Units studied in Year 12 Unit 1: The operation of markets and market failure Including the economic problem and economic methodology, price determination in a competitive market, determinants of the demand for goods and services, price and income elasticities of demand, production costs and revenues, supply, specialisation, division of labour, economies of scale, meaning of market failure, public goods, positive and negative externalities, competitive and concentrated markets and market mechanism, market failure and methods of government interventions. Unit 2: The national economy in a global context Including the measurement of macroeconomic performance, macroeconomic indicators, how macroeconomy works, circular flow of income, AD/AS analysis and related concepts, economic performance, growth, inflation, employment and unemployment, balance of payments, and macroeconomic policies: fiscal, monetary and supply-side policies. Units studied in Year 13 Unit 3: Individuals, firms, markets and market failure Economic problem and economic methodology, individual economic decision making, price determination in a competitive market, behavioural economics, production costs and revenue, perfect competition, imperfectly competitive markets and monopoly, labour market, the distribution of income and wealth: poverty and inequality and market mechanism, market failure and government interventions in markets. Unit 4: The national and international economy Measurement of macroeconomic performance, how the macroeconomy works, the circular flow of income, AD/AS analysis and related concepts, economic performance, financial markets and monetary policy, fiscal and supply side policies, international economy and behavioural economics.