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Make sure you know what an opportunity cost is, can explain it and how it links with trade-offs

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Make sure you know the difference between price (movement along) and non-price (shift) in the supply and demand curves

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Make sure you know the difference between price (movement along) and non-price (shift) in the supply and demand curves

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We are still studying this topic

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Make sure you can compare the two and describe the link between asymmetric information and market failures 

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Make sure you can compare the two and describe the link between asymmetric information and market failures 

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We are still studying this topic

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Make sure you know the difference between all of these goods and the link with the free rider problem

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Make sure you can draw the PPF diagram (neatly) and explain what links it to the 4 factors of production

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We are still studying this topic

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Make sure you know both formulae and can calculate PED.  Plus know the values of elasticities of demand 

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Make sure you know both formulae and can calculate PED.  Plus know the values of elasticities of demand 

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We are still studying this topic

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Make sure you can describe the different types of market structure and give examples 

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Make sure you can describe the different types of market structure and give examples 

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Make sure you know the different types of economies, can compare them and give some examples

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Lisa YoungBBC News, CornwallGeorgina BarnesBBC News, South West

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Land’s End lighthouse fog alarm sounding ‘all day, all night’

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The automated Longships Lighthouse off Land’s End is sounding a loud beep every 13 seconds.

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Angie BrownBBC Scotland, Edinburgh and East reporter

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Angry neighbours dub Edinburgh inflatable dome ‘enormous zit’

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The blow-up dome, which houses tennis courts, has caused uproar among residents of Edinburgh’s plush Stockbridge.

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Balance of Power market failure and externalities V2

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Balance of power Oligopoly and monopolistic competition

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Balance of power Production possibilities

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Balance of Power practice supply and demand questions

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Balance of Power monetary and fiscal policy

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Balance of Power free market and planned economy

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Balance of Power CIRCULAR FLOW OF INCOME

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Circular Flow of Income. How the different components of an economy interact.

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The 4 Types of Economies | Economics Concepts Explained | Think Econ

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Inflation is a measure of how much prices of goods (such as food or televisions) and services (such as haircuts or train tickets) have gone up over time. The Government sets us an inflation target of 2% in order to keep inflation low and stable.

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If you're a borrower, the interest rate is the amount you are charged for borrowing money - a percentage of the total amount of the loan. If you're a saver, it's the same except the interest fee is paid to you - because banks are paying to hire your money.

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At midday, the Bank of England cut interest rates from 4.75% to 4.5% - but that's not all we learned today:

The Bank's base rate is now at its lowest since June 2023 - and two of the nine committee members voted for a bigger cut

The Bank also cut its growth forecast for the UK economy from 1.5% to 0.75% for this year

Inflation is forecast to rise, peaking at 3.7% later this year, which the Bank says is due to increases in the cost of energy, water and bus fares

The forecasts say inflation will reach the Bank's 2% target towards the end of 2027 - about six months later than previously thought

On the reduced growth forecast, PM Keir Starmer says: "We were never going to turn this around in six or seven months - that just spurs us on"

The Conservatives say the "disastrous Budget is likely to mean fewer rate cuts this year than previously anticipated"

We're ending our live coverage soon. You can read our main story here, and a handy explainer here.

Our final post, up next, is from our cost of living correspondent Kevin Peachey. Thanks for reading.

Reform UK's deputy leader, Richard Tice, says the Bank of England should have been "bolder" and cut interest rates by more than 0.25 percentage points today.

"It's obvious to me and anyone with a basic understanding of economics that a cut of 0.5% today would have made far more economic sense," he says.

He also claims the Bank's latest forecast "confirmed what we all already knew, that Rachel Reeves' catastrophic budget has harmed growth and left us teetering on the edge of a recession".

If the UK wants growth, he says, the chancellor should "reverse her budget" and the Bank "needs to be bolder and play its part too".

As a reminder, seven of the Bank's Monetary Policy Committee voted for the cut to 4.5% - while two voted for a further cut to 4.25%.

Here are some pointers if debt is something you are worried about.

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Take control. Citizens Advice suggest you work out how much you owe, who to, which debts are the most urgent and how much you need to pay each month

Ask for a payment plan. Energy suppliers, for example, must give you a chance to clear your debt before taking any action to recover the money

Check you're getting the right money. Use the independent MoneyHelper website or benefits calculators run by Policy in Practice and charities Entitledto and Turn2us

Ask for breathing space. If you're receiving debt advice in England and Wales you can apply for a break to shield you from further interest and charges for up to 60 days

Tackling It Together: More tips to help you manage debt

The Bank of England's downgrading its growth forecast to 0.75% for 2025 "needs to be a wake up call for the chancellor", Liberal Democrat Treasury spokesperson Daisy Cooper says.

"Our economy will never see the back of the years of Conservative economic vandalism if she continues to push ahead with her misguided national insurance hike."

"Rachel Reeves needs to see sense, scrap her national insurance rise, which is hammering small businesses, and jettison her short-sighted red lines on a Customs Union. Only then will we see an end to these putrid growth figures," Cooper says.

She adds that people are still "having to choose between heating and eating and being forced to use public services that are completely broken".

Prime Minister Keir Starmer has said the interest rates decision is "very welcome", and that it means people "will have more money in their pockets".

Speaking to the BBC's Political Editor Chris Mason at the National Nuclear Laboratory in Preston, Starmer notes that wages have also gone up more than inflation.

On the Bank of England's growth forecast, Starmer says the government has more to do. "We were never going to turn this around in six or seven months. That just spurs us on," he says.

"We're going to turn this around by making the tough decisions, whether that's on planning. on infrastructure, on nuclear," he says.

"I'm not satisfied with growth as it is. I'm determined we're going to go further. You can expect to see more announcement like today to turn the economy around."

Starmer announced new rules today to make it easier to build nuclear reactors in England and Wales.

Dearbail Jordan
Business reporter

The Bank says it will take a "careful and gradual" approach to future interest rate cuts as it weighs up a number of factors that could affect inflation, including threats of trade tariffs from US President Donald Trump.

In its quarterly inflation report, the Bank says economic growth has been "broadly flat since March last year".

The UK economy showed zero growth between July and September.

For the following three months, the Bank of England now expects it to shrink by 0.1% against a previous forecast for 0.3% growth.

A recession is defined as two back-to-back three months periods of economic shrinkage.

For the first three months of this year, the Bank now forecasts economic growth of 0.1%, down from its 0.3% forecast published in last November's inflation report.

Official figures on the UK economy will be published next Thursday.

Inflation is expected to briefly rise to 3.7% later on this year and while the bank expects it to ease, it will take until the latter part of 2027 instead of earlier that year to fall back to the 2% target.

It's all in the chat.

If there's one thing markets love, it's overanalysing every syllable central bankers utter. And today, all eyes (and ears) are on the Bank of England's language around the pace of interest rate cuts.

The Bank has been clinging to the word "gradual" like a security blanket. For a while now some economists think that's been code for four cuts in 2025 - a steady but cautious easing of monetary policy. Markets, ever the sceptics, are inching closer to this expectation but haven't fully embraced that elusive fourth cut just yet.

Global uncertainty, largely trade tensions, particularly around tariffs, could make policymakers hesitant to deviate from their carefully scripted approach, cutting rates every quarter.

But some in the City think there could be room for more. Simon French, Chief Economist at Panmure Liberum thinks there will be six cuts this year, with the pace of cuts ramping up in the summer months.

So, will the Bank change its tune, or will we get another encore of slowly does it?

Dearbail Jordan
Reporting from the Bank of England

The Bank is asked whether it believes its own forecasts, and why is the UK having such a tough time getting inflation down.

Bailey says some factors are very much UK-only such as higher water bills and bus fares.

He also says that the way higher energy prices feed through to consumers is different from country to country

The Bank's latest Monetary Policy Report highlights that artificial intelligence advancements could "boost" global productivity, increasing capital demand and pushing up real interest rates in the UK.

However, the report says climate change and mitigation policies are expected to have offsetting effects.

Productivity growth could slow due to climate-related disruptions and the need to prioritise green investments.

At the same time, the Bank says higher government spending on climate initiatives is likely to put upward pressure on interest rates.

That's quite a lot of information to take in - let's recap the Bank of England's decision and forecasts:

Interest rates: The Bank of England cut rates to 4.5% from 4.75%, the lowest since June 2023

Growth forecast: The Bank slashed its UK economy growth forecast to 0.75% in 2025, down from a previous forecast of 1.5%

Inflation: The Bank predicts that inflation will rise to 3.7% later this year, driven up by rises in gas prices arising from the need to fill drained storage facilities after a cold winter

Reactions: Chancellor Rachel Reeves welcomed the interest rate cut but said she is still "not satisfied" with the growth rate of the UK economy

What the governor said: The Bank's Governor Andrew Bailey gave hints of hope and caution in the press conference that followed the announcement, saying the road ahead "will have bumps on it"

Shadow chancellor Mel Stride has said the interest rate cut will be "welcome news for many families and businesses who have been hit hard by Labour's mismanagement".

"Sadly, their disastrous Budget is likely to mean fewer rate cuts this year than previously anticipated," he says.

He adds that under new leadership "the Conservatives will back business and our nation of entrepreneurs to create jobs and wealth".

"That is the only way to grow our economy so everyone can have a more secure future," he says.

Dearbail Jordan
Reporting from the Bank of England

The Bank might have cut its near-term forecasts for growth but, asked what impact Chancellor Rachel Reeves' recent plans, such as building a third runway at Heathrow will have on the economy, Bailey and Lombardelli say they are "very, very strong supporters of growth".

They said there would not be any immediate impact of these projects on the UK economy.

It is more likely that the plans, if they go ahead, would serve as a longer-term boost.

In fact, while the Bank has cut its forecasts for 2024 and this year, it expects the economy to surpass its previous expectations in 2026 and 2027.

The economy is forecast to grow by 1.5% in both of those years, up from 1.25%.

As this graph shows, rates are on a downward trend after a sharp rise so let's look at what this means for people with a mortgage.

For the 629,000 homeowners on tracker deals that move in line with the base rate, there will typically be a £29 fall in monthly repayments, according to figures from banking trade body UK Finance.

The 693,000 people on the standard variable rate will need to wait for the response of their lender.

However, if their provider matches the base rate fall, typically they will pay £17 less a month.

If you have a fixed mortgage deal, the rate you pay monthly in interest is fixed until the deal expires, so there'll be no immediate change.

But the markets, and lenders will consider the chances of future interest rate cuts and mortgage providers may reprice deals for new and renewing customers accordingly.

Dearbail Jordan
Reporting from the Bank of England

There was a bit of a shock in the Bank's quarterly Monetary Policy Report today when it said inflation will spike to 3.7% later in 2025.

How come? It is largely driven by energy prices.

There has been a colder than expected winter in Europe, which has driven demand for natural gas and hiked up prices.

This will impact Ofgem's energy price in a few months' time. But things are nowhere near the aftermath of Russia's assault on Ukraine and the subsequent sanctions on Moscow, which saw energy costs soaring.

The Bank of England's press conference is now starting - you can follow along by clicking ' Watch live' at the top of the page.

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UK interest rates latest: Bank of England cuts interest rates to 4.5%, the lowest level since June 2023

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The Bank says the UK economy will grow by 0.75% in 2025, down from a previous forecast of 1.5%, while inflation is expected to rise.