Complete Economics for Cambridge IGCSE & O Level (Third Edition) Student Book

Table of contents

Syllabus matching grid; 1 The basic economic problem; 1.1 The nature of the economic problem; 1.1.1 Finite resources and unlimited wants; 1.1.2 Economic and free goods; 1.2 Factors of production; 1.2.1 Definitions of the factors of production and their rewards; 1.2.2 Mobility of the factors of production; 1.2.3 Quantity and quality of the factors of production; 1.3 Opportunity cost; 1.3.1 Definition of opportunity cost; 1.3.2 The influence of opportunity cost on decision making; 1.4 Production possibility curves (PPC); 1.4.1 Definition of PPC; 1.4.2 Points under, on and beyond a PPC; 1.4.3 Movements along a PPC; 1.4.4 Shifts in a PPC; 2 The allocation of resources; 2.1 Microeconomics and macroeconomics; 2.1.1 Microeconomics; 2.1.2 Macroeconomics; 2.2 The role of markets in allocating resources; 2.2.1 The market system; 2.2.2 Key resources allocation decisions; 2.2.3 Introduction to the price mechanism; 2.3 Demand; 2.3.1 Definition of demand; 2.3.2 Price and demand; 2.3.3 Individual and market demand; 2.3.4 Conditions of demand; 2.4 Supply; 2.4.1 Definition of supply; 2.4.2 Price and supply; 2.4.3 Individual and market supply; 2.4.4 Conditions of supply; 2.5 Price determination; 2.5.1 Market equilibrium; 2.5.2 Market disequilibrium; 2.6 Price changes; 2.6.1 Causes of price changes; 2.6.2 Consequences of price changes; 2.7 Price elasticity of demand (PED); 2.7.1 Definition of PED; 2.7.2 Calculation of PED; 2.7.3 Determinants of PED; 2.7.4 PED and total spending on a product/revenue; 2.7.5 Significance of PED; 2.8 Price elasticity of supply (PES); 2.8.1 Definition of PES; 2.8.2 Calculation of PES; 2.8.3 Determinants of PES; 2.8.4 Significance of PES; 2.9 Market economic system; 2.9.1 Definition of market economic system; 2.9.2 Advantages and disadvantages of the market economic system; 2.10 Market failure; 2.10.1 Definition of market failure; 2.10.2 Causes of market failure; 2.10.3 Consequences of market failure; 2.11 Mixed economic system; 2.11.1 Definition of the mixed economic system; 2.11.2 Government intervention to address market failure; 3 Microeconomic decision makers; 3.1 Money and banking; 3.1.1 Money; 3.1.2 Banking; 3.2 Households; 3.2.1 Influences on spending, saving and borrowing; 3.3 Workers; 3.3.1 Factors affecting an individual's choice of occupation; 3.3.2 Wage determination; 3.3.3 Reasons for differences in earnings; 3.3.4 Division of labour/specialization; 3.4 Trade unions; 3.4.1 Definition of a trade union; 3.4.2 The role of trade unions in the economy; 3.4.3 The advantages and disadvantages of trade union activity; 3.5 Firms; 3.5.1 Classification of firms; 3.5.2 Small firms; 3.5.3 Causes and forms of the growth of firms; 3.5.4 Mergers; 3.5.5 Economies and diseconomies of scale; 3.6 Firms and production; 3.6.1 Demand for factors of production; 3.6.2 Labour-intensive and capital-intensive production; 3.6.3 Production and productivity; 3.7 Firms' costs, revenues and objectives; 3.7.1 Definition of costs of production; 3.7.2 Calculation of costs of production; 3.7.3 Definition of revenue; 3.7.4 Calculation of revenue; 3.7.5 Objectives of firms; 3.8 Market structure; 3.8.1 Competitive markets; 3.8.2 Monopoly markets; 4 Government and the macroeconomy; 4.1 The role of government; 4.1.1 The role of government; 4.2 The macroeconomic aims of government; 4.2.1 The macroeconomic aims of government; 4.2.2 Possible conflicts between macroeconomic aims; 4.3 Fiscal policy; 4.3.1 Definition of the budget; 4.3.2 Reasons for government spending; 4.3.3 Reasons for taxation; 4.3.4 Classification of taxes; 4.3.5 Principles of taxation; 4.3.6 Impact of taxation; 4.3.7 Definition of fiscal policy; 4.3.8 Fiscal policy measures; 4.3.9 Effects of fiscal policy on government macroeconomic aims; 4.4 Monetary policy; 4.5 Supply-side policy; 4.5.1 Definition of supply-side policy; 4.5.2 Supply-side policy measures; 4.5.3 Effects of supply-side policy measures on government macroeconomic aims; 4.6 Economic growth; 4.6.1 Definition of economic growth; 4.6.2 Measurement of economic growth; 4.6.3 Causes and consequences of recession; 4.6.4 Causes of economic growth; 4.6.5 Consequences of economic growth; 4.6.6 Consequences of economic growth; 4.7 Employment and unemployment; 4.7.1 Definition of employment, unemployment and full employment; 4.7.2 Changing patterns and level of employment; 4.7.3 Measurement of unemployment; 4.7.4 Causes/types of unemployment; 4.7.5 Consequences of unemployment; 4.7.6 Policies to reduce unemployment; 4.8 Inflation and deflation; 4.8.1 Definition of inflation and deflation; 4.8.2 Measurement of inflation and deflation; 4.8.3 Causes of inflation and deflation; 4.8.4 Consequences of inflation and deflation; 4.8.5 Policies to control inflation and deflation; 5 Economic development; 5.1 Living standards; 5.1.1 Indicators of living standards; 5.1.2 Comparing living standards and income distribution; 5.2 Poverty; 5.2.1 Definition of absolute and relative poverty; 5.2.2 The causes of poverty; 5.2.3 Policies to alleviate poverty and redistribute income; 5.3 Population; 5.3.1 The factors that affect population growth; 5.3.2 Reasons for different rates of population growth in different countries; 5.3.3 The effects of changes in the size and structure of population on different countries; 5.4 Differences in economic development between countries; 5.4.1 Differences in economic development between countries; 6 International trade and specialization; 6.1 International specialization; 6.1.1 Specialization at a national level; 6.1.2 Advantages and disadvantages of specialization at a national level; 6.2 Globalization, free trade and protection; 6.2.1 Definition of globalization; 6.2.2 Role of multinational companies (MNCs); 6.2.3 The benefits of free trade; 6.2.4 Methods of protection; 6.2.5 Reasons for protection; 6.2.6 Consequences of protection; 6.3 Foreign exchange rates; 6.3.1 Definition of foreign exchange rate; 6.3.2 Determination of foreign exchange rate in foreign exchange market; 6.3.3 Causes of foreign exchange rate fluctuations; 6.3.4 Consequences of foreign exchange rate fluctuations; 6.3.5 Floating and fixed foreign exchange rates; 6.4 Current account of balance of payments; 6.4.1 Structure; 6.4.2 Causes of current account deficit and surplus; 6.4.3 Consequences of current account deficit and surplus; 6.4.4 Policies to achieve balance of payments stability