ECONOMICS
Unit 2: Modified markets
Topic 1: Markets and efficiency
- describe key concepts using economic terminology, including allocative efficiency, externalities, market failure, goods (public, private, merit and demerit), and signals
- 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.
Topic 2: Case options of market measures and strategies
Case option A: Market concentration
- analyse and evaluate private and social costs and benefits of concentrated markets (e.g. under-provision of goods, and positive and negative externalities), and support with diagrams.
Communication skills
- create responses that communicate economic meaning using data, information, graphs and diagrams to suit the intended purpose, and demonstrate order, sequencing and development of ideas using paragraphs and extended responses.