Theme 4 – Making Markets Work

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

Competition and Market Power

a) Spectrum of competition
b) Barriers to entry
c) Oligopoly
d) Business objectives and pricing decisions
e) Productive and allocative efficiency

Market Power and Market Failure

a) Market failure
b) Business regulation
c) Arguments for and against regulation

Market Failure across the Economy

a) Market failure in society
b) Externalities
c) Policies to deal with market failure

Macroeconomic Policies and Impact on Firms and Individuals

a) The AD AS model
b) Demand-side policies
c) Supply-side policies
d) The impact of macroeconomic policies

Risk and the Financial Sector

a) Risks and uncertainty
b) The role of the financial sector
c) The role of the central bank
d) The Global Financial Crisis