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; | |
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demonstrate the principle of equilibrium price and analyse simple market situations with changes in demand and supply; |
Supply and Demand Interacting – The Equilibrium Price Equilibrium Price – How do The Laws of Supply and Demand Interact? |
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describe the causes of changes in demand and supply conditions and analyse such changes to show effects in the market; |
Should Eggs Be Sold At Their Pre-Flood Prices During the Flood Crisis? |
| define price elasticity of demand and supply and perform simple calculations; | |
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demonstrate the usefulness of price elasticity in particular situations such as revenue changes, consumer expenditure; |
How does elasticity of supply and demand affect incidence of tax? |
| describe the concept of market failure and explain the reasons for its occurrence; | |
| evaluate the merits of the market system; | |
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define private and social costs1 and benefits and discuss conflicts of interest in relation to these costs |
Enquiry–Market Failure and Possible Solutions in Real Life Issues |
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; | |
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describe the differences in earnings between different occupational groups (male/female; skilled/ |
Differences in Earnings between different Occupational Groups Understanding why wages differ between jobs using supply and demand analysis |
| 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; | |
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discuss how and why different income groups have different expenditure patterns (spending, saving and |
Topic 4 The private firm as producer and employer
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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; |
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| 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 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; | |
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describe the aims of government policies, such as full employment, price stability, economic growth, |
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| discuss the possible conflicts between government aims; | |
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describe the types of taxation (direct, indirect, progressive, regressive, proportional) and the impact of taxation; |
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| discuss the government’s influence (regulation, subsidies, taxes) on private producers. |
Topic 6 Economic indicators
| describe how the retail price index is calculated; | |
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discuss the causes and consequences of inflation. |
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| describe the changing patterns and levels of employment; | |
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discuss the causes and consequences of unemployment. |
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| define Gross Domestic Product (GDP); | |
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describe simple measures and indicators of comparative living standards, such as GDP per head, Human |
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; | |
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recognise and discuss policies to alleviate poverty; |
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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; |
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analyse the problems and consequences of these population changes for countries at different stages of |
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| describe the effects of changing size and structure of population on an economy; | |
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discuss differences in living standards within countries and between countries, both developed and developing. |
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| Revision |
Development Economics TED Talks Developed and Developing Economies – Online Resources and Revision Materials |
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; | |
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describe the structure of the current account of the balance of payments; |
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define exchange rates; |
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discuss the causes and consequences of exchange rate fluctuations; |
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| describe methods of protection; | |
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discuss the merits of free trade and protection. |
Overall Revision and Exam Preparation
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How Long Should You Spend On the IGCSE Economics Paper 2 Questions? |
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:
