Subject(s): Economics: problems , Scope, Positive economics, normative economics -- Methods of allocating resources : Functions of an economic system , Market economy, Command economy, Mixed economy, Micro and macro economy -- How price in formed in the free market : Vale and price, markets, forces determining price, demand, supply, market clearing -- Application of demand and supply analysis : price in free market -- Further looks at demand : Demand curve, Price elasticity of demand -- Theory of production -- Firm, Organisational and scale of production, Division of labour, Advantages of large scale production, Predominance of the small firm, Distribution of goods to the consumer, Scope of production, Wholesaler, Retailer, Middleman -- Location of production, Combining the factors of production, Deciding on the most profitable output -- Equilibrium, Perfect competition -- Supply curve of the industry under perfect competition -- Rewarding the factors of production : the marginal productivity theory of distribution -- Determination of the Price of a factor service -- Government and the allocation of resources -- market failure and the role of government -- Market failure and the role of government : Efficiency in the allocation of resources, Economic functions of government , Assumption of perfect competition -- Monopoly: Imperfect competition, Foundation of monopoly , Equilibrium output of the monopolist, Public policy -- Imperfect competition -- Monopolistic competition Oligopoly, Pricing policy in the real world -- Externalities and cost benefit analysis -- Cost benefit analysis -- Environment: conservation and pollution -- maintaining stock of fish, preserving an historic building, pollution -- Provision of goods and services by the public sector -- Case for public sector provision, Accountability vs economic efficiency , Pricing policy, nationalised industries and privatisation -- Rewards to the different factors of production -- labour and wages, capital and interest, Land and rent, Entrepreneurship and profit, -- Money and financial institutions -- Money and rate of interest , Financial market, Clearing Banks,Cash-ratio approach, banks in England, Monetary base control, Competition and credit control(CCC), rate of interest control -- Government and stabilisation policy -- Measuring the level of activity : national -- Income calculations -- Principles of national income calculations , National income statistics , Country's material standard of living -- Unemployment -- Level of output aggregate demand : Keynesian explanation -- Employment and price level, Inflation,Policies to achieve price stability, economic growth, balanced regional development , Government policy, Monetarist theory , Supply side measures, Public finance , Taxation -- International trade -- Nature of international trade , Balance of payment , Foreign exchange rates, Correction of a balance-of-payment disequilibrium, Reducing expenditure on imports, expenditure-switching, exchange rate, managed flexibility, international liquidity -- European community -- Population in UK -- Current problems and polices of the UK -- Balance of payment difficulties