{"id":27,"date":"2026-09-29T10:08:19","date_gmt":"2026-09-29T10:08:19","guid":{"rendered":"https:\/\/thesilenteconomist.co.uk\/?page_id=27"},"modified":"2026-09-29T10:08:19","modified_gmt":"2026-09-29T10:08:19","slug":"ocr-as-level-h060-specification","status":"publish","type":"page","link":"https:\/\/thesilenteconomist.co.uk\/?page_id=27","title":{"rendered":"OCR AS Level H060 Specification"},"content":{"rendered":"\n

1.1 Introduction to Microeconomics<\/strong><\/p>\n\n\n\n

1.1.1 The economic problem<\/em><\/strong><\/p>\n\n\n\n

Explain:<\/strong> Economic goods and free goods<\/p>\n\n\n\n

Explain:<\/strong> The economic problem: scarcity, choice, needs, and wants<\/p>\n\n\n\n

Explain: <\/strong>Normative and positive statements<\/p>\n\n\n\n

Explain: <\/strong>The role of economic agents: government, firms, and households<\/p>\n\n\n\n

Explain: <\/strong>The factors of production: land, labour, capital, and enterprise<\/p>\n\n\n\n

Explain: <\/strong>The rewards of the factors of production: rent, wages, interest and profit<\/p>\n\n\n\n

Evaluate: <\/strong>The problem of scarcity and the requirement to make choices<\/p>\n\n\n\n

Evaluate: <\/strong>Rationality as a way of understanding the behaviour of economic agents<\/p>\n\n\n\n

Evaluate: <\/strong>The different objectives of the economic agents in an economy<\/p>\n\n\n\n

1.1.2 The allocation of resources<\/em><\/strong><\/p>\n\n\n\n

Explain: <\/strong>Incentives<\/p>\n\n\n\n

Explain:<\/strong> Market, planned and mixed economies<\/p>\n\n\n\n

Explain: <\/strong>Economic efficiency: productive and allocative efficiency<\/p>\n\n\n\n

Evaluate: <\/strong>The effectiveness of incentives on the behaviour of economic agents and resource allocation<\/p>\n\n\n\n

Evaluate: <\/strong>The allocation of resources in the different economic systems<\/p>\n\n\n\n

1.1.3 Opportunity cost<\/em><\/strong><\/p>\n\n\n\n

Explain: <\/strong>Opportunity cost and trade-off<\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>Movements along a production possibility curve (PPC)<\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>Shifts of a production possibility curve (PPC)<\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>The usefulness of the concept of opportunity cost<\/p>\n\n\n\n

1.2 The role of markets<\/strong><\/p>\n\n\n\n

1.<\/strong>2.1 Specialisation and trade<\/strong><\/p>\n\n\n\n

Explain: <\/strong>Specialisation and the division of labour<\/p>\n\n\n\n

Explain: <\/strong>Barter systems<\/p>\n\n\n\n

Explain: <\/strong>Money as a medium of exchange<\/p>\n\n\n\n

Evaluate: <\/strong>The role of specialisation and the division of labour in addressing the problem of scarcity<\/p>\n\n\n\n

1.<\/strong>2.2 Demand <\/strong> <\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>The relationship between price and quantity demanded<\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>Individual and market demand<\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>Joint, competitive and composite demand<\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>Movements along the demand curve (extension\/contraction)<\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>Shifts of the demand curve (increase\/decrease)<\/p>\n\n\n\n

1.<\/strong>2.3 Supply<\/strong><\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>The relationship between price and quantity supplied<\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>Individual and market supply<\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>Joint and competitive supply<\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>Movements along the supply curve (extension\/contraction)<\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>Shifts of the supply curve (increase\/decrease)<\/p>\n\n\n\n

1.<\/strong>2.4 Consumer and producer surplus<\/strong><\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>Consumer surplus and producer surplus<\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>The effects of changes in price on consumer surplus<\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>The effects of changes in price on producer surplus<\/p>\n\n\n\n

Evaluate: <\/strong>The impact of changes in price on consumer and producer surplus<\/p>\n\n\n\n

1.<\/strong>2.5 The interaction of markets<\/strong><\/p>\n\n\n\n

Explain: <\/strong>Ceteris paribus<\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>The interaction of demand and supply<\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>Market equilibrium and disequilibrium<\/p>\n\n\n\n

Evaluate: <\/strong>The impact of changes in demand and\/or supply in one market on a related market(s)<\/p>\n\n\n\n

1.<\/strong>2.6 Elasticity<\/strong><\/p>\n\n\n\n

Explain: <\/strong>Elasticity<\/p>\n\n\n\n

Explain and calculate: <\/strong>Price elasticity of demand (PED)<\/p>\n\n\n\n

Explain and calculate: <\/strong>Income elasticity of demand (YED)<\/p>\n\n\n\n

Explain and calculate: <\/strong>Cross elasticity of demand (XED)<\/p>\n\n\n\n

Explain and calculate: <\/strong>Price elasticity of supply (PES)<\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>Different values of PED, YED, XED and PES<\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>The relationship between PED and a firm\u2019s total revenue<\/p>\n\n\n\n

Evaluate: <\/strong>Factors which determine the value of PED, YED, XED and PES<\/p>\n\n\n\n

Evaluate: <\/strong>The usefulness and significance of PED, YED, XED and PES<\/p>\n\n\n\n

1.<\/strong>2.7 Market failure and externalities<\/strong><\/p>\n\n\n\n

Explain: <\/strong>Market failure<\/p>\n\n\n\n

Explain: <\/strong>Marginal social cost, marginal external cost, marginal private cost, marginal social benefit,  marginal external benefit and marginal private benefit<\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>Positive and negative externalities (external benefits and external costs); consumption and production<\/p>\n\n\n\n

1.2.8 Government intervention<\/strong><\/p>\n\n\n\n

Explain: <\/strong>Government intervention in markets: Taxation, subsidies, government expenditure, price controls, buffer stock systems, public\/private partnerships, legislation, regulation, tradable pollution permits, information provision, competition policy<\/p>\n\n\n\n

Explain: <\/strong>Government failure<\/p>\n\n\n\n

Evaluate: <\/strong>The effectiveness of government intervention<\/p>\n\n\n\n

Evaluate: <\/strong>Causes and consequences of government failure
<\/strong>\ufeff<\/p>\n\n\n\n

2.1 Aggregate demand and aggregate supply<\/strong><\/p>\n\n\n\n

2.1.1 <\/strong>Circular flow of income<\/strong><\/p>\n\n\n\n

Explain: <\/strong>The circular flow of income, with injections and leakages<\/p>\n\n\n\n

Explain: <\/strong>The methods of measuring national income, output and expenditure<\/p>\n\n\n\n

2.<\/strong>1.2 Aggregate demand<\/strong><\/p>\n\n\n\n

Explain: <\/strong>Aggregate demand and its components<\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>The relationship between aggregate demand and price level<\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>Shifts in the aggregate demand curve<\/p>\n\n\n\n

Evaluate: <\/strong>The relationship between changes in income and consumption<\/p>\n\n\n\n

Evaluate: <\/strong>The role of expectations<\/p>\n\n\n\n

2.<\/strong>1.3 Aggregate supply<\/strong><\/p>\n\n\n\n

Explain: <\/strong>Aggregate supply<\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>The relationship between aggregate supply and price level in the short run and long run<\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>Shifts in the aggregate supply curve in the short run and long run<\/p>\n\n\n\n

2.1.4 The interaction of aggregate demand and supply<\/strong><\/p>\n\n\n\n

Explain: <\/strong>The assumptions underlying the aggregate demand and aggregate supply models<\/p>\n\n\n\n

Explain: <\/strong>Equilibrium in the macroeconomy<\/p>\n\n\n\n

Evaluate: <\/strong>Effects of changes in aggregate demand and aggregate supply on macroeconomic indicators<\/p>\n\n\n\n

2.2 Economic policy objectives<\/strong><\/p>\n\n\n\n

2.2.1 Economic growth<\/strong><\/p>\n\n\n\n

Explain: <\/strong>Economic growth<\/p>\n\n\n\n

Explain: <\/strong>The policy objective of economic growth<\/p>\n\n\n\n

Explain: <\/strong>The different stages of the economic cycle<\/p>\n\n\n\n

Explain: <\/strong>Real and nominal Gross Domestic Product (GDP); changes in GDP over time<\/p>\n\n\n\n

Explain and calculate: <\/strong>Economic growth rates<\/p>\n\n\n\n

Explain and calculate: <\/strong>GDP per capita<\/p>\n\n\n\n

Explain, with the aid of a diagram:<\/strong>Short run and long run economic growth<\/p>\n\n\n\n

Evaluate:<\/strong> Causes and consequences of economic growth in the short run and long run<\/p>\n\n\n\n

2.<\/strong>2.2 Development<\/strong><\/p>\n\n\n\n

Explain: <\/strong>The structure of an economy in terms of primary, secondary and tertiary sectors<\/p>\n\n\n\n

Explain: <\/strong>The policy objective of sustainable development<\/p>\n\n\n\n

Evaluate: <\/strong>The relationship between economic growth and sustainable development<\/p>\n\n\n\n

Evaluate: <\/strong>The usefulness of macroeconomic measures such as GDP, the Human Development Index (HDI) and other alternative social and cultural indicators<\/p>\n\n\n\n

2.2.3 Employment<\/strong><\/p>\n\n\n\n

Explain: <\/strong>Employment and unemployment<\/p>\n\n\n\n

Explain: <\/strong>The policy objective of full employment<\/p>\n\n\n\n

Explain: <\/strong>The labour force survey and claimant count measures of unemployment<\/p>\n\n\n\n

Evaluate: <\/strong>Causes and consequences of unemployment<\/p>\n\n\n\n

Evaluate: <\/strong>Effects of full employment<\/p>\n\n\n\n

2.<\/strong>2.4 Inflation<\/strong><\/p>\n\n\n\n

Explain: <\/strong>Inflation, deflation, disinflation and hyperinflation<\/p>\n\n\n\n

Explain: <\/strong>The policy objective of low and stable inflation<\/p>\n\n\n\n

Explain: <\/strong>Real and nominal values<\/p>\n\n\n\n

Explain: <\/strong>Measuring inflation using the Consumer Prices Index and Retail Prices Index<\/p>\n\n\n\n

Explain and calculate: <\/strong>The rate of inflation using index numbers<\/p>\n\n\n\n

Evaluate: <\/strong>Causes and consequences of inflation and deflation<\/p>\n\n\n\n

2.<\/strong>2.5 Balance of payments<\/strong><\/p>\n\n\n\n

Explain: <\/strong>Balance of payments<\/p>\n\n\n\n

Explain: <\/strong>The components of the current account: trade in goods, trade in services, primary and secondary income<\/p>\n\n\n\n

Explain: <\/strong>The policy objective of a sustainable balance of payments position<\/p>\n\n\n\n

Explain: <\/strong>Imbalances on the balance of payments<\/p>\n\n\n\n

Explain and calculate: <\/strong>Balances on the different components on the balance of payments<\/p>\n\n\n\n

Evaluate: <\/strong>Causes and consequences of imbalances on the balance of payments<\/p>\n\n\n\n

2.<\/strong>2.6 Trends in macroeconomic indicators<\/strong><\/p>\n\n\n\n

Explain: <\/strong>Key trends in UK macroeconomic performance in the last 20 years<\/p>\n\n\n\n

Evaluate: <\/strong>The current performance of the UK economy compared with other developed economies, emerging and developing economies<\/p>\n\n\n\n

2.3 Implementing policy<\/strong><\/p>\n\n\n\n

2.<\/strong>3.1 Fiscal policy<\/strong><\/p>\n\n\n\n

Explain: <\/strong>Government budget<\/p>\n\n\n\n

Explain: <\/strong>Direct, indirect, progressive, proportional and regressive taxation<\/p>\n\n\n\n

Explain: <\/strong>Current and capital government expenditure<\/p>\n\n\n\n

Explain: <\/strong>Budget surplus, deficit and balanced budget<\/p>\n\n\n\n

Explain: <\/strong>Cyclical and structural budget position<\/p>\n\n\n\n

Explain: <\/strong>National and government debt<\/p>\n\n\n\n

Explain: <\/strong>Discretionary fiscal policy and automatic stabilisers<\/p>\n\n\n\n

Explain: <\/strong>Crowding out<\/p>\n\n\n\n

Explain: <\/strong>The Laffer curve<\/p>\n\n\n\n

Explain and calculate:<\/strong> Average and marginal tax rates<\/p>\n\n\n\n

Evaluate:<\/strong> The effectiveness of using fiscal policy to achieve the government\u2019s macroeconomic objectives<\/p>\n\n\n\n

2.<\/strong>3.2 Monetary policy<\/strong><\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>Changes in interest rates<\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>Changes in money supply<\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>Inflation rate targets<\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>Quantitative easing<\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>Influence of exchange rates<\/p>\n\n\n\n

Evaluate: <\/strong>The effectiveness of using monetary policy to achieve the government\u2019s macroeconomic objectives<\/p>\n\n\n\n

2.<\/strong>3.3 Supply side policy<\/strong><\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>Privatisation, deregulation and subsidies<\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>Competition policy<\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>Investment in infrastructure, education, training, research and development<\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>Reforms of the tax and benefit system<\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>Improved labour market flexibility<\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>Immigration control<\/p>\n\n\n\n

Evaluate: <\/strong>The effectiveness of using supply side policy measures to achieve the government\u2019s macroeconomic objectives<\/p>\n\n\n\n

2.<\/strong>3.4 Policy conflicts<\/strong><\/p>\n\n\n\n

Evaluate: <\/strong>Conflicts and trade-offs between policy objectives<\/p>\n\n\n\n

2.<\/strong>4 The global context<\/strong><\/p>\n\n\n\n

2.<\/strong>4.1 International trade<\/strong><\/p>\n\n\n\n

Explain: <\/strong>International trade<\/p>\n\n\n\n

Explain: <\/strong>Patterns of international trade over time<\/p>\n\n\n\n

Evaluate: <\/strong>Advantages and disadvantages of international trade to developed, emerging and developing countries<\/p>\n\n\n\n

2.<\/strong>4.2 Exchange rates<\/strong><\/p>\n\n\n\n

Explain and calculate: <\/strong>Exchange rates<\/p>\n\n\n\n

Explain, with the aid of a diagram: <\/strong>Determination of exchange rates in fixed and floating exchange rate systems<\/p>\n\n\n\n

Evaluate: <\/strong>Causes and consequences of exchange rate changes<\/p>\n\n\n\n

Evaluate: <\/strong>Advantages and disadvantages of different exchange rate systems<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

1.1 Introduction to Microeconomics 1.1.1 The economic problem Explain: Economic goods and free goods Explain: The economic problem: scarcity, choice, needs, and wants Explain: Normative and positive statements Explain: The role of economic agents: government, firms, and households Explain: The factors of production: land, labour, capital, and enterprise Explain: The rewards of the factors of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-27","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/thesilenteconomist.co.uk\/index.php?rest_route=\/wp\/v2\/pages\/27","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thesilenteconomist.co.uk\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/thesilenteconomist.co.uk\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/thesilenteconomist.co.uk\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thesilenteconomist.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=27"}],"version-history":[{"count":3,"href":"https:\/\/thesilenteconomist.co.uk\/index.php?rest_route=\/wp\/v2\/pages\/27\/revisions"}],"predecessor-version":[{"id":47,"href":"https:\/\/thesilenteconomist.co.uk\/index.php?rest_route=\/wp\/v2\/pages\/27\/revisions\/47"}],"wp:attachment":[{"href":"https:\/\/thesilenteconomist.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=27"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}