Cambridge IGCSE0455

Economics Notes

Free chapter notes for Cambridge IGCSE Economics 0455. Read any chapter online, then practise with the member Workbook and revise with Chapter at a Glance.

The nature of the basic economic problem

Covers: The nature of the basic economic problem - Finite resources and infinite wants, The nature of the basic economic problem - Resource allocation decisions, The nature of the basic economic problem - Economic goods and free goods

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Factors of production

Covers: Factors of production - Factors of production and their rewards, Factors of production - Quantity and quality of factors of production

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Opportunity cost

Covers: Opportunity cost - Opportunity cost, Opportunity cost - The influence of opportunity cost on decision-making

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Production possibility curve (PPC) diagrams

Covers: Production possibility curve (PPC) diagrams - Production possibility curves (PPC), Production possibility curve (PPC) diagrams - Points under, on and beyond a PPC, Production possibility curve (PPC) diagrams - Movements along a PPC, Production possibility curve (PPC) diagrams - Shifts of a PPC

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The role of markets in allocating resources

Covers: The role of markets in allocating resources - How markets work

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Demand

Covers: Demand - Individual and market demand, Demand - Movements along a demand curve, Demand - Shifts of a demand curve

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Supply

Covers: Supply - Individual and market supply, Supply - Movements along a supply curve, Supply - Shifts of a supply curve

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Price determination

Covers: Price determination - Price mechanism, Price determination - Market equilibrium, Price determination - Market disequilibrium

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Price changes

Covers: Price changes - Causes of price changes, Price changes - Consequences of price changes

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Price elasticity of demand (PED)

Covers: Price elasticity of demand (PED) - Definition of PED, Price elasticity of demand (PED) - Calculation of PED, Price elasticity of demand (PED) - Determinants of PED, Price elasticity of demand (PED) - PED, consumer expenditure and firms’ revenue, Price elasticity of demand (PED) - Significance of PED

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Price elasticity of supply (PES)

Covers: Price elasticity of supply (PES) - Definition of PES, Price elasticity of supply (PES) - Calculation of PES, Price elasticity of supply (PES) - Determinants of PES

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Market economic system

Covers: Market economic system - Definition of the market economic system, Market economic system - Arguments for and against the market economic system

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Market failure

Covers: Market failure - Definition of market failure, Market failure - Definitions of terms associated with market failure, Market failure - Causes of market failure, Market failure - Consequences of market failure

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Mixed economic system

Covers: Mixed economic system - Definition of the mixed economic system, Mixed economic system - Arguments for and against the mixed economic system, Mixed economic system - Government intervention to address market failure

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Money and banking

Covers: Money and banking - Money, Money and banking - Banking

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Households

Covers: Households - Influences on households’ spending, saving and borrowing

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Workers

Covers: Workers - Factors affecting an individual’s choice of occupation, Workers - Wage determination, Workers - Reasons for differences in wages, Workers - Mobility of labour, Workers - Division of labour

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Firms

Covers: Firms - Different types of firms, Firms - Mergers, Firms - Economies and diseconomies of scale

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Firms and production

Covers: Firms and production - Demand for factors of production, Firms and production - Labour-intensive and capital-intensive production, Firms and production - Production and productivity

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Firms’ costs, revenue and objectives

Covers: Firms’ costs, revenue and objectives - Definitions of costs of production, Firms’ costs, revenue and objectives - Calculation of costs of production, Firms’ costs, revenue and objectives - Definition of revenue, Firms’ costs, revenue and objectives - Calculation of revenue, Firms’ costs, revenue and objectives - Objectives of firms

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Types of markets

Covers: Types of markets - Competitive markets, Types of markets - Monopoly markets

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Government macroeconomic intervention

Covers: Government macroeconomic intervention - Macroeconomic aims

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Fiscal policy

Covers: Fiscal policy - Government budget, Fiscal policy - Reasons for government spending, Fiscal policy - Taxation, Fiscal policy - Definition of fiscal policy, Fiscal policy - Fiscal policy measures, Fiscal policy - Effects of fiscal policy on government macroeconomic aims

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Monetary policy

Covers: Monetary policy - Definitions of money supply and monetary policy, Monetary policy - Monetary policy measures, Monetary policy - Effect of monetary policy on government macroeconomic aims

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Supply-side policy

Covers: Supply-side policy - Definition of supply-side policy, Supply-side policy - Supply-side policy measures, Supply-side policy - Effects of supply-side policy measures on government macroeconomic aims

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Economic growth

Covers: Economic growth - Definition of economic growth, Economic growth - Measurement of economic growth, Economic growth - Causes and consequences of economic growth, Economic growth - Causes and consequences of recession, Economic growth - Policies to promote economic growth

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Employment and unemployment

Covers: Employment and unemployment - Definitions of employment, unemployment and full employment, Employment and unemployment - Measurement of unemployment, Employment and unemployment - Causes/types of unemployment, Employment and unemployment - Consequences of unemployment, Employment and unemployment - Policies to reduce unemployment

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Inflation

Covers: Inflation - Definitions of inflation and deflation, Inflation - Measurement of inflation, Inflation - Causes of inflation, Inflation - Consequences of inflation, Inflation - Policies to control inflation

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Living standards

Covers: Living standards - Indicators of living standards, Living standards - Comparing living standards and income distribution

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Poverty

Covers: Poverty - Definitions of absolute and relative poverty, Poverty - Causes of poverty, Poverty - Policies to alleviate poverty and redistribute income

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Population

Covers: Population - Factors that affect population growth, Population - The effects of changes in the size and structure of populations

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Differences in economic development between countries

Covers: Differences in economic development between countries - Causes and consequences of international differences

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Specialisation and free trade

Covers: Specialisation and free trade - Specialisation by country, Specialisation and free trade - Free trade

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Globalisation and trade restrictions

Covers: Globalisation and trade restrictions - Definition of globalisation, Globalisation and trade restrictions - Causes and consequences of changes in globalisation, Globalisation and trade restrictions - Role of multinational companies (MNCs), Globalisation and trade restrictions - Types of trade restrictions / methods of protection, Globalisation and trade restrictions - Reasons for trade restrictions, Globalisation and trade restrictions - Consequences of trade restrictions

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Foreign exchange rates

Covers: Foreign exchange rates - Definition of foreign exchange rate, Foreign exchange rates - Reasons for buying and selling foreign currencies, Foreign exchange rates - Determination of foreign exchange rate in foreign exchange market, Foreign exchange rates - Consequences of changes in foreign exchange rates

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Current account of the balance of payments

Covers: Current account of the balance of payments - Structure of the current account of the balance of payments, Current account of the balance of payments - Causes of current account deficit and surplus, Current account of the balance of payments - Consequences of current account deficit and surplus, Current account of the balance of payments - Policies to achieve balance of payments stability

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