Unit 1: The Operation of Markets and Market Failure
Nature and purpose of economic activities, Economic Resources, Economic Objectives of Individuals, Firms and Governments, Scarcity, Choice and Allocation of Resources, Determinants of the Demand for Goods and Services, Price and Income Elasticities of Demand and Supply, Specialisation, Division of Labour, Production, Economies of Scale, Meaning of Market Failure, Public Goods, Positive and Negative Externalities, Monopolies and the Allocation of Resources and Rationale and Methods of Government Interventions.
Unit 2: The National Economy in Global Context
Macroeconomic Indicators, The Economic Cycle, Circular Flow of Income, Aggregate Demand and Supply, The Objectives of Government Economic Policies, Economic Growth, Inflation and Deflation, Employment and Unemployment and Fiscal, Monetary and Supply-side Policies.
Two I hour 30 minute examinations. Each exam 50% of AS Level