IGCSE Economics

Summary of course content

This course will provide you with a general understanding of economic theory, terminologies and principles that will help you interpret economic data and apply them to current economic situations. At the end of this course, you will be able to distinguish between facts and value judgements in economic issues.

This course aims to enable students to:

• know and understand economic terminology, concepts and theories
• use basic economic numeracy and interpret economic data
• use the tools of economic analysis
• express economic ideas logically and clearly in a written form
• apply economic understanding to current economic issues.

Areas of Study

In this course, you will study:

1. The basic economic problem
   The first section of the syllabus introduces the fundamental ideas and concepts that underpin the study of economics, including the basic economic problem, factors of production, opportunity cost and production possibility curves.
2. The allocation of resources
   The fundamental principles of resource allocation are considered through the price mechanism in a market economy. The market forces of demand and supply, market equilibrium and disequilibrium, and elasticity form the core of this section.
3. Microeconomic decision-makers
   The microeconomy is an important area of study, and the approach to learning taken here is through the role of the major decision-makers: banks, households, workers, trade unions and firms.
4. Government and the macroeconomy
   Governments have different macroeconomic aims, and conflicts often arise between the choice of measures used to achieve them. Variables must be measured to consider the causes and consequences of change and the appropriate policies applied.
5. Economic development
   As an economy develops, there will be changes in population, living standards, poverty and income redistribution. Therefore, the effects of changes in the size and structure of the population and of other influences on development in a variety of countries are explored.
6. International trade and globalisation
   The importance of trade between countries and the growth of globalisation is explored. Principles such as specialisation, the role of free trade, the role of multinational companies, foreign exchange rates and balance of payments stability are considered.