Cambridge IAL Economics study guide
Cambridge IAL Economics · Work through your exam, one topic at a time.
Cambridge International AS & A Level Economics (9708) is a Cambridge Advanced qualification offered under the Cambridge International AS & A Level family. The syllabus page describes it as teaching students to explain and analyse economic issues and arguments, evaluate economic information, and organise, present and communicate ideas and judgements clearly. The Cambridge IAL Economics study guide has 6 sections and about 2,925 words.
01The Price System and Government Intervention
The price system domain tests how markets allocate scarce resources and how governments alter that allocation. Exam questions typically ask you to explain the rationing, signalling and incentive functions of price, calculate and interpret elasticities, and evaluate taxes, subsidies, price controls and pollution permits.
470 words, about 2 min02International Trade and Exchange Rates
This domain tests why countries trade, how protection affects welfare, how the balance of payments is structured, and how floating and fixed exchange rates adjust. Strong answers use opportunity cost, elasticities and the Marshall-Lerner condition rather than assertion.
463 words, about 2 min03Measurement of Employment and Inflation
This domain tests definitions and measurement, not just trends. You must distinguish unemployment from inactivity, calculate rates correctly, explain what the CPI does and does not include, and evaluate the limitations of official statistics.
426 words, about 2 min04Causes and Consequences of Inflation
This domain tests whether you can distinguish demand-pull from cost-push inflation, explain expectations and imported inflation, and evaluate consequences for households, firms and macroeconomic performance. Answers should identify winners and losers rather than claim inflation harms everyone equally.
389 words, about 2 min05Theory of the Firm and Market Failure
This domain tests cost and revenue relationships, objectives, market structures and efficiency, then applies them to market failure and remedies. You need precise diagrams in words and clear links between market structure and welfare.
416 words, about 2 min06Macroeconomic Theory and Policy
This domain tests the AD/AS model, the multiplier, fiscal and monetary policy, supply-side policy, and policy conflicts. Candidates must distinguish short-run from long-run effects and nominal from real variables.
761 words, about 4 min