Cambridge O Level2281

Economics Notes

Free chapter notes for Cambridge O Level (2281): identical syllabus & papers to IGCSE 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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