Theme 1 – Markets, Consumers and Firms

This theme is included in AS Paper 1 and A-Level Paper 1 and Paper 3 for Edexcel Economics (B). You can find notes for it below:

Scarcity, Choice and Potential Conflicts

a) The economic problem
b) Business objectives
c) Stakeholders (economic agents) and their objectives

Enterprise, Business and the Economy

a) Role of an entrepreneur in the economy
b) Entrepreneurial motives
c) Factors of production
d) Specialisation
e) The wider economic environment

Introducing the Market

a) Demand
b) Supply
c) Price determination
d) Price mechanism
e) Understanding the consumer
f) The competition

Role of Credit in the Economy

a) Role of banks in the economy
b) Risk and liability
c) Types and sources of credit and the impact of credit within the economy

Market Failure and Government Intervention

a) Market failure and externalities
b) Government intervention and failure

Revenues, Costs, Profits and Cash

a) Revenue and costs
b) The relationship between revenue and costs
c) Profit and loss
d) Business survival and cash flow