shifts in demand and determined. supply curves will change the equilibrium price and quantity. Understand how the operation of market forces eliminates excess demand and excess supply. Consumer and Distinguish between consumer Students should understand producer surplus and producer surplus. how changes in demand or supply might affect consumer Illustrate consumer and and producer surplus. producer surplus on a demand and supply diagram. Functions of the Understand the rationing, The price mechanism may be price mechanism incentive and signalling considered in the context of functions of the price product, commodity and labour mechanism for allocating scarce markets. resources.Edexcel GCE in Economics © Edexcel Limited 2010 Section C 1
  • 6. Unit 1 Competitive Markets — How They Work and Why They Fail1.3.5 How might the change in price of a good or service be explained?What students need to learn: Content Students should be able to: Additional guidance notes Price mechanism Apply the price mechanism Students should be able to apply in markets, such as goods, the determinants of demand and services, commodities or labour. supply to various markets, for example, price of stock market shares, oil, precious metals and agricultural commodities. Indirect taxes and Use supply and demand analysis Students should be aware of subsidies to demonstrate the impact and the importance of elasticities incidence of taxes and subsidies of demand and supply, on consumers, producers and for example, in relation to the government. government indirect taxes and subsidies. 1 Section C © Edexcel Limited 2010 Edexcel GCE in Economics
  • 7. Competitive Markets — How They Work and Why They Fail Unit 11.3.6 What determines the wage rate for labour in a market?What students need to learn: Content Students should be able to: Additional guidance notes Demand and supply Understand the factors which Students are not expected of labour influence the demand and to use marginal revenue supply of labour. productivity theory in explaining the demand for labour. Recognise that demand for AS students are not required labour is derived from the to use the backward sloping demand for the final product it supply curve for labour and are makes (derived demand). not required to use monopsony analysis. Understand that factors influencing the supply of labour include population migration, income tax and benefits, government regulations (for example, national minimum wage) and trade unions.Edexcel GCE in Economics © Edexcel Limited 2010 Section C 1
  • 8. Unit 1 Competitive Markets — How They Work and Why They Fail1.3.7 Why do some markets fail?What students need to learn: Content Students should be able to: Additional guidance notes Market failure Define and understand different Students should understand that types of market failure. market failure is when the price mechanism causes an inefficient allocation of resources. The types of market failure considered at AS level are externalities, public goods, imperfect market information, labour immobility and unstable commodity markets. Externalities Illustrate external costs and Students are required only to external benefits using marginal illustrate the external costs from analysis, distinguishing between production and external benefits the market and social optimum from consumption. positions. The welfare loss or gain areas are required. Understand the impact of Students should assess the externalities and government costs and benefits from major intervention in various markets, investment projects such as for example, transport, health sporting events and transport care, education, environment, infrastructure improvements. waste disposal and recycling. Public goods Explain why public goods may Students should understand not be provided by the market. the free rider and valuation problems. Distinguish between public and private goods. 20 Section C © Edexcel Limited 2010 Edexcel GCE in Economics
  • 9. Competitive Markets — How They Work and Why They Fail Unit 1 Content Students should be able to: Additional guidance notes Imperfect market Distinguish between symmetric information and asymmetric information. Understand how imperfect market information may lead to a misallocation of resources, for example, health care, education, pensions, tobacco and alcohol. Labour immobility Understand geographical and Students should understand occupational immobility of the significance of house prices labour may result in structural for restricting the geographical unemployment. mobility of labour and the skills shortage for restricting the occupational mobility of labour. Assess government measures to reduce factor immobility such as training programmes and relocation subsidies. Unstable Understand the causes and Students should understand commodity markets effects of fluctuating commodity how uncertainty in production prices on consumers and (for example, climatic) and time producers. lags may affect supply and the significance of price and income Assess the impact of elasticity of demand. government intervention in the form of minimum prices and Students are not expected to buffer stocks. Use diagrammatic use diagrammatic analysis of analysis for minimum prices and the cobweb model. buffer stocks.Edexcel GCE in Economics © Edexcel Limited 2010 Section C 21
  • 10. Unit 1 Competitive Markets — How They Work and Why They Fail1.3.8 How do governments attempt to correct market failure?What students need to learn: Content Students should be able to: Additional guidance notes Methods of Understand the different Students should be able to apply government measures of government government economic measures intervention intervention to correct market in various contexts, for example, failure, for example, indirect road pricing, landfill tax, carbon taxation, subsidies, buffer offsetting and carbon emissions stocks, tradable pollution trading, renewable energy permits, extension of property certificates. rights, state provision and regulation. Apply, analyse and assess the effectiveness of each method of government intervention for correcting market failure.1.3.9 What is government failure?What students need to learn: Content Students should be able to: Additional guidance notes Government failure Define and explain different Students should understand that types of government failure, for government intervention may example, undesirable outcomes result in a net welfare loss. from agricultural stabilisation policies; environmental policies; Students should understand transport, housing and the the economic arguments for national minimum wage. and against an increase in the national minimum wage. 22 Section C © Edexcel Limited 2010 Edexcel GCE in Economics

×