These are the macro topics which did not come up in any detail in Paper 2 (so they are worth revising for Paper 3).
Theme 2
2.1.1 Limitations of using GDP to compare living standards (and alternative measurements e.g. HDI, National Happiness Index)
2.1.2 Inflation
2.1.3 Unemployment
2.4 The Circular flow of income
2.4.1 The Multiplier effect
2.5 Economic growth - Output Gaps. The Trade cycle.
2.6 MEPO’s Macro Economic Policy objectives and 2.6.4 Trade-offs / conflicts between policies
2.6.2 Monetary policy (including the wider role of the Central bank in regulating the finance sector)
Theme 4
4.1 Trading blocs and the World Trade Organisation (WTO)
4.1.6 Restrictions on free trade (tariffs, Quotas, subsidies)
4.1.9 International competitiveness (including labour productivity)
4.3 Emerging and Developing economies:
- measures of development
- limits to growth and development e.g. primary product dependence etc
- strategies to overcome these limits e.g. market oriented vs interventionist strategies
4.4 The Financial sector
- market failure in the financial sector
- role of central banks
These are the micro topics which did not come up in any detail in Paper 1 (so they are worth revising for Paper 3).
Theme 1
1.2.1 Rational decision making (consumers aim to maximise utility, firms aim to maximise profits)
1.2.10 Alternative views of consumer behaviour (consideration of the influence of other people’s behaviour, the importance of habitual behaviour, consumer weakness at computation)
1.4.1 Government intervention in markets (tax, subsides, max and minimum prices)
1.4.2 Govt failure – eg unintended consequences
Theme 3
3.1 Business Growth (types of firm, how businesses grow, demergers)
3.3 Costs (fixed/variable, short run/long run, economies of scale)
3.4 Market structures (Perfect competition, monopolistic competition, oligopoly, monopsony)
3.5 Labour market (immobility in supply of labour did come up in paper 1, but demand for labour and Wage determination have still not come up)