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 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 aligned to the CIE syllabus. Summative and formative assessments provided with suggested solutions. Topics covered included division of labour, absolute advantage, comparative advantage, microeconomics, macroeconomics, normative statement, positive statement 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.

The difference between microeconomics and macroeconomics and the decision makers involved in each.

Definition of PPC points under, on and beyond a PPC movements along a PPC shifts of a PPC Questions and proposed solutions

The forms, functions and characteristics of money. The role and importance of central banks and commercial banks for government, producers and consumers. Questions and suggested solutions

**Definition of opportunity cost The influence of opportunity cost on decision making** Questions and proposed solutions

Covering the objectives of the syllabus Finite resources and unlimited wants Economic and free goods Questions and proposed solutions

Definitions of the factors of production and their rewards Mobility of the factors of production Quantity and quality of the factors of production Questions and proposed solutions

Definition, drawing and interpretation of demand and supply schedules and curves used to establish equilibrium price and sales in a market. Definition, drawing and interpretation of demand and supply schedules and curves used to identify disequilibrium prices and shortages (demand exceeding supply) and surpluses (supply exceeding demand). Supply and demand review doc Questions and suggested solutions

Definition, drawing and interpretation of appropriate diagrams. A demand curve to be drawn and used to illustrate movements along a demand curve with appropriate terminology, for example extensions and contractions in demand. The link between individual and market demand in terms of aggregation. The causes of shifts in a demand curve with appropriate terminology, for example increase and decrease in demand Supply and demand review doc Questions and suggested solutions

Definition, drawing and interpretation of appropriate diagrams. A supply curve to be drawn and used to illustrate movements along a supply curve with appropriate terminology, for example extensions and contractions in supply. The link between individual and market supply in terms of aggregation. The causes of shifts in a supply curve with appropriate terminology, for example increase and decrease in supply. Supply and demand review doc Questions and suggested solutions

How a market system works; including buyers, sellers, allocation of scarce resources, market equilibrium, and market disequilibrium. Establishing that the economic problem creates three key questions about determining resource allocation What, how, and for whom to produce? How the price mechanism provides answers to these key allocation questions. Questions and suggested solutions

Real GDP per head and the Human Development Index (HDI). The components of real GDP and HDI. The advantages and disadvantages of real GDP and HDI. Reasons for differences in living standards and income distribution within and between countries. Questions and suggested answers

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