AS ECONOMICS: MARKETS AND MARKET FAILURE

76 page Economics AS Revision Guide:
Contents:
EXAM TIPS: READ THIS
When do you need to evaluate / How to evaluate
Useful words for evaluation / The nature and purpose of economic activity
Factors of production / Free and economic goods
Profit / Example:
Production Possibility Frontier / Opportunity Cost
Opportunity cost and the PPF / Positive and Normative statements
Examples of positive statements / Examples of normative statements:
Demand and Supply / The Supply Curve
Factors affecting supply / Demand curve / Factors affecting demand
Price equilibrium / Composite demand / Joint demand / Joint supply
Derived demand / Price mechanism / Price elasticity of demand
Factors affecting PED / Elasticity of demand and total revenue
Income elasticity of demand / Normal and luxury goods
Inferior goods / Cross elasticity of demand / Complements
Substitutes / Price elasticity of supply / Factors affecting PES
Specialisation, division of labour and exchange / Benefits from specialisation
Division of labour / The role of money / Economies of scale
Internal economies of scale / External economies of scale
Diseconomies of scale / Production, productivity and productive efficiency
Labour productivity / Productive efficiency
Market failure / Public goods / Quasi-Public goods
Public goods and the valuation problem / Private goods
Externalities / Negative externalities / Evaluation
The disadvantages of using taxation to correct externalities
The benefits of taxation / Taxation diagrams
The use of tradable permits to tackle pollution
Evaluation of permits / Other measures the government can use besides permits
Positive externalities / Evaluation
The disadvantages of using subsidies / Advantages of using a subsidy
Subsidies diagram / Market failure and inequality
Merit and demerit goods / Demerit goods
Labour immobility and market failure / Occupational immobility
Policies to improve occupational immobility:
Geographical immobility / Policies to improve geographical mobility:
Evaluation of policies to reduce immobility / Monopoly and market failure
Evaluation of monopolies / Why do monopolies exist?
Evaluation of monopolies - Advantages / Buffer stock schemes
Advantages of using a buffer stock scheme / Evaluation of buffer stock schemes
Minimum price / Evaluation of minimum price
Maximum price / Advantages of maximum price
Evaluation of maximum price
Government intervention – Methods, benefits and drawbacks
Government failure
Why does government failure occur?
Examples of government failure?