Read e-book online Cambridge International AS and A Level Economics Coursebook PDF

By Colin Bamford, Susan Grant

ISBN-10: 1107679516

ISBN-13: 9781107679511

This 3rd variation for Cambridge foreign AS and a degree Economics syllabus (9708) is punctiliously up to date for first exam from 2016. Written via skilled authors in a fascinating and obtainable sort, this Coursebook offers entire insurance of the syllabus and rigorous and proper content material for AS and a degree Economics scholars. incorporated during this e-book is a unfastened scholar CD-ROM containing revision aids, additional questions and actions. A Teacher's CD-ROM can be to be had.

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Extra info for Cambridge International AS and A Level Economics Coursebook

Example text

8] b Discuss why in many countries certain types of education and health care are provided as private goods and not as merit goods. [12] 3 a Explain what you understand by ‘information failure’. [5] b Explain why it is necessary to know what this means when classifying goods as merit or demerit goods. [10] 37 38 Chapter 2: The price system and the microeconomy AS Level Learning objectives On completion of this chapter you should know: ■ ■ ■ ■ ■ ■ ■ ■ what is a market and effective demand in a market what is meant by demand and supply what is meant by individual and market demand and supply and how demand and supply curves can be derived what factors influence demand and supply the meaning of elasticity price, income and cross elasticity of demand – what each means, how they are calculated, what factors affect them and the implications for revenue and business decisions price elasticity of supply – what it means, how it is calculated, the factors affecting it and the implications of how businesses react to changed market conditions what is meant by equilibrium and disequilibrium in a market ■ ■ ■ ■ ■ ■ ■ how the interaction of demand and supply leads to equilibrium in a market how changes in demand and supply affect the equilibrium price and quantity and how this analysis can be applied the difference between movements along and shifts of demand and supply curves the meaning of joint demand and joint supply how the price mechanism works with respect to rationing, signalling and the transmission of preferences what is meant by consumer surplus and producer surplus and their significance how these are affected by changes in equilibrium price and quantity.

This is why it is necessary to apply the ceteris paribus assumption referred to in Chapter 1. 1. This data set is known as a demand schedule. We can now plot the market demand curve on a graph to see how the quantity demanded of PCs relates to variations in price. This market demand curve therefore represents the aggregation of many individual demand curves. 1. KEY TERMS Demand curve: represents the relationship between the quantity demanded and price of a product. Market demand: the total amount demanded by consumers.

Money is therefore essential if the processes of exchange and trade are to take place. Zimbabwe’s descent into economic catastrophe was a long drawn-out affair. Following a drop in agricultural production after controversial land seizures, exports fell and foreign investors went elsewhere. The government sought to solve its liquidity problems by borrowing from foreign banks, knowing that it could not meet its loan repayments. The government made the situation worse by printing more money, much of which was used to pay the army, police and civil servants.

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Cambridge International AS and A Level Economics Coursebook by Colin Bamford, Susan Grant

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