The key terms associated with market failure: public good, merit good, demerit good, social benefits, external benefits, private benefits, social costs, external costs, private costs. With respect to public goods, merit and demerit goods, external costs and external benefits, abuse of monopoly power and factor immobility. Examples of market failure with respect to these areas only. The implications of misallocation of resources in respect of the over consumption of demerit goods and goods with external costs, and the under consumption of merit goods and goods with external benefits. Note: demand and supply diagrams relating to market failure are not required. Market failure review - PPT Supply and demand review - PPT Questions and suggested solutions doc

5.5.1 Profitability: • The concept and importance of profitability 5.5.2 Liquidity: • The concept and importance of liquidity 5.5.3 How to interpret the financial performance of a business by calculating and analysing profitability ratios and liquidity ratios: • Gross profit margin • Profit margin • Return on Capital Employed • Current ratio • Acid test ratio 5.5.4 Why and how accounts are used: • Needs of different users of accounts and ratio analysis • How users of accounts and ratio results might use information to help make decisions, e.g. whether to lend to or invest in the business Questions and suggested answers

PPT covering: • Basis of business classification, using examples to illustrate the classification • Reasons for the changing importance of business classification, e.g. in developed and developing economies

5.3.1 What profit is and why it is important: • How a profit is made • Importance of profit to private sector businesses, e.g. reward for risk-taking/enterprise, source of finance • Difference between profit and cash 5.3.2 Income statements: • Main features of an income statement, e.g. revenue, cost of sales, gross profit, profit and retained profit • Use simple income statements in decision making based on profit calculations (constructing income statements will not be assessed) *Questions and suggested answers"

Locally, nationally and internationally. 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 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 aligned to the CIE syllabus. Summative and formative assessments provided with suggested solutions. Topics covered included the PPC scarcity, opportunity costs, efficiency etc.

PPT aligned to the CIE syllabus. Summative and formative assessments provided with suggested solutions. Topics covered included scarcity, opportunity costs, factors of production etc.

PPT aligned to the CIE syllabus. Summative and formative assessments provided with suggested solutions. Topics covered included private goods, public goods, free-rider problem, exclusivity, rivalrous, merit goods, demerit goods, imperfect information etc