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EnglandEconomics

1.8-1.10 Production, the labour market and money

4 dot points across 4 inquiry questions. Click any dot point for a focused answer with worked past exam questions where available.

How do firms measure their costs, revenue and profit, and why do these matter for supply?

Calculating total cost, average cost, total revenue, average revenue, and profit or loss, the importance of these for producers, and economies of scale.
An OCR J205 answer on calculating total and average cost, total and average revenue, and profit or loss, why these matter for producers and supply, and economies of scale.
10 min answer →

What is money, and what do banks and financial markets do for the economy?

The functions and characteristics of money, and the role of money and financial markets, including banks, in allowing saving, borrowing and investment.
An OCR J205 answer on the functions and characteristics of money and the role of money and financial markets, including how banks channel saving into borrowing and investment.
9 min answer →

How do firms produce, and why does productivity matter for the economy?

The role of producers (individuals, firms and government), the meaning and importance of production and productivity, and the division of labour and specialisation.
An OCR J205 answer on the role of producers, the difference between production and productivity, why productivity matters, and the gains and risks of the division of labour and specialisation.
9 min answer →

How are wages determined, and what makes some jobs pay more than others?

The role and operation of the labour market, how wages are determined by the demand for and supply of labour, and the factors that affect each.
An OCR J205 answer on how the labour market works: the demand for and supply of labour, how they set wages, and why some occupations pay more than others.
9 min answer →