This booklet summarizes all of the Micro side of the Economics A level course, with detailed and simplified explanations of key ideas in Economics, definitions of key terms and useful diagrams to get you that A star in your summer exams. This will be useful for paper 1 but could also be useful for...
Theme 1(01.1E Nature of EconomiS) Main economic prablem a m e a n waneed to make
whle our wa ar e , opportunity cost These chsices
aer to fhnd a causal
e e n two variabtes
a n a uman behaviur,
f the nest best
nd s e grap
rh d ustsate modets
te mae
PPFs and the
y p o s e s e s in a iab wsine
Product
Peoce mostiy hveta rev on eidence economicproblem Poss
economic model:
Economics as a social science Renewable resourees eplenish quicly, e.
m ditions e
C , e 8 ol
supports Fovestatements baed on tacta. Can be tasted and prowe
ecomes the ators id p r i d t i n
e statements valae judgments or subiectiw oninie
and cannot be proven trie er fals
Te ve jadememts may be used to infiuence certain
e t e r s purwus
Sere cgtal good het m comtumer
me
good wn hepy te the PPP# eountry decides
Adam Smith
Competiton mes publlc g o Provision of
he state) due to the natural p e tedy eeudu
s inherently flawed.
Proda Pruduciea benefit at the espense of workar
Function productvit
Madun ates Free harket
Adeantage Economic structures conemy i
he price mechanis
erDwth
erwsie
evernment leturvention advantag
mariet tu
Cuntry becomes over res
Friedrich Hay
h bemend side sheck nemg Could lead to inetficiency
s consurmer
, Theme 1 (1.2a: How Markets Work)
People the thend Dherding behatour Lregd h inetune
of
n e a t i g probabilities, we
b u r decisions o
Consumer contracts, even ifthe move benetnu bemBecas t
e erest. For we to
T e l , Ten
behaviou workers maii
Same refurence pa
y e r t s tn be
Supply mast one factor of production e variable. Hence,
Movement along
eooy
Changs in techobe e shot n, pply unda to be
m Nats t0 and i ahie HOveets along all factors of producten factor of production is tif tenen
price varlalhl
posits
Demand Shift in the demand curve resut frort changesn estre sdctioe i
get from this additional unit
Movement along
Tastes and pret or p
w Qua
ubmte go
mand cuve, Fo
Ramember ts des nt inude changs to the
emand cpnt ilt
Te eleninate eates demand
The price mechanism
uppy upT
in sesrhd
er ahat
e r e D e h e n c and
qulibrium prite and osstiu
Hice mechanism alocates resources throught
o u r a reaes in the aesers we pey the mest,
t h e rgh, which will incease Signalling hanees in proe oetetme
Quantity y s p p y o u a changa
he nang va
QwaityY
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