Edexcel Unit 1 – Markets in Action

These topics are examined in the IAL Unit 1 for Edexcel Economics.

You can find notes for Unit 1 here:

The Nature of Economics

a) Scarcity
b) Production possibility frontiers (PPFs)
c) Specialisation, the division of labour, and the role of money
d) Free market and mixed economies
e) Positive and normative economics

Demand and Consumer Behaviour

a) The demand curve
b) Price, Income and Cross Elasticities of Demand
c) Consumer behaviour

Supply

a) The Supply Curve
b) Price elasticity of supply

Price Determination

a) Determination of market equilibrium
b) Consumer and producer surplus
c) Functions of the price mechanism
d) Indirect taxes and subsidies

Wage Determination in Labour Markets

ab) The demand for and the supply of labour
c) Determination of wage rates

Market Failure

a) Market failure

Government Intervention in Markets

a) Methods of government intervention
b) Government failure