This Unit introduces candidates to fundamental issues in economics with a particular emphasis on the business environment. Candidates will learn about the basic economic problem and how the consumer and other economic agents address this problem. Candidates are introduced to the operation of markets and actions that can be taken to help avoid market failure. The Unit introduces the theory of National Income and the circular flow of income model.
On completion of this Unit, the candidate should be able to:
1 Explain the allocation of resources within the economy.
2 Explain the theory of National Income.
3 Explain and evaluate the role of government policy in the UK market.