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IGCSE Economics Revision Notes Microeconomics and Macroeconomics
IGCSE Economic Notes on Allocation of Resources /2024/2025/2026 Exams
IGCSE Economics Microeconomics and macroeconomics Summary Notes
Microeconomics: Microeconomics is defined as the study or analysis of individual markets or economic agents, such as individuals, households, and firms.
Macroeconomics: Macroeconomics is the study of the whole economy.
Example of macroeconomic topics:
Unemployment/study of economics on a large scale
Example of microeconomic topic:
Study of economics on a small scale, e.g. demand for cars
Microeconomics: Focuses on individual markets, firms, and consumers. It studies decision-making at the small scale and how these decisions affect the supply and demand for goods and services.
Macroeconomics: Examines the broader economy. It looks at issues such as economic growth, inflation, and fiscal policies implemented by governments.
Interdependence: While microeconomics focuses on individuals and firms, macroeconomics takes a broader perspective on the economy as a whole. Both fields are interdependent and complement each other.
Exam Tips
Understand the Difference: Be clear on the distinction between microeconomics and macroeconomics. Microeconomics deals with individual markets, while macroeconomics looks at the economy as a whole.
Use Real-World Examples: When answering questions, provide real-world examples of microeconomic and macroeconomic decisions. For example, the decision of a firm to raise prices or a government's fiscal policy to tackle inflation.
Link Both Branches: Understand how micro and macroeconomics are interconnected. For instance, decisions made by firms (microeconomics) can affect national economic indicators like unemployment (macroeconomics).???????
Topic 3 : Microeconomic decision makers
Sub-topics included are: factors affecting individual choice of occupation/ Wage determination/ Reasons for difference in earnings/ Specialization/Workers/Trade unions./Classification of firms/Small firms/Causes of growth of firms/Mergers/Economies and diseconomies of scale/ Demand for the factors of production/Labour intensive and capital intensive production/Production and productivity/Competitive and monopoly markets. Economics past papers where ever appropriate, giving you hints on what needs to be included as a part of your answers, these notes are an ideal guide for acing your Sub-topics included are: factors affecting individual choice of occupation/ Wage determination/ Reasons for difference in earnings/ Specialization/Workers/Trade unions./Classification of firms/Small firms/Causes of growth of firms/Mergers/Economies and diseconomies of scale/ Demand for the factors of production/Labour intensive and capital intensive production/Production and productivity/Competitive and monopoly markets. Economics past papers where ever appropriate, giving you hints on what needs to be included as a part of your answers, these notes are an ideal guide for acing your IGCSE's
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