Edexcel A Levels Economics A (All Themes) complete notes

Theme 1 – Markets and Market Failure

• Unit 1:
  • 1.1.1 Economics as a social science
  • 1.1.2 Positive and normative economic statements
  • 1.1.3 The economic problem
  • 1.1.4 Production possibility frontiers
  • 1.1.5 Specialisation and division of labour
  • 1.1.6 Types of economies (free market, mixed, command)
• How markets work:
  • 1.2.1 Rational decision making
  • 1.2.2 Demand
  • 1.2.3 Elasticity of demand / income / cross
  • 1.2.4 Supply
  • 1.2.5 Elasticity of supply
  • 1.2.6 Price determination
  • 1.2.7 Price mechanism
  • 1.2.8 Consumer / producer surplus
  • 1.2.9 Taxes and subsidies
  • 1.2.10 Alternative views of consumer behaviour
• Market failure:
  • 1.3.1 Types of market failure
  • 1.3.2 Externalities
  • 1.3.3 Public goods
  • 1.3.4 Information gaps
• Government intervention:
  • 1.4.1 Government intervention in markets
  • 1.4.2 Government failure

Theme 2 – The UK Economy – Performance and Policies

• Unit 2 – starts on p.52.
• Measures of economic performance:
  • 2.1.1 Economic growth
  • 2.1.2 Inflation
  • 2.1.3 Employment and unemployment
  • 2.1.4 Balance of payments
• Aggregate demand:
  • 2.2.1 Aggregate demand (AD)
  • 2.2.2 Consumption (C)
  • 2.2.3 Investment (I)
  • 2.2.4 Government expenditure (G)
  • 2.2.5 Net trade (X-M)
• Aggregate supply:
  • 2.3.1 Aggregate supply AS
  • 2.3.2 Short-run AS
  • 2.3.3 Long-run AS
• National income:
  • 2.4.1 National income
  • 2.4.2 Injections and withdrawals
  • 2.4.3 Equilibrium real national income
  • 2.4.4 The multiplier
• Economic growth:
  • 2.5.1 Causes of economic growth
  • 2.5.2 Output gaps
  • 2.5.3 Trade (business) cycle
  • 2.5.3 Impact of economic growth
• Macroeconomic objectives and policies:
  • 2.6.1 Possible macroeconomic objectives
  • 2.6.2 Demand-side policies
  • 2.6.3 Supply-side policies
  • 2.6.4 Conflicts and trade-offs between objectives and policies

Theme 3: Business Behaviour and the Labour Market

• 3.1 Business growth:
  • 3.1.1 Sizes and types of firms
  • 3.1.2 Business growth
  • 3.1.3 Demergers
• 3.2 Business objectives:
  • 3.2.1 Business objectives
• 3.3 Revenues, costs, and profits:
  • 3.3.1 Revenue
  • 3.3.2 Costs
  • 3.3.3 Economies and diseconomies of scale
  • 3.3.4 Normal profits, supernormal profits and losses
• 3.4 Market structures:
  • 3.4.1 Efficiency
  • 3.4.2 Perfect competition
  • 3.4.3 Monopolistic competition
  • 3.4.4 Oligopoly
  • 3.4.5 Monopoly
  • 3.4.6 Monopsony
  • 3.4.7 Contestability
• 3.5 Labour market:
  • 3.5.1 Demand for labour
  • 3.5.2 Supply of labour
  • 3.5.3 Wage determination in competitive and non-competitive markets
• 3.6 Government intervention:
  • 3.6.1 Government intervention
  • 3.6.2 The impact of government intervention

Theme 4 – A Global Perspective

• 4.1 International economics:
  • 4.1.1 Globalisation
  • 4.1.2 Specialisation and trade
  • 4.1.3 Pattern of trade
  • 4.1.4 Terms of trade
  • 4.1.5 Trading blocs and the World Trade Organisation (WTO)
  • 4.1.6 Restrictions on free trade
  • 4.1.7 Balance of payments
  • 4.1.8 Exchange rates
  • 4.1.9 International competitiveness
• 4.2 Poverty and inequality (p.33):
  • 4.2.1 Absolute and relative poverty
  • 4.2.2 Wealth and income inequality
• 4.3 Emerging and developing economies (p. 37):
  • 4.3.1 Measures of development
  • 4.3.2 Factors influencing growth and development
  • 4.3.3 Strategies influencing growth and development
• 4.4 The financial sector (p.44):
  • 4.4.1 Role of financial markets
  • 4.4.2 Market failure in the financial sector
  • 4.4.3 Role of central banks
• 4.5 The role of the state in the macro-economy (p. 47):
  • 4.5.1 Public expenditure
  • 4.5.2 Taxation
  • 4.5.3 Public sector finances
  • 4.5.4 Macro-economic policies in a global context