IGCSE Economics

IGCSE Economics syllabus develops an understanding of economic theory, terminology and principles. Learners study the economics of different countries and how these interrelate. They also learn to work with simple economics data and to use the tools of economic analysis. Learners apply understanding of economics to current economic issues. (join our online classes).

The Cambridge IGCSE Economics syllabus provides a foundation for further study, including Cambridge International AS & A Level Economics, or the equivalent.

Course Content:

1: The basic economic problem

Topic
Finite resources and unlimited wants
Economic and free goods Guidance
Definition and examples of the economic problem in
the contexts of: consumers; workers; producers; and
governments.
The difference between economic goods and free
goods.

1.2 The factors of production
Topic
1.2.1 definitions of the factors of production and their rewards
1.2.2 mobility of the factors of production
1.2.3 quantity and quality of the factors of production

Opportunity cost
Topic
1.3.1 definition of opportunity cost
1.3.2 the influence of opportunity cost on decision making

1.4Production possibility curve (PPC) diagrams

Topic
1.4.1 definition of PPC
1.4.2 points under, on and beyond a PPC
1.4.3 movements along a PPC
1.4.4 shifts in a PPC

2The allocation of resources

2.1 Microeconomics and macroeconomics
Topic
2.1.1 microeconomics
2.1.2 macroeconomics

2.2 The role of markets in allocating resources
Topic
2.2.1 the market system
2.2.2 key resources allocation decisions
2.2.3 introduction to the price mechanism

2.4 Supply
Topic
2.4.1 definition of supply
2.4.2 price, supply and quantity
2.4.3 individual and market supply
2.4.4 conditions of supply

2.5 Price determination
Topic
2.5.1 market equilibrium
2.5.2 market disequilibrium

Price changes
Topic
2.6.1 causes of price changes
2.6.2 consequences of price changes

3 Microeconomic decision-makers

3.1 Money and banking
Topic
3.1.1 money
3.1.2 banking

3.2 Households
Topic
3.2.1 the influences on spending, saving and
borrowing

3.3 Workers
Topic
3.3.1 factors affecting an individual’s choice of
occupation
3.3.2 wage determination
3.3.3 reasons for differences in earnings
3.3.4 division of labour/specialisation

3.4 Trade unions
Topic
3.4.1 definition of a trade union
3.4.2 the role of trade unions in the economy

3.4.3 the advantages and disadvantages of trade union activity

3.5 Firms
Topic
3.5.1 classification of firms
3.5.2 small firms
3.5.3 causes and forms of the growth of firms
3.5.4 mergers
3.5.5 economies and diseconomies of scale

Firms and production
Topic
3.6.1 demand for factors of production
3.6.2 labour-intensive and capital-intensive
production
3.6.3 production and productivity

4 Government and the macroeconomy

4.1 The role of government
Topic
4.1.1 the role of government
Guidance
Locally, nationally and internationally.

4.2 The macroeconomic aims of the government
Topic
4.2.1 the macroeconomic aims of government
4.2.2 possible conflicts between macroeconomic aims

4.3 Fiscal policy
Topic
4.3.1 definition of the government budget
4.3.2 reasons for government spending
4.3.3 reasons for taxation
4.3.4 classification of taxes
4.3.5 principles of taxation
4.3.6 impact of taxation

4.3 Fiscal policy continued
Topic
4.3.7 definition of fiscal policy
4.3.8 fiscal policy measures
4.3.9 effects of fiscal policy on government macroeconomic aims

4.4 Monetary policy
Topic
4.4.1 definition of money supply and monetary
policy
4.4.2 monetary policy measures
4.4.3 effects of monetary policy on government
macroeconomic aim

4.5 Economic growth
Topic
4.6.1 definition of economic growth
4.6.2 measurement of economic growth
4.6.3 causes and consequences of recession
4.6.4 causes of economic growth
4.6.5 consequences of economic growth
4.6.6 policies to promote economic growth

4.6 Employment and unemployment
Topic
4.7.1 definition of employment, unemployment and
full employment
4.7.2 changing patterns and level of employment

5 Economic development

5.1 Living standards
Topic
5.1.1 indicators of living standards
5.1.2 comparing living standards and income
distribution

5.2 Poverty
Topic
5.2.1 definition of absolute and relative poverty
5.2.2 the causes of poverty
5.2.3 policies to alleviate poverty and redistribute income

5.3 Differences in economic development between countries
Topic
5.4.1 differences in economic development
between countries

6: International trade and globalization

6.1 International specialization
Topic
6.1.1 specialization at a national level
6.1.2 advantages and disadvantages of specialization at a national level

6.2 Globalisation, free trade and protection
Topic
6.2.1 definition of globalization
6.2.2 role of multinational companies (MNCs)
6.2.3 the benefits of free trade
6.2.4 methods of protection
6.2.5 reasons for protection
6.2.6 consequences of protection

6.3 Foreign exchange rates
Topic
6.3.1 definition of foreign exchange rate
6.3.2 determination of foreign exchange rate in
foreign exchange market
6.3.3 causes of foreign exchange rate fluctuations
6.3.4 consequences of foreign exchange rate
fluctuations
6.3.5 floating and fixed foreign exchange rates