How much the student values their time not working (the opportunity cost) represents the marginal cost. The posters are provided in Docx format, so are fully adaptable. Resources for Internally Assessed Achievement Standards. The different values or perspectives held by individuals and groups influence the economic choices they make. Economics is a complex subject filled with a maze of confusing terms and details which can be difficult to explain. PED, YED, XED & PES Student Work Booklet (AQA & EDEXCEL). Groups and individuals with the same information, but different values, may make different choices. They are developed to aid analysis and support predictions about economic behaviour and performance. Going through these subtopics will give you a … Micro-economics is the branch of economics that examines individual decision-making by firms and households and the way they interact in specific industries and markets. Economic growth occurs when the real value of the goods and services produced by an economy enables more wants to be satisfied. They believe that the benefits of higher growth will trickle down to the low-income families. Within microeconomics, you will study the concepts of demand and supply, elasticities, government intervention and market failure. Although the marginal cost of the first or second hour worked may be low (the student still has plenty of times to do other things), the cost of further hours begins increase. Conditions. They use indicators to estimate how well the economy is doing and to highlight trends in contemporary macro-economic issues, such as economic growth, employment, international trade, inflation, and equity. Whenever resources are particularly scarce, demand exceeds supply, and prices are driven up. Both are organized into four main units, each with multiple subtopics. Values are the core beliefs that people hold. These statistics are important for economists. The government intervenes by applying an excise tax on tobacco products to deliver a more efficient and equitable outcome. Scarcity results in choices with opportunity costs, Markets provide incentives and ration scarce resources, Perfectly competitive markets are efficient, Market failure may require government intervention, The benefits of market activities may not be equitable, Government intervention may involve an equity–efficiency trade-off, Interdependence results in flow-on effects, Economic indicators aid economic analysis, Inflation can distort economic indicators, Perfectly competitive markets (for private goods and services at equilibrium) are efficient, Government interventions for common causes of market failure. Key concepts or big ideas in economics. Economic models are simplifications of the real world. Key concepts outlined above, including, opportunity cost, thinking at the margin, incentives in consumer/producer decision-making, markets efficiency, and why markets fail are all based on neoclassical ideas and form the basis of micro-economic theory. Similarly, students are likelier to work hard to develop skills they recognise as required for the high paying job they aspire to. Optimisation : Optimisation means the most efficient use of resources subject to certain constraints it is the choice from all possible uses of resources which gives the best results, it is the task of maximisation or minimisation of an objective function it is a technique which is used by a consumer and a producer as decision-maker. Economics is traditionally divided up into two branches – microeconomics and macroeconomics. London WC1R 4HQ. A3 printable version. If the student is paid $15 an hour, but values the marginal cost of a third hour spent working at more than $15 – they really want to use it for study or to be with friends – then the most hours they should work are two. IB Economics 9 Economic Concepts A3 Poster, GCSE Business Studies - Workbook [Video Learning Workbook]. Start studying IB Economics : Macroeconomics Key Concepts. Macro-economics is the branch of economics that examines the workings and problems of the economy as a whole. They act as a reminder for students and teachers to incorporate and link these 9 concepts throughout the whole course. The 51 Key Economics Concepts. All pictures are royalty free/reusable. An incentive is something that motivates a producer or consumer to follow a particular course of action or to change it. Economists use increases in real income to identify economic growth – increasing real income shows that a country, with its resources, is now able to satisfy more wants and needs. The greater the scarcity, the higher the price, and the more the resource will be conserved.