ZIMSEC · Form 5 · Lower 6 · Syllabus 6073
Economics
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- The economic problem and economic systems Resources (land, labour, capital, enterprise) are limited while wants are unlimited, so choices must be made. Opportunity cost is the next best alternative forgone.
- Demand, supply and elasticity - Determinants: availability of substitutes, proportion of income, necessity vs luxury, time period.
- Market failure and government intervention Intervention can make outcomes worse: poor information, unintended consequences (price controls causing empty shelves), high administrative costs, and corruption.
- Costs, revenue and market structures Allocative efficiency (P = MC), productive efficiency (lowest point of AC), and dynamic efficiency (innovation over time).