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A-Level Economics A-Level Economics Contents 1. Welcome - Description of course - Link to Specification - Outline of what you will study 2. Getting Started - Macroeconomics and microeconomics - Some key terms 3. Next Steps - Introductory reading - Useful websites - The business cycle - Quantitative skills 4. Building Skills - Economic data - Working with data - Building up a chain of reasoning 5. A-Level-Ready - Extended economic analysis, using data and applying your knowledge - Task to submit 6. Extension Tasks - A range of options to develop your interests further 1. Welcome Welcome to the A level Economics course. Most students who choose to study A level Economics are new to the subject; no prior learning or knowledge of economics is required to be successful. The study of economics complements a range of other a level subjects, such as history, geography, business, mathematics and the Sciences, and the way of thinking that you will develop as you study economics will help you to interpret issues you meet in many of these subjects. Studying economics can provide you with important employability skills and is good preparation for those wishing to progress to higher education. If you are thinking about studying economics at university, it's a good idea to think about studying mathematics as one of your A levels. Economics is the study of how choices are made in the use of scarce resources to provide goods and services. Although you're not expected to know about the economy in detail at the start of the course, it won't all be new to you. Economics is largely about people and their economic choices. During the course you will appreciate that individuals, families, producers and governments make economic decisions that affect each of us. There are two key parts to studying economics: the first stage is to study the theory which helps us to explain economic behaviour. However, when studying a level economics, you need to be able to apply the theories and concepts you meet to real world situations. This means that you need to have an interest in the wider aspects of the subject and start thinking about how economics helps to explain news items and data that appear on television, websites and newspapers. I hope you enjoy your study economics. It is a fascinating subject and over the next two years I hope that you will be excited and challenged by learning about how the economy operates. Link to specification: https://qualifications.pearson.com/content/dam/pdf/A%20Level/economics- a/2015/specification-and-sample-assessment-materials/A_Level_Econ_A_Spec.pdf Course Outline Microeconomics Macroeconomics Individual economic decision making Deals with the economy as a whole Year 12 Theme 1: Introduction to markets and Theme 2: The UK economy – market failure performance and policies This theme focuses on microeconomic This theme focuses on macroeconomic concepts. Students will develop an concepts. Students will develop an understanding of: understanding of: • nature of economics • measures of economic performance • how markets work • aggregate demand • market failure • aggregate supply • government intervention. • national income • economic growth • macroeconomic objectives and policy. Year 13 Theme 3: Business behaviour and the Theme 4: A global perspective labour market This theme develops the macroeconomic This theme develops the microeconomic concepts introduced in Theme 2 and concepts introduced in Theme 1 and applies these concepts in a global focuses on business economics. Students context. Students will develop an will develop an understanding of: understanding of: • business growth • international economics • business objectives • poverty and inequality • revenues, costs and profits • emerging and developing economies • market structures • the financial sector • labour market • role of the state in the macroeconomy. • government intervention. A level Economics tests four skills: Knowledge Demonstrate knowledge of terms/concepts and theories/models to show an understanding of the behaviour of economic agents and how they are affected by and respond to economic issues Application Apply knowledge and understanding to various economic contexts to show how economic agents are affected by and respond to economic issues Analysis Analyse issues within economics, showing an understanding of their impact on economic agents Evaluation Evaluate economic arguments and use qualitative and quantitative evidence to support informed judgements relating to economic issues Assessment You will sit three papers at the end of Year 13 to get your qualification in A level Economics. All of the papers are 2 hours long. Papers 1 and 2 have identical formats, but paper 1 tests your knowledge of microeconomics and paper 2 tests your knowledge of macroeconomics. Paper 3 has a different format and is designed as a synoptic paper testing your knowledge of the whole course, and in the extended open-response questions you will need to make reference to both microeconomics and macroeconomics. Paper 1: Markets and Business Behaviour 35% of the total qualification Paper 1 will assess microeconomics and questions will be drawn from Themes 1 and 3. The paper comprises three sections. Students answer all questions from Section A and Section B, and one from Section C. Section A comprises a range of multiple-choice and short-answer questions. Section B comprises one data response question broken down into a number of parts. Section C comprises a choice of extended open-response questions; students select one from a choice of two. Duration: 2 hours. 100 marks available. Paper 2: The national and global economy 35% of the total qualification Paper 2 will assess macroeconomics and questions will be drawn from Themes 2 and 4. The paper comprises three sections. Students answer all questions from Section A and Section B, and one from Section C. Section A comprises a range of multiple-choice and short-answer questions. Section B comprises one data response question broken down into a number of parts. Section C comprises a choice of extended open-response questions; students select one from a choice of two. Duration: 2 hours. 100 marks available. Paper 3: Macroeconomics and microeconomics 30% of the total qualification Paper 3 will assess content across all four themes. Students are required to apply their knowledge and understanding, make connections and transfer higher-order skills across all four themes. The paper comprises two sections. Each section comprises one data response question broken down into a number of parts, including a choice of extended open-response questions; students select one from a choice of two. Duration: 2 hours. 100 marks available. 2. Getting Started What is the difference between micro and macroeconomics? This short video explains the difference for all students just about to begin their studies of Economics https://www.youtube.com/watch?v=2Nq8LN3XGQA&t=19s Microeconomics considers the economics of everyday life, the decisions that we as households take and the impact of businesses in different and often related industries. Macroeconomics is the study of the economy as a whole and it also analyses the global (international) economic system. Becoming an Economist The tasks provided below will prepare you with the basic knowledge to quickly engage with and understand the content taught on the economics course and develop the skills needed for you to think like an economist and successfully complete the tasks and activities required to complete the course. This means you will have a basic grasp of key terminology and the mechanisms that underpin the economy and you will be able to think logically, analyse processes and mechanisms, independently conduct your own research and present your analysis and ideas in clear, structured writing. Key Concepts It will make it much easier for you to engage with the course when it begins if you have a solid grasp of some of the key terminology that we use. The following are some fundamental, basic concepts that we assume you are already familiar with. Go through the list, writing precise definitions for each term. There are many sources that you can consult but tutor2u has a very comprehensive overview of key terms and definitions, as has investopedia. Term Definition (could you explain it in your own words?) Inflation Interest Rates Unemployment Rate Economic Growth GDP Real GDP Budget Deficit Budget Surplus National Debt Trade Deficit Trade Surplus Macroeconomics Microeconomics Demerit Good Merit Good 3. Next steps Start to get into the habit of taking time to look at economics news - start with the BBC News/Business/Economy pages and the same on The Guardian and Telegraph websites. These usually carry very up to date stories and they do it in an accessible way (bear in mind that the newspapers have some political bias – see if you can identify differences in their approach) Try to get into the habit of looking at newspapers for economics stories. Look at David Smith’s column in The Sunday Times Business section. It will take you no more than 10 minutes to read. A couple of easy to read economics books: • The Undercover Economist – Tim Harford - Introduces some basic economic concepts into real life scenarios. • Freakonomics – Steven Levitt - The economics of drug dealing, sumo wrestling and estate agents, amongst other things. • Made in Britain – Evan Davis - Very good analysis of the British economy – a look at the UK’s strengths and weaknesses. Recommended Television shows/videos to watch A good news programme (e.g. Channel 4 news at 7pm, Newsnight on BBC2 at 10.45pm) Economics related documentaries (Evan Davis and Robert Peston often present topical economics documentaries on BBC & ITV) Listen to economics related radio programmes (e.g. More or Less, presented by Tim Harford – weekly on BBC Radio 4, podcasts also available) Useful websites www.tutor2u.net – Tutor2u is an essential economics resource for all students. It contains an excellent Blog with relevant news stories, exam advice and analysis of topical events.
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