Microeconomics

This topic is examined in A-Level Component 1, Component 2 and Component 3 for WJEC (England) Economics. You can find notes for it below:

Scarcity and Choice

• a) Scarcity, choice and opportunity cost
• b) Production Possibility Frontiers (PPFs)
• c) Specialisation, division of labour and exchange

Demand and Supply in Product Markets

• a) Factors influencing demand and supply in product markets
• b) The determination of equilibrium price and output in a freely competitive market
• c) Consumer and producer surplus
• d) Price, income and cross price elasticities of demand and supply

Demand and Supply in Labour Markets

• a) Wage determination
• b) Labour market issues

Resource Allocation

• a) How resources are allocated in a free market economy

Costs, Revenues and Profits

• a) Costs, revenues and profits
• b) The growth of firms
• c) Efficiency

Market Structures

• a) Background to market structures
• b) Business objectives
• c) Perfect competition
• d) Monopolistic competition
• e) Monopoly
• f) Oligopoly
• g) Competition policy
• h) Privatisation

Market Failure

• a) Understanding market failure
• b) Why and how governments intervene
• c) The effects of government intervention