Theme 4

Theme 4 – Making Markets Work

This theme is included in A-Level Paper 1 and Paper 3 for Edexcel Economics (B). You can find notes for it below:

Competition and Market Power

• a) Spectrum of competition
• b) Barriers to entry
• c) Oligopoly
• d) Business objectives and pricing decisions
• e) Productive and allocative efficiency

Market Power and Market Failure

• a) Market failure
• b) Business regulation
• c) Arguments for and against regulation

Market Failure across the Economy

• a) Market failure in society
• b) Externalities
• c) Policies to deal with market failure

Macroeconomic Policies and Impact on Firms and Individuals

• a) The AD AS model
• b) Demand-side policies
• c) Supply-side policies
• d) The impact of macroeconomic policies

Risk and the Financial Sector

• a) Risks and uncertainty
• b) The role of the financial sector
• c) The role of the central bank
• d) The Global Financial Crisis