Edexcel A Level Economics Theme 1 Explained

Edexcel A Level Economics Theme 1 is fundamental. It covers building blocks,

with four critical subsections forming your course foundation. First, explore scarcity,

opportunity cost, and resource allocation. Think of governments choosing between healthcare or education funding.

Next, how markets work: supply, demand, price mechanisms,

and elasticity. Petrol demand barely drops with rising prices; it's inelastic. Market failure covers

externalities, public goods, and information gaps. Factory pollution is a negative externality

markets cannot fix alone. Finally, government intervention: taxes,

subsidies, and regulation. A sugar tax corrects market failures, generating revenue.