Economics

Lesson Objective Year 9

Topic You Should Do R A G Advice
1.1 The nature of the define the economic problem analyse Find examples of the
economic problem examples of the economic problem economic problem in the
explain the difference between economic and context of consumers,
free goods workers, producers and the
government.

1.2 The factors of Land is the factor of

production evaluate the influences of spending, saving, production candidates often
and borrowing including income, the rate of
get confused about.
interest and confidence between different
Remember it includes all
households and over time
natural resources
1.3 Opportunity cost evaluate the role of opportunity cost in Opportunity cost is an
decisions made by consumers, workers, important economic concepts
producers and governments when allocating and can be applied to a wide
their resources range of decisions.

1.4 Production PPC diagrams can be used to

possibility curve illustrate opportunity cost,
diagrams (PPC) define a PPC draw and interpret a PPC explain scarcity, choice, efficiency and
the significance of different points on a PPC economic growth.
analyse the causes and consequences of
movements along and shifts in PPCs

2.1 Microeconomics explain the difference between Section 1 is largely

and microeconomics and macroeconomics and microeconomics, Sections 2
macroeconomics. the decision makers involved in each case and 3 are microeconomics and
should be able to Sections 4, 5 and 6 are
macroeconomics.

2.2 The role of analyse how resources are allocated in a Demand and supply diagrams
markets in allocating market economy can be useful to explain how a
resources explain the three economic questions analyse market can move from
the role of the price mechanism in a market disequilibrium to equilibrium.
system
2.3 Demand explain how individual demand is totalled to . Remember that increases
give market demand analyse the causes of and decreases in demand can
shifts in demand curves and draw diagrams to be caused by any influence on
illustrate the shifts demand other than a change
in the price of the product.
2.4 Supply define supply draw a supply curve and explain Remember that while a
movements along a supply curve explain how demand curve slopes down
individual supply is totalled to give market from left to right, a supply
supply analyse the causes of shifts in supply curve slopes up from left to
curves and draw diagrams to illustrate the right
shifts
2.5 Price analyse how the interaction of demand and Remember that shortages
determination supply determine equilibrium price draw arise when price is below
demand and supply diagrams to illustrate equilibrium whereas surpluses
equilibrium and disequilibrium prices arise when price is above
interpret demand and supply schedules and equilibrium.
 curves to identify shortages and surpluses
2.6 Price changes evaluate the effects of changes in demand
and supply on equilibrium price and the
quantity bought and sold use demand and
supply diagrams to illustrate the causes and
effects of price changes
2.7 Price elasticity calculate PED using the formula % change in
of demand (PED) quantity demanded divided by the % change
in price
draw and interpret demand curve diagrams
to show different PED
2.8 Price elasticity of calculate PES using the formula % change in
supply (PES) quantity supplied divided by percentage
change in price
2.9 Market economic define market economic system evaluate the
system advantages and disadvantages of the market
economic system
2.10 Market failure analyse the causes of market failure with
respect to public goods, merit and demerit
goods, external costs and benefits, abuse of
monopoly power and factor immobility
evaluate the consequences of market failure
2.11 Mixed economic evaluate maximum and minimum prices in
system product, labour and foreign exchange
markets
evaluate the effects of indirect taxes evaluate
the effects of subsidies
Be careful with the order of
changes in market conditions.
For instance, an increase in
demand will cause a rise in
price. The higher price will
cause supply to extend..
. Remember the importance of
% changes in calculating and
interpreting PED,
Remember the key role of the
price mechanism in a market
economy
Market failure results in the
overconsumption of demerit
goods and goods with external
costs and underconsumption
of merit goods and goods with
external benefits
Monopoly power can result in
high prices and restricted
supply. Factor immobility can
cause shortages and
surpluses. more goods and
services
Use demand and supply
diagrams to analyse and
evaluate maximum prices,
minimum prices, indirect taxes
and subsidies.