IGCSE Economics

The basic economic problem
The first section of the syllabus introduces the fundamental ideas and concepts that underpin the study of economics, including the basic economic problem, factors of production, opportunity cost and production possibility curves.

The allocation of resources
The fundamental principles of resource allocation are considered through the price mechanism in a market economy. The market forces of demand and supply, market equilibrium and disequilibrium, and elasticity form the core of this section.

Microeconomic decision-makers
The microeconomy is an important area of study, and the approach to learning taken here is through the role of the major decision-makers: banks, households, workers, trade unions and firms.

Government and the macroeconomy
Governments have different macroeconomic aims, and conflicts often arise between the choice of measures used to achieve them. Variables must be measured to consider the causes and consequences of change and the appropriate policies applied.

Economic development
As an economy develops, there will be changes in population, living standards, poverty and income redistribution. Therefore, the effects of changes in the size and structure of the population and of other influences on development in a variety of countries are explored.

International trade and globalisation
The importance of trade between countries and the growth of globalisation is explored. Principles such as specialisation, the role of free trade, the role of multinational companies, foreign exchange rates and balance of payments stability are considered.