AS Microeconomics

This component is examined in AS Paper 1 for OCR Economics. You can find notes for it below:

Scarcity and Choice

• a) The basic economic problem
• b) The market economy
• c) Opportunity cost
• d) Specialisation and trade

How Competitive Markets Work

• a) Allocation of resources
• b) The objectives of economic agents
• c) Supply and demand and the interaction of markets
• d) Elasticity
• e) Productive and allocative efficiency
• f) Costs and revenues
• g) Economies and diseconomies of scale

Market Failure and Government Intervention

• a) Market failure
• b) Externalities
• c) Information asymmetries
• d) Alternative methods of government intervention
• e) Government failure