Source: https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/4-1-9-supply-side-policies-2 [Revision notes](https://senecalearning.com/en-gb/revision-notes.md) › [A Level](https://senecalearning.com/en-gb/revision-notes/a-level.md) › [Economics](https://senecalearning.com/en-gb/revision-notes/a-level/economics.md) › [Edexcel](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel.md) › Supply-Side Policies 2 # Supply-Side Policies 2 Economics: Edexcel A A Level, topic 4.1.9 ## Reducing the Natural Rate of Unemployment using Supply-Side Policies The natural rate of unemployment is unaffected by aggregate demand (AD) in an economy. Governments have to use supply-side policies to reduce the natural rate of unemployment. ### Reducing structural unemployment ![Reducing structural unemployment](https://image-v2.cdn.app.senecalearning.com/courseImages/biology/4.2.1-%20Respiration/no-money-2070384_640-min.jpg) - Structural unemployment is usually caused by a mismatch or deficit of skills in an economy. - The most direct solution to this is to provide, subsidise or incentivise education and retraining schemes. This should lead to the workers learning the skills needed to be useful in the current economy and be in position to gain employment. - Workers may be geographically immobile and have the wrong skills for their region. Here, the government could offer incentives to workers or firms to relocate. ### Example of reduction in structural unemployment ![Example of reduction in structural unemployment](https://image-v2.cdn.app.senecalearning.com/2018-03/67aef4c3-fe9b-4018-a979-5b3377e787de/shutterstock_85786948.jpg) - The UK government has recently devised and encouraged schemes which get those leaving the armed forces into work after they finish serving. - Schemes which give skills needed for work in civilian life have made it much easier for those leaving the forces to find work. ### Reducing frictional unemployment ![Reducing frictional unemployment](https://image-v2.cdn.app.senecalearning.com/2018-09/d470f4c1-d707-47bd-b314-ae779fb3c04f/background-check-1054067_1920.jpg) - Frictional unemployment is harder to solve because time delays are almost inevitable in the recruitment process as firms try to find the best workers for the job. Solving this may be less of a priority for governments. - Governments can look to improve the flow of information about jobs through job centres and the Internet which makes it easier for those out of work to find suitable jobs. - Governments could make it easier for firms to do background checks on workers or easier to register new workers for tax. This could reduce the amount of time taken to find workers and for them to start new jobs. ## Supply-Side Policy vs Supply-Side Improvements Supply side policies are the actions taken by the government to improve aggregate supply (AS) in the economy. Supply-side improvement refers to the increase in aggregate supply. ### Supply-side policies ![Supply-side policies](https://image-v2.cdn.app.senecalearning.com/2018-05/86f73969-b012-4daa-87f8-66e42db4d7d8/shutterstock_223257358.jpg) - Supply side policies are the actions taken by the government to improve aggregate supply (AS) in the economy. ### Supply-side improvements ![Supply-side improvements](https://image-v2.cdn.app.senecalearning.com/2018-08/9ab0c69c-2916-46d4-88bc-b7e0d43d7d71/supply-demand-.jpg) - Supply-side improvement refers to the increase in aggregate supply. - These improvements could come about as a result of supply-side policies or other factors in the market. ## Supply-Side Policies and Unemployment, Inflation and BoP Supply-side policies are those designed to increase aggregate supply (AS). Examples of supply-side policies include education and training, tax cuts, deregulation. ### Unemployment ![Unemployment](https://image-v2.cdn.app.senecalearning.com/2018-08/7aaa651f-f08b-47f0-a24f-595649daf19e/job-centre-.jpg) - A number of supply-side policies are designed to improve the ease of hiring employees and make them more productive when in employment. - If labour is more productive then it is more valuable to firms and more workers will be hired. This reduces unemployment. - For example, if the government introduces retraining schemes for the structurally unemployed, then those workers will become more valuable to firms and are more likely to find employment. - If it is easier to hire labour then frictional unemployment will be reduced because it will take workers less time to find a job and start work. ### Inflation ![Inflation](https://image-v2.cdn.app.senecalearning.com/2018-08/a5038717-5fdc-40fb-95d4-68685f8bbd81/inflation-.jpg) - Supply-side policies aim to increase aggregate supply in both the short and long run. Supply-side improvements are illustrated by a rightward shift in the SRAS and/or the LRAS curves. - This leads to increased output and a reduced price level, ceteris paribus. - In reality, most countries face some degree of inflationary pressure. Supply-side improvements will usually reduce the upward pressure on prices rather than lead to a falling price level (deflation). ### Balance of payments ![Balance of payments](https://image-v2.cdn.app.senecalearning.com/2018-03/7fea96c1-7ee1-4ea3-b5bb-403c05c5ad3f/shutterstock_573204253.jpg) - Supply side improvement leads to increased output and a reduced price level. Cheaper goods and services are more competitive compared to foreign goods and services as a result. - Households may start consuming domestic goods instead of imports. - Foreign households may buy more UK exports if they are cheaper and more price competitive. - If the value of exports rises and the value of imports falls, then the current account balance will improve. ## Test yourself on Supply-Side Policies 2 - Which of the following government policies could reduce the natural rate of unemployment? - Which of the following would reduce frictional unemployment? - Which of these are supply-side improvements? - Which of the following is an example of a supply-side policy? - Which of the following is an effect of successful supply-side policy? [Practise this topic for free](https://app.senecalearning.com/classroom/course/d903555c-0201-4e4b-b4f4-8a5ad1345c9e/section/ab2a4c93-3b01-443f-a7da-902cf100f440/session) - Previous topic: [4.1.8 Supply-Side Policies](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/4-1-8-supply-side-policies.md) - Next topic: [4.1.10 Conflicts Between Objectives](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/4-1-10-conflicts-between-objectives.md) ## Economics: Edexcel A A Level contents ### 1 Introduction to Markets - 1.1 Nature of Economics - [1.1.1 Economics as a Social Science](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-1-1-economics-as-a-social-science.md) - [1.1.2 Positive & Normative Economic Statements](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-1-2-positive-and-normative-economic-statements.md) - [1.1.3 The Economic Problem](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-1-3-the-economic-problem.md) - [1.1.4 Resources](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-1-4-resources.md) - [1.1.5 Production Possibility Frontiers](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-1-5-production-possibility-frontiers.md) - [1.1.6 Specialisation & Division of Labour](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-1-6-specialisation-and-division-of-labour.md) - [1.1.7 Types of Economies](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-1-7-types-of-economies.md) - [1.1.8 End of Topic Test - Nature of Economics](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-1-8-end-of-topic-test-nature-of-economics.md) - [1.1.9 Application Questions - Nature of Economics](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-1-9-application-questions-nature-of-economics.md) - 1.2 How Markets Work - [1.2.1 Rational Decision Making](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-2-1-rational-decision-making.md) - [1.2.2 Demand](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-2-2-demand.md) - [1.2.3 Elasticities of Demand](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-2-3-elasticities-of-demand.md) - [1.2.4 Elasticities of Demand 2](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-2-4-elasticities-of-demand-2.md) - [1.2.5 Elasticity & Revenue](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-2-5-elasticity-and-revenue.md) - [1.2.6 Supply](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-2-6-supply.md) - [1.2.7 Elasticity of Supply](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-2-7-elasticity-of-supply.md) - [1.2.8 Price Determination](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-2-8-price-determination.md) - [1.2.9 Price Mechanism](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-2-9-price-mechanism.md) - [1.2.10 Consumer & Producer Surplus](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-2-10-consumer-and-producer-surplus.md) - [1.2.11 Indirect Taxes & Subsidies](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-2-11-indirect-taxes-and-subsidies.md) - [1.2.12 A-A* (AO3/4) - Taxing Prices or Quantities?](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-2-12-a-a-ao34-taxing-prices-or-quantities.md) - [1.2.13 Alternative View of Consumer Behaviour](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-2-13-alternative-view-of-consumer-behaviour.md) - [1.2.14 End of Topic Test - Markets](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-2-14-end-of-topic-test-markets.md) - [1.2.15 A-A* (AO3/4) - Markets](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-2-15-a-a-ao34-markets.md) ### 2 Market Failure - 2.1 Market Failure - [2.1.1 Types of Market Failure](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/2-1-1-types-of-market-failure.md) - [2.1.2 Externalities](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/2-1-2-externalities.md) - [2.1.3 The Deadweight Welfare Loss of Externalities](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/2-1-3-the-deadweight-welfare-loss-of-externalities.md) - [2.1.4 A-A* (AO3/4) - The Externalities of Education](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/2-1-4-a-a-ao34-the-externalities-of-education.md) - [2.1.5 Public Goods](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/2-1-5-public-goods.md) - [2.1.6 Information Gaps](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/2-1-6-information-gaps.md) - [2.1.7 End of Topic Test - Market Failure](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/2-1-7-end-of-topic-test-market-failure.md) - [2.1.8 Application Questions - Market Failure](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/2-1-8-application-questions-market-failure.md) - 2.2 Government Intervention - [2.2.1 Government Intervention in Markets](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/2-2-1-government-intervention-in-markets.md) - [2.2.2 Subsidies & Price Controls](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/2-2-2-subsidies-and-price-controls.md) - [2.2.3 Pollution Permits & Regulation](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/2-2-3-pollution-permits-and-regulation.md) - [2.2.4 A-A* (AO3/4) - European Emissions Trading](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/2-2-4-a-a-ao34-european-emissions-trading.md) - [2.2.5 State Provision & Information Provision](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/2-2-5-state-provision-and-information-provision.md) - [2.2.6 Government Failure](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/2-2-6-government-failure.md) - [2.2.7 End of Topic Test - Government Intervention](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/2-2-7-end-of-topic-test-government-intervention.md) - [2.2.8 A-A* (AO3/4) - Government Intervention](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/2-2-8-a-a-ao34-government-intervention.md) ### 3 The UK Macroeconomy - 3.1 Measures of Economic Performance - [3.1.1 Measuring Economic Growth](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-1-1-measuring-economic-growth.md) - [3.1.2 National Income Data](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-1-2-national-income-data.md) - [3.1.3 Inflation](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-1-3-inflation.md) - [3.1.4 Causes of Inflation](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-1-4-causes-of-inflation.md) - [3.1.5 Consequences of Inflation](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-1-5-consequences-of-inflation.md) - [3.1.6 Employment & Unemployment](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-1-6-employment-and-unemployment.md) - [3.1.7 Causes & Impact of Unemployment](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-1-7-causes-and-impact-of-unemployment.md) - [3.1.8 A-A* (AO3/4) - Hysteresis](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-1-8-a-a-ao34-hysteresis.md) - [3.1.9 Balance of Payments](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-1-9-balance-of-payments.md) - [3.1.10 Current Account Deficit & Imbalances](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-1-10-current-account-deficit-and-imbalances.md) - [3.1.11 End of Topic Test - Economic Performance](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-1-11-end-of-topic-test-economic-performance.md) - [3.1.12 Application Questions Macroeconomy](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-1-12-application-questions-macroeconomy.md) - 3.2 Aggregate Demand - [3.2.1 Aggregate Demand](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-2-1-aggregate-demand.md) - [3.2.2 Consumption](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-2-2-consumption.md) - [3.2.3 Investment](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-2-3-investment.md) - [3.2.4 Government Expenditure](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-2-4-government-expenditure.md) - [3.2.5 Net Trade](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-2-5-net-trade.md) - [3.2.6 End of Topic Test - Aggregated Demand](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-2-6-end-of-topic-test-aggregated-demand.md) - [3.2.7 Application Questions - AD](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-2-7-application-questions-ad.md) - 3.3 Aggregate Supply - [3.3.1 Aggregate Supply](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-3-1-aggregate-supply.md) - [3.3.2 End of Topic Test - Aggregated Supply](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-3-2-end-of-topic-test-aggregated-supply.md) - [3.3.3 A-A* (AO3/4) -Aggregate Supply](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-3-3-a-a-ao34-aggregate-supply.md) - 3.4 National Income - [3.4.1 National Income](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-4-1-national-income.md) - [3.4.2 Injections & Withdrawals](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-4-2-injections-and-withdrawals.md) - [3.4.3 Equilibrium Level of Real National Output](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-4-3-equilibrium-level-of-real-national-output.md) - [3.4.4 Multiplier Effect](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-4-4-multiplier-effect.md) - [3.4.5 End of Topic Test - National Income](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-4-5-end-of-topic-test-national-income.md) - [3.4.6 Application Questions - National Income](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-4-6-application-questions-national-income.md) - 3.5 Economic Growth - [3.5.1 Causes of Economic Growth](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-5-1-causes-of-economic-growth.md) - [3.5.2 Output Gaps](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-5-2-output-gaps.md) - [3.5.3 Business Cycle](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-5-3-business-cycle.md) - [3.5.4 Impact of Economic Growth](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-5-4-impact-of-economic-growth.md) - [3.5.5 End of Topic Test - Economic Growth](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-5-5-end-of-topic-test-economic-growth.md) - [3.5.6 A-A* (AO3/4) - Growth](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-5-6-a-a-ao34-growth.md) ### 4 The UK Economy - Policies - 4.1 Macroeconomic Objectives & Policies - [4.1.1 Possible Objectives](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/4-1-1-possible-objectives.md) - [4.1.2 Demand-Side Policies - Monetary](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/4-1-2-demand-side-policies-monetary.md) - [4.1.3 Demand-Side Policies - Monetary 2](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/4-1-3-demand-side-policies-monetary-2.md) - [4.1.4 A-A* (AO3/4) - The Future of Interest Rates](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/4-1-4-a-a-ao34-the-future-of-interest-rates.md) - [4.1.5 Demand-Side Policies - Fiscal](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/4-1-5-demand-side-policies-fiscal.md) - [4.1.6 Demand-Side Policies in 2007-08](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/4-1-6-demand-side-policies-in-2007-08.md) - [4.1.7 Strengths & Weaknesses of Demand Side](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/4-1-7-strengths-and-weaknesses-of-demand-side.md) - [4.1.8 Supply-Side Policies](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/4-1-8-supply-side-policies.md) - [4.1.9 Supply-Side Policies 2](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/4-1-9-supply-side-policies-2.md) - [4.1.10 Conflicts Between Objectives](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/4-1-10-conflicts-between-objectives.md) - [4.1.11 A-A* (AO3/4) - Conflicting Incentives](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/4-1-11-a-a-ao34-conflicting-incentives.md) - [4.1.12 Phillips Curve](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/4-1-12-phillips-curve.md) - [4.1.13 End of Topic Topic - Policies & Objectives](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/4-1-13-end-of-topic-topic-policies-and-objectives.md) - [4.1.14 Application Questions - UK Policies](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/4-1-14-application-questions-uk-policies.md) ### 5 Business Behaviour - 5.1 Business Growth - [5.1.1 Size & Types of Firms](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/5-1-1-size-and-types-of-firms.md) - [5.1.2 Business Growth](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/5-1-2-business-growth.md) - [5.1.3 Pros & Cons of External Expansion](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/5-1-3-pros-and-cons-of-external-expansion.md) - [5.1.4 Demergers](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/5-1-4-demergers.md) - [5.1.5 End of Topic Test - Business Growth](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/5-1-5-end-of-topic-test-business-growth.md) - [5.1.6 A-A* (AO3/4) - Business Growth](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/5-1-6-a-a-ao34-business-growth.md) - 5.2 Business Objectives - [5.2.1 Business Objectives](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/5-2-1-business-objectives.md) - [5.2.2 End of Topic Test - Business Objectives](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/5-2-2-end-of-topic-test-business-objectives.md) - [5.2.3 Application Questions - Business Objectives](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/5-2-3-application-questions-business-objectives.md) - 5.3 Revenues, Costs & Profits - [5.3.1 Revenue](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/5-3-1-revenue.md) - [5.3.2 Costs](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/5-3-2-costs.md) - [5.3.3 Economies & Diseconomies of Scale](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/5-3-3-economies-and-diseconomies-of-scale.md) - [5.3.4 Profits](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/5-3-4-profits.md) - [5.3.5 Profits 2](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/5-3-5-profits-2.md) - [5.3.6 End of Topic Test - Revenue, Costs & Profits](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/5-3-6-end-of-topic-test-revenue-costs-and-profits.md) - [5.3.7 A-A* (AO3/4) - Revenue, Costs & Profit](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/5-3-7-a-a-ao34-revenue-costs-and-profit.md) ### 6 Market Structures - 6.1 Market Structures - [6.1.1 Efficiency](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-1-1-efficiency.md) - [6.1.2 Perfect Competition](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-1-2-perfect-competition.md) - [6.1.3 Perfect Competition 2](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-1-3-perfect-competition-2.md) - [6.1.4 Monopolistic Competition](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-1-4-monopolistic-competition.md) - [6.1.5 Oligopolies](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-1-5-oligopolies.md) - [6.1.6 The Prisoner's Dilemma](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-1-6-the-prisoners-dilemma.md) - [6.1.7 Collusion in Oligopolistic Markets](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-1-7-collusion-in-oligopolistic-markets.md) - [6.1.8 A-A* (AO3/4) - Which Factors Affect Collusion?](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-1-8-a-a-ao34-which-factors-affect-collusion.md) - [6.1.9 Monopolies](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-1-9-monopolies.md) - [6.1.10 Price Discrimination](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-1-10-price-discrimination.md) - [6.1.11 Monopsony](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-1-11-monopsony.md) - [6.1.12 A-A* (AO3/4) - Models in Economics](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-1-12-a-a-ao34-models-in-economics.md) - [6.1.13 Contestability](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-1-13-contestability.md) - [6.1.14 Benefits of Contestability](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-1-14-benefits-of-contestability.md) - [6.1.15 End of Topic Test - Market Structures](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-1-15-end-of-topic-test-market-structures.md) - [6.1.16 Application Questions - Market Structures](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-1-16-application-questions-market-structures.md) - [6.1.17 A-A* (AO3/4) - Cereal Collusion](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-1-17-a-a-ao34-cereal-collusion.md) - 6.2 Labour Market - [6.2.1 Demand for Labour](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-2-1-demand-for-labour.md) - [6.2.2 Supply of Labour](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-2-2-supply-of-labour.md) - [6.2.3 Labour Market Imperfections](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-2-3-labour-market-imperfections.md) - [6.2.4 A-A* (AO3/4) - Labour Productivity & Unemployment](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-2-4-a-a-ao34-labour-productivity-and-unemployment.md) - [6.2.5 A-A* (AO3/4) - What Level of Unionisation is Good?](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-2-5-a-a-ao34-what-level-of-unionisation-is-good.md) - [6.2.6 Wage Determination](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-2-6-wage-determination.md) - [6.2.7 Elasticity of Labour Supply & Demand](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-2-7-elasticity-of-labour-supply-and-demand.md) - [6.2.8 Intervention in Setting Wages](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-2-8-intervention-in-setting-wages.md) - [6.2.9 End of Topic Test - Labour Market](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-2-9-end-of-topic-test-labour-market.md) - [6.2.10 A-A* (AO3/4) - Labour Markets](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-2-10-a-a-ao34-labour-markets.md) - 6.3 Government Intervention - [6.3.1 Reasons for Government Intervention](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-3-1-reasons-for-government-intervention.md) - [6.3.2 Government Promotion of Competition](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-3-2-government-promotion-of-competition.md) - [6.3.3 Usefulness of Competition Policy & Examples](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-3-3-usefulness-of-competition-policy-and-examples.md) - [6.3.4 A-A* (AO3/4) - Modern Competition Policy](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-3-4-a-a-ao34-modern-competition-policy.md) - [6.3.5 Privatisation](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-3-5-privatisation.md) - [6.3.6 Government Regulation](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-3-6-government-regulation.md) - [6.3.7 A-A* (AO3/4) - Nationalisation vs Privatisation](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-3-7-a-a-ao34-nationalisation-vs-privatisation.md) - [6.3.8 Government Protection of Suppliers and Employees](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-3-8-government-protection-of-suppliers-and-employees.md) - [6.3.9 Impact of Government Intervention](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-3-9-impact-of-government-intervention.md) - [6.3.10 End of Topic Test - Government Intervention](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-3-10-end-of-topic-test-government-intervention.md) - [6.3.11 Application Questions - Government Intervention](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-3-11-application-questions-government-intervention.md) ### 7 A Global Perspective - 7.1 International Economics - Globalisation & Trade - [7.1.1 Globalisation](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-1-1-globalisation.md) - [7.1.2 Globalisation for LEDCs](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-1-2-globalisation-for-ledcs.md) - [7.1.3 Globalisation for MEDCs](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-1-3-globalisation-for-medcs.md) - [7.1.4 Specialisation & Trade](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-1-4-specialisation-and-trade.md) - [7.1.5 Pattern of Trade](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-1-5-pattern-of-trade.md) - [7.1.6 Terms of Trade](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-1-6-terms-of-trade.md) - [7.1.7 Trading Blocs](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-1-7-trading-blocs.md) - [7.1.8 UK, EU & WTO](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-1-8-uk-eu-and-wto.md) - [7.1.9 End of Topic Test - Globalisation & Trade](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-1-9-end-of-topic-test-globalisation-and-trade.md) - [7.1.10 A-A* (AO3/4) - Globalisation & Trade](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-1-10-a-a-ao34-globalisation-and-trade.md) - 7.2 International Economics - Currency - [7.2.1 Merged Currency](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-2-1-merged-currency.md) - [7.2.2 Restrictions on Free Trade](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-2-2-restrictions-on-free-trade.md) - [7.2.3 Arguments for Protectionism](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-2-3-arguments-for-protectionism.md) - [7.2.4 Arguments Against Protectionism](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-2-4-arguments-against-protectionism.md) - [7.2.5 Balance of Payments](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-2-5-balance-of-payments.md) - [7.2.6 Balance of Payments 2](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-2-6-balance-of-payments-2.md) - [7.2.7 Floating Exchange Rates](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-2-7-floating-exchange-rates.md) - [7.2.8 Fixed Exchange Rate](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-2-8-fixed-exchange-rate.md) - [7.2.9 International Competitiveness](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-2-9-international-competitiveness.md) - [7.2.10 End of Topic Test - International Economy](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-2-10-end-of-topic-test-international-economy.md) - [7.2.11 Application Questions - International Economics](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-2-11-application-questions-international-economics.md) ### 8 Finance & Inequality - 8.1 Poverty & Inequality - [8.1.1 Absolute & Relative Poverty](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-1-1-absolute-and-relative-poverty.md) - [8.1.2 Inequality](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-1-2-inequality.md) - [8.1.3 Inequality 2](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-1-3-inequality-2.md) - [8.1.4 Lorenz Curve](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-1-4-lorenz-curve.md) - [8.1.5 Government Policy on Poverty](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-1-5-government-policy-on-poverty.md) - [8.1.6 End of Topic Test - Poverty & Inequality](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-1-6-end-of-topic-test-poverty-and-inequality.md) - [8.1.7 A-A* (AO3/4) - Inequality & Poverty](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-1-7-a-a-ao34-inequality-and-poverty.md) - 8.2 Emerging & Developing Economies - [8.2.1 Measures of Development](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-2-1-measures-of-development.md) - [8.2.2 Factors Influencing Growth & Development](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-2-2-factors-influencing-growth-and-development.md) - [8.2.3 Barriers to Development](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-2-3-barriers-to-development.md) - [8.2.4 Barriers to Development 2](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-2-4-barriers-to-development-2.md) - [8.2.5 A-A* (AO3/4) - The Bottom Billion](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-2-5-a-a-ao34-the-bottom-billion.md) - [8.2.6 Development Strategies](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-2-6-development-strategies.md) - [8.2.7 Interventionist Strategies](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-2-7-interventionist-strategies.md) - [8.2.8 Aid](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-2-8-aid.md) - [8.2.9 International Institutions](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-2-9-international-institutions.md) - [8.2.10 International Institutions 2](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-2-10-international-institutions-2.md) - [8.2.11 End of Topic Test - Emerging & Developing](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-2-11-end-of-topic-test-emerging-and-developing.md) - [8.2.12 Application Questions - Developing Countries](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-2-12-application-questions-developing-countries.md) - 8.3 The Financial Sector - [8.3.1 Role of Financial Markets](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-3-1-role-of-financial-markets.md) - [8.3.2 Market Failure in the Financial Sector](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-3-2-market-failure-in-the-financial-sector.md) - [8.3.3 Role of Central Banks](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-3-3-role-of-central-banks.md) - [8.3.4 End of Topic Test - The Financial Sector](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-3-4-end-of-topic-test-the-financial-sector.md) - [8.3.5 A-A* (AO3/4) - Financial Sector](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-3-5-a-a-ao34-financial-sector.md) - 8.4 Role of the State in the Macroeconomy - [8.4.1 Public Expenditure](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-4-1-public-expenditure.md) - [8.4.2 Taxation](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-4-2-taxation.md) - [8.4.3 Public Sector Finances](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-4-3-public-sector-finances.md) - [8.4.4 End of Topic Test - Role of the State](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-4-4-end-of-topic-test-role-of-the-state.md) - [8.4.5 Application Questions - Role of the State](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-4-5-application-questions-role-of-the-state.md) ### 9 Examples of Global Policy - 9.1 International Policies - [9.1.1 Global Debt & Deficit Policies](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/9-1-1-global-debt-and-deficit-policies.md) - [9.1.2 Poverty & Inequality Policies](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/9-1-2-poverty-and-inequality-policies.md) - [9.1.3 Changes in Interest Rates](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/9-1-3-changes-in-interest-rates.md) - [9.1.4 Competitiveness Policies](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/9-1-4-competitiveness-policies.md) - [9.1.5 End of Topic Test - International Policies](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/9-1-5-end-of-topic-test-international-policies.md) - [9.1.6 A-A* (AO3/4) - International Policies](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/9-1-6-a-a-ao34-international-policies.md) - 9.2 Policy Responses to Shocks - [9.2.1 International Tax Policies](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/9-2-1-international-tax-policies.md) - [9.2.2 Problems for Policymakers](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/9-2-2-problems-for-policymakers.md) - [9.2.3 End of Topic Test - Policy Responses](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/9-2-3-end-of-topic-test-policy-responses.md) - [9.2.4 Application Questions - Policy Responses](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/9-2-4-application-questions-policy-responses.md)