Concepts

Past Papers and Mark Schemes

Past Papers: Mainly AQA, also OCR and EDEXCEL for A level students.

Answer The Poll Question so I Can Put Up the Papers You Want

You also have the full AQA spec here too :)

Basics and Markets

Starting notes : Just to get you started with the basics which come up at the start of the AS course. (Simple)

Supply and Demand  How a market works, and why some produce more than others. How price is defined, changes in conditions.(Simple with some advanced theory)

Elasticities How demand and supply changes with prices in different markets. Income and price elasticities, unusual goods normal and inferior goods(intermediate)

Where Markets Dont Work

Market Failure why some markets produce what people dont want, or as much as people really want.Merit, De Merit, Public goods, Inefficiencies.

Government Failure: How intervening in market failures may make things worse. Governement failure unintentional and intentional.

Market Participants

Firms and Production Theory:Short and Long run productivity and costs faced. (Intermediate)

Economies of Scale: (Internal). The long run average cost curve explained…..(Intermediate)

Economies of Scale: (External). How market growth can cause the long run average cost to change…..(Intermediate)

Types of Firm, Operations and Growth  Types of Firm, Interest Groups, Business Growth, Sources of Financing, Mentality, M&A advantages and disadvantages

Management Structures and Efficiency in Practice Different ways firms are organised. Just in Time and Lean manufacturing

Market Structures

Perfect Competition: Main assumptions, The Market This Creates, Efficiencies, Real Life Examples

Oligopoly: Signs of Oligopoly, Kinked Demand Curve Theory and weaknesses, How does it really behave?, Game Theory, Collusion incentive.

Monopoly: Conditions of monopoly market, Advantages, Disadvantages, Monopoly in Real World.

Pricing Strategy and Entry Barrier Types: Innocent and Strategic Entry Barriers, Why are prices? Consumer and Producer Surplus

Contestible Market Theory: Where monopoly can be good, a new light on regulation.

Factor Markets

Labour Markets: Classical Theory(Supply, MRP), Wage-Employment, Backward Bending Supply Curve, Criticisms and other theorys.

Labour Market Structures: The types of market broad range: Perfectly Competitive, Imperfectly Competitive, Monopsony and   Monopoly/TU.

Investment and Capital market: What it is and what defines it: Marginal Efficieny of Capital Theory, Relation with Interest rate, Accelerator Theory. Comments.

Factor Unemployment: Labour unemployment, how is it identified? Different types, The Natural Rate of Unemployment, Unemployment of capital, Theories/Definitions.

The Government’s Role

Basic Macro Objectives: What does the controller of the economy actually want it to do? Assumptions of a rational government’s aims

Redistributing Income: How/Why Redistribution? Absolute, Relative poverty. Tax systems, Costs of redistribution. Left and Right Wing governments, What we do in UK.

Protecting the Consumer: Competition Policy, An Informed Consumer(Akerlofs Lemons Theory/Sale of Goods Act), OFT-CC, Problems with Regulation

Keeping Us On Track: Fiscal Policy How the government smooths out the cycle, automatic and discretioary stablisers. Crowding out problems with big government. Budget deficits, structural and cyclical.

Providing Public Goods, Correcting Externalities: The public good problem, Issues of Centralisation, What Can We Do About Externalities?

The Role of Money and It’s Control

Monetary Policy: Why, How It’s Done: The functions of money, The Monetary Transmission Mechanism, Classic and Liquidity Preference theories of Interest, Keynesians and Monetarists, Fisher equation of Exchange and more

Fiat and Commoditised Money What is fiat money, commoditised money? Advantages for each system

Monetarism and Other Schools of Thought: Focus on money supply instead of base rates? Goodharts Law and more

The Whole Economy on Paper

 The Circular Flow of Income: Good simplification of an Economy. Injections and Withdrawals. The Multiplier Effect. Why does Saving=Investment in a closed economy?

Aggregate Supply and Demand: The major model, what is aggregate supply and demand? Keynesian and New Classical Models, Cross Diagrams

Money and Goods Market Relationship IS/LM curve, explaining.

Consumption: The major driving force, what defines levels? The Wealth Effect. Theories: Permanent Income Hypothesis, Consumption Function, The Life Cycle. Definitions.

The Economic Cycle: What explains them? Short and Long run cycles. History of the UK economy.

Performance Indices
: See the different ways Inflation and Economic Welfare are measured. RPI, CPI, RPIX, RPIY, HDI, HPI

The World Economy

International Trade: The reasons for it, Balance of Payments, Current and Capital accounts. Currency Valuation. Trade theories.

Development Economics: Theories on Economic Development. Why Can’t Third World Economies Escape Poverty?

Protectionism: Arguments for and against. When was it prevalent?

Globalisation: How do we know it is happening? Telltale signs

Organisations: International including the EU, World Trade Organisation, IMF and more.

Behavioral Economics

Bubble and Boom Psychology: What causes asset bubbles to develop, and when does the end become inevitable? What causes the bubble’s burst? What causes private sector corruption to rise in a boom? Why great returns are only temporary.

Efficient Markets Hypothesis: The Theory. Strong, Semi Strong and Weak EMH. Real world observations and critique.

Cognitive Biases: The source for irrational behaviour in commerce and financial markets.

Me, The Writer

Would be happy to answer any questions or solve problems you may have! Open to friendly debates

Why I set this up….

I have set this up because the best way to learn something is to teach it.

I could learn by locking myself away for 12 hours at a time writing practice essay after essay….but where is the, use? Will anyone look at it? Am I helping anyone? Is it fun?

I would much rather be creating something of value and helping people….

Also I need my social skills, and I think learning should be an experience…seeing, touching, tasting, hearing…rather than staring at a book all the time

In slight contradiction, favourite books of mine has gone towards making this: The General Theory of Employment, Interest and Money. The Wealth of Nations,. The Intelligent Investor. Animal Spirits. Black Swan. The Ascent of Money. Everlasting Lightbulbs. The Undercover Economist.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: