IGCSE Economics

Topic 1 Basic Economic Problem: Choice and the allocation of resources

define the nature of the economic problem (finite resources and unlimited wants); The Basic Economic Problem – Part 1
define the factors of production (land, labour, capital, enterprise); The Basic Economic Problem – Part 1
define opportunity cost and analyse particular circumstances to illustrate the concept; Basic Economic Problem–Part 2
evaluate the implications of particular courses of action in terms of opportunity cost. Basic Economic Problem–Part 2

Topic 2 The allocation of resources: how the market works; market failure

describe the allocation of resources in market and mixed economic systems;  

demonstrate the principle of equilibrium price and analyse simple market situations with changes in demand and supply;

  

describe the causes of changes in demand and supply conditions and analyse such changes to show effects in the market;

  
define price elasticity of demand and supply and perform simple calculations;  

demonstrate the usefulness of price elasticity in particular situations such as revenue changes, consumer expenditure;

  
describe the concept of market failure and explain the reasons for its occurrence;  
evaluate the merits of the market system;  

define private and social costs1 and benefits and discuss conflicts of interest in relation to these costs
and benefits in the short term and long term through studies of the following issues:
• conserving resources versus using resources;
• public expenditure versus private expenditure.

  

Topic 3 The individual as producer, consumer and borrower

describe the functions of money and the need for exchange;  
describe the functions of central banks, stock exchanges, commercial banks;  
identify the factors affecting an individual’s choice of occupation (wage factors and non-wage factors);  
describe likely changes in earnings over time for an individual;  

describe the differences in earnings between different occupational groups (male/female; skilled/
unskilled; private/public; agricultural/manufacturing/services);

  
describe trade unions and their role in an economy;  
describe the benefits and disadvantages of specialisation for the individual;  
analyse the different motives for spending, saving and borrowing;  

discuss how and why different income groups have different expenditure patterns (spending, saving and
borrowing).

  

Topic 4 The private firm as producer and employer

describe the type of business organisation in the public and private sectors: sole proprietors, partnerships, private companies, public companies, multi-nationals, co-operatives, public corporations;

  
describe and evaluate the effects of changes in structure of business organisations;  
describe what determines the demand for factors of production;  
define total and average cost, fixed and variable cost and perform simple calculations;  
analyse particular situations to show changes in total and average cost as output changes;  
define total and average revenue and perform simple calculations;  
describe the principle of profit maximisation as a goal;  
describe pricing and output policies in perfect competition and monopoly;  
describe the main reasons for the different sizes of firms (size of market, capital, organisation);  
describe and evaluate integration, economies and diseconomies of scale;  
discuss the advantages and disadvantages of monopoly.  

Topic 5 Role of government in an economy

describe the government as a producer of goods and services and as an employer;  

describe the aims of government policies, such as full employment, price stability, economic growth,
redistribution of income, balance of payments stability;

  
discuss the possible conflicts between government aims;  

describe the types of taxation (direct, indirect, progressive, regressive, proportional) and the impact of taxation;

  
discuss the government’s influence (regulation, subsidies, taxes) on private producers.  

Topic 6 Economic indicators

describe how the retail price index is calculated;  

discuss the causes and consequences of inflation.

  
describe the changing patterns and levels of employment;  

discuss the causes and consequences of unemployment.

  
define Gross Domestic Product (GDP);  

describe simple measures and indicators of comparative living standards, such as GDP per head, Human
Development Index (HDI).

  

Topic 7 Developed and developing economies: trends in production, population and living standards

describe why some countries are classified as developed and others are not;

describe why some countries are classified as developed and others are not;  

recognise and discuss policies to alleviate poverty;

  

describe the factors that affect population growth (birth rate, death rate, fertility rate, net migration) and discuss reasons for the different rates of growth in different countries;

  

analyse the problems and consequences of these population changes for countries at different stages of
development;

  
describe the effects of changing size and structure of population on an economy;  

discuss differences in living standards within countries and between countries, both developed and developing.

  

Topic 8 International aspects

describe why some countries are classified as developed and others are not;

describe the benefits and disadvantages of specialisation at regional and national levels;  

describe the structure of the current account of the balance of payments;

  

define exchange rates;

  

discuss the causes and consequences of exchange rate fluctuations;

  
describe methods of protection;  

discuss the merits of free trade and protection.

  

Here is the syllabus overview for revision purposes (use the tabs at the bottom to explore):

Here is the link to the Google Doc for you to download/ modify:

IGCSE Economics Revision Checklist