Measurement of inflation and deflation using the Consumer Prices Index (CPI). Causes of inflation: demand-pull and cost-push. Causes of deflation: demand-side and supply-side. The consequences of inflation and deflation for consumers, workers, savers, lenders, firms and the economy as a whole. The range of policies available to control inflation and deflation and how effective they might be. Review of Unit 4 Questions and suggested answers

The nature and causes of changes in the pattern of employment, for example increase in proportion of workers employed in the tertiary sector and formal economy as an economy develops; a greater proportion of women in the labour force due to changes in social attitudes; decline in the proportion employed in the public sector as a country moves towards a market economy. How unemployment is measured – claimant count and labour force survey – the formula for the unemployment rate. Frictional, structural and cyclical unemployment. The consequences of unemployment for the individual, firms and the economy as a whole. The range of policies available to reduce unemployment and how effective they might be. Review of Unit 4 Questions and suggested answers

Total cost (TC), average total cost (ATC), fixed cost (FC), variable cost (VC), average fixed cost (AFC), average variable cost (AVC). Calculation of TC, ATC, FC, VC, AFC and AVC. Definition, drawing and interpretation of diagrams that show how changes in output affect costs of production. Total revenue (TR) and average revenue (AR). Note: marginal revenue is not required. Calculation of TR and AR. The influence of sales on revenue. Survival, social welfare, profit maximisation and growth. *Unit 3 review Note: marginal cost (MC) not required. Questions with suggested solutions

PPT covering unit 8.2 8.2 Equity and redistribution of income and wealth 8.2.1 difference between equity and equality 8.2.2 difference between equity and efficiency 8.2.3 distinction between absolute poverty and relative poverty 8.2.4 the poverty trap 8.2.5 policies towards equity and equality, for example: • negative income tax • universal benefits and means-tested benefits • universal basic income video links to key topics

PPT covering: 8.1 Government policies to achieve efficient resource allocation and correct market failure continued 8.1.2 government failure in microeconomic intervention: • definition of government failure • causes of government failure • consequences of government failure 8.2 Equity and redistribution of income and wealth 8.2.1 difference between equity and equality 8.2.2 difference between equity and efficiency 8.2.3 distinction between absolute poverty and relative poverty 8.2.4 the poverty trap 8.2.5 policies towards equity and equality, for example: • negative income tax • universal benefits and means-tested benefits • universal basic income Links to relevant videos

PPT covering content of Unit 8.3: 8.3 Labour market forces and government intervention 8.3.1 demand for labour as a derived demand 8.3.2 factors affecting demand for labour in a firm or an occupation 8.3.3 causes of shifts in and movement along the demand curve for labour in a firm or an occupation 8.3.4 marginal revenue product (MRP) theory: • definition and calculation of marginal revenue product • derivation of an individual firm’s demand for labour using marginal revenue product 8.3.5 factors affecting the supply of labour to a firm or to an occupation: • wage and non-wage factors 8.3.6 causes of shifts in and movement along the supply curve of labour to a firm or an occupation 8.3.7 wage determination in perfect markets: • equilibrium wage rate and employment in a labour market 8.3.8 wage determination in imperfect markets: • influence of trade unions on wage determination and employment in a labour market • influence of government on wage determination and employment in a labour market using a national minimum wage • influence of monopsony employers on wage determination and employment in a labour market 8.3.9 determination of wage differentials by labour market forces 8.3.10 transfer earnings and economic rent: • definition of transfer earnings • definition of economic rent • factors affecting transfer earnings and economic rent in an occupation Plus video links to key topics

PPT covering Unit 7.6: 7.6 Different market structures 7.6.1 perfect competition and imperfect competition: monopoly, monopolistic competition, oligopoly, natural monopoly 7.6.2 structure of the listed markets as explained by number of buyers and sellers, product differentiation, degree of freedom of entry and availability of information 7.6.3 barriers to entry and exit: • legal barriers • market barriers • cost barriers • physical barriers 7.6.4 performance of firms in different market structures: • revenues and revenue curves • output in the short run and the long run • profits in the short run and the long run • shutdown price in the short run and the long run • derivation of a firm’s supply curve in a perfectly competitive market • efficiency and X-inefficiency in the short run and the long run • contestable markets: features and implications • price competition and non-price competition • collusion and the Prisoner’s Dilemma in oligopolistic markets, including a two-player pay-off matrix 7.6.5 definition and calculation of the concentration ratio video links to key topics

7.7 Growth and survival of firms 7.7.1 reasons for different sizes of firms 7.7.2 internal growth of firms: organic growth and diversification 7.7.3 external growth of firms – integration (mergers and takeovers): • methods of integration: – horizontal – vertical (forwards and backwards) – conglomerate • reasons for integration • consequences of integration 7.7.4 cartels: • conditions for an effective cartel • consequences of a cartel 7.7.5 principal–agent problem arising from differing objectives of shareholders/owners and managers 7.8 Differing objectives and policies of firms 7.8.1 traditional profit-maximising objective of firms 7.8.2 an understanding of other objectives of firms: • survival • profit satisficing • sales maximisation • revenue maximisation 7.8.3 price discrimination – first, second and third degree: • conditions for effective price discrimination • consequences of price discrimination 7.8.4 other pricing policies: • limit pricing • predatory pricing • price leadership 7.8.5 relationship between price elasticity of demand and a firm’s revenue: • in a normal downward sloping demand curve • in a kinked demand curve video links to key topics

PPT covering Unit 7.5: 7.5 Types of cost, revenue and profit, short-run and long-run production 7.5.1 short-run production function: • fixed and variable factors of production • definition and calculation of total product, average product and marginal product • law of diminishing returns (law of variable proportions) 7.5.2 short-run cost function: • definition and calculation of fixed costs (FC) and variable costs (VC) • definition and calculation of total, average and marginal costs (TC, AC, MC), including average total cost (ATC), total and average fixed costs (TFC, AFC) and total and average variable costs (TVC, AVC) • explanation of shape of short-run average cost and marginal cost curves 7.5.3 long-run production function: • no fixed factors of production • returns to scale 7.5.4 long-run cost function: • explanation of shape of long-run average cost curve • concept of minimum efficient scale 7.5.5 relationship between economies of scale and decreasing average costs 7.5.6 internal and external economies of scale 7.5.7 internal and external diseconomies of scale 7.5.8 definition and calculation of revenue: total, average and marginal revenue (TR, AR, MR) 7.5.9 definition of normal, subnormal and supernormal profit 7.5.10 calculation of supernormal and subnormal profit video links to key topics

PPT covering Unit 7.4: 7.4 Private costs and benefits, externalities and social costs and benefits 7.4.1 definition and calculation of social costs (SC) as the sum of private costs (PC) and external costs (EC), including marginal social costs (MSC), marginal private costs (MPC) and marginal external costs (MEC) 7.4.2 definition and calculation of social benefits (SB) as the sum of private benefits (PB) and external benefits (EB), including marginal social benefits (MSB), marginal private benefits (MPB) and marginal external benefits (MEB) 7.4.3 definition of positive externality and negative externality 7.4.4 positive and negative externalities of both consumption and production 7.4.5 deadweight welfare losses arising from positive and negative externalities 7.4.6 asymmetric information and moral hazard 7.4.7 use of costs and benefits in analysing decisions (knowledge of net present value is not required) video links to key topics

PPT covering Unit 7.3 7.3 Efficiency and market failure 7.3.1 definitions of productive efficiency and allocative efficiency 7.3.2 conditions for productive efficiency and allocative efficiency 7.3.3 Pareto optimality 7.3.4 definition of dynamic efficiency 7.3.5 definition of market failure 7.3.6 reasons for market failure

PPT covering the topics of Utility and indifference curves. Each page is question based to determine prior knowledge - good for flipped learning. 7.1 Utility 7.1.1 definition and calculation of total utility and marginal utility 7.1.2 diminishing marginal utility 7.1.3 equi-marginal principle 7.1.4 derivation of an individual demand curve 7.1.5 limitations of marginal utility theory and its assumptions of rational behaviour 7.2 Indifference curves and budget lines 7.2.1 meaning of an indifference curve and a budget line 7.2.2 causes of a shift in the budget line 7.2.3 income, substitution and price effects for normal, inferior and Giffen goods 7.2.4 limitations of the model of indifference curve

The difference between absolute and relative poverty. The causes of poverty including unemployment, low wages, illness and age. Policies including those promoting economic growth, improved education, more generous state benefits, progressive taxation, and national minimum wage. Questions and suggested answers

Floating and fixed systems. The demand for and supply of a currency in the foreign exchange market and the determination of the equilibrium foreign exchange rate. Including changes in demand for exports and imports, changes in the rate of interest, speculation, and the entry or departure of MNCs. The effects of foreign exchange rate fluctuations on export and import prices and spending on imports and exports via the PED. The difference between, and the advantages and disadvantages of, a floating foreign exchange rate and a fixed foreign exchange rate system. Questions and suggested solutions