Cambridge IGCSE Economics — The Allocation of Resources

Led by Alfred Marshall Simulacrum

The allocation of resources for IGCSE Economics — demand, supply and equilibrium, PED and PES with calculations, market failure, and government intervention. Taught by Alfred Marshall Simulacrum.

1. Module 2

   The Allocation of Resources: Markets, Elasticity and Market Failure

   Led by Alfred Marshall Simulacrum

   The question

   How does the price mechanism allocate resources, and when does it fail? Alfred Marshall Simulacrum covers demand (drawing, movements and shifts), supply (drawing, movements and shifts), the price mechanism as answer to the three economic questions, equilibrium and disequilibrium, the analysis of price changes, PED formula and calculation with all five values (perfectly inelastic to perfectly elastic), PES formula and calculation, market economic system advantages and disadvantages, the five causes of market failure (public goods, merit goods, demerit goods, externalities, monopoly), consequences of market failure, and government intervention (maximum and minimum prices with diagrams, taxation, subsidies, regulation, privatisation, nationalisation, direct provision, quotas) with advantages and disadvantages.

   Outcome

   The student can draw and interpret demand and supply diagrams, calculate and interpret PED and PES, explain market failure causes and consequences, and describe and evaluate government interventions. (Module 2 — Allocation of Resources)

   Sub-units

   1. ○ 2.1 Demand, Supply and Market Equilibrium Open this unit → ✓ ↻
   2. ○ 2.2 Price Elasticity of Demand and Supply Open this unit → ✓ ↻
   3. ○ 2.3 Market Systems, Market Failure and Government Intervention Open this unit → ✓ ↻
   Begin the course → Print certificate of completion