# 162 Economics A2 Level Revision Notes Series By Zain Mushtaq ## Economics A2-Level Revision Notes Series By Zain Mushtaq ### TABLE OF CONTENT **UNIT 1 CONSUMER BEHAVIOUR** Law of diminishing marginal utility Indifference curves and budget lines **UNIT 2 TYPES OF COSTS, REVENUE AND PROFIT, SHORT-RUN AND LONG-RUN PRODUCTION** The short run and the long run Law of diminishing returns (Law of variable proportions) Short-run costs Average costs and marginal cost Production and costs in the long run Economies and dis-economies of scale Types of internal Economies of scale Types of internal Dis-economies of scale External economies and dis-economies of scale Constant returns to scale Revenue profit Economic profit **UNIT 3: DIFFERENT MARKET STRUCTURES** Market Structures Perfect Competition (Characteristics) Profits for firms in Perfect Competition in Short Run Economic Loss in Short Run (continue to produce or shut down) Short-run supply curve of the perfectly competitive firm Profits for firms in Perfect Competition in Long Run (Normal Profit only) Perfect Competition and Efficiency in the long run Monopoly (Characteristics) Barriers to entry/Exit (Sources of Monopoly power) Monopoly Profit (Profit Maximization MC=MR) Monopoly market outcomes and efficiency Oligopoly Competitive Theories Game Theory Collusive Theories Cartel Price Leadership (Tacit Collusion) Monopolistic Competition Short-Run Equilibrium Long-Run Equilibrium Efficiency in monopolistic competition and comparison with perfect competition Contestable Markets Differing objectives of a firm Alternative objectives of firms Sales revenue maximisation Sales volume maximisation (Growth maximization) Profit satisficing/Allocative efficiency **UNIT 4 MARKET FAILURE** Market Failure and Government Intervention Externalities Positive Consumption Externality (MSB>MPB) Negative Production Externality (MSC>MPC) Positive Production Externality (MSC>MPC) Public Goods Market power (Monopoly) Imperfect information/information failure Factor Mobility Behavioral insights and 'nudge' theory Evaluation of intervention tools: Cost Benefit Analysis (CBA) Nationalization and Privatization Government Failure **UNIT 5: LABOUR MARKET FORCES AND GOVERNMENT INTERVENTION** Demand for and supply of labour Supply of labour Industry and firm labor supply curves Elasticity of Supply for Labour Economic rent and transfer earnings Wage Determination Case #1: Perfect Competition Case #2: Monopsony (Labour is supplied competitively but demanded monopsonistically) Case #3: Trade Union \[Labour is demanded competitively and supplied monopolistically (Trade union)\] Case # 4: Monopsony vs Trade Union (Bilateral Monopoly) (Labour is supplied and demanded with market power) Case #5: Government (National Minimum Wage) Wage Differential **UNIT 6: EQUITY AND REDISTRIBUTION OF INCOME AND WEALTH** Equity and equality Equity and efficiency Government policies to redistribute income and wealth **UNIT 7: THE CIRCULAR FLOW OF INCOME** National Income determination 2 Sector Model/ Closed Economy with no Government Investment Multiplier effect Factors affecting Investment Shift of investment curve Paradox of thrift and Accelerator theory 3 Sector Model/Closed Economy with Government 4 Sector Model/Open Economy with Government Inflationary Gap and Deflationary gap **UNIT 8: EXCHANGE RATES** Exchange rate systems Fixed Exchange rate If market forces are pushing down the value of currency up the value of currency If market forces are pushing up the value of currency The consequences of a fall in exchange rate (Depreciation/Devaluation) The consequences of a rise in exchange rate (Appreciation/Re valuation) Types of exchange rates **UNIT 9: MONEY AND BANKING** Money Money Market Money Demand (Liquidity Preference Theory) Money demand curve/Liquidity preference curve Money market equilibrium Liquidity Trap Monetary transmission mechanism Quantity Theory of Money Quantitative Easing Loan-able funds theory Keynesian and Monetarist schools **UNIT 10: POLICIES** Expansionary Monetary Policy Drawbacks Fiscal Policy Drawbacks Supply side policy measures Supply-side policy measures can be divided into those which are market-based and those which are interventionist Policies to correct inflation and deflation Policies to control cost push inflation Policies to control deflation **UNIT 11: UNEMPLOYMENT** Types/Causes of unemployment Disequilibrium Unemployment Demand Deficient/Cyclical Unemployment (Keynesian View) Equilibrium/Natural Unemployment Voluntary and involuntary unemployment Policies to reduce Disequilibrium Unemployment Policies to reduce Equilibrium/Natural Unemployment **UNIT 12: BALANCE OF PAYMENTS** Financial Account Expenditure reducing/dampening policies Expenditure switching policies **UNIT 13: ECONOMIC GROWTH** Economic development GDP as a measure of welfare/happiness/standard of living Benefits of Real GDP per head as an indicator Developed vs Developing economies Kuznets Curve Ways of Promoting Economic Growth Supply Side Policies Multinational corporations and foreign direct investment Trade and Aid The role of the International Monetary Fund and the World Bank **UNIT 14: GLOBALISATION** The causes of globalisation The consequences of globalisation Economic Integration Consequences of formation of trading blocs **UNIT 15: GOVERNMENT MACROECONOMIC POLICY OBJECTIVES** Phillips Curve NAIRU **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 - 162 Economics A2 Level Revision Notes Series By Zain Mushtaq --- > Source: [Read and Write Publications](https://readnwrite.org/products/162-economics-a2-level-revision-notes-series-by-zain-mushtaq) > Updated: 2026-09-29