IGCSE Economics - i-study

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IGCSE Economics

Study guide

Hywel Davies and Michael Wolstenholme .

Updated for the 2017-19 syllabus

LICENSED PRODUCT - SCHOOL USE ONLY

Published 2014 by i-study.co.uk ? i-study.co.uk admin@i-study.co.uk

First edition published March 2014 All rights reserved. No pat of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means electronical, mechanical, photocopying, recording or otherwise without

prior permission of the copyright holder. All images and content copyright of i-study.co.uk: Hywel Davies and Michael Wolstenholme. Where images are not the legal property of i-study.co.uk then permission has been granted or every effort

has been made to obtain said permission. e-printed from the UK

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Contents

Unit 1 - The Basic Economic Problem

5

The Factors of Production

7

Opportunity Cost

11

The Production Possibility Curve (PPC)

12

Chapter Review

13

Unit 2 - The Allocation of Resources

14

Merit, Demerit and Public Goods

14

Economic Systems

16

Market Forces: Demand, Supply and Equilibrium

19

Shifts of the Demand Curve

20

The Supply Curve

21

Shifts of the Supply Curve

22

Equilibrium

23

Elasticities

25

Calculating PED

25

Elasticities (continued)

26

Types of Goods

30

The Law of Diminishing Marginal Utility

31

Merits of the Market System

32

Market Failure

33

Private Costs and Benefits

35

Social Costs and Benefits

36

Conserving Resources versus Using Resources

37

Public Expenditure versus Private Expenditure

38

Chapter Review

40

Unit 3 - The Individual

41

Barter and the need for exchange

41

Money

42

Banking

43

Stock Exchanges

45

Choosing an Occupation

46

Changes in earnings over time for Individuals

48

Supply and Demand in relation to changes in earnings

49

Differences in earnings between occupational groups

50

Private/Public

51

Trade Unions

52

Specialisation for Individuals

53

Motives for spending, saving and borrowing

54

Saving

55

Chapter Review

56

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Unit 4 - The Private Firm

Business Organisations Demand for the factors of production Industrial Classifications Profit, Revenue and Costs The Costs of Business The Costs of Business (continued) Demand, Supply and Costs Costs and Profits Characteristics of Market structures How perfect competition functions Monopolies Monopolies continued The Growth of Firms Economies of Scale Diseconomies of scale

Unit 5 - The Role of Government

Aims of a Government The Circular Flow of Income Aggregate Demand and Supply The Macroeconomic Diagram Shifting Macroeconomic Curves Demand and Supply-Side Policies Fiscal Policy Monetary Policy Market-Oriented Supply-Side Policy Interventionist Supply-Side Policy The Multiplier Effect Aims of Taxation What makes a good tax? What are the consequences of taxation? Subsidies The Macroeconomy Chapter Review

Unit 6 - Economic Indicators

Unemployment Consequences of unemployment Multiple Choice Questions Inflation Measuring Inflation Causes of inflation Consequences of inflation

4

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58 61 61 62 63 64 65 66 68 69 70 71 73 75 76

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79 80 82 83 84 88 89 90 92 93 95 97 99 99 100 101 104

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105 106 107 108 109 110 112

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Hyperinflation Multiple Choice Questions Measuring Output Conservation vs Consumption Chapter Review

Unit 7 - Development Economics

Measuring Development: The HDI Identifying a Developing country Alleviating Poverty Population Population Pyramids: Interpreting the Data Developed Countries' Population Pyramids Changing Times: The Effects of Population Growth Why develop? Drawbacks to Development Why do some countries remain less developed? Chapter Review

Unit 8 - International Trade

The Balance of Payments Problems with the Balance of Payments The Theory of Absolute Advantage Explained Comparative Advantage Comparative Advantage continued Free Trade vs Protectionism Questions for Review Exchange Rates What causes exchange rates to change? Effects of a depreciation Effects of an appreciation Different Exchange Rates Chapter Review

Worksheets

112 113 114 115 116

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118 119 120 121 122 123 124 125 126 127 128

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130 131 132 133 134 135 137 138 140 141 141 142 144

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