AQA GCSE Economics

How markets work (3.1)

The Ceteris modules for AQA GCSE economics, How markets work (3.1), listed under each specification section. Each module teaches one idea, with questions through the page.

36 modules
6 sections
5 free

Modules marked A-level depth teach the GCSE point and go further than the GCSE course needs.

3.1.1 Economic foundations

Scarcity and choiceSay why every choice means giving something upConcept · 7 min · Free Opportunity costSay what a choice costs, not just what it costs in moneyConcept · 6 min Factors of productionSort an input into the right factor of productionTell them apart · 6 min

3.1.2 Resource allocation

The production possibility frontierRead a PPF and say what a point inside it meansDiagram · 7 min Market, command and mixed economiesTell the three ways an economy can allocate resourcesTell them apart · 7 min What a price does: rationing, signalling, incentiveExplain the three jobs a price does in a marketHow it works · 6 min

3.1.3 How prices are determined

DemandTell demand from quantity demandedConcept · 6 min · Free SupplyTell supply from quantity suppliedConcept · 6 min How a market finds its priceExplain how a market moves to its equilibrium priceHow it works · 6 min A shift in demandTell a shift in demand from a movement along the curveDiagram · 7 min A shift in supplyTell a shift in supply from a movement along the curveDiagram · 8 min Elastic and inelastic demandTell elastic demand from inelastic demandTell them apart · 6 min Calculating price elasticity of demandWork out a price elasticity of demand from two percentagesCalculation · 6 min Price elasticity of supplySay what makes a supply elastic or inelasticConcept · 7 min

3.1.4 Production, costs, revenue and profit

Specialisation and the division of labourSay what specialisation is and why it raises outputConcept · 6 min Fixed and variable costsSort a cost into fixed or variableTell them apart · 6 min · Free · A-level depth Average and marginal costWork out average and marginal cost from a total cost tableCalculation · 7 min · A-level depth Economies of scaleSay what economies of scale are and name their sourcesConcept · 7 min Total, average and marginal revenueWork out the three revenue measures from a demand scheduleCalculation · 7 min · A-level depth Normal and supernormal profitTell normal profit from supernormal profitTell them apart · 6 min · A-level depth

3.1.5 Competitive and concentrated markets

Perfect competitionSay what makes a market perfectly competitiveConcept · 7 min · A-level depth How a monopoly formsName the barriers to entry that create a monopolyConcept · 7 min · A-level depth Monopolistic competition and oligopolyTell the four market structures apartTell them apart · 6 min · A-level depth Is competition policy worth it?Weigh the case each way on breaking up a large firmDebate · 6 min · A-level depth The demand for labourSay why the demand for labour is derived demandConcept · 7 min · Free · A-level depth The supply of labourSay what moves the supply of labour to an occupationConcept · 7 min · A-level depth How a wage is set in a competitive marketExplain how demand and supply settle a wageHow it works · 6 min · A-level depth Why wages differ between jobsExplain why two jobs in one economy pay differentlyHow it works · 7 min Do trade unions raise wages?Weigh the case each way on union wage bargainingDebate · 6 min Does a minimum wage cost jobs?Weigh the case each way on whether a minimum wage costs jobsDebate · 6 min

3.1.6 Market failure

Public goodsTell a public good from a private oneConcept · 6 min · Free Negative externalitiesShow why a market over-produces when there is an external costDiagram · 8 min · A-level depth Positive externalitiesShow why a market under-produces when there is an external benefitDiagram · 7 min · A-level depth Merit and demerit goodsTell a merit good from a demerit good, and both from a public goodTell them apart · 7 min · A-level depth An indirect tax on a diagramShow what an indirect tax does to price and quantityDiagram · 7 min · A-level depth SubsidiesShow what a subsidy does to price and quantityDiagram · 7 min · A-level depth