OCR GCSE Economics Unit A592 Notes

Here you will find my notes on OCR GCSE Economics Unit A592 (Unit 2): How the Economy Works. I have taken extracts from the specification of what we need to know and then made detailed notes underneath on what the specification is asking for.

I have also made a document like this for Unit A591: How the Market Works, Unit A593: The UK Economy and Globalisation and AQA GCSE Computer Science.

Enjoy!

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OCR GCSE Economics Unit A592 Notes
understand the objectives of government policies
· Maintaining full employment
· Ensuring price stability
· Achieving high economic growth
· Balancing exports and imports
understand that a combination of policies can be used to achieve an objective
· Fiscal policy
· Monetary policy
·…

Page 2

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· Inequalities of income and wealth
· Inflation
1
· A rise in martial living standards
· A rise in the welfare of the population
· A rise in employment and a fall in unemployment
· A reduction in poverty
identify, explain and evaluate policies that a government can use…

Page 3

Preview of page 3
OCR GCSE Economics Unit A592 Notes
understand what is meant by employment and unemployment
· Full employment is when those able and willing to work are in paid employment at the
current wage rate.
· Unemployment is when workers who are able and willing to work are unable to find…

Page 4

Preview of page 4
supply
understand what is meant by price stability, inflation and the rate of inflation
· Price stability is where the general level of price is kept constant or grows at an
acceptable rate over time.
· Inflation is a sustained rise in the general price level over time.
· The…

Page 5

Preview of page 5
OCR GCSE Economics Unit A592 Notes
understand how the rate of inflation can be measured with regard to the Consumer
Price Index (CPI)
· In the Consumer Price Index, the government finds out the spending pattern of
average families in the country. It records the prices of everything families buy…

Page 6

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· Fiscal policy Budget surplus Decrease aggregate demand Lower prices
· Monetary policy Raise interest rates Decrease aggregate demand Lower
prices
· Supply side policy Reduce power of trade unions Lower wages Lower costs of
production Lower prices
identify the main areas of UK government spending
· Social protection
·…

Page 7

Preview of page 7
OCR GCSE Economics Unit A592 Notes
identify the main sources of UK government revenue
· Income tax
· National Insurance
· VAT
· Excise duties
· Loans
distinguish between direct and indirect taxes
· A direct tax is a tax on income or wealth e.g. income tax, NICs, inheritance tax.…

Page 8

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· People may have other incomes such as benefits, rent, shares and savings.
understand the difference between progressive, proportional and regressive taxes
· Progressive taxes take a greater proportion of income from higher incomes and a
lower percentage of income from lower incomes.
· Proportional taxes take the same proportion…

Page 9

Preview of page 9
OCR GCSE Economics Unit A592 Notes
explain how redistribution of income and wealth can be achieved through taxation and
government spending, including transfer payments
· Government takes a high proportion of tax from high income groups
· Government spends using this tax revenue on lower income groups
· Transfer payments…

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OCR GCSE Economics Unit A592 Notes

Here you will find my notes on OCR GCSE Economics Unit A592 (Unit 2): How the Economy Works. I have taken extracts from the specification of what we need to know and then made detailed notes underneath on what the specification is asking for.

I have also made a document like this for Unit A591: How the Market Works, Unit A593: The UK Economy and Globalisation and AQA GCSE Computer Science.

Enjoy!

Pages in this set

Page 1

Preview of page 1
OCR GCSE Economics Unit A592 Notes
understand the objectives of government policies
· Maintaining full employment
· Ensuring price stability
· Achieving high economic growth
· Balancing exports and imports
understand that a combination of policies can be used to achieve an objective
· Fiscal policy
· Monetary policy
·…

Page 2

Preview of page 2
· Inequalities of income and wealth
· Inflation
1
· A rise in martial living standards
· A rise in the welfare of the population
· A rise in employment and a fall in unemployment
· A reduction in poverty
identify, explain and evaluate policies that a government can use…

Page 3

Preview of page 3
OCR GCSE Economics Unit A592 Notes
understand what is meant by employment and unemployment
· Full employment is when those able and willing to work are in paid employment at the
current wage rate.
· Unemployment is when workers who are able and willing to work are unable to find…

Page 4

Preview of page 4
supply
understand what is meant by price stability, inflation and the rate of inflation
· Price stability is where the general level of price is kept constant or grows at an
acceptable rate over time.
· Inflation is a sustained rise in the general price level over time.
· The…

Page 5

Preview of page 5
OCR GCSE Economics Unit A592 Notes
understand how the rate of inflation can be measured with regard to the Consumer
Price Index (CPI)
· In the Consumer Price Index, the government finds out the spending pattern of
average families in the country. It records the prices of everything families buy…

Page 6

Preview of page 6
· Fiscal policy Budget surplus Decrease aggregate demand Lower prices
· Monetary policy Raise interest rates Decrease aggregate demand Lower
prices
· Supply side policy Reduce power of trade unions Lower wages Lower costs of
production Lower prices
identify the main areas of UK government spending
· Social protection
·…

Page 7

Preview of page 7
OCR GCSE Economics Unit A592 Notes
identify the main sources of UK government revenue
· Income tax
· National Insurance
· VAT
· Excise duties
· Loans
distinguish between direct and indirect taxes
· A direct tax is a tax on income or wealth e.g. income tax, NICs, inheritance tax.…

Page 8

Preview of page 8
· People may have other incomes such as benefits, rent, shares and savings.
understand the difference between progressive, proportional and regressive taxes
· Progressive taxes take a greater proportion of income from higher incomes and a
lower percentage of income from lower incomes.
· Proportional taxes take the same proportion…

Page 9

Preview of page 9
OCR GCSE Economics Unit A592 Notes
explain how redistribution of income and wealth can be achieved through taxation and
government spending, including transfer payments
· Government takes a high proportion of tax from high income groups
· Government spends using this tax revenue on lower income groups
· Transfer payments…

Comments

No comments have yet been made