点击查看》》2018留学考试备考规划
本篇推送重点针对AO1 Understanding，AO2 Application, AO3 Analysis, 对应卷子必答题当中2分-6分的题目，以及选答题中前2-3个小题。在答题时也有一定的技巧，参考评分标准我们可以看到，有些题目问某个概念的两个特点，或两个原因，分值为4分，我们在做题时一定要注意对每个点的解释，并且注意使用术语。以下是老师结合了近几年IG经济卷子，对于常考基础知识点的整理，以应对前三个评分标准对我们的要求。
Section I The Basic Economic Problem
What is opportunity cost?
next best alternative foregone
Section II Allocation of resource
What are the reasons why the supply of a product may be price-inelastic?
It may take time to produce the product. this means that it will take time to adjust
supply in response to a change in price / example of a product that it takes time to
produce
It may not be possible to store the product. this means that it cannot be taken out of
storage when price rises / products cannot be put into storage when price falls
It may be costly to adjust supply e.g. it might be necessary to build new factories and
this may discourage firms from adjusting supply
The supply of a natural resource may become limited e.g. gold maybe close to
depletion
What are the causes of market failure?
Failure to take into account all costs and benefits/ external costs and benefits/ under-consumed/ underproduced/ over-consumption/ over-production
information failure
public goods are not produced in a market system
abuse of market power
lack of mobility of resources
Section III The individual as Producer, Consumer and Borrower
What are the function of money?
Store of value
Unit of account
Medium of exchange
Standard for deferred payment
What are the functions of the central bank?
Lender of last resort
Printing notes and minting coins
Setting interest rates
Supervising monetary policy
Banker for commercial banks and government
Manage international financial system
Define ‘stock exchange’
An organisation/ market for the sale and purchase of shares
What are the functions of trade unions?
Negotiating wages and other non-wage benefits
Defending employee rights and jobs
Improving pay and other benefits
Improving working conditions
Increase worker participation in business decisions
Develop skills of union members
Section IV The Private Firm as Producer and Employer
What are the economies of scale?
Financial economies
Technical economies
Risk-bearing economies
Marketing economies
What are the internal diseconomies of scale that a large firm may experience?
Difficulties controlling/ managing the firm/ managerial diseconomies as there are more layers of management in a large firm so ti may take longer to make decisions
communication problems as there are more layers of communication and communication may be indirect. messages may be misinterpreted and it takes time to reach recipients
labour diseconomies: workers may feel less appreciated/ have low morale so may become demotivated which could reduce labour productivity/ efficiency
poor industrial relations: there may be industrial action such as strikes
What are the advantages that firms may gain from a horizontal merger?
Take advantages of economies of scale, reduce average costs
Increased market share as a direct competitor is eliminated
exchange ideas and gain technology so that to increase innovation and produce with better quality
What are the advantages of a sole proprietor?
Profit incentive/all profits go to the sole proprietor, do not have to share with partners
and/or shareholders
Flexible as no one else to consult/quick to make decisions
Provides personal services/has personal contact with consumers (1) can pick up changes in
demand/target products
Low start up costs/easy to set up, eases entry into the market/limited legal requirements
Own boss, no-one to take orders from
What is multinational company?
a company that has its headquarters/is based in a country but produces in a number
of countries
What are the characteristics of perfect competition?
many buyers and sellers, making each firm a price taker
free entry and exit, absence of barriers to entry and exit/ results in only normal profits being earned in the long run
homogeneous product, demand for one firm’s product will be perfectly elastic
perfect knowledge, firms and buyers aware of profits
Define ‘monopoly’
A market with one seller/ single supplier
A price maker/ a firm with market power/ dominant firm/ has barriers to entry
Section V Role of Government in an Economy
What are the aims of government?
full employment
price stability
economic growth
redistribution of income
stability of balance of payment
What are the types of direct taxes?
income tax
corporation tax
capital gains tax
inheritance tax
What are the types of indirect taxes?
sale tax/ value added tax
excise duties
customs duties/ tariff
licences
How supply-side policy measures could increase productivity?
improved education/training, may raise workers’ skills, increase output per worker hour
privatisation may increase competitive pressure on firms to keep costs low, encourage more investment, and increase output per factor hour
reforming trade unions may reduce restrictive practices, this may allow firms to
use their workers more efficiently increase output per worker hour
cutting corporation tax may increase profit, increase investment and increase
output per factor hour
giving subsidies to encourage firms to invest in advanced technology, engage in
research and development and/or train workers
Section VI Economic Indicators
What are the types of unemployment?
Cyclical
Structural
Frictional
Seasonal/ Casual
What are the causes of inflation
demand-pull
cost-push
monetary
What are the indicators of living standards?
GDP per capita
HDI takes into account income, education and life expectancy
Section VII Developing and Developed Countries
What is absolute poverty?
A lack of access to basic necessities e.g. food/clothing/housing
Living on less than e.g. US$1.25 a day
What are the characteristics of a rapidly developing economy?
high increase in real GDP per head will increase living standards by investment
significant improvements in healthcare will increase life expectancy cause by increased spending on hospitals
significant improvements in education will raise workers skills
high proportion of workers employed in the tertiary sector . as countries develops, workers tent to move from primary and secondary sectors to the tertiary sector
low rates of population growth. as countries develop, the birth rate tends to fall faster than the death rate
high spending on luxury products
encouragement of MNCs to set up as it may reduce unemployment
