Guidelines For Winter Term Examination

Economics Paper 2
❖ The following guideline should be followed for all the chapters and applicable only for
Paper 2.
• All definitions
• Formula
• Measures, Implications, Methods/Mechanism, Importance
• Determinants/Factors affecting/Impact/effects
• Causes and consequences
• Advantages and disadvantages
• Classifications and types
• Policies.

❖ All the above topics are important along with the Class tests and Class Activity.
❖ For Practice-
Check the related past paper questions from 2018 to 2022.
❖ A detailed Chapter wise guideline is given below. For reference, you can check that.
Chapter 1 Full Chapter
The nature of the economic
problem
Chapter 2 2.1 The importance of factors of production
Factors of production 2.2 Mobility of the factors of production
2.3 Quantity and quality of the factors of production
(land***, labour***, capital*,enterprise*)
2.4 Payments for factors of production
Chapter 3 3.1 The meaning of opportunity cost
Opportunity cost 3.2 Influence of opportunity cost on decision making
(Opportunity cost and consumers*, Opportunity cost and
workers*, Opportunity cost and producers***,
Opportunity cost and the government***, Economic
goods and free goods***)
Chapter 4 Full Chapter
Production possibility curves
Chapter 5 Definitions only.
Microeconomics and
macroeconomics
Chapter 6 Full Chapter
The role of markets in
allocating resources
Chapter 7 7.1 Definition of demand
Demand 7.2 Demand and price
7.3 Individual and market demand
A demand schedule, A demand curve, The effect of a
change in price on demand***(extension in demand,
contraction in demand)
7.4 Conditions of demand***(increase in demand,
decrease in demand, causes of changes in demand)
Chapter 8 8.1 Definition of supply
Supply 8.2 Supply and price
8.3 Individual and market supply
8.4 Conditions of supply(change in supply, Shifts in the
supply curve,
Causes of changes in supply-Changes in the costs of
production**, Improvements in technology**, Taxes***,
 Subsidies***, Weather conditions and health of livestock
and crops***, Prices of other products***)
Chapter 9 9.1 How prices are determined
Price determination 9.2 Market equilibrium
9.3 Moving from market disequilibrium to
market equilibrium(Definitions only)
Chapter 10 Full Chapter
Price changes
Chapter 11 11.1 Definition of price elasticity of demand
Price elasticity of demand 11.2 Calculating PED
11.3 Interpretation of PED
11.4 Elastic and inelastic demand
11.5 Determinants of price elasticity of
demand***(Differences in PED**, Other degrees of
elasticity*, PED and the total spending on a product and
revenue gained**)
11.6 Changes in PED
11.7 Implications of PED for decision making

Chapter 12 Full Chapter

Price elasticity of supply
Chapter 13 13.1 The market economic system(Definitions and
Market economic system features)
13.2 The advantages of a market economic system
13.3 The disadvantages of a market economic
system(Definitions only)

Chapter 14 14.1 The nature of market failure

Market failure 14.2 Failure to take into account all costs and benefits
14.4 Merit goods
14.5 Demerit goods
14.6 Public and private goods(Definitions)
14.7 Abuse of monopoly power(Definitions)
Chapter 15 Full Chapter
Mixed economic system
Chapter 16 16.1 Money (Functions and characteristics of money)
Money and banking 16.2 Banking (Definitions and role/ functions of
commercial banks, Definitions and Role/functions of a
central bank)
Chapter 17 17.1 Spending
Households 17.2 Saving
Chapter 18 18.1 Factors that influence an individual’s
Workers choice of occupation(wage factors, non-wage factors***)
18.2 Wage determination and the reasons for differences
in earnings
(Demand and supply***, Relative bargaining power of
employers and workers***, Government policies***,
Public opinion, Discrimination*)
18.3 Why earnings of occupations change over time
18.4 The extent to which earnings change
18.5 Specialisation and division of labour
Chapter 19 19.2 The role of the trade unions
Trade unions 19.3 Factors affecting the strength of a trade union
19.4 Advantages and disadvantages of trade
union membership
Chapter 20 20.1 Classification of firms
Firms (The stages of production***,Ownership of firms, The size
of firms)
20.2 Small firms
20.4 Mergers
20.5 Economies and diseconomies of scale
(Economies of scale***, Diseconomies of scale*)

Chapter 21 21.1 Demand for factors of production

Firms and production (Factors influencing demand for capital goods, Demand for
land***, Factors of production and sectors of
production***)
21.3 Production and productivity***
Chapter 22 22.1 Calculating the costs of production(Definitions)
Firms, costs, revenue and 22.2 Calculating revenue(Definitions)
objectives 22.3 Objectives of firms**
Chapter 23 Only the definitions and characteristics of Competitive and
Market structure Monopoly Markets