3.1.1 Sizes and types of firms 3.1.2 Business growth 3.1.3 Demergers 3.2.1 Business objectives 3.3.1 Revenue 3.3.2 Costs 3.3.3 Economies and diseconomies of scale 3.3.4 Normal profits, supernormal profits and losses
When a business increases the size of its operations This could be: Internally Opening new stores Franchising Externally Mergers Takeovers
That sector of the economy that is owned and controlled by the government rather than individuals or groups of individuals
The sector of the economy that is owned and controlled by individuals or groups of individuals rather than by the government
A situation that occurs when there is a difficulty in getting one party, the manager or director, to work in the best interests of the principal party, the owners
The process of splitting a business into separate components
Targets that a business wants to achieve within a set period of time
The income received by a firm from selling goods and services
Expenditures incurred by a firm as part of the firm’s operations
The advantages enjoyed by a firm, when unit costs fall, as it increases the scale of production
The problems experienced when unit costs, or average cost per unit, rise as a firm increases the scale of production
The minimum level of profit required by a firm to continue to operate and remain competitive in a market
Profit in excess of normal profit that occurs when average revenue > average total cost (AR > ATC)
The situation where total costs made by a business are greater than total revenue
Understanding the business side of the economy how firms operate within the UK.
Group work and the development of research will help create an environment where students will support each other.
3.4.1 Efficiency 3.4.2 Perfect competition 3.4.3 Monopolistic competition3.4.4 Oligopoly 3.4.5 Monopoly 3.4.6 Monopsony 3.4.7 Contestability
When the maximum amount of products are produced at their minimum cost whilst maximising their benefit to society
A situation where a firm does not maximise the amount of products it produces, operates above minimum cost and does not maximise benefits to society
A hypothetical market structure where all firms sell homogenous products and are price takers
A type of imperfect competition with many firms selling differentiated products.
A type of market structure where a few firms dominate, the concentration ratio is high
A market structure where there is only one producer in an industry
A market structure where there is a sole (pure monopsony) or dominant buyer in the market
The degree to which markets are contestable i.e. the degree of freedom to enter or exit the market, the degree of sunk costs and the degree of perfect knowledge
Develop and understanding of different market structures and how they influence an economy.
Students work together to understand the concepts being introduced.
4.1 International economics4.1.1 Globalisation4.1.2 Specialisation and trade4.1.3 Pattern of trade4.1.4 Terms of trade4.1.5 Trading blocs and the World Trade Organisation (WTO)4.1.6 Restrictions on free trade4.1.7 Balance of payments4.1.8 Exchange rates4.1.9 International competitiveness
The integration of international economies leading to a world market
When economic units, such as individuals, firms, regions or countries, concentrate on producing specific goods or services
Pattern of trade
The terms of trade is the ratio of export prices to import prices
Economic units formed when the governments of a group of countries agree to trade together freely i.e. normally with no trade barriers
An organisation whose purpose is to promote free trade by persuading countries to abolish import tariffs and other barriers
The instruments of policy that are used by governments to limit the free movement of goods and services between countries
A record of a country’s trade in goods and services, investment income and transfers with the rest of the world
The way in which the value of a domestic currency e.g. £ is determined. Exchange rate systems include floating, fixed and managed exchange rates
The ability of a business to compete in global markets to become a leader in a given industry across the world
Student will get an appreciation of how international economies work together and the impact they have on developed and developing economies.
Through group discussion and independent learning, students will develop analytical and evaluative skills.
4.2.1 Absolute and relative poverty 4.2.2 Inequality 4.3.1 Measures of development 4.3.2 Factors influencing growth and development 4.3.3 Strategies influencing growth and development
Indicators used to look at the extent to which countries have improved their economic wellbeing and quality of life
An increase in the value of real output in an economy over time
The process of improving economic well-being and quality of life
When an individual cannot afford the basic needs of life in the country in which they live
When individuals or households are poor in comparison to the rest of the population
This occurs when there is a disparity in the stock of financial assets e.g. houses owned by individuals or households
This occurs when there is a disparity in the flow of earnings of individuals or households
Understanding the difference between developed and developing economies and how poverty can occur between different types of economies.
Help student recognise issues in the economy and to have differing view and accept that other will challenge their views.
Revision for theme 1,2,3 and 4.
Test all assessment objectives in all four themes.
Mentoring and helping each other to achieve the best possible grade in the final examination.