The nature and causes of changes in the pattern of employment, for example increase in proportion of workers employed in the tertiary sector and formal economy as an economy develops; a greater proportion of women in the labour force due to changes in social attitudes; decline in the proportion employed in the public sector as a country moves towards a market economy. How unemployment is measured – claimant count and labour force survey – the formula for the unemployment rate. Frictional, structural and cyclical unemployment. The consequences of unemployment for the individual, firms and the economy as a whole. The range of policies available to reduce unemployment and how effective they might be. Review of Unit 4 Questions and suggested answers

Floating and fixed systems. The demand for and supply of a currency in the foreign exchange market and the determination of the equilibrium foreign exchange rate. Including changes in demand for exports and imports, changes in the rate of interest, speculation, and the entry or departure of MNCs. The effects of foreign exchange rate fluctuations on export and import prices and spending on imports and exports via the PED. The difference between, and the advantages and disadvantages of, a floating foreign exchange rate and a fixed foreign exchange rate system. Questions and suggested solutions

The basis for specialisation at national level in broad terms of: superior resource allocation and/or cheaper production methods. For consumers, firms and the economy. Questions and suggested solutions

In terms of primary/secondary/tertiary sectors and private/public sector, and the relative size of firms. The advantages and disadvantages of small firms, the challenges facing small firms and reasons for their existence. Internal growth, for example increased market share. External growth, for example mergers. Examples, advantages and disadvantages of different types of mergers: horizontal, vertical, and conglomerate. How internal and external economies and diseconomies of scale can affect a firm/industry as the scale of production changes. *Unit 3 review Note: detailed knowledge of different types of structure of a firm is not required. Questions with suggested solutions

Floating and fixed systems. The demand for and supply of a currency in the foreign exchange market and the determination of the equilibrium foreign exchange rate. Including changes in demand for exports and imports, changes in the rate of interest, speculation, and the entry or departure of MNCs. The effects of foreign exchange rate fluctuations on export and import prices and spending on imports and exports via the PED. The difference between, and the advantages and disadvantages of, a floating foreign exchange rate and a fixed foreign exchange rate system. Questions and suggested solutions

6.3.1 The importance of globalisation: • The concept of globalisation and the reasons for it • Opportunities and threats of globalisation for businesses • Why governments might introduce import tariffs and import quotas 6.3.2 Reasons for the importance and growth of multinational companies (MNCs): • Benefits to a business of becoming a multinational and the impact on its stakeholders • Potential benefits to a country and/or economy where a MNC is located, e.g. jobs, exports, increased choice, investment • Potential drawbacks to a country and/or economy where a MNC is located, e.g. reduced sales of local businesses, repatriation of profits 6.3.3 The impact of exchange rate changes: • Depreciation and appreciation of an exchange rate • How exchange rate changes can affect businesses as importers and exporters of products, e.g. prices, competitiveness, profitability Questions and suggested answers

The effect of having a high number of firms on price, quality, choice, profit. Characteristics, advantages and disadvantages of monopoly. *Unit 3 review Note: diagrams are not required. Note: the theory of perfect and imperfect competition and diagrams are not required Questions with suggested solutions

IGCSE Econ - 8 mark past paper questions and structured answers. 77 past paper questions (8 mark) across the syllabus with detailed answers providing clear “discuss…” points with evident evaluation. Ideal for revision purposes or end of chapter review.

Possible supply-side policy measures include education and training, labour market reforms, lower direct taxes, deregulation, improving incentives to work and invest, and privatisation. How supply-side policy measures may enable the government to achieve its macroeconomic aims. Review of Unit 4 Questions and suggested answers

Changes in interest rates, money supply and foreign exchange rates. How monetary policy measures may enable the government to achieve its macroeconomic aims Review of Unit 4 Questions and suggested answers

The forms, functions and characteristics of money. The role and importance of central banks and commercial banks for government, producers and consumers. Questions and suggested solutions

**Definition of opportunity cost The influence of opportunity cost on decision making** Questions and proposed solutions

Definitions of the factors of production and their rewards Mobility of the factors of production Quantity and quality of the factors of production Questions and proposed solutions

PPT covering the following: • Concepts of needs, wants, scarcity and opportunity cost • Importance of specialisation • Purpose of business activity • The concept of adding value and how added value can be increased

Definition, drawing and interpretation of demand and supply schedules and curves used to establish equilibrium price and sales in a market. Definition, drawing and interpretation of demand and supply schedules and curves used to identify disequilibrium prices and shortages (demand exceeding supply) and surpluses (supply exceeding demand). Supply and demand review doc Questions and suggested solutions

Definition, drawing and interpretation of appropriate diagrams. A supply curve to be drawn and used to illustrate movements along a supply curve with appropriate terminology, for example extensions and contractions in supply. The link between individual and market supply in terms of aggregation. The causes of shifts in a supply curve with appropriate terminology, for example increase and decrease in supply. Supply and demand review doc Questions and suggested solutions

How a market system works; including buyers, sellers, allocation of scarce resources, market equilibrium, and market disequilibrium. Establishing that the economic problem creates three key questions about determining resource allocation What, how, and for whom to produce? How the price mechanism provides answers to these key allocation questions. Questions and suggested solutions

4.1.1 The meaning of production: • Managing resources effectively to produce goods and services • Difference between production and productivity • Benefits of increasing efficiency and how to increase it, e.g. increasing productivity by automation and technology, improved labour skills • Why businesses hold inventories • The concept of lean production: how to achieve it, e.g. just-in-time inventory control and Kaizen; benefits of lean production 4.1.2 The main methods of production: • Features, benefits and limitations of job, batch and flow production • Recommend and justify an appropriate production method for a given situation 4.1.3 How technology has changed production methods, e.g. using computers in design and manufacturing Sample questions and answers

5.1.1 The need for business finance: • The main reasons why businesses need finance, e.g. start-up capital, capital for expansion and additional working capital • Understand the difference between short-term and long-term finance needs 5.1.2 The main sources of finance: • Internal sources and external sources with examples • Short-term and long-term sources with examples, e.g. overdraft for short-term finance and debt or equity for long-term finance • Importance of alternative sources of capital, e.g. micro-finance, crowd-funding • The main factors considered in making the financial choice, e.g. size and legal form of business, amount required, length of time, existing loans • Recommend and justify appropriate source(s) of finance in given circumstances questions and suggested answers

6.1.1 Business cycle: • Main stages of the business cycle, e.g. growth, boom, recession, slump • Impact on businesses of changes in employment levels, inflation and Gross Domestic Product (GDP) 6.1.2 How government control over the economy affects business activity and how businesses may respond: • Identify government economic objectives, e.g. increasing Gross Domestic Product (GDP) • Impact of changes in taxes and government spending • Impact of changes in interest rates • How businesses might respond to these changes Questions and suggested answers