AS Revision Checklist Revised 2 .pdf - Topic Scarcity choice and Opportunity cost Positive and normative statements Factors of production Resource

TopicObjectives–contentRemark StructuredMCQ Scarcity, choice andOpportunity costStudents should be able to: • explain the basic economicproblem • explain the meaning of scarcity • explain the concept ofopportunity cost • understand the meaning of‘ceteris paribus’ • understand the concept of themargin and decision-making at the margin • distinguish between short run,long run and very long run. Positive and normativestatementsStudents should be able to: • explain the difference betweenpositive and normative economic statements. Factors of productionStudents should be able to: • identify factors of production: land, labour, capital and enterprise • explain the rewards of each • explain specialisation anddivision of labour. Resource allocationin different economicsystems and issues oftransitionStudents should be able to: • understand how decisions aremade in market, planned and mixed economies regarding what, how and for whom to produce • evaluate the advantages anddisadvantages of each system • explain the role of enterprise in amodern economy • analyse the problems oftransition from planned to free market. Production possibilitycurvesStudents should be able to: • explain what a productionpossibility curve shows • explain the reason for the shapeof PPCs • explain and illustrate thedifference between a movement along and a shift (outwards and inwards) and from a point within the PPC towards the boundary • explain the difference betweenconstant and increasing opportunity costs. MoneyStudents should be able to: • define ‘barter’ • explain functions andcharacteristics of money in a modern economy • analyse the benefits of money ina modern economy • define money in terms of: cash,bank deposits, cheques, near money • understand the concept ofliquidity.

Classificationof goods and servicesStudents should be able to: • explain the characteristics of freegoods, private goods (economic goods) and public goods in terms of excludability and rivalry • explain the characteristicsof merit goods and the role of imperfect information in under consumption of merit goods • explain the characteristics of demerit goods and the role of imperfect information in overproduction of demerit goods. Demand and supplycurvesStudents should be able to: • explain what is meant by theterm ‘effective demand’ • understand the differencebetween individual and market demand and supply curves • understand the differencebetween movement along and shift • explain the factors influencingdemand and supply. Price elasticity, incomeElasticity and crosselasticities of demandStudents should be able to: • understand the meaning ofprice elasticity of demand and interpret results • calculate price elasticity ofdemand and its impact on afirm’s total revenue • understand and illustrate theelasticity of a straight-lined demand curve • understand the meaning of crossprice elasticity of demand and interpret results • calculate cross price elasticity ofdemand • explain the difference betweencomplements and substitutes • understand the meaning ofincome elasticity of demand and interpret results • calculate income elasticity ofdemand • explain the difference betweeninferior and normal goods • explain the factors affecting elasticities of demand, including time.