Edexcel Igcse Economics Revision Guide Pdf

Fall in interest rates will make borrowing money cheaper. It usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities, being transferred to the public sector to be operated and by the state.

In a open shop, a firm can employ unionized and non-unionized labor In a closed shop all workers in a place of work have to be union members. It may depreciate if the Greek government declared that it would withdraw from the Eurozone and go back to using the Drachma in order to depreciate their currency.

Collective pay bargaining trade unions are able to operate openly and are recognized by employers, they may negotiate with employers over wages and working conditions. It also enables consistent comparisons over time. Why choose this specification? This is especially the case with mortgage debts and other big loans.

This puts pressure on wages to increase and prices may rise as businesses pass on these costs to their customers. The market where currencies are bought and sold. The Government will increase the public spending resulting in a rise in aggregate demand. The manufacturing of goods using natural or man-made resources e. Unequal wealth distribution.

The proportion of income spent on each category is recorded. Existing firms enjoy economies of scale and are much more efficient. Investment decisions are then governed by market interest rates. The opportunity costs shows otherwise. The elasticity of the demand curve will also affect the amount of revenue as the price changes.

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Keynes argued that this justified an exogenous injection of aggregate demand as a stimulus to get an economy on the path back to full er employment and to prevent deflation. The principle of comparative advantage still applies, but who has the advantage in what can change.

The Best Economics O Level NotesIGCSE Economics revision notesPearson qualifications

Government Economic Policies Government influences the economy through its economic policies. An effort to reduce aggregate demand may cause disincentives to work, if this occurs there will be a fall in productivity and Aggregate supply could fall. The economic environment in an economy is a major factor in determining the investment level.

Even a lower tax rate will result in more disposable income for households and encourage consumption. The government with its regulatory bodies ensure that the market price do not go beyond its actual price. This highlights the importance of unionisation within trade unions - the larger and more united the union, the better the bargaining position, ceteris paribus. The weighted total price of the basket can be compared each year to work out percentage changes in average consumer prices.

Wage Price Spiral is when workers demand higher and higher wages, causing cost push inflation and prompting them to ask for higher wages again. Production after trade World production of food increased. Why then in many countries do governments step in and provide healthcare?

The dangers of a booming economy is that inflationary pressures build and that the economy must slow down or fall into recession for these inflation risks to be controlled. When an economy is booming, so does the derived demand for components and raw materials.

Find out where you can take Edexcel exams. Learners find out about the economics of developed and developing nations and how these interrelate. The Cambridge O Level Economics syllabus develops an understanding of economic terminology and principles, 250 examens de laboratoire pdf and of basic economic theory. Colin Leith Business and Economics.

Increased use of machinery Machinery such as tractors help take in the yields much more quickly. Higher interest rates can increase the demand for savings schemes but reduce the amount of money people want to borrow, including mortgages for house purchases. Occurs as workers change jobs and spend time without jobs during this period.

It also includes the deposits in banks and building societies. Controls the nation's entire money supply. Persistent high inflation combined with high unemployment and stagnant demand in a country's economy. See what training courses are available.

In contrast, when there is a large scale selling of a currency it will depreciate. Advantages Increased efficiency.

IGCSE Economics revision notes

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Exports will become more expensive abroad and imports cheaper at home. Low rate of inflation In an economic recession, aggregate demand, output and employment all tend to fall.

This can lead to a delay in making decisions. As unemployment falls, labour shortages may occur where skilled labour is in short supply. Support for User tabs Teaching Studying. The central bank stands ready to supply these reserves by making discount loans. The distribution of income.

GCSE Economics revision guide