England · Pearson EdexcelQ&A
EconomicsQ&A by dot point
A short Q&A bank for every England Economics syllabus dot point. Each question and answer is drawn directly from our worked dot-point page, so you can scan key concepts before opening the long-form answer.
Theme 1: Introduction to markets and market failure
- Indirect taxes, subsidies, maximum and minimum prices, tradable pollution permits, state provision, regulation and information provision, and the causes of government failure.4Q&A pairs
- Demand and supply, the determinants and elasticities (PED, YED, XED, PES), the price mechanism and its functions, consumer and producer surplus, and the basics of consumer behaviour.2Q&A pairs
- Externalities, public goods, information gaps and the merit and demerit good distinction, and how each causes the market to misallocate resources.2Q&A pairs
- The economic problem of scarcity, the methodology of economics as a social science, positive and normative statements, the production possibility frontier, specialisation and the functions of money.2Q&A pairs
Theme 2: The UK economy - performance and policies
- The components of aggregate demand, the determinants of consumption, investment, government spending and net trade, and the shape and shifts of the AD curve.2Q&A pairs
- Short-run aggregate supply and its determinants, long-run aggregate supply, the Keynesian and classical LRAS curves, and the factors that shift the productive capacity of an economy.2Q&A pairs
- Actual and potential growth, the causes of short-run and long-run growth, the output gap, the economic cycle, and the costs and benefits of growth.2Q&A pairs
- The main macroeconomic objectives, fiscal policy, monetary policy, supply-side policies, the conflicts between objectives, and the use of policies in different contexts.2Q&A pairs
- Economic growth and real GDP, inflation and its measurement, employment and unemployment, the balance of payments on current account, and the limitations of these indicators.2Q&A pairs
- The circular flow of income, injections and withdrawals, equilibrium real national output, and the multiplier effect.3Q&A pairs
Theme 3: Business behaviour and the labour market
- The reasons firms grow or stay small, organic and inorganic growth, types of integration, the principal-agent problem and the divorce of ownership from control.2Q&A pairs
- Profit maximisation and the MC equals MR rule, and alternative objectives including revenue maximisation, sales maximisation, satisficing and survival.2Q&A pairs
- Competition policy, regulation of monopolies and mergers, price and profit regulation of natural monopolies, protection of suppliers and employees, and the limits of intervention.2Q&A pairs
- Perfect competition, monopolistic competition, oligopoly and monopoly, their assumptions and outcomes, price and non-price competition, and types of efficiency.2Q&A pairs
- Total, average and marginal revenue and cost, the law of diminishing returns, economies and diseconomies of scale, and normal and supernormal profit.2Q&A pairs
- The demand for and supply of labour, wage determination in competitive and imperfect markets, monopsony, trade unions, and the causes of wage differentials.2Q&A pairs
Theme 4: A global perspective
- Measures of development, the factors influencing growth and development, market-oriented and interventionist strategies, and the role of aid, trade and institutions.2Q&A pairs
- Exchange rate systems, the determinants of floating exchange rates, the effects of changes in the exchange rate, the balance of payments, and the relationship between competitiveness and the current account.2Q&A pairs
- Globalisation, absolute and comparative advantage, the gains from trade, protectionism, trading blocs and the role of the World Trade Organisation.2Q&A pairs
- Absolute and relative poverty, the measurement of inequality using the Lorenz curve and Gini coefficient, the causes and effects of inequality, and the distinction between wealth and income.2Q&A pairs
- Public expenditure and taxation, the budget balance and national debt, fiscal and supply-side policy in a global context, and the role of macroeconomic policies in managing the economy.2Q&A pairs
- The role of financial markets, market failure in the financial sector, the role of central banks, and the regulation of the financial system.2Q&A pairs