Revision Checklist for AS/A Level Economics 9708

Guide for Students

REVISION CHECKLIST for AS Level Economics 9708 A guide for students How to use this guide The guide describes what you need to know about your AS Economics examination. It will help you to plan your revision programme and will explain what the examiners are looking for. The guide contains the following sections: Section 1 - How will you be tested? This section will give you information about the different examination papers you will take.

Section 2 - What will be tested? This section describes the five assessment objectives in Economics.

Section 3 - What you need to know This shows the syllabus content so that you can check: which topics you need to know about details about each topic area in the syllabus how much of the syllabus you have covered

Section 1 - How will you be tested? The table below gives you information about the examination papers you will take. Paper Type Duration Number of Questions Maximum Mark Weight (% of total marks for syllabus) 40

Multiple Choice (Core) (a) Data Response (Core) (b) Structured Essay (Core)

1 hour

30

30

45 minutes (recommended)

20

30

45 minutes (recommended)

1 from a choice of 3

20

30

Section 2 - What will be tested? The syllabus sets out the five assessment objectives in Economics. Number of Assessment Objective 1 Skill Demonstration of Skill

Knowledge and Understanding

Interpretation

Explanation and Analysis

Evaluation

Organisation, Presentation and Communication

You should be able to demonstrate knowledge and understanding of the specified content. You should be able to interpret economic information presented in: verbal numerical or graphical forms. You should be able to explain and analyse economic issues and arguments, using relevant economic: concepts theories and information. You should be able to evaluate economic: information arguments proposals and policies. You should be able to take into consideration relevant information and theory. You should be able to distinguish facts from: hypothetical statements and value judgements. You should be able to organise, present and communicate economic ideas and informed judgements in a: clear logical and appropriate form.

The Multiple Choice component (Paper 1) will seek to test particularly Assessment Objectives 1, 2 and 3. The Data Response part of Paper 2will seek to test particularly Assessment Objectives 2 and 3 and, to a lesser extent, Assessment objectives 1, 4 and 5. The Structured Essay part of Paper 2 will seek to test particularly Assessment Objectives 1, 3, 4 and 5 and, to a lesser extent, Assessment Objective 2.

Section 3 - What you need to know A table is provided below which describes the topics which will be tested in your examination papers. You can use the table throughout the course to check the topics you have covered. You can also use it as a revision aid. The column headed comments can be used: to add further information about the details of each bullet point, or to give appropriate examples to highlight areas of difficulty which you might need to ask your teacher about.

Theme 1 Basic Economic Ideas

Topic Scarcity, choice and resource allocation

Different allocative mechanisms

Production possibility curve

The margin Positive and statements

normative

Ceteris paribus Factors of production

Division of Labour Money

2 The Price

Individual Demand curves

You should be able to: Define the meaning of scarcity Explain the inevitability of choices at all levels: o individual o firm o government Define and explain the concept of opportunity cost Consider basic questions of: o what will be produced o how it will be produced o for whom it will be produced Distinguish between: market economies planned economies mixed economies Explain: the shape of the production possibility curve shifts of the production possibility curve Explain decision making at the margin Distinguish between: positive and normative statements Explain the meaning of ceteris paribus Define the four factors of production: Land Labour Capital Enterprise Explain the meaning of division of labour Describe and explain: the functions of money the characteristics of money Explain the construction of individual demand curves

Comments

System Aggregation of individual demand curves to give market demand Factors influencing demand Movements along and shifts of a demand curve Price, income and elasticities of demand cross Explain how individual demand curves are aggregated to give market demand Identify and explain the various factors that can influence market demand Explain and distinguish between: movements along a demand curve shifts of a demand curve Explain the meaning of Calculate Analyse the factors affecting Assess the implications for revenue and business decisions of o price elasticity of o demand o income elasticity of o demand o cross elasticity of o demand Explain how individual firms supply curves are aggregated to give market supply Identify and explain the various factors that can influence market supply, including: indirect taxes and subsidies Explain and distinguish between: movements along a supply curve shifts of a supply curve

Firms supply curves Factors supply influencing market

Movements along and shifts of a supply curve

Price elasticity of supply

Interaction of demand and supply Equilibrium price and quantity Consumer surplus Prices as rationing allocative mechanisms 3 Government Intervention in the Price System Externalities

and

Social costs benefits

and

social

Decision-making using costbenefit analysis Private goods and public goods Merit goods and demerit goods

Explain: the determinants of the price elasticity of supply the implications of price elasticity of supply for speed/ease with which businesses react to changed market conditions Explain: the meaning of equilibrium and disequilibrium the effects of changes in supply and demand on equilibrium price and quantity the applications of demand and supply analysis Explain the meaning of consumer surplus Analyse how prices can be used as: rationing and allocative mechanisms Explain and distinguish between: positive and negative externalities Explain social costs as the sum of: private costs and external costs Explain social benefits as the sum of: private benefits and external benefits Explain decision-making using cost-benefit analysis Explain and distinguish between: private goods and public goods Explain and distinguish between: merit goods and demerit goods Explain government intervention through: maximum price controls price stabilisation

Government intervention

4 International Trade

Principles of absolute and comparative advantage Other explanations and determinants of trade flows

Arguments for free trade and motives for protection Types of protection and their effects Economic integration

5 Measurement in the Macroeconomy

Terms of Trade Balance of Payments Different forms of measurement in the macroeconomy

General price level Price indices

taxes subsidies direct provision of goods and services Explain the principles of: absolute advantage comparative advantage and their real-world limitations Explain the opportunity cost concept allied to trade Account for other explanations and determinants of trade flows Explain: arguments for free trade and motives for protection Explain: types of protection and their effects Explain the features of, and the differences between, a: free trade area customs union economic union Explain the meaning of the terms of trade Explain the components of the balance of payments Explain different types of measurement: Employment statistics Size and components of labour force Labour productivity Definition of unemployment Unemployment rate; patterns and trends in employment and unemployment Difficulties involved in measuring unemployment Explain: the general price level price indices, such as the consumer price index and the retail price index

6 Macroeconomic Problems

Inflation

Balance Problems

of

Payments

Fluctuations in Exchange Rates

Foreign

7 Macroeconomic Policies

Macro-economic policies

Define inflation Explain the: degrees of inflation causes of inflation consequences of inflation Explain the: meaning of balance of payments equilibrium and disequilibrium causes of balance of payments disequilibrium consequences of balance of payments disequilibrium on the domestic and external economy Define exchange rates and explain: the measurement of exchange rates nominal, real, tradeweighted exchange rates the determination of exchange rates fixed, floating, managed float the factors underlying fluctuations in exchange rates the effects of changing exchange rates on the economy Analyse policies designed to: correct balance of payments disequilibrium or influence the exchange rate