AQA EconomicsAS (7135 )Topic Question

3.1.1 Economic methodology and the economic problem Economic methodology The nature and purpose of economic activity Economic resources Scarcity, choice and the allocation of resources Production possibility diagrams

3.1.2 Price determination in a competitive market The determinants of the demand for goods and services Price, income and cross elasticities of demand The determinants of the supply of goods and services Price elasticity of supply The determination of equilibrium market prices The interrelationship between markets

3.1.3 Production, costs and revenue Production and productivity Specialisation, division of labour and exchange Costs of production Economies and diseconomies of scale Average revenue, total revenue and profit

3.1.4 Competitive and concentrated markets Market structures The objectives of firms Competitive markets Monopoly and monopoly power The competitive market process

3.1.5 The market mechanism, market failure and government intervention in markets How markets and prices allocate resources The meaning of market failure Public goods, private goods and quasi-public goods Positive and negative externalities in consumption and production Merit and demerit goods Market imperfections An inequitable distribution of income and wealth Government intervention in markets Government failure

3.2.1 The measurement of macroeconomic performance The objectives of government economic policy Macroeconomic indicators Uses of index numbers

3.2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis, and related concepts The circular flow of income Aggregate demand and aggregate supply analysis The determinants of aggregate demand Aggregate demand and the level of economic activity Determinants of short-run aggregate supply Determinants of long-run aggregate supply

3.2.3 Economic performance Economic growth and the economic cycle Employment and unemployment Inflation and deflation The balance of payments on current account Possible conflicts between macroeconomic policy objectives

3.2.4 Macroeconomic policy Monetary policy Fiscal policy Supply-side policies