# 161 Economics As Level Revision Notes Series By Zain Mushtaq ## Economics As Level Revision Notes Series By Zain Mushtaq ### TABLE OF CONTENT **UNIT 1 BASIC ECONOMIC PROBLEM AND PPC** Needs vs Wants Factor of production and factor Reward/Payment Role of enterprise in a modern economy The Basic Economic Problem/Fundamental economic Problem/Problem of scarcity Opportunity cost Production possibility curves Shape of PPC Production points Shifts in PPC Consumer goods vs capital goods Resource allocation Economic systems Private and Public Sectors Market System Planned System Mixed System Positive and normative statements Specialization and division of labor **UNIT 2 DEMAND AND SUPPLY CURVES** Market Demand Non-Price Determinants of demand Supply Non-Price Determinants of Supply Market Equilibrium Excess supply Excess demand Microeconomics Equilibrium Shifts **UNIT 3 ELASTICITIES** Price elasticity of demand (PED) Determinants of PED Other degrees of PED Price elasticity of demand and Total Revenue Price elasticity of demand along the demand curve Income elasticity of demand (YED) Cross elasticity of demand (XED) Price elasticity of supply (PES) Determinants of PES Other degrees of PES Business use and limitations of all elasticites PED PES XED YED Limitations Government use of PED and PES Subsidy **UNIT 4 GOVERNMENT MICROECONOMIC INTERVENTION** Free goods, private goods (economic goods) and public goods Public goods Merit Goods, Demerit Goods as the outcome of imperfect information by the consumers Merit Goods De-Merit Goods Consumer surplus Producer surplus Social/Society Surplus Price Controls (Maximum and Minimum Prices) Maximum Price (Price Ceiling) and Market impact Minimum Price (Price Floor) and Market Impact Indirect taxes Indirect Taxation-Market Impact Subsidy-Market Impact Direct Provision of Goods and Services Buffer stock schemes Resource allocation in different economic systems and issue of transition Economics systems/Systems of resource allocation Market System Planned System **UNIT 5 ADDRESSING INCOME AND WEALTH INEQUALITY** Income and wealth Measuring income and wealth inequality Reasons for inequality Policies to redistribute income and wealth Transfer payments State provision of essential goods and services **UNIT 6 NATIONAL INCOME STATISTICS** National income statistics Circular flow of income Ways of calculating GDP **UNIT 7 AGGREGATE DEMAND AND AGGREGATE SUPPLY ANALYSIS AND PRICE STABILITY** Aggregate Demand Shifts in AD Aggregate Supply Classical Interpretation Keynes Model (John Maynard Keynes) Disagreement about Flexibility of wages Shifts of LRAS is dependent on Macroeconomic equilibrium Inflation Money Value vs Real Value Measuring inflation using CPI (Consumer Price Index) Causes if inflation Demand-pull inflation Cost-push inflation Consequences of inflation Deflation Supply side deflation (Good deflation) Demand side deflation (Bad deflation) **UNIT 8 ECONOMIC GROWTH** Nominal GDP vs Real GDP Real GDP per head Actual versus Potential Growth Consequences of economic growth Recession **UNIT 9 UNEMPLOYMENT** Measures of unemployment Causes and types of unemployment Consequences of unemployment **UNIT 10 EXCHANGE RATES** Exchange rate Free Floating Exchange Rate System Determination of foreign exchange rate The consequences of a fall in exchange rate (Depreciation) The consequences of a rise in exchange rate (Appreciation) **UNIT 11 CURRENT ACCOUNT OF THE BALANCE OF PAYMENTS** Current account Causes and consequences of current account deficit Consequences of current account deficit Causes and consequences of current account surplus Consequences of current account surplus **UNIT 12 TRADE PROTECTIONISM AND TERM OF TRADE** Assumptions Absolute Advantage Comparative Advantage Absolute Advantage Comparative Advantage Limitations of this model Free Trade Benefits of free trade Free Trade Diagram Protectionism Methods of protection and their impact Tariffs The terms of trade (TOT) Movements in TOT Factors affecting terms of trade Short-Run Cause Long-Run Cause The impact of changes in terms of trade on balance of trade Policies to correct imbalances in the current of the balance of payments **UNIT 13 GOVERNMENT MACROECONOMIC POLICY OBJECTIVES** Macroeconomic objectives Fiscal Policy Taxation Tax systems Direct Tax vs Indirect tax Impact of direct taxes Advantages Canons of taxation Reasons for taxation Government Spending Fiscal policy and LRAS The Budget Position Monetary Policy Types of monetary policy Monetary Policy and LRAS Supply side policy measures **MEET MY FAMILY** ## Details - **Price:** 1000.0 PKR - **Vendor:** Read & Write - **Tags:** A Level, A Level Economics, Economics, Notes, Revision Guide ## Variants | Variant | Price | Available | |---------|-------|-----------| | Default Title | 1000.00 PKR | In stock | ## Images - 161 Economics As Level Revision Notes Series By Zain Mushtaq --- > Source: [Read and Write Publications](https://readnwrite.org/products/161-economics-as-level-revision-notes-series-by-zain-mushtaq) > Updated: 2026-09-30