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.
A physical product such as a car.
An intangible product, such as financial advice or a bus journey.
Someone who buys a product from a business.
Political authority that decides how a country is run and manages it’s operation.
A person, company or country that makes, grows or supplies goods or services.
The process of making goods and services
The resources in an economy that can be used to make goods and services; e.g Land, Labour, Capital and Enterprise
Natural resources e.g farm land, coal, a fish in the sea
The workforce
Man made goods used in the production of other goods and services
The human ideas that organise the factors of production to produce goods and services.
Something a consumer has to have to survive
Something a consumer desires
How to best use limited resources to satisfy people’s unlimited wants.
The benefits forgone of the next best alternative
Where buyers and sellers meet to exchange goods and services
A market in which the factors of production are bought and sold
A market in which the final good or service is sold
The part of the economy consisting of businesses that extract raw materials from land and sea.
The part of the economy where raw materials are manufactured into finished goods.
The part of the economy where services are provided or finished goods are sold to consumers.
The process where individuals, firms and economies concentrate on producing what they are best at producing.
Where workers concentrate on one area of the production process.
The process of allocating resources in an economy, or between economies
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.
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.
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.
Willingness and ability to purchase a good or service at a given price.
Willingness and ability of firms to provide goods and services at a given price.
Measures the responsiveness of quantity demanded to changes in price.
When the percentage change in quantity demanded is greater than the percentage change in price
When the percentage change in quantity demanded is less than the percentage change in price
Measures the responsiveness of quantity supplied to changes in price.
A fall in long run average cost as the firm increases output
The optimal production and distribution of scarce resources
Where supply and demand meet
The price level the supply curve intersects with the demand curve
The quantity supplied and demanded where the supply curve intersects with the demand curve
The total output of goods and services produced by a firm or industry.
Output per unit of input
Cost per unit falls as a result of employing specialist staff who can make production more efficient
Cost per unit falls as a result of buying raw materials in large quantities and receiving discounts/cheaper price per unit
Cost per unit falls as a result of firms having the capacity to purchase expensive specialist equipment and machinery which spreads cost of production
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.
The amount of money producer has left from revenue after all costs have been paid.
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.
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.
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.
Where different firms in the same market are trying to sell a similar product to a consumer
A sole or dominant producer within a market
Where a small number of firms control the large majority of market share
The amount of money a producer has left after all costs have been paid
A market with many buyers and sellers producing or providing identical products
Where workers sell their labour and employers buy labour
Total number of workers who are willing and able to supply their labour at a given wage rate
Total number of workers that firms are willing and able to employ at a given wage rate
The amount of money an employee earns before any deductions are made
The amount of money an employee earns after any deductions are made such as income tax
A tax placed directly on personal income
A contribution paid by workers and their employers towards the cost of state benefits
Factors that make it difficult for firms to enter a market and sell their goods and services
The equilibrium point of supply and demand of labour in the labour market
Where buyers and sellers come together to exchange goods and services
A market with many buyers and sellers producing or providing differentiated goods and services
A tendency for consumers to repeat their custom with one firm over rivals.
A market where firms have price setting power, there a few competitors with market power.
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.
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.
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.
The equilibrium point of supply and demand of labour in the labour market
Where buyers and sellers come together to exchange goods and services
A market with many buyers and sellers producing or providing differentiated goods and services
A tendency for consumers to repeat their custom with one firm over rivals.
A market where firms have price setting power, there a few competitors with market power.
The part of the economy consisting of businesses that extract raw materials from land and sea.
The part of the economy where raw materials are manufactured into finished goods.
The part of the economy where services are provided or finished goods are sold to consumers.
The process where individuals, firms and economies concentrate on producing what they are best at producing.
Where workers concentrate on one area of the production process.
Cost per unit falls as a result of employing specialist staff who can make production more efficient
Cost per unit falls as a result of buying raw materials in large quantities and receiving discounts/cheaper price per unit
Cost per unit falls as a result of firms having the capacity to purchase expensive specialist equipment and machinery which spreads cost of production
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.
The amount of money producer has left from revenue after all costs have been paid.
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.
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.
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.
An effect of an economic activity on a third party
Harmful effect of an economic activity on a third parties, also known as external cost
Beneficial effect of an economic activity on third parties, also known as external benefit
Goods and services provided directly by the government
Laws to control the way people and organisations behave
Rules, directives or government orders to control the way people and organisations behave
The government provides information to encourage people (especially consumers) and organisations to change their behaviour
A person or organisation that directly uses a good or service
A tangible product i.e a product that can be seen or touched
A political authority that decides how a country is run and manages its operation
A person, company or country that makes, grows or supplies goods and/or service
An intangible product, i.e a product that cannot be seen or touched
How to best use limited resources to satisfy the unlimited wants of people
An option for the use of selected scarce resources
The impact of development or growth that promotes an improvement in quality of life for all, now and into the future
The process by which firms, regions and whole economies concentrate on producing those products that they are best at producing.
The responsiveness of quantity supplied to a change in the price of a product.
Anything that is generally accepted as a means of payment for goods and services
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.
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.
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.
Where there is only one provider in the market
The negative effects of economic transition
The positive effects of economic transition
The companies impact on the environment and society
Producers who have a goal of fixing prices, limit competition by limiting supply
How to best use limited resources to satisfy people’s unlimited wants.
The benefits forgone of the next best alternative
Where buyers and sellers meet to exchange goods and services
A market in which the factors of production are bought and sold
A market in which the final good or service is sold
Willingness and ability to purchase a good or service at a given price.
Where a small number of firms control the large majority of market share
A market with many buyers and sellers producing or providing identical products
Total number of workers that firms are willing and able to employ at a given wage rate
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.
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.