IGCSE Economics Revision Notes Microeconomics and Macroeconomics

IGCSE Economic Notes on Allocation of Resources /2024/2025/2026 Exams

igcse-economics-notes-allocation-of-resources

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.
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Example of  macroeconomic topics:

  1.  Unemployment/study of economics on a large scale

Example of  microeconomic topic:

  1. 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

  1. 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.
  2. 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.
  3. 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

About the notes for 0455 IGCSE Economics available on our webiste:

  • All notes are prepared by Cambridge trained and experienced teachers of Economics with rich experience in teaching the subject and assessing studemts.
  • Notes are available as a part of yearly membership for IGCSE Economics 0455 /0980 (9-1) for Cambridge syllabus
  • All notes are completely updated as per syllabus changes, so you learn exactly what you should. 
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