Physics and maths tutor economics. education Edexcel (A) Economics A-level Theme 3 : Business Behaviour & the Labour Market 3. It is made up of the following components, which make up the equation: Tutors. This may help goods to become more elastic in the long run. Any quantity demanded can be met without changing price. You can therefore use the past papers for Cambridge IGCSE Economics – 0455 to inform your 1. Economic growth occurs due to an improvement in the quantity or quality of one of the factors of production, or Definitions - Topic 5 The market mechanism, market failure and government intervention in markets - AQA Economics AS-level. There are three main types of market failure: Externalities: An externality is the cost or benefit a third party receives from an economic transaction outside of the market mechanism. Indirect taxes are taxes on expenditure. a) Economic growth, economic development and sustainability. . Switzerland is the most competitive, whilst Germany is 5th. Almost all growth of firms is organic. Households supply firms with the factors of production, such as labour, land, capital and enterprise, and in return, they receive wages, rent, dividends and profit. 2. e) The circular flow of income. This is a theory that estimates how much the exchange rate needs adjusting so that an exchange between countries is equivalent, according to each currency’s purchasing power. The distinction between monetary and fiscal policy: 1. ×Ø 2Ý`ÇÎÐÐßgûH, |§ó¥ûǬ F ­ÉêÉôd½ûëÍ• ë y\6 ÒE,æív¾kˆ Ÿ ²¨SŠAþ@ – $€³‡¤2ºoȵXmw¨èæp õ Supply-side policies aim to improve the long run productive potential of the economy. o Trade liberalisation Free trade is the act of trading between nations without protectionist 3. If the price of bread increased by 15%, and the quantity demanded decreased by Inflation is the sustained rise in the general price level over time. Contextual Analysis. RPI might be 5% for a particular year. is a group of two or more firms which have agreed to control prices, limit Edexcel (A) Economics A-level Theme 4: A Global Perspective. 90 per day. 6. The balance of payments is a record of all financial dealings over a period of time between economic agents of one country and all other countries. A-Level Economics; International Baccalaureate; Pre-University Tuition; University Tutoring; Aptitude Test Practice. They increase production costs for producers, so producers supply less. Overt collusion is when a formal agreement is made between firms. Governments intervene in the market to correct market failure. The distinction between market-based and interventionist policies: Overt and tacit collusion; cartels and price leadership: Collusion can be overt or tacit. %PDF-1. a) The circular flow of income. 3. Disinflation is the falling rate of inflation. 5 Role of the State in the Macroeconomy. education. b) Aggregate demand and aggregate supply analysis. If X is set at 2%, then the firm can only increase prices by Whether you are preparing for A-Level or GCSE Biology exams, PMT Biology Revision has everything you need to ace your tests. 1. c) Classification of countries. This maximises utility. PMT Biology Revision is your one-stop resource for mastering biology. In his teenage years, he worked as a tennis coach, and in 2010, while still an undergraduate student, he began tutoring students in his spare time. This is illustrated with a Phillips curve. 8 Consumer and producer surplus Notes www. In the short run, the Phillips curve is roughly L-shaped, which shows how as unemployment increases, inflation decreases. 5%. A movement from A to C is an extension in demand, the quantity demanded rises due to a decrease in price. Firms and households interact and exchange resources in an economy. 3 Pattern of trade. d) Positive and negative externalities in consumption and production. Exchange rate systems The exchange rate of a currency is the weight of one currency relative to another. 0 (1) University College London - BSc Economics. c) Public goods, private goods and quasi-public goods. a) How markets and prices allocate resources. Firms supply goods and services to households. 1 National income. It is measured by the annual change in real GDP. Imports are when goods/services come in, so money goes out. 1 Public expenditure. 4. Physics and Maths; Online Tutoring; 7+ and 8+ Tuition; 11+ and 13+ Tuition; Primary Years Tutors; Lower Secondary; GCSE Tuition. 1 Economic Growth. Inflation is the sustained rise in the general price level over time. For notes, worksheets and their solutions, visit the Maths Revision page. d) Aggregate demand and the level of economic activity. You can access revision notes, summary sheets, worksheets, topic questions and papers with model solutions for various exam boards and modules. 1 Types of Market Failure. The short-run Phillips curve represents the trade-off between unemployment and inflation. Private Tuition. The above Phillips curve is for the short run. 1 Efficiency. It measures spending on goods and services by consumers, firms, the government and overseas consumers and firms. Book now! For each of the exam boards below, there are revision notes, factsheets, questions from past exam papers separated by topic and videos. e) Determinants of SRAS. In other words, a rise in economic growth means there has been an increase in national output. cartel. Edexcel (A) Economics A-level Theme 2 : The UK Economy, Performance and Policies 2. Edexcel Economics (A) A-level Theme 4: A Global Perspective 4. 5. f) Money supply (theory) g) Keynesian and Monetarist schools. A . Detailed Notes. 7 Contestability Notes www. Key word Definition. This means that the person is unable to meet their basic needs of food, clean water, sanitation, health, shelter and education. Economic and social welfare is not maximised where there is market failure. However, the two-sector model is too simplified to represent the actual economy: Firstly, the government needs to be added: they take money out of the economy through taxation (T) and add money by spending (G). For example, Network Rail for track maintenance and the government for teachers are examples of a monopsony. An externality is the cost or benefit a third party receives from an 2. It could lead to inefficient spending. The World Bank uses a measurement based on the number of people living on less than $1. As economic growth increases, unemployment falls due to more jobs being created. Find past papers and mark schemes for AQA A-Level Economics Paper 1 (7136/1) on this web page. The UK used to be the ‘workshop of the world’, exporting huge amounts of goods but the 1970s and 1980s saw a process of deindustrialisation with exports of services becoming increasingly important. Allocative efficiency occurs when resources are distributed to the goods and services that consumers want. Governments aim to have sustainable economic growth for the long run. 1 Measures of Economic Performance Edexcel (A) Economics A-level Theme 1: Introduction to Markets and Market Failure 1. In 2013 while working as a full-time physics and maths tutor, he established the Physics & Maths Tutor website (PMT), which he steadily grew over the next few years, alongside his tutoring career. The curve shows how the point of maximum total revenue is MR =0. 1 Government intervention. You can access past papers, summary notes, factsheets and past exam questions by topic for various exam boards, as well as useful tips and videos. A movement from A to B is a contraction in demand, the quantity demanded falls because of an increase in price. Whether you are preparing for A-level or AS-level Maths, you can find a wealth of resources on PMT Maths Revision. Floating: The value of the exchange rate in a floating system is determined by the forces of supply The diagram below shows the long run equilibrium for a perfectly competitive market. d) Employment and unemployment. For economic growth to occur, there needs to be an increase in quality or quantity of one of the four factors of production: land, labour, capital or enterprise, or these being used more efficiently. This means that the cost of living increases and the purchasing power of money decreases. The government could influence the size of the circular flow by The long run Phillips curve. PED = infinity. 4 Market Structures 3. Market failure occurs when the free market fails to allocate resources to the best interests of society, so there is an inefficient allocation of scarce resources. Private Tutor with 7 Years Experience supporting A Level & GCSE students in Maths and Economics. The balance of payments consists of the goods and services account, the primary income account, the secondary income account, the capital account, and Absolute and relative poverty Absolute poverty is defined as living below subsistence. Exports are when money comes in, so the good/service goes out. Absolute poverty is defined as living below subsistence. Relative poverty is measured by comparison to the average in Demand-side policies are policies designed to increase consumer demand, so that total production in the economy increases. For example, if a car cost £15,000 and the exchange rate between the UK and the US is 1. 4. education The value of X is the amount in real terms that the price has to be cut by. PMT also offers online revision courses and maths and economics tutoring services. The supply of labour is affected by: Economic growth is defined as the expansion of the productive potential of the economy. 2 Supply of labour. 4 Government Intervention. It raises government revenue, which could be used to solve the externality in other ways such as through education. www. Jaisul N. A perfectly elastic good has a demand which falls to zero when price changes. 4 Balance of payments. 33. Floating: The value of the exchange rate in a floating system is determined by the forces of supply Organic growth: There are two main types of growth: internal/organic growth and integration. The long run Phillips curve is also known as the vertical Apr 5, 2016 · The balance of payments for a country summarises all transactions between residents of a nation and non-residents during a period. Definitions. You can also use the SolutionBank feature to check your answers and learn from your mistakes. All economists agree that an increase in LRAS will increase the potential level of output in an economy. Check out our 2-day online AS-level Chemistry Recap Course for AQA and OCR (A) on 29-30th May. GDP measures the quantity of goods and services produced in an economy. 5 £ per $, then in the US, the car should cost $10,000. Despite being a small country, Switzerland is the most competitive since it is a tax haven, which encourages a lot of Supermarket price war blamed for food producers folding. It exists at P = MC, which means that consumers pay for the value of the marginal utility they derive from consuming the good or service. 4 Inflation. UCL Economics Graduate (2. The key aims for competition policy are to promote competition and ensure markets are efficient. The UK’s entry to the EU led to an increase in trade with Europe. 1 Types of market failure. Deflation is the opposite of inflation, where the average price level in the economy falls. Consumers pay firms for these. PMT Maths Revision is your one-stop shop Causes of changes: Poverty is caused by unemployment, a lack of skills, health problems and income dependency. country’s LRAS curve. They also protect consumer interests by keeping prices low and widening consumer choice. 1. ★ 5. It includes the value of trade flows, investment incomes and other financial transactions across national borders. How the Macroeconomy Works, Circular Flow of Income, AD/AS Analysis and Related Concepts. b) The meaning of market failure. h) The demand for money and interest rate determination. Factors that influence the supply of labour to a particular occupation: The supply of labour is calculated by the number of workers willing and able to work at the current wage rate, multiplied by the number of hours they can work. Economic growth occurs when there is a rise in the value of Gross Domestic Product (GDP). Organic growth is where the firm grows by increasing their output, for example increased investment or more labour. If the price of producing wheat increased by 15%, and the quantity supplied decreased by 20%, the PES of wheat is: -20% / 15% = -1. Deflation is the opposite, where the average price level in the economy falls. It can be depicted by an outward shift in the PPF or an outward shift in. Full past papers and model solutions can be found on the Paper 1, Paper 2 and Paper 3 pages. Supermarket price war hits Asda sales . Since the value is negative, the supply of wheat is relatively price inelastic. The government have four key macroeconomic objectives: Economic growth: In the UK, the long run trend of economic growth is about 2. In this simple model, the national output=national expenditure=national income. Numerical Reasoning Test Practice Book now to avoid disappointment! On this page you can find links to topic tests, past paper questions separated by topic and grade, for both Foundation and Higher tiers. For 0987 Cambridge says ‘this syllabus is graded from 9 to 1 but is otherwise the same as Cambridge IGCSE Economics – 0455. Movements along the curve are not called increases or decreases- this only occurs when the curve shifts. 1) You can find all CAIE Economics IGCSE (0455 and 0987) Paper 2 past papers and mark schemes below. 3. Components of AD and their relative importance: Aggregate demand is the total demand in the economy. GCSE Maths Tutor; A-Level Tuition. Government intervention to control mergers: The Competition and Markets Authority (CMA) is the main competition regulator in the UK. Absolute advantage When a country can produce a good more cheaply in absolute terms than another country Absolute poverty When people are unable to afford sufficient necessities to maintain life; those on less than $1. Sales maximisation: This is when the firm aims to sell as much of their goods and Fiscal policy instruments: o Government spending and taxation Governments can change the amount of spending and taxation to stimulate the economy. b) National Income statistics. They may open new stores, increase their range of products etc. c) The determinants of aggregate demand. There is a negative inflation rate. 2 How Markets Work 1. Limitations of fiscal policy: o Governments might have imperfect information about the economy. 1 The characteristics of AD. Absolute poverty tends to fall as GDP increases, assuming that the state provides support to those who are unable to benefit from a growing economy. Book now! There are notes for each of the topics below. This means that the cost of living increases and the purchasing power of money decreases. pmt. 6 %âãÏÓ 379 0 obj >stream hÞtP=kÃ0 ý+7¶‹O’«8†à!IcB)5¶†€ ÅqŽ’B,#É%ù÷•ätìtïÄû:I`Às Y « nô48 ¸W õ$ ‘ðg|»œm+2é‰u¤†™ÎÛ" ߎ¨î#aÕ}‘-Šh68 œ…TF nŒ ×úÖ2¿É\&©€å OrqÄÒèi š ·ôsé©. The supernormal profits made by existing firms means that new firms have an incentive to enter the industry. Possible macroeconomic objectives: Governments intervene in the economy in an attempt to improve its economic performance. 2. o There is a significant time lag involved with employing fiscal policy. The government spends money for a number of reasons. Unemployment vs inflation: In the short run, there is a trade-off between the level of unemployment and the inflation rate. As of 2015, the UK is the 9th most competitive country in the world. The two main causes of growth of relative poverty are if those on higher salaries. Characteristics and conditions for a monopsony to operate: A monopsony is a single buyer in a market. It is used for macroeconomic management to control AD and achieve macroeconomic objectives: economic growth, low and stable 2. For example, they might provide healthcare and education, which the free market would underprovide. Market failure occurs when the market fails to allocate scarce resources efficiently, causing a loss in social welfare loss. Advantages: It internalises the externality- the market now produces at the social equilibrium position and social welfare is maximised. 90 a day Aid At the point Q P1, the firm is operating at MR=0, where revenue maximises. Approaching end of year exams? Keen to recap everything you learnt in Year 12? Check out our 2-day online AS-level Economics Recap Course on 25-26th May. Economic growth leads to higher living standards and more Supply is perfectly elastic when PES = infinity. Any factor which increases the LRAS, will OCR A-level Economics Revision. Market-orientated strategies These are measures which make the economy more free, with minimum government intervention. This means that the person is unable to meet their basic needs of food, clean water, sanitation, health, shelter and 2. rq bb ws yr jg gi yd nx nf wv