Level: AS Levels, A Level, GCSE – Exam Boards: Edexcel, AQA, OCR, WJEC, IB, Eduqas – Economics Revision Notes Types of Revenue Total Revenue The amount of money generated from selling a certain amount of output and is calculated by: price x quantity sold Average Revenue Revenue per unit and is calculated by: total revenue / quantity […]

Business Objectives The three main Business Objectives are: Revenue Maximisation Profit Maximisation Sales Maxmisastion The traditional theory is based upon the idea that firms aim to maximise profits. However, firms have other aims too Profit Maximisation Firms profit maximise at the point MR = MC, where the marginal revenue of selling one extra unit is […]

Level: AS Levels, A Level, GCSE – Exam Boards: Edexcel, AQA, OCR, WJEC, IB, Eduqas – Economics Revision Notes Business Growth There are two main types of growth internal/organic growth  external/integration growth Organic Growth Organic growth is where the firm grows by increasing their output. For example, increased capital investment or more labour. It may […]

Level: AS Levels, A Level, GCSE – Exam Boards: Edexcel, AQA, OCR, WJEC, IB, Eduqas – Economics Revision Notes Financial Market – a market consisting of buyers and sellers who trade financial instruments such as bond, assets, equity etc Some of the main Financial Markets Money Markets – the trading of short-term loans such as […]

Level: AS Levels, A Level, GCSE – Exam Boards: Edexcel, AQA, OCR, WJEC, IB, Eduqas – Economics Revision Notes Economics as a Social Science – Scitovsky’ Theory: proposed that Economics is a social science as it attempts to use scientific methods to analyse the behaviour of people within markets, firms and economies The ‘Ceteris Paribus’ Assumption […]

Level: AS Levels, A Level, GCSE – Exam Boards: Edexcel, AQA, OCR, WJEC, IB, Eduqas – Economics Revision Notes Price Mechanism Prices are determined by the market forces of demand supply. Changes in demand / supply will cause an increase or decrease in the price of goods and services Adam Smith proposed the theory ‘the […]

Level: AS Levels, A Level, GCSE – Exam Boards: Edexcel, AQA, OCR, WJEC, IB, Eduqas – Economics Revision Notes  Why do firms want to grow? Increase market share – (percentage of market you own). Competition from other firms is reduced so a company with greater market share can control prices and retain consumer loyalty Profit […]

Level: AS Levels, A Level, GCSE – Exam Boards: Edexcel, AQA, OCR, WJEC, IB, Eduqas – Economics Revision Notes National Income An asset is a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit.  Examples of assets:  House Car Stocks and […]

Level: AS Levels, A Level, GCSE – Exam Boards: Edexcel, AQA, OCR, WJEC, IB, Eduqas – Economics Revision Notes    Demerger – a business strategy in which a single business is broken into 2 or more components either to operate on their own to be sold or to be dissolved  Example of a demerger: Pepsi announced […]

Level: AS Levels, A Level, GCSE – Exam Boards: Edexcel, AQA, OCR, WJEC, IB, Eduqas – Economics Revision Notes  Efficiency is concerned with the optimal production and distribution of scarce resources.  Different types of efficiency Productive – producing for the lowest cost. Allocative – distributing resources according to consumer preference P=MC Dynamic – Efficiency over […]