Mathematics

No Chapter Date Date Date Date Date

Pure Mathematics 3
1 Algebra
2 Logarithmic and exponential functions
3 Trigonometry
4 Differentiation
5 Integration
6 Numerical solutions of equations
7 Complex numbers

Probability & Statistics 2

1 The Poisson distribution
2 Linear combinations of random variables
3 Continuous random variables
4 Sampling and estimation
5 Hypothesis tests
 Business
Chapter Sub-Topic Learning Objectives
6.1 External influences on Business activity
6.1.1 Political and legal
•the advantages and disadvantages of privatisation in a given situatio
•the advantages and disadvantages of nationalisation in a given situa
•how a government might use the law to seek to control: employmen
•the impact of changes in political and legal factors on business and b
6.1.2 Economic
•how government might intervene to help businesses and encourage
• how government might intervene to constrain business activity
• how government might deal with market failure
• the key macroeconomic objectives of governments: low unemploym
• how macroeconomic objectives and performance of an economy ca
• government policies used to achieve macroeconomic objectives: mo
• the impact of changes in these government policies on business and
6.1.3 Social and demographic
• the impact of and issues associated with corporate social responsib
• why businesses need to consider the needs of the community includ
• demographic changes at a local, national and global level
• the impact of social and demographic change on business and busin
6.1.4 Technological
• the impact of technological change on business and business decisio
6.1.5 Competitors and suppliers
• the impact of competitors and suppliers on business and business d
6.1.6 International
• the importance of international trading links and their impact on bu
• how international trade agreements might have an impact on busin
• the role of technology in international trade
• the advantages and disadvantages that a multinational might bring
• relationships between multinationals and governments
6.1.7 Environmental
• how physical environmental issues might influence business behavi
• how a business and its stakeholders may use an environmental aud
• the impact of the growing importance of sustainability on business
6.2 Business strategy 6.2.1 Developing business strategy
• the meaning and purpose of business strategy
• the meaning and purpose of strategic management: analysis, choice
• approaches to develop business strategy, including:
– blue ocean strategy
– scenario planning
– SWOT analysis
– PEST analysis
– Porter’s five forces
 – core competence framework
– Ansoff matrix
– force field analysis
– decision trees
6.2.2 Corporate planning and implementation
• the meaning and importance of corporate planning
• the meaning of corporate culture and its impact on business decisio
• the meaning and importance of transformational leadership
• the management and control of strategic change
• the meaning and importance of contingency planning and crisis man
7.1 Organisational structure
7.1.1 The relationship between business objectives and organisational structure
• the purpose and attributes of an organisational structure such as fle
7.1.2 Types of structure: functional, hierarchical (flat and narrow), matrix
• the advantages and disadvantages of the different types of structur
• why some organisations are structured by product and others by fu
• the reasons and ways structures change e.g. due to growth or delay
• the features of a formal structure: levels of hierarchy, chain of comm
7.1.3 Delegation and accountability
• the relationship between delegation and accountability
• the processes of accountability in a business
• the impact of delegation on a business
7.1.4 Control, authority and trust
• the relationship between span of control and levels of hierarchy
• the difference between authority and responsibility
• the conflicts between control and trust that might arise when deleg
7.1.5 Centralisation and decentralisation
• the impact of centralisation and decentralisation on a business
7.1.6 Line and staff
• examples of and distinctions between line and staff functions and th
7.2 Business communication
7.2.1 Purposes of communication
• situations in which communication is essential
7.2.2 Methods of communication
• the standard methods of communication used in business: spoken,
• the strengths and weaknesses of the different methods of commun
7.2.3 Channels of communication
• how communication works within a business
• the difference between one- and two-way communication; the diffe
• problems associated with different channels of communication
7.2.4 Barriers to communication
• barriers to communication and how to overcome them
7.2.5 The role of management in facilitating communication
• the role of informal communications within a business
• ways in which communication can influence the efficiency of a busin
 • ways of improving communication in a given situation
7.3 Leadership
7.3.1 Leadership • the purpose of leadership
• leadership roles in business (directors, managers, supervisors, work
• the qualities of a good leader

7.3.2 Theories of leadership• key leadership theories: trait, behavioural, contingency, power and

7.3.3 Emotional intelligenc • Goleman’s four competencies of emotional intelligence: self-awaren

7.4 Human resource management (HRM) strategy

7.4.1 Approaches to human resource management (HRM)
• the difference between ‘hard’ and ‘soft’ HRM
• flexible working contracts: advantages and disadvantages of tempo
• the measurement, causes and consequences of poor employee per
• strategies for improving employee performance
• Management by Objectives (MBO) – implementation and usefulnes
• the changing role of Information Technology (IT) and Artificial Intell
8.1 Marketing analysis
8.1.1 Elasticity
• the concept of elasticity of demand: price, income and promotional
• calculation of price, income and promotional elasticity of demand
• interpretation of elasticity results
• the impact of elasticity measures on business decisions
• the limitations of the concept of elasticity in its various forms
8.1.2 Product development
• the process of product development
• sources of new ideas for product development
• the importance of Research and Development (R&D)
8.1.3 Sales forecasting
• the need to forecast sales
• time series analysis: calculation and use of four period centred mov
• qualitative sales forecasting
• the impact of sales forecasting on business decisions
8.2 Marketing strategy
8.2.1 Planning the marketing strategy
• the contents of a marketing plan: objectives, resources, research, m
• the benefits and limitations of marketing planning
8.2.2 Approaches to marketing strategy
• the need for the marketing strategy to be consistent with the busin
• the need for and development of a coordinated marketing strategy
• the development of marketing strategies that are focused towards
• the changing role of Information Technology (IT) and Artificial Intell
8.2.3 Strategies for international marketing
• the implications for marketing of increased globalisation and econo
 • the importance of international marketing for a business
• international markets – identification, selection and entry
• whether a business in a given situation should develop an internatio
• choosing a strategy, in a given situation, to develop a global market
• the factors influencing the method of entry into international marke
9.1 Location and scale
9.1.1 Location
• the factors that determine location and relocation
• the differences between local, national and international location d
• the reasons for and impact of offshoring and reshoring
• the impact of globalisation on location and relocation decisions
9.1.2 Scale of operations
• the factors that influence the scale of a business
• causes and examples of internal and external economies and diseco
• the links between economies and diseconomies of scale and unit co
9.2 Quality management
9.2.1 Quality control and quality assurance
• quality in terms of meeting customer expectations
• the importance of quality
• the impact of methods of quality control on a business
• the impact of methods of quality assurance on a business
• the impact of Total Quality Management (TQM) on a business
9.2.2 Benchmarking
• the importance of benchmarking in quality management
9.3 Operations strategy
9.3.1 Operational decisions
• the influence of human, marketing and finance resource availability
• the changing role of Information Technology (IT) and Artificial Intell
9.3.2 Flexibility and innovation
• the need for flexibility with regard to volume, delivery time and spe
• process innovation: changing current processes or adopting new wa
9.3.3 Enterprise resource planning (ERP)
• the main features of an ERP programme
• how ERP can improve a business’ efficiency in relation to: inventory
9.3.4 Lean production
• the aims and purposes of lean production
Kaizen, quality circles, simultaneous engineering, cell production, JIT m
• the limitations of operational strategies to achieve lean production
• the links between lean production and inventory control, quality, em
9.3.5 Operations planning
• the need for planning operations
• network diagrams as tools to plan operations
• the main elements of a network diagram: activities, dummy activitie
network diagrams as means of performing Critical Path Analysis (CPA
• the benefits and limitations of CPA as a management tool
10.1 Financial statements
10.1.1 Statement of profit or loss
• the meaning and purpose of the statement of profit or loss
• the contents of a statement of profit or loss: revenue, cost of sales,
• amendment of a statement of profit or loss
• the impact on the statement of profit or loss a given change
10.1.2 Statement of financial position
• the meaning and purpose of statement of financial position
• the contents of a statement of financial position including non-curre
• amendment of a statement of financial position
• the relationships between items in the statement of profit or loss an
10.1.3 Inventory valuation
• the difficulties of valuing inventory
• the net realisable value method
10.1.4 Depreciation
• the role of depreciation in the accounts
• the impact of depreciation (straight-line method only) on the statem
10.2 Analysis of published accounts
10.2.1 Liquidity ratios
• the meaning and importance of liquidity
• current ratio: calculation and interpretation
• acid test ratio: calculation and interpretation
• methods of improving liquidity
10.2.2 Profitability ratios
• the meaning and importance of profitability
• return on capital employed: calculation and interpretation
• gross profit margin: calculation and interpretation
• profit margin: calculation and interpretation
• methods of improving profitability
10.2.3 Financial efficiency ratios
• the meaning and importance of financial efficiency
• rate of inventory turnover: calculation and interpretation
• trade receivables turnover (days): calculation and interpretation
• trade payables turnover (days): calculation and interpretation
• methods of improving financial efficiency
10.2.4 Gearing ratio
• the meaning and importance of gearing
• gearing ratio: calculation and interpretation
• methods of improving gearing
10.2.5 Investment ratios
• the meaning and importance of return to investors
• dividend yield: calculation and interpretation
• dividend cover: calculation and interpretation
• price/earnings ratio: calculation and interpretation
• methods of improving investor return
10.3 Investment appraisal
10.3.1 The concept of investment appraisal
• the need for investment appraisal
10.3.2 Basic methods: payback, accounting rate of return (ARR)
• the meaning, calculation and interpretation of payback and ARR (AR
10.3.3 Discounted cash flow method: net present value (NPV)
• the meaning, calculation and interpretation of NPV
10.3.4 Investment appraisal decisions
• quantitative results and their impact on investment decisions
• qualitative factors and their impact on investment decisions
• comparison of investment appraisal methods, including their limitati
10.4 Finance and accounting strategy
10.4.1 The use of accounting data to enable strategic decision making
• the use of financial statements in developing strategies
• the contents of an annual report and their usefulness to business an
10.4.2 The use of accounting data and ratio analysis in strategic decision-making
• assessment of business performance over time and against competi
• the impact of accounting data including ratio results on business str
• the impact of debt or equity decisions on ratio results
• the impact of changes in dividend strategy on ratio results
• the impact of business growth on ratio results
• the impact of other business strategies on ratio results
• the limitations of using published accounts and ratio analyses
tisation in a given situation
nalisation in a given situation
ek to control: employment practices, conditions of work (including health and safety), wage levels, marketing behaviour, competition, loca
factors on business and business decisions

usinesses and encourage enterprise

rain business activity

ernments: low unemployment, low inflation, economic growth

rmance of an economy can have an impact on business activity
oeconomic objectives: monetary, fiscal, supply-side and exchange rate policies
t policies on business and business decisions

orporate social responsibility (CSR), e.g. accounting practices, paying incentives for the award of contracts, social auditing
s of the community including pressure groups
nd global level
nge on business and business decisions

iness and business decisions

n business and business decisions

ks and their impact on business and business decisions

have an impact on businesses

multinational might bring to a country

governments

nfluence business behaviour

se an environmental audit
ustainability on business and business decisions

agement: analysis, choice and implementation

mpact on business decision-making
ational leadership

cy planning and crisis management

tional structure such as flexibility, meeting the needs of the business, allowing for growth and development and encouraging intrapreneurs

different types of structure

product and others by function or geographical area
g. due to growth or delayering
f hierarchy, chain of command, span of control, responsibility, authority, delegation, accountability, centralised, decentralised

ccountability

nd levels of hierarchy

at might arise when delegating

sation on a business

and staff functions and the conflicts between them

used in business: spoken, written, electronic, visual

ent methods of communication

communication; the difference between vertical and horizontal communication

els of communication

ercome them

n a business
ce the efficiency of a business
en situation

nagers, supervisors, worker representatives)

contingency, power and influence and transformational

al intelligence: self-awareness, social awareness, self-management and social skills

d disadvantages of temporary contracts or flexible contracts including zero hours contracts, part-time, full-time, annualised hours, flexi-tim
ces of poor employee performance

mentation and usefulness

gy (IT) and Artificial Intelligence (AI) in HRM

income and promotional

nal elasticity of demand

ess decisions
in its various forms

four period centred moving average method to forecast sales

es, resources, research, marketing mix

consistent with the business, the product and the market

nated marketing strategy
hat are focused towards achieving specific marketing objectives
gy (IT) and Artificial Intelligence (AI) in marketing

d globalisation and economic collaboration

 for a business
ction and entry
ould develop an international market through pan-global marketing or maintain local differences
o develop a global market
y into international markets

d international location decisions

nd reshoring
d relocation decisions

nal economies and diseconomies of scale

omies of scale and unit costs

n a business
e on a business
TQM) on a business

y management

ance resource availability on operations decisions

gy (IT) and Artificial Intelligence (AI) in operations management

me, delivery time and specification

esses or adopting new ways of producing products or delivering services

y in relation to: inventory control, costing and pricing, capacity utilisation, responses to change, workforce flexibility, management informa

ering, cell production, JIT manufacturing and waste management as operational strategies to achieve lean production
achieve lean production
entory control, quality, employees roles, capacity management and efficiency

activities, dummy activities, nodes

ritical Path Analysis (CPA), including identification of the minimum project duration and the critical path, calculation of total and free float
anagement tool
 t of profit or loss
ss: revenue, cost of sales, gross profit, expenses, profit from operations (operating profit), taxation, profit for the year, dividends, retained

ss a given change

financial position
osition including non-current assets, current assets, current liabilities, net current assets, net assets, non-current liabilities, reserves and eq

tement of profit or loss and the statement of financial position

ethod only) on the statement of financial position and the statement of profit or los

d interpretation

interpretation
on and interpretation
n and interpretation
n of payback and ARR (ARR = (average profit/ average investment) × 100)

vestment decisions
estment decisions
ods, including their limitations

ng strategies
usefulness to business and other stakeholders

time and against competitors

tio results on business strategy
atio results
on ratio results

ratio results
s and ratio analyses
g behaviour, competition, location decisions, particular goods and services

ocial auditing
and encouraging intrapreneurship

sed, decentralised
me, annualised hours, flexi-time, home working, shift working, job sharing, compressed working hours, the gig economy
exibility, management information

culation of total and free float, interpretation of the results of the analysis of a network, how minimum duration and floats might be used
 the year, dividends, retained earnings

rent liabilities, reserves and equity

tion and floats might be used in project management
 Economics
Unit
7 The price system and the microeconomy (A Level)
8 Government microeconomic intervention (A Level)

9 The macroeconomy (A Level)

10 Government macroeconomic intervention (A Level)

11 International economic issues (A Level)

 Economics
Chapter Learning Objectives

7.1 Utility
7.1.1 definition and calculation of total utility and marginal uti
7.1.2 diminishing marginal utility
7.1.3 equi-marginal principle
7.1.4 derivation of an individual demand curve
7.1.5 limitations of marginal utility theory and its assumptions
7.2 Indifference curves and budget lines
7.2.1 meaning of an indifference curve and a budget line
7.2.2 causes of a shift in the budget line
7.2.3 income, substitution and price effects for normal, inferio
7.2.4 limitations of the model of indifference curves
7.3 Efficiency and market failure
7.3.1 definitions of productive efficiency and allocative efficie
7.3.2 conditions for productive efficiency and allocative efficie
7.3.3 Pareto optimality
7.3.4 definition of dynamic efficiency
7.3.5 definition of market failure
7.3.6 reasons for market failure
7.4 Private costs and benefits, externalities and social costs and benefits
7.5.1
7.4.1 short-run
definition and calculation of social costs (SC) as the sum
production function:
7.4.2 definition and calculation of social benefits (SB) as the su
• fixed and variable
7.4.3 definition
factors of positive externality and negative externalit
of production•
definition and
7.4.4 positive and negative externalities of both consumption
calculation of total
7.4.5 deadweight
product, average welfare losses arising from positive and neg
7.4.6 asymmetric information and moral hazard
product and marginal
product• law of
7.4.7 use of costs and benefits in analysing decisions (knowled
diminishing returns
7.5 Types of cost, revenue and profit, short-run and long-run production
(law of variable
proportions)
7.5.2 short-run cost function: • definition and calculation of fi
7.5.3 long-run production function: • no fixed factors of produ
7.5.4 long-run cost function: • explanation of shape of long-ru
7.5.5 relationship between economies of scale and decreasing
7.5.6 internal and external economies of scale
7.5.7 internal and external diseconomies of scale
7.5.8 definition and calculation of revenue: total, average and
7.5.9 definition of normal, subnormal and supernormal profit
7.5.10 calculation of supernormal and subnormal profit
7.6 Different market structures
.6.1 perfect competition and imperfect competition: monopo
7.6.2 structure of the listed markets as explained by number o
7.6.3 barriers to entry and exit: • legal barriers • market barri
 7.6.4 performance of firms in different market structures: • re
7.6.5 definition and calculation of the concentration ratio
7.7 Growth and survival of firms
7.7.1 reasons for different sizes of firms
7.7.2 internal growth of firms: organic growth and diversificati
7.7.3 external growth of firms – integration (mergers and take
7.7.4 cartels: • conditions for an effective cartel • consequenc
7.7.5 principal–agent problem arising from differing objective
7.8 Differing objectives and policies of firms
7.8.1 traditional profit-maximising objective of firms
7.8.2 an understanding of other objectives of firms: • survival
7.8.3 price discrimination – first, second and third degree: • c
7.8.4 other pricing policies: • limit pricing • predatory pricing
7.8.5 relationship between price elasticity of demand and a fi

8.1 Government policies to achieve efficient resource allocation and correct market failure
8.1.1 application and effectiveness of measures to tackle diffe

8.1.2 government
failure in
microeconomic
intervention:
• definition of
government failure
• causes of
government failure
• consequences of
government failure
8.2 Equity and redistribution of income and wealth
8.2.1 difference between equity and equality
8.2.2 difference between equity and efficiency
8.2.2 difference between equity and efficiency
8.2.4 the poverty trap
8.2.5 policies towards equity and equality, for example: • neg
8.3 Labour market forces and government intervention
8.3.1 demand for labour as a derived demand
8.3.2 factors affecting demand for labour in a firm or an occup
8.3.3 causes of shifts in and movement along the demand cur
8.3.4 marginal revenue product (MRP) theory: • definition an
8.3.5 factors affecting the supply of labour to a firm or to an o
8.3.6 causes of shifts in and movement along the supply curve
8.3.7 wage determination in perfect markets: • equilibrium w
8.3.8 wage determination in imperfect markets: • influence o
8.3.9 determination of wage differentials by labour market fo
8.3.10 transfer earnings and economic rent: • definition of tra
9.1 The circular flow of income
9.1.1 the multiplier process: • definition of the multiplier • fo
9.1.2 components of Aggregate Demand (AD) and their deter
9.1.3 full employment level of national income and equilibrium
9.2 Economic growth and sustainability
9.2.1 actual growth versus potential growth in national outpu
9.2.2 positive and negative output gaps
9.2.3 business (trade) cycle: • phases of the cycle • causes of
9.2.4 policies to promote economic growth and their effective
9.2.5 inclusive economic growth: • definition of inclusive econ
9.2.6 sustainable economic growth: • definition of sustainable
9.3 Employment/unemployment
9.3.1 definition of full employment
9.3.2 equilibrium and disequilibrium unemployment (includin
9.3.2 equilibrium and disequilibrium unemployment (includin
9.3.3 voluntary and involuntary unemployment
9.3.4 natural rate of unemployment: • definition • determina
9.3.5 patterns and trends in (un)employment
9.3.6 mobility of labour: • forms of labour mobility: geograph
9.3.7 policies to reduce unemployment and their effectivenes
9.4 Money and banking
9.4.1 definition, functions and characteristics of money
9.4.2 definition of money supply
9.4.3 quantity theory of money (MV = PT)
9.4.4 functions of commercial banks: • providing deposit acco
9.4 Money and banking continued
9.4.5 causes of changes in the money supply in an open econo
9.4.6 policies to reduce inflation and their effectiveness
9.4.7 demand for money: liquidity preference theory
9.4.8 interest rate determination: loanable funds theory and K

10.1 Government macroeconomic policy objectives

10.1.1 objectives in terms of inflation, balance of payments, u
10.2 Links between macroeconomic problems and their interrelatedness
10.2.1 relationship between the internal value of money and
10.2.2 relationship between the balance of payments and infl
10.2.3 relationship between growth and inflation
10.2.4 relationship between growth and the balance of paym
10.2.5 relationship between inflation and unemployment: • tr
10.3 Effectiveness of policy options to meet all macroeconomic objectives
10.3.1 effectiveness of different policies in relation to differen
10.3.2 problems and conflicts arising from the outcome of the
10.3.3 existence of government failure in macroeconomic pol

11.1 Policies to correct disequilibrium in the balance of payments

 11.1.1 components of the balance of payments accounts: cur
11.1.2 effect of fiscal, monetary, supply-side, protectionist an
11.1.3 difference between expenditure-switching and expend
11.2 Exchange rates
11.2.1 measurement of exchange rates: • distinction between
11.2.2 determination of exchange rates under fixed and mana
11.2.3 distinction between revaluation and devaluation of a fi
11.2.4 changes in the exchange rate under different exchange
11.2.5 the effects of changing exchange rates on the external
11.3 Economic development
11.3.1 classification of economies in terms of their level of de
11.3.2 classification of economies in terms of their level of na
11.3.3 indicators of living standards and economic developme
11.3.4 comparison of economic growth rates and living stand
11.4 Characteristics of countries at different levels of development
11.4.1 population growth and structure: • measurement and
11.4.2 income distribution: • calculation of Gini coefficient an
11.4.3 economic structure: • employment composition: prima
11.5 Relationship between countries at different levels of development
11.5.1 international aid: • forms of aid • reasons for giving aid
11.5.2 trade and investment
11.5.3 role of multinational companies (MNCs): • definition o
11.5.4 Foreign Direct Investment (FDI): • definition of FDI • co
11.5.5 external debt: • causes of debt • consequences of deb
11.5.6 role of the International Monetary Fund (IMF)
11.5.7 role of the World Bank
11.6 Globalisation
11.6.1 meaning of globalisation and its causes and consequen
11.6.2 distinction between a free trade area, a customs union
11.6.3 trade creation and trade diversion
f total utility and marginal utility

demand curve
y theory and its assumptions of rational behaviour

curve and a budget line

ice effects for normal, inferior and Giffen goods

ndifference curves

fficiency and allocative efficiency

fficiency and allocative efficiency

f social costs (SC) as the sum of private costs (PC) and external costs (EC), including marginal social costs (MSC), marginal private costs (MP
f social benefits (SB) as the sum of private benefits (PB) and external benefits (EB), including marginal social benefits (MSB), marginal priva
ality and negative externality
nalities of both consumption and production
arising from positive and negative externalities
d moral hazard
analysing decisions (knowledge of net present value is not required)

efinition and calculation of fixed costs (FC) and variable costs (VC) • definition and calculation of total, average and marginal costs (TC, AC,
n: • no fixed factors of production • returns to scale
planation of shape of long-run average cost curve • concept of minimum efficient scale
omies of scale and decreasing average costs
mies of scale
nomies of scale
f revenue: total, average and marginal revenue (TR, AR, MR)
rmal and supernormal profit
l and subnormal profit

erfect competition: monopoly, monopolistic competition, oligopoly, natural monopoly

ets as explained by number of buyers and sellers, product differentiation, degree of freedom of entry and availability of information
legal barriers • market barriers • cost barriers • physical barrier
erent market structures: • revenues and revenue curves • output in the short run and the long run • profits in the short run and the long r
f the concentration ratio

ganic growth and diversification

ntegration (mergers and takeovers): • methods of integration: – horizontal – vertical (forwards and backwards) – conglomerate • reasons
effective cartel • consequences of a cartel
sing from differing objectives of shareholders/owners and managers

g objective of firms
objectives of firms: • survival • profit satisficing • sales maximisation • revenue maximisation
second and third degree: • conditions for effective price discrimination • consequences of price discrimination
t pricing • predatory pricing • price leadership
elasticity of demand and a firm’s revenue: • in a normal downward sloping demand curve • in a kinked demand curve

ss of measures to tackle different forms of market failure: • specific and ad valorem indirect taxes • subsidies • price controls • production

and equality
and efficiency
and efficiency

equality, for example: • negative income tax • universal benefits and means-tested benefits • universal basic income

ved demand
r labour in a firm or an occupation
ement along the demand curve for labour in a firm or an occupation
MRP) theory: • definition and calculation of marginal revenue product • derivation of an individual firm’s demand for labour using margina
of labour to a firm or to an occupation: • wage and non-wage factors
ement along the supply curve of labour to a firm or an occupation
ect markets: • equilibrium wage rate and employment in a labour market
erfect markets: • influence of trade unions on wage determination and employment in a labour market • influence of government on wag
erentials by labour market forces
nomic rent: • definition of transfer earnings • definition of economic rent • factors affecting transfer earnings and economic rent in an occ
 finition of the multiplier • formulae for and calculation of multiplier in a closed and open economy, with and without a government sector
Demand (AD) and their determinants: • consumption function: autonomous and induced consumer expenditure • savings function: autono
tional income and equilibrium level of national income: • inflationary and deflationary gaps

tial growth in national output

ases of the cycle • causes of the cycle • role of automatic stabilisers

mic growth and their effectiveness
• definition of inclusive economic growth • impact of economic growth on equity and equality • policies to promote inclusive growth
th: • definition of sustainable economic growth • using and conserving resources • impact of economic growth on the environment and cl

um unemployment (including hysteresis)

um unemployment (including hysteresis
nemployment
ent: • definition • determinants • policy implications
employment
of labour mobility: geographical and occupational • factors affecting labour mobility
yment and their effectiveness

aracteristics of money

nks: • providing deposit accounts (demand deposit account, savings account) • lending money (overdrafts, loans) • holding or providing ca

oney supply in an open economy: • commercial banks as sources of credit creation and the bank credit multiplier • role of a central bank •
and their effectiveness
y preference theory
: loanable funds theory and Keynesian theory

tion, balance of payments, unemployment, growth, development, sustainability and redistribution of income and wealth

nternal value of money and the external value of money

balance of payments and inflation
wth and inflation
wth and the balance of payments
tion and unemployment: • traditional Phillips curve • expectations-augmented Phillips curve (short- and long-run Phillips curve)

policies in relation to different macroeconomic objectives: • fiscal policy including Laffer curve analysis • monetary policy • supply-side pol
sing from the outcome of these policies
ailure in macroeconomic policies
 e of payments accounts: current account, financial account and capital account
supply-side, protectionist and exchange rate policies on the balance of payments
diture-switching and expenditure-reducing policies

e rates: • distinction between nominal and real exchange rates • trade-weighted exchange rates
e rates under fixed and managed systems
uation and devaluation of a fixed exchange rate
ate under different exchange rate systems
change rates on the external economy using Marshall-Lerner and J curve analysis

s in terms of their level of development

s in terms of their level of national income
ds and economic development: • monetary indicators including real per capita national income statistics (GDP, GNI, NNI) and purchasing p
rowth rates and living standards: • over time • between countries

ucture: • measurement and causes of changes in birth rate, death rate, infant mortality and net migration • optimum population • level o
ulation of Gini coefficient and Lorenz curve analysis
ployment composition: primary, secondary and tertiary sectors • pattern of trade at different levels of development

of aid • reasons for giving aid • effects of aid • importance of aid

anies (MNCs): • definition of MNC • activities of MNCs • consequences of MNCs

(FDI): • definition of FDI • consequences of FDI
debt • consequences of debt
Monetary Fund (IMF)

nd its causes and consequences

trade area, a customs union, a monetary union and full economic union
C), marginal private costs (MPC) and marginal external costs (MEC)
benefits (MSB), marginal private benefits (MPB) and marginal external benefits (MEB)

ge and marginal costs (TC, AC, MC), including average total cost (ATC), total and average fixed costs (TFC, AFC) and total and average varia

ailability of information
in the short run and the long run • shutdown price in the short run and the long run • derivation of a firm’s supply curve in a perfectly com

ds) – conglomerate • reasons for integration • consequences of integration

s • price controls • production quotas • prohibitions and licences • regulation and deregulation • direct provision • pollution permits • pro

mand for labour using marginal revenue product

fluence of government on wage determination and employment in a labour market using a national minimum wage • influence of monops

s and economic rent in an occupation

 without a government sector • calculation of: – average and marginal propensities to save (aps and mps) – average and marginal propens
ure • savings function: autonomous and induced savings • autonomous and induced investment; the accelerator • government spending

promote inclusive growth

wth on the environment and climate change • policies to mitigate the impact of economic growth on the environment and climate change

oans) • holding or providing cash, securities, loans, deposits, equity • reserve ratio and capital ratio • objectives of commercial banks: liqui

plier • role of a central bank • government deficit financing • quantitative easing • changes in the balance of payments

e and wealth

g-run Phillips curve)

netary policy • supply-side policy including market-based and interventionist policies • exchange rate policy • international trade policy
DP, GNI, NNI) and purchasing power parity • issues of comparison using monetary indicators • non-monetary indicators • composite indic

optimum population • level of urbanisation

C) and total and average variable costs (TVC, AVC) • explanation of shape of short-run average cost an
supply curve in a perfectly competitive market • efficiency and X-inefficiency in the short run and the long run • contestable markets: feat

vision • pollution permits • property rights • nationalisation and privatisation • provision of information • behavioural insights and ‘nudge

m wage • influence of monopsony employers on wage determination and employment in a labour market
average and marginal propensities to consume (apc and mpc) – average and marginal propensities to import (apm and mpm) – average an
rator • government spending • net exports (exports minus imports)

ironment and climate change

ves of commercial banks: liquidity, security, profitability

f payments

• international trade policy

y indicators • composite indicators: – Human Development Index (HDI) – Measure of Economic Welfare (MEW) – Multidimensional Pover
un • contestable markets: features and implications • price competition and non-price competition • collusion and the Prisoner’s Dilemma

ehavioural insights and ‘nudge’ theory

t (apm and mpm) – average and marginal rates of tax (art and mrt) • national income determination using AD and income approach with t
EW) – Multidimensional Poverty Index (MPI) • the Kuznets curve
on and the Prisoner’s Dilemma in oligopolistic markets, including a two-player pay-off matrix
D and income approach with the multiplier process • calculation of effect of changing AD on national income using the multiplier
e using the multiplier