IGCSE ECONOMICS: SCHEME OF WORK
September 2014
This scheme is intended for use with students following the CIE Economics Specification 0455.
AIMS
1. To foster an interest in and enjoyment of Economics so that students are given the opportunity
to achieve their full potential.
2. To develop students’ knowledge and understanding of economic terminology, principles and
theories.
3. To develop students’ basic economic numeracy and literacy and their ability to handle simple
data including graphs and diagrams.
4. To develop students’ ability to use the tools of economic analysis in particular situations.
5. To show students how to identify and discriminate between differing sources of information and
how to distinguish between facts and value judgements in economic issues.
6. To develop students’ ability to use economic skills (with reference to individuals, groups and
organisations) to understand better the world in which they live.
7. To develop students’ understanding of the economies of developed and developing nations
and of the relationships between them; and to develop their appreciation of these relationships
from the perspective of both developed and developing nations.
ASSESSMENT OBJECTIVES
AO1: Knowledge with understanding
Students should be able to:

show knowledge and understanding of economic facts, definitions, concepts, principles and
theories

use economic vocabulary and terminology
AO2: Analysis
Students should be able to:

select, organise and interpret data

apply economic knowledge and understanding in written, numerical, diagrammatic and
graphical form

use economic data to recognise patterns in such data and to deduce relationships
1
AO3: Critical evaluation and decision-making
Students should be able to:

distinguish between evidence and opinion, make reasoned judgements and communicate
those judgements in an accurate and logical manner

recognise that economic theory has various limits and uncertainties

evaluate the social and environmental implications of particular courses of economic action

draw conclusions from economic information and critically evaluate economic data

communicate conclusions in a logical and clear manner
In general the course will be taught in the context of the UK economy and its institutions, although
where appropriate information on other national economies will be used.
Textbook to be issued to students:
Cambridge IGCSE Economics: S. Grant (G)
Other resources:
RWE = Real World Economics Series
FOW = Foundations of Wealth Series
KSC = Key Stage Comedy Series
* means available on DVD
e means available on eStream
2
IV YEAR
Autumn Term
1. Basic economic problem: choice and the allocation of resources (3 weeks)
i. The economic problem of scarcity
ii. Economic resources
- the factors of production
- the importance of capital
(including depreciation)
iii. Choice and opportunity cost
iv. Economic decision making - principle of rationality
- private costs and benefits
- external costs and benefits
- social costs & benefits
- conflicts of interest created by costs & benefits
- conserving resources v using resources
- public expenditure v private expenditure
v. Production possibility curves - construction
- interpretation (choice & resource allocation)
Resources
G1,FOW 1*e
G2
FOW 4*e
RWE What’s
scarcity?*
G3
G12, 13
G3
Unit 1 test
2. The allocation of resources: how the market works & market failure (11/12 weeks)
i. Economic decisions on resource allocation - what, how & for whom to produce
ii. Key features of resource allocation - free market economy
- planned economy
- mixed economy
iii. Advantages and disadvantages of a free market economy
iv. Role of government in UK - the budget & macroeconomic management
economy
- correcting market failure
- income redistribution
v. Consumers and demand - definition
- Law of Demand
- individual & market demand curves & schedules
- conditions of demand
G4
G4
FOW 10*e
RWE Getting
right mix*
G4
FOW 10*e
G5, 6
FOW 8*e
Half term
iv. Producers and supply
- definition
- Law of Supply
- individual & market supply curves & schedules
- conditions of supply
G5, 7
FOW 9*e
Unit 2 test
v. Price determination
- market equilibrium
- market disequilibrium
- effects of changing market conditions
- effects of taxes, subsidies, maximum & minimum prices
3
G5, 6, 7, 32
RWE Simple
supply &
demand*
vi. Price elasticity of demand
- definition
- formula
- calculations
- relationship with demand curve
- determinants
- relationship with revenue & consumer spending
vii. Price elasticity of supply - definition
- formula
- calculations
- relationship with supply curve
- determinants
viii. Merits of the market system - resource re-allocation
- importance of competition and incentives
ix. Market failure - definition
- causes/types of market failure
G8
RWE What
gives?*
G9
G10
G11
Unit 3 test
Spring Term
3. The individual as producer, consumer and borrower (7/8 weeks)
i. Specialisation - the division of labour by product & by process
- advantages & disadvantages for individual
- limitations of specialisation
ii. Exchange and money
- barter & its problems
- functions & characteristics of money
- types of money
iii. Financial institutions
- functions of commercial banks
- functions of central bank
- functions of stock exchange
iv. Motives for an individual’s spending, - definition & forms of individual spending
saving & borrowing
- influences on individual spending
- definition & forms of saving
- influences on saving
- definition & forms of borrowing
- influences on borrowing
v. Expenditure patterns of different income groups - income & sources of income
- income & spending patterns
- income & saving
- income & borrowing
vi. Factors affecting an
- wages (time rate, piece rate, bonuses & overtime)
individual’s choice of
- gross pay & net pay
occupation
- non-wage factors
G14
RWE The
specialists*
FOW 2 & 3*e
G14
FOW 6 & 7*e
RWE Barter,
banknotes &
beyond*
G15, 16
G21
G22
G17
Half term
vii. Wage determination in an occupation
- demand for labour
- supply of labour
- labour market equilibrium
4
G18
viii. Wage differentials
- identify wage differentials within and between occupations
(male/female, skilled/unskilled, private/public, primary,
secondary & tertiary)
- reasons for wage differentials
ix. Changes in earnings over - reasons for earnings changing
time
- factors influencing the extent of changes in earnings
x. Trade unions - definition & types of trade union
- role of trade unions
- factors affecting trade union strength
- industrial action
G18
G19
G20
Unit 4 test
4. The private firm as producer and employer (7/8 weeks)
i. Definition and aim of production - production chains
- capital/labour intensity
- primary, secondary & tertiary industry
ii. Private and public sector
- definition of private & public sector
production (sole trader,
- types of firm
partnership, private
- ownership & control
company, public company, - finance (role of shares)
multinationals, co- advantages & disadvantages
operatives & public
- aims of firms
corporations)
- effects of changes in business organisation (eg
privatisation)
G23, 24
KSC Bus.
basics*
G23
Organisation
compared*
Summer Term
iii. Costs of
production
G25
iv.
G26
v.
vi.
vii.
- definitions & calculations of fixed, variable, total & average costs
(including average fixed & average variable costs)
- simple cost curves
Revenue from - definitions & calculations of total & average revenue
production
- simple revenue curves
Profits - definition & calculation
- profit maximisation & other objectives of businesses
- ways to increase profit
Productivity - definition
- difference between production & productivity
Pricing and output strategies - characteristics of perfect competition
- behaviour of perfectly competitive firms
- performance of perfectly competitive firms
- characteristics of monopoly
- behaviour of monopoly
- performance of monopoly
- advantages & disadvantages of monopoly
- occurrence of perfect competition & monopoly
5
G26
G27
RWE Market
structure*
viii. Growth of firms
- reasons for different sizes of firms (market size, capital &
organisation)
- methods of growth (internal & external)
- reasons for growth
- reasons for small firms
G28
Half term
ix. Economies of scale - internal economies of scale
- internal diseconomies of scale
- external economies of scale
- external diseconomies of scale
G29
RWE & KSC
Economies
of scale*
Unit 5 test
5. Role of government in an economy (7/8 weeks)
i. Government as a producer and
employer
ii. Macroeconomic aims of government
iii. Conflicts between government aims
- public & merit goods
- nationalised industries
- full employment
- stable prices
- economic growth
- stable balance of payments
- income redistribution
- unemployment & inflation
- economic growth & balance of payments
G30
- definition of fiscal policy
- budget deficit, surplus & balance
- economic effects of fiscal policy
- definition of monetary policy
- monetary policy measures
- economic effects of monetary policy
- definition of supply side policy
- supply side policy measures
- economic effects of supply side policy
- subsidies and taxes
- price controls
- regulation
- competition policy
- environmental policy
G32
G31
G33
V YEAR
Autumn Term
iv. Government macroeconomic
policies and aims
v. Government microeconomic policies
6
vi. Taxation - reasons for taxation (micro & macro)
- direct & indirect taxation
- progressive, regressive & proportional taxation
- main types of taxation ( income, sales, corporation, etc)
- principles of taxation
- incidence of taxation
- impact of tax & tax changes
G34, 35
Unit 6 test
Half term
6. Economic indicators
i. Price stability and inflation
ii. Employment
and
unemployment
- definitions of inflation, rate of inflation, deflation & rate G36, 37
of deflation
- measurement of inflation by CPI
- causes of inflation
- causes of deflation
- consequences of inflation, including the benefits of a
low rate of inflation
- consequences of deflation
- policies to cure inflation & deflation
- definition of employment
G38, 39
- patterns of employment & participation rate
- definition of unemployment
- measurement of unemployment
- causes & types of unemployment
- consequences of unemployment
- policies to reduce unemployment
iii. Economic growth - definition & measurement of GDP
- real & nominal GDP
- distinction between GDP & GDP per capita
- definition of economic growth
- measurement of economic growth
- causes of economic growth
- consequences of economic growth
- policies to achieve economic growth
G40
Spring Term
iv. Living standards
- different measures of living standards
- strengths & weaknesses of living standard measures
- comparing living standards between countries
- Human Development Index (HDI)
- Index of Sustainable Economic Welfare
Unit 7 test
7
G41
7. Developed and developing economies (5/6 weeks)
i. Stages of development
G42
The global
economy*
ii.
G43
iii.
iv.
v.
- UN four levels of economic development
- measures of development
- characteristics of developing economies
- reasons for development
Inequality and poverty - income & wealth distribution
- measures of income & wealth inequality
- absolute & relative poverty
- causes of poverty
- government measures to reduce poverty
Population - definition of birth rate, fertility rate, death rate & net migration
- causes of population growth
- age & sex structures, population pyramids & dependency ratios
- optimum population
Population changes - effects of an increasing/decreasing population
- effects of an ageing/more youthful population
- effects of net immigration/emigration
Problems of development - problems of developing economies
- measures to promote development
- foreign aid
- relationship between developed & developing
economies
G44
G45
G46
Unit 8 test
Half term
8. International aspects (9/10 weeks)
i. Specialisation and trade
- definition of specialisation
- principle of absolute advantage
- principle of comparative advantage
- benefits of specialisation by countries
- costs of specialisation by countries
- terms of trade
ii. Patterns of trade
- definitions of an import & an export
- factors influencing patterns of trade
- factors influencing the value of exports & imports
iii. Balance of payments - current account
- capital and financial accounts
- net errors and omissions
- causes of current account deficit
- consequences of current account deficit
- correcting a current account deficit
- causes of current account surplus
- consequences of current account surplus
iv. Protectionism - benefits of free trade
- definition of protectionism
- methods of protection
8
G49
RWE
Trading
nations*
G48
G47
G52
Summer Term
v. Exchange rates - definition of exchange rate
- demand for £s in foreign exchange market
- supply of £s in foreign exchange market
- determination of exchange rate
- causes of exchange rate changes
- fixed & floating exchange rates
- impact of exchange rate changes on import & export prices
Unit 9 test
Revision for examinations
Provisional examination dates (2015)
Economics 0455/11 (multiple-choice)
Economics 0455/21 (structured questions)
Thursday 4th June (pm)
Monday 1st June (pm)
Review date
July 2015
9
G50, 51