Summary ECONOMICS EDEXCEL A LEVEL PAPER 3 REVISION - micro/macro

PAPER 3:
Micro and macro causes/factors/effects(change in price,quantity or growth,current account
etc?)/reasons



MICRO EFFECTS- EXTRACTS

- PRICE
- QUANTITY
- DEMAND/SUPPLY
- COSTS OF PRODUCTION
- ELASTICITY
- CONSUMER/PRODUCER SURPLUS
- REVENUE/PROFIT
- GOV REVENUE/COST
- STAKEHOLDER IMPACT
- MARKET FAILURES
- GOV FAILURE
- COMPETITON/MARKET STRUCTURES
- EFFICIENCY/PRODUCTIVITY
- WAGES/EMPLOYMENT
- EQUITY/INEQUALITY



MACRO EFFECTS:

- AD/AS
- GROWTH/LIVING STANDARDS
- UNEMPLOYMENT
- INFLATION/DEFLATION
- TRADE (CURRENT ACCOUNT)
- INCOME INEQUALITY
- GOV FINANCES
- MULTIPLIER
- INTERNATIONAL COMPETITIVENESS
- EXCHANGE RATE CHANGE
- PROTECTIONIST MEASURE
- LIVING STANDARDS/POVERTY



MICRO POLICIES: TAXES, SUBSIDIES, PRICE CONTROL, PROF REGULATION, CAPPING, MINIMUM
WAGE, MAXIMUM WAGE

, MICRO EFFECTS: D/S, ELASTICITY, PRODUCER REVENUE, CONSUMER BURDEN, HIGH PRODUCER
SURPLUS, GOVERNMENT REVENUE, FAILURE

MACRO EFFECTS: GOV REVENUE, INCOME INEQUALITY DUE TO REGRESSIVE TAX, COST,
UNINTENEDED CONSEQUENCES SUCH AS EXCESSIVE REGULATION LOW PROFITABILITY LOW
INVESTEMENT, LESS FDI,MORE LEAVING COUNTRY,PRODUCTIVE CAPACITY



EXCHANGE RATE CHANGES: WIDEC OR SPICED

MACRO EFFECTS: AS/AD, GROWTH, UNEMPLOYMENT, INFLATION, CURRENT ACCOUNT

MICRO EFFECTS: ELASTICITY OF DEMAND FOR IMPORTS AND EXPORTS OR EVEN SUPPLY, WIDEC OR
SPICED ☹

KEY STAKEHOLDERS, LIVING STANDARDS DROP



PROTECTIONIST POLICIES:

MICRO: WORKERS, DOM AND FOREIGN REVENUES, ELASTICITY OF D/S, C/P SURPLUS,
INEFFICIENCY AND WELFARE LOSSES

MACRO: INFLATION, AS/AD, GROWTH, UNEMPLOYMENT, CURRENT ACCOUNT, GOV FINANCES



FISCAL POLICY: CHANGES IN GOVERNMENT SPENDING AND TAXATION TO REACH GOV OBJECTIVES,
CONTRACTIONARY AND EXPANSIONARY

MACRO: AS/AD, GROWTH, UNEMPLOYMENT, INFLATION, GOV FINANCE

MICRO: INCOME INEQUALITY REGRESSIVE, INCENTIVES ON WORKERS, CORPS,BUSINESS, IMPACT
ON DIFFERENT STAKEHOLDERS



MARKET STRUCTURES:

MICRO EFFECTS: PROD, ALLO, X EFFICIENCY IN NON-CONCENTRATED MARKETS, CONCNETRATED
ANTI COMPETITIVE PRICES, PRICE DISCRIMINIATION

MACRO EFFECTS: DYNAMIC EFFICIENCY BOOSTS LRAS, JOB CREATION, PROD EFFICICENCY BOOSTS
LRAS, COMPETITVE MARKETS MEANS PRICES ARE LOW DUE TO PERFECT INFORMATION CAN
CAUSE POVERTY ALLEVIATION



TRADE UNION:

MICRO EFFECTS: WAGES&EMPLOYMENT, WORKERS RIGHTS AND PROTECTION, MONOPSONY
LABOUR MARKET IMPROVEMENT, COST TO FIRMS,WAGE DISCRIMINATION

MACRO EFFECTS: RAISE UNEMPLOYMENT IN TRADE LABOUR MARKET, REDUCE IT IN MONOPSONY,
HIGHER INFLATION, LESS INTERNATIONAL COMPETITIVENESS, TRADE AND CURRENT ACCOUNT
LESS FDI