CGPwned: Your Cambridge IGCSE Economics Notes!

And...here's economics! Economics is a hard subject - even I kinda **** at it. Anyways, this revision guide is based on two CIE textbooks. So yeah.

It contains the following:

  • Material from the 2012 syllabus
  • Covers units 4.1 - 4.8 (basically the whole course), including things such as inflation, unemployment, development, economic indicators, GDP, factors of production - you name it!
  • Detailed explanations and awesome diagrams
  • And lots more!

Update #1: A crazyass improvement in terms of definitions and stuff thanks to doing hordes of pastpapers recently - I basically cut out some unnecessary things and copied and pasted cambridge answers to some of the definitions and advantages/disadvantages. 'Cause textbook answers are pretty useless if they aren't like the mark scheme's. lol.

Lets hope this gets you your A*/As - And hopefully mine too!

Good luck in May/June for y'all!

CGPwned

When economics and CGP books get pwned...

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  • Created on: 14-03-12 13:25
Preview of CGPwned: Your Cambridge IGCSE Economics Notes!

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CGPwned
IGCSE Cambridge
Economics Notes
When economics gets pwned...
Year 11 Examination Preparation
IGCSE Cambridge Examinations 2012

Other pages in this set

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Syllabus Statements
4.1 Basic economic problem: choice and the allocation of resources
Candidates should be able to:
· define the nature of the economic problem (finite resources and unlimited wants)
· define the factors of production (land, labour, capital, enterprise)
· define opportunity cost and analyse particular circumstances to illustrate the concept
· evaluate the implications of particular courses of action in terms of opportunity cost.
4.…read more

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· describe the principle of profit maximisation as a goal
· describe pricing and output policies in perfect competition and monopoly
· describe the main reasons for the different sizes of firms (size of market, capital,
organisation)
· describe and evaluate integration, economies and diseconomies of scale
· discuss the advantages and disadvantages of monopoly.
4.…read more

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· describe the structure of the current account of the Balance of Payments
· define exchange rates
· discuss the causes and consequences of exchange rate fluctuations
· describe methods of protection
· discuss the merits of free trade and protection.…read more

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Unit 4.1: The Basic Economic Problem Choice and Allocation of
Resources
Define the nature of the economic problem (finite resources and unlimited wants)
The basic economic problem is the fact that resources are scarce and people's wants are
unlimited.
Define the factors of production (land, labour, capital, enterprise)
The scarce resources available for use in the production of goods and services to satisfy our
wants are called factors of production.…read more

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· Secondary sector: the processing of raw materials into semifinished and finished
goods.
· Tertiary sector: the production of services.
Unit 4.2: The Allocation of Resources, How the Market Works Market
Failure
Describe the allocation of resources in market and mixed economic systems
What What goods and services should people make? What wants should be
chosen to be satisfied? Every society, no matter its size, is faced with the
same choice.…read more

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The Supply Curve Factors that Affect Supply
The higher the price, · Cost of FOP
the higher the quantity · Prices of other
supplied. Producers goods/services
supply more at a · Global Factors
higher price because · Technology Advance (to
selling a higher production)
quantity at higher · Business
price increases Optimism/Expectations
revenue.
EQUILIBRIUM PRICE
When supply and demand are equal the economy is said to be at
equilibrium.…read more

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Allocate ­ Where to allocate resources.
Ration ­ How much should it cost according to the degree of scarcity.
Signal ­ Shows entrepreneurs what to produce.
Incentive ­ Will entrepreneurs continue producing that product.
define price elasticity of demand and supply and perform simple calculations
demonstrate the usefulness of price elasticity in particular situations such as revenue
changes, consumer expenditure
PRICE ELASTICITY OF DEMAND
· The responsiveness of demand to a change in price.…read more

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example could be a cure for a lifethreatening disease. People would save up all they
can to save their lives.
· If a product is only demanded at one particular price, demand is said to be infinitely
price elastic. A small change in price would cause demand to fall to zero, that is,
quantity demanded will change by an infinite amount. It would have a PEd of .…read more

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Special Supply Curves
If PEs is 0, then supply is said to be perfectly inelastic. A change in price has no effect on
quantity supplied. An example will be concert tickets or sport tickets. No matter how much
the price is raised, the number of tickets remains the same.
If PEs is infinite, then any change in price will cause supply to drop to 0.
If PEs is 1, then supply is said to be of unitary elasticity.…read more

Comments

Sanya Mangal

really helpful

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