ECONOMICS
Unit 1: Markets and models
Topic 1: The basic economic problem
- explain the concept of opportunity cost and recognise its significance in decision-making, where benefits are subjectively measured against costs.
Unit 2: Modified markets
Topic 1: Markets and efficiency
- explain and analyse the different methods of market modification required to correct market failure, including direct and indirect taxation (e.g. Pigouvian taxes), subsidies, direct state provision.