AS Microeconomics – Operation of Markets & Market Failure

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

Economic Methodology and the Economic Problem

a) Economic methodology
b) The nature and purpose of economic activity
c) Economic resources
d) Scarcity, choice and the allocation of resources
e) Production possibility diagrams

Price Determination in a Competitive Market

a) The determinants of the demand for goods and services
b) Price, income and cross elasticities of demand
c) The determinants of the supply of goods and services
d) Price elasticity of supply
e) The determination of equilibrium market prices
f) The interrelationship between markets

Production Costs and Revenues

a) Production and productivity
b) Specialisation, division of labour and exchange
c) Costs of production
d) Economies and diseconomies of scale
e) Average revenue, total revenue and profit

Competitive and Concentrated Markets

a) Market structures
b) The objectives of firms
c) Competitive markets
d) Monopoly and monopoly power
e) The competitive market process

Market Mechanism, Market Failure and Government Intervention in Markets

a) How markets and prices allocate resources
b) The meaning of market failure
c) Public goods, private goods and quasi-public goods
d) Positive and negative externalities in consumption and production
e) Merit and demerit goods
f) Market imperfections
g) An inequitable distribution of income wealth
h) Government intervention in markets
i) Government failure