Description

Understanding Economics AS Level Book, Notes and past papers.

TABLE OF CONTENTS
PREFACE
HOW TO USE THIS BOOK 
SECTION 1 BASIC ECONOMIC PROBLEM 
SCARCITY AND OPPORTUNITY COST
MULTIPLE CHOICE QUESTIONS
SECTION 2 PRODUCTION POSSIBILITY CURVE 
PPC AND SCARCITY
PPC AND OPPORTUNITY COST
PPC AND ECONOMIC EFFICIENCY
SHIFTS IN PPC
CONSUMER GOODS AND CAPITAL GOODS
MULTIPLE CHOICE QUESTIONS
SECTION 3 ECONOMIC SYSTEMS 
FREE MARKET ECONOMY
COMMAND ECONOMY
MIXED ECONOMY
MULTIPLE CHOICE QUESTIONS
SECTION 4 POSITIVE AND NORMATIVE STATEMENTS
MULTIPLE CHOICE QUESTIONS
SECTION 5 DEMAND
LAW OF DEMAND
DEMAND SCHEDULE
DEMAND CURVE
FACTORS CAUSING SHIFTS IN THE DEMAND CURVE (DEMAND DETERMINANTS)
MULTIPLE CHOICE QUESTIONS
SECTION 6 SUPPLY
LAW OF SUPPLY
SUPPLY SCHEDULE
SUPPLY CURVE
MULTIPLE CHOICE QUESTIONS
SECTION 7 MARKET EQUILIBRIUM
CHANGES IN THE EQUILIBRIUM PRICE
MULTIPLE CHOICE QUESTIONS
SECTION 8 ELASTICITY OF DEMAND
PRICE ELASTICITY OF DEMAND (P)
Total Revenue (TR) or Total Expenditures (TE) method 89
Graphical Method 92
POINT ELASTICITY OF DEMAND
INCOME ELASTICITY OF DEMAND (M)
Cross price elasticity of demand (C) 102
Limitations of demand elasticities 104
MULTIPLE CHOICE QUESTIONS
SECTION 9 PRICE ELASTICITY OF SUPPLY 
DETERMINANTS OF PRICE ELASTICITY OF SUPPLY
MULTIPLE CHOICE QUESTIONS
SECTION 10 CONSUMER AND PRODUCER SURPLUS
CONSUMER SURPLUS
Changes in Consumer Surplus 140
PRODUCER SURPLUS
Changes in Producer Surplus 142
PRICES AS RATIONING AND ALLOCATIVE MECHANISMS
MULTIPLE CHOICE QUESTIONS
SECTION 11 TAXES AND SUBSIDIES
TAXES 156
1) Specific tax 156
2) Ad valorem tax (percentage tax) 156
SUBSIDIES
Specific subsidy 161
Ad valorem subsidy (percentage subsidy) 161
MULTIPLE CHOICE QUESTIONS
SECTION 12 MAXIMUM AND MINIMUM PRICES 
MAXIMUM PRICE
Impacts of a maximum price 175
MINIMUM PRICE
MULTIPLE CHOICE QUESTIONS
SECTION 13 PUBLIC AND PRIVATE GOODS
PUBLIC GOODS
PRIVATE GOODS
MERIT GOODS
DEMERIT GOODS
MULTIPLE CHOICE QUESTIONS
SECTION 14 FACTORS OF PRODUCTION 

(Understanding Economics AS Level Book, Notes and past papers.)
(1) LAND
(2) CAPITAL
(3) LABOUR
(4) ENTREPRENEURSHIP
DIVISION OF LABOUR
MULTIPLE CHOICE QUESTIONS
SECTION 15 UNEMPLOYMENT
COSTS OF UNEMPLOYMENT
REDUCING UNEMPLOYMENT
MULTIPLE CHOICE QUESTIONS
SECTION 16 MONEY 
EVOLUTION OF MONEY
FUNCTIONS OF MONEY
MULTIPLE CHOICE QUESTIONS
SECTION 17 AGGREGATE DEMAND & AGGREGATE SUPPLY 229
AGGREGATE DEMAND (AD)
AGGREGATE SUPPLY (AS)
MULTIPLE CHOICE QUESTIONS
SECTION 18 GENERAL PRICE LEVEL: PRICE INDICES
LIMITATIONS OF PRICE INDEX
NOMINAL AND REAL CHANGES
MULTIPLE CHOICE QUESTIONS
SECTION 19 INFLATION
TYPES OF INFLATION
CAUSES OF INFLATION
CONSEQUENCES OF INFLATION
MULTIPLE CHOICE QUESTIONS
SECTION 20 PRINCIPLES OF ABSOLUTE & COMPARATIVE ADVANTAGE
THEORY OF ABSOLUTE ADVANTAGE
THEORY OF COMPARATIVE ADVANTAGE
EXCEPTIONS TO THE THEORIES OF ABSOLUTE & COMPARATIVE ADVANTAGE
LIMITATIONS TO THE THEORIES
CHALLENGES OF INTERNATIONAL TRADE
MULTIPLE CHOICE QUESTIONS
SECTION 21 TERMS OF TRADE
MULTIPLE CHOICE QUESTIONS
SECTION 22 ARGUMENTS FOR FREE TRADE & MOTIVES FOR PROTECTION 296
ARGUMENTS FOR FREE TRADE
TYPES (METHODS) OF PROTECTION AND THEIR EFFECTS
MULTIPLE CHOICE QUESTIONS
SECTION 23 ECONOMIC INTEGRATION 
FREE TRADE AREA
CUSTOMS UNION
COMMON MARKET
FULL ECONOMIC UNION
POLITICAL UNION
MULTIPLE CHOICE QUESTIONS
SECTION 24 BALANCE OF PAYMENTS
(I) CURRENT ACCOUNT
(II) FINANCIAL (CAPITAL) ACCOUNT
BALANCE OF PAYMENTS PROBLEMS
Why is a trade deficit bad? 321
Why is a trade surplus bad? 322
MULTIPLE CHOICE QUESTIONS
SECTION 25 EXCHANGE RATES
NOMINAL EXCHANGE RATE
REAL EXCHANGE RATE
PURCHASING POWER PARITY THEORY
MANAGED FLOATING
FLEXIBLE OR FLOATING EXCHANGE RATES
CHANGES IN EXCHANGE RATES
FIXED EXCHANGE RATES
MANAGED FLOAT
ADVANTAGES & DISADVANTAGES OF FIXED & FLOATING EXCHANGE RATES
POLICIES TO CORRECT BALANCE OF PAYMENTS DISEQUILIBRIUM
POLICIES TO CORRECT A TRADE SURPLUS
IMPACTS OF CHANGES IN INTEREST RATE
MULTIPLE CHOICE QUESTIONS
SECTION 26 FISCAL POLICY
MONETARY POLICY
SUPPLY SIDE POLICIES AND NATURAL RATE OF UNEMPLOYMENT
SYSTEMS OF TAXATION
MULTIPLE CHOICE QUESTIONS
ANSWERS     393

(Understanding Economics AS Level Book, Notes and past papers.)