Theme 2 – The Wider Economic Environment
This theme is included in AS Paper 2 and A-Level Paper 2 and Paper 3 for Edexcel Economics (B). You can find notes for it below:
Business Growth and Competitive Advantage
- a) Growth
- b) Methods of growth
- c) Research and development (R&D) and innovation
- d) How the digital economy affects markets and firms
- e) How small firms compete
Firms, Consumers and Elasticities of Demand
- a) Price elasticity of demand (PED)
- b) Competing on price
- c) Types of non-price competition
- d) Income elasticity of demand (YED)
Productive Efficiency
- a) Productivity
- b) Capacity utilisation
- c) Efficiency and competitiveness using lean production
- d) Impact on costs and sales revenue
Life in a Global Economy
- a) Globalisation
- b) Developed, emerging and developing economies
- c) International trade
- d) Exchange rates
The Economic Cycle
- a) The economic cycle
- b) Circular flow of income, expenditure and output
- c) Inflation
- d) Employment and unemployment
