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full syllabus econ notes AS
level
ECON EXAMS
Name Date
Econ 1 @June 6, 2022
Econ 2 @May 12, 2022
Micro
Scarcity, choice and opportunity cost
Positive and normative statements
Factors of production
Resource allocation in different economic
systems and issues of transition
Production possibility curves
Money
Classification of goods and services
Demand and supply curves
Price elasticity, income elasticity and cross-
elasticities of demand
Price elasticity of supply
Interaction of demand and supply + Market
equilibrium and disequilibrium
Consumer and producer surplus
full syllabus econ notes AS level 1
, Maximum and minimum prices
Taxes (direct and indirect)
Subsidies
Transfer payments
Direct provision of goods and services
Nationalisation and privatisation
Macro
Aggregate Demand (AD) and Aggregate
Supply (AS) analysis
Types of policy: fiscal policy, monetary policy
and supply side policy
Inflation
Policies to correct inflation and deflation
Balance of payments
Exchange rates
Policies to correct balance of payments
disequilibrium
The terms of trade
Principles of absolute and comparative
advantage
Protectionism
Micro Macro
Scarcity, choice and Aggregate Demand (AD) and
opportunity cost Aggregate Supply (AS)
the fundamental economic problem
analysis
- there are limited resources and the shape and determinants of AD
unlimited wants and AS curves;
the meaning of scarcity and the AD = C + I + G + (X – M)
inevitability of choices at all levels
consumer expenditure = think
(individual, firms, governments) -
what ud consider when buying
the resources are scarce and
a car/house
have opportunity cost (the cost
of the next best choice lost as investment = interest rates
the same resource cant be gov = where in the cycle is
simultaneously used for economy, the current policy
something else), opportunity trends and aims
x-m = international competition
full syllabus econ notes AS level 2
, cost and scarcity makes choices if those two sectors are
inevitable highest % of gdp then
ITS OK: country may be
the basic questions of what will be
getting the best of its
produced,
comparative advantage
how and for whom - questions
(exports what it specialises
asked by economic agents when
in, and imports what it less
resources need to be used
efficient at)
the meaning of the term, ‘ceteris NOT OK: GDP is
paribus’ - all other things remain influenced by world events
equal (used for simplicity in + may be overreliant on
economic analysis) unstable/volatile importer
the margin and decision making at (issue of confidence)
the margin - basically the cost of movement along (movement up or
the next thing down the line)
The margin is the change in a AS: change in the price level;
variable caused by an increase change in the AD curve and
of one unit of another variable there is then a movement along
the marginal cost of an ice an AS curve to restore the
cream is the additional cost of equilibrium position
making one additional ice shift (all the points on the line
cream, i.e. it’s the cost of the move) in AD and AS
final ice cream produced
sras shift = gov policy (taxes
short run = only one factor of and interest rates), price of
production can be changed, long factors of production,
run = all factors of production quanitity/quality of resources
can be changed but the more
lras shift = quality/quantity of
‘big’ variables remain the same,
resources
very long run = every variable can
be changed the interaction of AD and AS and
the determination of the level of
Positive and normative output, prices and employment
statements
the distinction between facts (postitive) Types of policy: fiscal policy,
and value (normative) judgements monetary policy and supply
side policy
Factors of production fiscal:
full syllabus econ notes AS level 3
, the rewards to the factors of the use of taxation and
production: land (rent), labour government spending to
(wages), capital (interest) and influence aggregate demand
enterprise (profit)
increase spending and national
functions of debt to boost AD + automatic
enterprise/entreprenuer: stabilisers (progressively
graduated corporate and
decision making/organising
personal income taxes, and
process, combining or
transfer systems such as
coordinating the factors of
unemployment insurance and
production and taking a risk
welfare = act to stabilize
specialisation and division of labour economic cycles and are
- specialisation and division of automatically triggered without
labour allows for more efficient additional government action)
production as individuals are
A budget shows the details of
assigned specific tasks that they
government expenditure and
can excel at
government revenue
Resource allocation in budget deficit is the amount
different economic systems by which government
and issues of transition expenditure exceeds
free market = resources are government revenue
allocated based on supply and changes in indirect taxation to
demand and price mechanism influence spending in an
efficient, reward innovation economy + AD
and entrepreneurship, paid by firms, collected by
consumers may get more gov, passed on to
choice consumers
can lead to inequality, market can be changed easily and
failure (no provision of public quickly, easier + cheaper to
goods despite for them), collect, dont discourage the
consumer abuse by supply side (effort,
monopolies innovation and saving)
planned economy = government may discourage
allocates resources entrepreneurs from
investing cuz of expectation
full syllabus econ notes AS level 4
