Year 10 — Economics

Term 1: Unit 1: How markets work -Economic foundations

Content: Students look at the nature and purpose of economic activity based on the production of goods and services and the satisfaction of needs and wants. Students explore the factors of production, leading to an understanding of how and why choices are made. Students will come to an understanding that there is always a cost attached to any economic choice.

Topics: Economic activity, the factors of production, making choices

Exam-style questions and EOU assessment to check knowledge and understanding.

GOOD

A physical product such as a car.

SERVICE

An intangible product, such as financial advice or a bus journey.

CONSUMER

Someone who buys a product from a business.

GOVERNMENT

Political authority that decides how a country is run and manages it’s operation.

PRODUCER

A person, company or country that makes, grows or supplies goods or services.

PRODUCTION

The process of making goods and services

FACTORS OF PRODUCTION

The resources in an economy that can be used to make goods and services; e.g Land, Labour, Capital and Enterprise

LAND

Natural resources e.g farm land, coal, a fish in the sea

LABOUR

The workforce

CAPITAL

Man made goods used in the production of other goods and services

ENTERPRISE

The human ideas that organise the factors of production to produce goods and services.

NEED

Something a consumer has to have to survive

WANT

Something a consumer desires

ECONOMIC PROBLEM

How to best use limited resources to satisfy people’s unlimited wants.

OPPORTUNITY COST

The benefits forgone of the next best alternative

MARKET

Where buyers and sellers meet to exchange goods and services

FACTOR MARKET

A market in which the factors of production are bought and sold

PRODUCT MARKET

A market in which the final good or service is sold

PRIMARY SECTOR

The part of the economy consisting of businesses that extract raw materials from land and sea.

SECONDARY SECTOR

The part of the economy where raw materials are manufactured into finished goods.

TERTIARY SECTOR

The part of the economy where services are provided or finished goods are sold to consumers.

SPECIALISATION

The process where individuals, firms and economies concentrate on producing what they are best at producing.

DIVISION OF LABOUR

Where workers concentrate on one area of the production process.

RESOURCE ALLOCATION

The process of allocating resources in an economy, or between economies

  • Spiritual
  • Moral
  • Social
  • Cultural

Develop the individual:

Students look at the nature and purpose of economic activity based on the production of goods and services and the satisfaction of needs and wants. Students explore the factors of production, leading to an understanding of how and why choices are made. Students will come to an understanding that there is always a cost attached to any economic choice.

Create a supportive community:

Students' own social development is widened through individual, paired and group work where students discuss economic concepts, where they must analyse and evaluate economic concepts based on real life case studies and scenarios.

Term 2: Unit 1: How markets work - Resource allocation

Students look at the role of markets in allocating scarce resources. This leads into an exploration of the different economic sectors and concludes with a look at the benefits and costs of specialisation, the division of labour and how this naturally leads to exchange.

Topics: Markets and allocation of resources, economic sectors, specialisation, division of labour, and exchange

Exam-style questions and EOU assessment to check knowledge and understanding.

DEMAND

Willingness and ability to purchase a good or service at a given price.

SUPPLY

Willingness and ability of firms to provide goods and services at a given price.

PRICE ELASTICITY OF DEMAND

Measures the responsiveness of quantity demanded to changes in price.

ELASTIC DEMAND

When the percentage change in quantity demanded is greater than the percentage change in price

INELASTIC DEMAND

When the percentage change in quantity demanded is less than the percentage change in price

PRICE ELASTICITY OF SUPPLY

Measures the responsiveness of quantity supplied to changes in price.

ECONOMIES OF SCALE

A fall in long run average cost as the firm increases output

EFFICIENCY

The optimal production and distribution of scarce resources

EQUILIBRIUM

Where supply and demand meet

EQUILIBRIUM PRICE

The price level the supply curve intersects with the demand curve

EQUILIBRIUM QUANTITY

The quantity supplied and demanded where the supply curve intersects with the demand curve

PRODUCTION

The total output of goods and services produced by a firm or industry.

PRODUCTIVTY

Output per unit of input

MANAGERIAL ECONOMIES OF SCALE

Cost per unit falls as a result of employing specialist staff who can make production more efficient

PURCHASING ECONOMIES OF SCALE

Cost per unit falls as a result of buying raw materials in large quantities and receiving discounts/cheaper price per unit

TECHNICAL ECONOMIES OF SCALE

Cost per unit falls as a result of firms having the capacity to purchase expensive specialist equipment and machinery which spreads cost of production

FINANCIAL ECONOMIES OF SCALE

Cost per unit falls as a result of firms being able to negotiate improved terms on borrowing, for example cheaper interest rates for borrowing larger amounts of money.

PROFIT

The amount of money producer has left from revenue after all costs have been paid.

  • Spiritual
  • Moral
  • Social
  • Cultural

Develop the individual:

Students look at the role of markets in allocating scarce resources. This leads into an exploration of the different economic sectors and concludes with a look at benefits and costs of specialisation, the division of labour and how this naturally leads to exchange.

Create a supportive community:

Students' own social development is widened through individual, paired and group work where students discuss economic concepts, where they must analyse and evaluate economic concepts based on real life case studies and scenarios.

Term 3: Unit 1: How markets work - How are prices determined

Students explore how prices are determined in a market using supply and demand. They look at intermarket relationships to understand the impact that changes in supply and demand in one market can have on other markets. The section concludes with an investigation of price elasticities, including how they are calculated and interpreted.

Topics: Demand for goods and services, supply for goods and services, equilibrium price, intermarket relationships, price elasticity of demand, price elasticity of supply,

Exam-style questions and EOU online assessment to check knowledge, understanding and progress.

COMPETITION

Where different firms in the same market are trying to sell a similar product to a consumer

MONOPOLY

A sole or dominant producer within a market

OLIGOPOLY

Where a small number of firms control the large majority of market share

PROFIT

The amount of money a producer has left after all costs have been paid

PERFECT COMPETITION

A market with many buyers and sellers producing or providing identical products

LABOUR MARKET

Where workers sell their labour and employers buy labour

SUPPLY OF LABOUR

Total number of workers who are willing and able to supply their labour at a given wage rate

DEMAND FOR LABOUR

Total number of workers that firms are willing and able to employ at a given wage rate

GROSS PAY

The amount of money an employee earns before any deductions are made

NET PAY

The amount of money an employee earns after any deductions are made such as income tax

INCOME TAX

A tax placed directly on personal income

NATIONAL INSURANCE

A contribution paid by workers and their employers towards the cost of state benefits

BARRIERS TO ENTRY

Factors that make it difficult for firms to enter a market and sell their goods and services

WAGE DETERMINATION

The equilibrium point of supply and demand of labour in the labour market

MARKET

Where buyers and sellers come together to exchange goods and services

MONOPOLISTIC COMPETITION

A market with many buyers and sellers producing or providing differentiated goods and services

BRAND LOYALTY

A tendency for consumers to repeat their custom with one firm over rivals.

NON COMPETITVE MARKET

A market where firms have price setting power, there a few competitors with market power.

  • Spiritual
  • Moral
  • Social
  • Cultural

Develop the individual:

Students explore how prices are determined in a market using supply and demand. They look at intermarket relationships to understand the impact that changes in supply and demand in one market can have on other markets. The section concludes with an investigation of price elasticities,including how they are calculated and interpreted.

Create a supportive community:

Students' own social development is widened through individual, paired and group work where students discuss economic concepts, where they must analyse and evaluate economic concepts based on real life case studies and scenarios.

Term 4: Unit 1: How markets work - Production, costs and profits

Students explore the significance of cost, revenue and profit for producers, leading to an understanding of the significance of productivity on increasing profits. Students explore the concept of economies of scale and the benefits these can bring.

Topics: The importance of cost, revenue and profit for producers, production and productivity, economies of scale

Exam-style questions and EOU online assessment to check knowledge, understanding and progress.

WAGE DETERMINATION

The equilibrium point of supply and demand of labour in the labour market

MARKET

Where buyers and sellers come together to exchange goods and services

MONOPOLISTIC COMPETITION

A market with many buyers and sellers producing or providing differentiated goods and services

BRAND LOYALTY

A tendency for consumers to repeat their custom with one firm over rivals.

NON COMPETITVE MARKET

A market where firms have price setting power, there a few competitors with market power.

PRIMARY SECTOR

The part of the economy consisting of businesses that extract raw materials from land and sea.

SECONDARY SECTOR

The part of the economy where raw materials are manufactured into finished goods.

TERTIARY SECTOR

The part of the economy where services are provided or finished goods are sold to consumers.

SPECIALISATION

The process where individuals, firms and economies concentrate on producing what they are best at producing.

DIVISION OF LABOUR

Where workers concentrate on one area of the production process.

MANAGERIAL ECONOMIES OF SCALE

Cost per unit falls as a result of employing specialist staff who can make production more efficient

PURCHASING ECONOMIES OF SCALE

Cost per unit falls as a result of buying raw materials in large quantities and receiving discounts/cheaper price per unit

TECHNICAL ECONOMIES OF SCALE

Cost per unit falls as a result of firms having the capacity to purchase expensive specialist equipment and machinery which spreads cost of production

FINANCIAL ECONOMIES OF SCALE

Cost per unit falls as a result of firms being able to negotiate improved terms on borrowing, for example cheaper interest rates for borrowing larger amounts of money.

PROFIT

The amount of money producer has left from revenue after all costs have been paid.

  • Spiritual
  • Moral
  • Social
  • Cultural

Develop the individual:

Students explore the significance of cost, revenue and profit for producers, leading to an understanding of the significance of productivity on increasing profits. Students explore the concept of economies of scale and the benefits these can bring.

Create a supportive community:

Students' own social development is widened through individual, paired and group work where students discuss economic concepts, where they must analyse and evaluate economic concepts based on real life case studies and scenarios.

Term 5: Unit 1: How markets work - Competitive and concentrated markets

Students come to an understanding that there are different types of market structures and explore competitive and non-competitive markets. Finally, students will look at the operation of the labour market and factors that determine wages.

Topics: Identifying market structures, competitive markets, non-competitive markets, the labour market

Exam-style questions and EOU assessment to check knowledge and understanding.

Externality

An effect of an economic activity on a third party

Negative Externality

Harmful effect of an economic activity on a third parties, also known as external cost

Positive Externality

Beneficial effect of an economic activity on third parties, also known as external benefit

State Provision

Goods and services provided directly by the government

Legislation

Laws to control the way people and organisations behave

Regulation

Rules, directives or government orders to control the way people and organisations behave

Information Provision

The government provides information to encourage people (especially consumers) and organisations to change their behaviour

Consumer

A person or organisation that directly uses a good or service

Good

A tangible product i.e a product that can be seen or touched

Government

A political authority that decides how a country is run and manages its operation

Producer

A person, company or country that makes, grows or supplies goods and/or service

Service

An intangible product, i.e a product that cannot be seen or touched

Economic Problem

How to best use limited resources to satisfy the unlimited wants of people

Economic Choice

An option for the use of selected scarce resources

Social Sustainability

The impact of development or growth that promotes an improvement in quality of life for all, now and into the future

Specialisation

The process by which firms, regions and whole economies concentrate on producing those products that they are best at producing.

Price elasticity of supply

The responsiveness of quantity supplied to a change in the price of a product.

Money

Anything that is generally accepted as a means of payment for goods and services

  • Spiritual
  • Moral
  • Social
  • Cultural

Develop the individual:

Students come to an understanding that there are different types of market structures and explore competitive and non-competitive markets. Finally, students will look at the operation of the labour market and factors that determine wages.

Create a supportive community:

Students' own social development is widened through individual, paired and group work where students discuss economic concepts, where they must analyse and evaluate economic concepts based on real life case studies and scenarios.

Term 6: Unit 1: How markets work - Market failures

Students explore the meaning of market failure and gain an understanding that the market mechanism does not always allocate resources efficiently. Students will explore the costs associated with misallocation of resources, and how government intervention can counter this.

Topics: Misallocation of resources, Externalities

Exam-style questions and EOU assessment to check knowledge and understanding.

MONOPOLY

Where there is only one provider in the market

EXTERNAL COSTS

The negative effects of economic transition

EXTERNAL BENEFITS

The positive effects of economic transition

SOCIAL COSTS

The companies impact on the environment and society

CARTELS

Producers who have a goal of fixing prices, limit competition by limiting supply

ECONOMIC PROBLEM

How to best use limited resources to satisfy people’s unlimited wants.

OPPORTUNITY COST

The benefits forgone of the next best alternative

MARKET

Where buyers and sellers meet to exchange goods and services

FACTOR MARKET

A market in which the factors of production are bought and sold

PRODUCT MARKET

A market in which the final good or service is sold

DEMAND

Willingness and ability to purchase a good or service at a given price.

OLIGOPOLY

Where a small number of firms control the large majority of market share

PERFECT COMPETITION

A market with many buyers and sellers producing or providing identical products

DEMAND FOR LABOUR

Total number of workers that firms are willing and able to employ at a given wage rate

  • Spiritual
  • Moral
  • Social
  • Cultural

Develop the individual:

Students explore the meaning of market failure and gain an understanding that the market mechanism does not always allocate resources efficiently. Students will explore the costs associated with misallocation of resources, and how government intervention can counter this.

Create a supportive community:

Students' own social development is widened through individual, paired and group work where students discuss economic concepts, where they must analyse and evaluate economic concepts based on real life case studies and scenarios.