Course notes for Economics I: Markets and business behaviour

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Description

These course notes accompany our video lecture course titled Economics I: Markets and business behaviour. You may also wish to get a copy of our FREE glossary that covers over 50 key terms from this course.

These course notes are based on and align with Specification A of the Edexcel A-Level Economics Syllabus in the UK. You will find these course notes useful even if you are studying for other qualifications or are just interested in learning more about economics.

The Theme 1 syllabus focuses on the microeconomic nature of economics, which means it looks at individual markets. In order to understand how markets work, you will learn about how demand and supply interact for the purposes of resource allocation. Once the understanding of markets is clear, we will look at how markets may fail and investigate the causes before assessing possible government interventions. Macroeconomics, which looks at the economy as a whole rather than individual markets, is outside the scope of these course notes.

These course notes are broken down into seven sections.

Section 1: Nature of Economics
This section provides high level context for what economics is as a subject as well as an overview of some of the key building blocks and theories of modern economies.

Section 2: Production Possibility Frontiers
This section introduces production possibility frontiers which help to answer the question: “How much can an economy produce?”.

Section 3: Demand
This section introduces the idea of demand for a good. It provides a framework for understanding how demand may change as certain factors change.

Section 4: Supply
This section introduces the idea of supply for a good. It provides a framework for understanding how supply may change as certain factors change.

Section 5: Price mechanism
This section introduces the price mechanism which explains how markets function when demand and supply interact. The price mechanism helps to explain why free markets are considered to be efficient.

Section 6: Market failure
This section introduces the idea of market failure before analysing the key types of failure. Understanding the limitations of the free market can help to rationalise part of the role of the government in an economy.

Section 7: Government Intervention
This section assesses potential government interventions to correct market failure before looking at the causes of government failure.

Mode of delivery: digital download

File format: PDF