Economics — 0455

Topic Overview
The Basic Economic ProblemThis section introduces you to some of the key ideas in economics and helps
you to start to think as an economist. It covers the important questions all
countries have to answer, the reasons why we have to make choices and the
resources used to produce goods and services.
The Allocation of ResourcesThis section examines why some products are expensive while others are
cheap and why the output of some products are increasing while others
are declining. You will consider why a change in price has more impact on
some products than others and why the government seeks to influence what
products we buy.
Microeconomic decision makersThis section focuses on some of the key economic agents who decide what
goods and services are produced and the amount people spend, save and
borrow. The section examines the role of bank, households, workers, trade
unions and firms.
Government and the macroeconomyIn this section attention switches to the economy as a whole. It covers
the key indicators of the performance of an economy which are economic
growth, inflation, unemployment and the country’s international trade
position. It examines the government’s aims in relation to these indicators
and to the redistribution of income. It also explores the different types of
policy measures a government can use to achieve these aims.
Economic DevelopmentThis section explores some of the influences on how the quality of people’s
lives can be different in different countries and over tie. It includes the
causes and consequences of changes in living standards, income distribution,
poverty, population size and structure.
International Trade & GlobalisationIn this last section, the focus is on the global economy. The benefits of
countries trading between each other is examined as well as why, despite
these benefits, governments impose restrictions on this trade. How foreign
exchange rates are determined and the causes and consequences of exchange
rate changes are explored. The last topic covered is the current account of
the balance of payments. This is a record of what a country sells and buys to
other countries and the income it earns form and pays abroad.

Command words

The table below includes command words used in the assessment for this syllabus. The use of the command word will relate
to the subject context.

Command wordWhat it means
AnalyseExamine in detail to show meaning, identify elements and the relationship between them
CalculateWork out from given facts, figures or information
DefineGive precise meaning
DescribeState the points of a topic/ give characteristics and main features
DiscussWrite about issue(s) or topic(s) in depth in a structured way
ExplainSet out purposes or reasons/ make the relationships between things evident/ provide why and/ or
how and support with relevant evidence
GiveProduce an answer from a given source or recall/ memory
IdentifyName / select / recognise
StateExpress in clear terms


Basic Economic Problem

The Allocation of Resources

Microeconomic decision makers

Government and the macro-economy

Economic development

International trade and Globalisation

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