Week 1 Economics and business

Part 1.

Write a short Report (1 page minimum) on the basic definitions of economics and uses of economics in the Real
world. You should discuss the following terms/definitions:

 Economics
 Scarcity
 Resources
 Needs and wants
 Opportunity cost

For real world examples, this could include uses by companies, governments or people. You could include where it
appears, for example in the news. You need to show evidence of your research and clearly show how economics is
being used. This will be marked according to Research (10), Knowledge and Understanding (10), presentation
including spelling and grammar (5).

To be handed in at the beginning of week 2 -

Part 2

Investigate Mobile phones. Write a report on the changing mobile phone markets – networks, phones, internet,
texting. This should be at least 3 pages long.

To be handed in at the beginning of week 3 -

Week 1 Economics and business

Part 1.

Write a short Report (1 page minimum) on the basic definitions of economics and uses of economics in the Real
world. You should discuss the following terms/definitions:

 Economics
 Scarcity
 Resources
 Needs and wants
 Opportunity cost

For real world examples, this could include uses by companies, governments or people. You could include where it
appears, for example in the news. You need to show evidence of your research and clearly show how economics is
being used. This will be marked according to Research (10), Knowledge and Understanding (10), presentation
including spelling and grammar (5).

To be handed in at the beginning of week 2 -

Part 2

Investigate Mobile phones. Write a report on the changing mobile phone markets – networks, phones, internet,
texting. This should be at least 3 pages long.

To be handed in at the beginning of week 3 -

Week 1 Economics and business

Write a short Report on the basic definitions of economics and uses of economics in the Real world. You should
discuss the following terms/definitions:

 Economics
 Scarcity
 Resources
 Needs and wants
 Opportunity cost

For real world examples, this could include uses by companies, governments or people. You could include where it
appears, for example in the news. You need to show evidence of your research and clearly show how economics is
being used. This will be marked according to Research (10), Knowledge and Understanding (10), presentation
including spelling and grammar (5). To be handed in at the beginning of week 3.

Week 1 Economics and business

Write a short Report on the basic definitions of economics and uses of economics in the Real world. You should
discuss the following terms/definitions:

 Economics
 Scarcity
 Resources
 Needs and wants
 Opportunity cost

For real world examples, this could include uses by companies, governments or people. You could include where it
appears, for example in the news. You need to show evidence of your research and clearly show how economics is
being used. This will be marked according to Research (10), Knowledge and Understanding (10), presentation
including spelling and grammar (5). To be handed in at the beginning of week 3.

Week3 – Demand

1) Explain Demand, extension and contraction (5) (Give definitions and explanation)
2) Draw and label the demand curve for a brand of cereal. (2)
On this Demand curve (or draw multiple ones) show the effects on demand of:
a) The rise in the price of the cereal (2)
b) The rise in the price of a rival cereal (2)
c) The rise in the price of milk (2)
d) A Decrease in income tax (2)
(you should have at least one diagram with 4 moves/shifts and 4 explanations)
3) Explain 3 more factors, with examples, that may result in shifts of a demand curve. (9) (of any product, not
cereal)
4) How can business use the economic principle of Demand to improve their profits? (6) (there should be some
attempt at an evaluative comment)
(30 marks) due in week 4

Week3 – Demand

1) Explain Demand, extension and contraction (5) (Give definitions and explanation)
2) Draw and label the demand curve for a brand of cereal. (2)
On this Demand curve (or draw multiple ones) show the effects on demand of:
e) The rise in the price of the cereal (2)
f) The rise in the price of a rival cereal (2)
g) The rise in the price of milk (2)
h) A Decrease in income tax (2)
(you should have at least one diagram with 4 moves/shifts and 4 explanations)
3) Explain 3 more factors, with examples, that may result in shifts of a demand curve. (9) (of any product, not
cereal)
4) How can business use the economic principle of Demand to improve their profits? (6) (there should be some
attempt at an evaluative comment)

(30 marks) due in week 4

Week3 – Demand

1) Explain Demand, extension and contraction (5) (Give definitions and explanation)
2) Draw and label the demand curve for a brand of cereal. (2)
On this Demand curve (or draw multiple ones) show the effects on demand of:
i) The rise in the price of the cereal (2)
j) The rise in the price of a rival cereal (2)
k) The rise in the price of milk (2)
l) A Decrease in income tax (2)
(you should have at least one diagram with 4 moves/shifts and 4 explanations)
3) Explain 3 more factors, with examples, that may result in shifts of a demand curve. (9) (of any product, not
cereal)
4) How can business use the economic principle of Demand to improve their profits? (6) (there should be some
attempt at an evaluative comment)

(30 marks) due in week 4

Week 5 –Market Equilibrium

1) Explain Market equilibrium, Market clearing price, consumer surplus and producer surplus with diagrams if
necessary (10)
2) Draw a Supply and Demand diagram for 3D TVs (3)
By using the diagram, and explanations, discuss the impact on price and quantity sold for each of the
following events:
a. 3D TVs become cheaper to make.
b. SKY start charging to watch 3D channels.
c. East Enders, Coronation street and X-Factor all start broadcasting in 3D
d. Income Tax and VAT both increase (13)
3) Explain why most markets are not always in perfect equilibrium (4)
Week 5 –Market Equilibrium

1) Explain Market equilibrium, Market clearing price, consumer surplus and producer surplus with diagrams if
necessary (10)
2) Draw a Supply and Demand diagram for 3D TVs (3)
By using the diagram, and explanations, discuss the impact on price and quantity sold for each of the
following events:
a. 3D TVs become cheaper to make.
b. SKY start charging to watch 3D channels.
c. East Enders, Coronation street and X-Factor all start broadcasting in 3D
d. Income Tax and VAT both increase (13)
3) Explain why most markets are not always in perfect equilibrium (4)

Week 5 –Market Equilibrium

1) Explain Market equilibrium, Market clearing price, consumer surplus and producer surplus with diagrams if
necessary (10)
2) Draw a Supply and Demand diagram for 3D TVs (3)
By using the diagram, and explanations, discuss the impact on price and quantity sold for each of the
following events:
a. 3D TVs become cheaper to make.
b. SKY start charging to watch 3D channels.
c. East Enders, Coronation street and X-Factor all start broadcasting in 3D
d. Income Tax and VAT both increase (13)
3) Explain why most markets are not always in perfect equilibrium (4)

Week 7- PED

1. Calculate PED for these figures and state the elasticity: (8)

Quantity Price Type of Elasticity

10% increase 15% decrease
10 units to 12 units £3 to £3.50
100 units to 110 units £40 to £45

2. Choose three products that are inelastic and explain why, and choose three products that are elastic and explain
why. (3 marks per product – 1 for correct product, 2 for explanation) (18)
Week 7- PED

1. Calculate PED for these figures and state the elasticity: (8)

Quantity Price Type of Elasticity

10% increase 15% decrease
10 units to 12 units £3 to £3.50
100 units to 110 units £40 to £45

2. Choose three products that are inelastic and explain why, and choose three products that are elastic and explain
why. (3 marks per product – 1 for correct product, 2 for explanation) (12)

Week 7- PED

1. Calculate PED for these figures and state the elasticity: (8)

Quantity Price Type of Elasticity

10% increase 15% decrease
10 units to 12 units £3 to £3.50
100 units to 110 units £40 to £45

2. Choose three products that are inelastic and explain why, and choose three products that are elastic and explain
why. (3 marks per product – 1 for correct product, 2 for explanation) (12)

Week 7- PED

1. Calculate PED for these figures and state the elasticity: (8)

Quantity Price Type of Elasticity

10% increase 15% decrease
10 units to 12 units £3 to £3.50
100 units to 110 units £40 to £45

2. Choose three products that are inelastic and explain why, and choose three products that are elastic and explain
why. (3 marks per product – 1 for correct product, 2 for explanation) (12)
Week 7 – Markets in action, PED, YED

Using diagrams and explanation discuss the effects of a global recession on a company that produces microwave
meals using a large labour force. You may want to include diagrams showing the supply and demand for the product
and the supply of labour in the local economy. Include discussion of how the PED and YED of the product will affect
sales, and how the companies’ knowledge of these elasticities would affect the companies plans. This question is
worth 20 marks.

Week 7 – Markets in action, PED, YED

Using diagrams and explanation discuss the effects of a global recession on a company that produces microwave
meals using a large labour force. You may want to include diagrams showing the supply and demand for the product
and the supply of labour in the local economy. Include discussion of how the PED and YED of the product will affect
sales, and how the companies’ knowledge of these elasticities would affect the companies plans. This question is
worth 20 marks.

Week 7 – Markets in action, PED, YED

Using diagrams and explanation discuss the effects of a global recession on a company that produces microwave
meals using a large labour force. You may want to include diagrams showing the supply and demand for the product
and the supply of labour in the local economy. Include discussion of how the PED and YED of the product will affect
sales, and how the companies’ knowledge of these elasticities would affect the companies plans. This question is
worth 20 marks.

Week 7 – Markets in action, PED, YED

Using diagrams and explanation discuss the effects of a global recession on a company that produces microwave
meals using a large labour force. You may want to include diagrams showing the supply and demand for the product
and the supply of labour in the local economy. Include discussion of how the PED and YED of the product will affect
sales, and how the companies’ knowledge of these elasticities would affect the companies plans. This question is
worth 20 marks.

Week 7 – Markets in action, PED, YED

Using diagrams and explanation discuss the effects of a global recession on a company that produces microwave
meals using a large labour force. You may want to include diagrams showing the supply and demand for the product
and the supply of labour in the local economy. Include discussion of how the PED and YED of the product will affect
sales, and how the companies’ knowledge of these elasticities would affect the companies plans. This question is
worth 20 marks.