Specification points

Cambridge Cambridge IGCSE Economics 0455

155 points in 6 topics, with Cambridge's codes and titles.

Grade boundaries·Cambridge command words

Codes and titles are read by a script from Cambridge's published specification and have not been checked by a person. What each point covers is in the specification itself: Cambridge’s specification.

1 The basic economic problem

1.1 The nature of the basic economic problem
1.1.1 Finite resources and infinite wants
1.1.2 Resource allocation decisions
1.1.3 Economic goods and free goods
1.2 Factors of production
1.2.1 Factors of production and their rewards
1.2.2 Quantity and quality of factors of production
1.3 Opportunity cost
1.3.1 Opportunity cost
1.3.2 The influence of opportunity cost on decision-making
1.4 Production possibility curve (PPC) diagrams
1.4.1 Production possibility curves (PPC)
1.4.2 Points under, on and beyond a PPC
1.4.3 Movements along a PPC
1.4.4 Shifts of a PPC

2 The allocation of resources

2.1 The role of markets in allocating resources
2.1.1 How markets work
2.2 Demand
2.2.1 Individual and market demand
2.2.2 Movements along a demand curve
2.2.3 Shifts of a demand curve
2.3 Supply
2.3.1 Individual and market supply
2.3.2 Movements along a supply curve
2.3.3 Shifts of a supply curve
2.4 Price determination
2.4.1 Price mechanism
2.4.2 Market equilibrium
2.4.3 Market disequilibrium
2.5 Price changes
2.5.1 Causes of price changes
2.5.2 Consequences of price changes
2.6 Price elasticity of demand (PED)
2.6.1 Definition of PED
2.6.2 Calculation of PED
2.6.3 Determinants of PED
2.6.4 PED, consumer expenditure and firms’ revenue
2.6.5 Significance of PED
2.7 Price elasticity of supply (PES)
2.7.1 Definition of PES
2.7.2 Calculation of PES
2.7.3 Determinants of PES
2.8 Market economic system
2.8.1 Definition of the market economic system
2.8.2 Arguments for and against the market economic system
2.9 Market failure
2.9.1 Definition of market failure
2.9.2 Definitions of terms associated with market failure
2.9.3 Causes of market failure
2.9.4 Consequences of market failure
2.10 Mixed economic system
2.10.1 Definition of the mixed economic system
2.10.2 Arguments for and against the mixed economic system
2.10.3 Government intervention to address market failure

3 Microeconomic decision-makers

4 Government and the macroeconomy

4.1 Government macroeconomic intervention
4.1.1 Macroeconomic aims
4.2 Fiscal policy
4.2.1 Government budget
4.2.2 Reasons for government spending
4.2.3 Taxation
4.2.4 Definition of fiscal policy
4.2.5 Fiscal policy measures
4.2.6 Effects of fiscal policy on government macroeconomic aims
4.3 Monetary policy
4.3.1 Definitions of money supply and monetary policy
4.3.2 Monetary policy measures
4.3.3 Effect of monetary policy on government macroeconomic aims
4.4 Supply-side policy
4.4.1 Definition of supply-side policy
4.4.2 Supply-side policy measures
4.4.3 Effects of supply-side policy measures on government macroeconomic aims
4.5 Economic growth
4.5.1 Definition of economic growth
4.5.2 Measurement of economic growth
4.5.3 Causes and consequences of economic growth
4.5.4 Causes and consequences of recession
4.5.5 Policies to promote economic growth
4.6 Employment and unemployment
4.6.1 Definitions of employment, unemployment and full employment
4.6.2 Measurement of unemployment
4.6.3 Causes/types of unemployment
4.6.4 Consequences of unemployment
4.6.5 Policies to reduce unemployment
4.7 Inflation
4.7.1 Definitions of inflation and deflation
4.7.2 Measurement of inflation
4.7.3 Causes of inflation
4.7.4 Consequences of inflation
4.7.5 Policies to control inflation

5 Economic development

5.1 Living standards
5.1.1 Indicators of living standards
5.1.2 Comparing living standards and income distribution
5.2 Poverty
5.2.1 Definitions of absolute and relative poverty
5.2.2 Causes of poverty
5.2.3 Policies to alleviate poverty and redistribute income
5.3 Population
5.3.1 Factors that affect population growth
5.3.2 The effects of changes in the size and structure of populations
5.4 Differences in economic development between countries
5.4.1 Causes and consequences of international differences

6 International trade and globalisation

6.1 Specialisation and free trade
6.1.1 Specialisation by country
6.1.2 Free trade
6.2 Globalisation and trade restrictions
6.2.1 Definition of globalisation
6.2.2 Causes and consequences of changes in globalisation
6.2.3 Role of multinational companies (MNCs)
6.2.4 Types of trade restrictions / methods of protection
6.2.5 Reasons for trade restrictions
6.2.6 Consequences of trade restrictions
6.3 Foreign exchange rates
6.3.1 Definition of foreign exchange rate
6.3.2 Reasons for buying and selling foreign currencies
6.3.3 Determination of foreign exchange rate in foreign exchange market
6.3.4 Consequences of changes in foreign exchange rates
6.4 Current account of the balance of payments
6.4.1 Structure of the current account of the balance of payments
6.4.2 Causes of current account deficit and surplus
6.4.3 Consequences of current account deficit and surplus
6.4.4 Policies to achieve balance of payments stability