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Economics Name of Student Bridging work for new starters 2021 Course: Economics Name of student: Bridging Work Basics This booklet contains a number of tasks that students are expected to complete to a good standard in order to be able to be enrolled in this subject. Please complete these tasks on A4 paper and bring them with you to the data drop day after GCSE Results Day. The work handed in should be: written in black or blue ink on A4 lined paper written in full sentences with no copying and pasting from external sources have all compulsory tasks completed have students full names on each sheet multiple sheet should be connected together This booklet also contains significant additional information and a range of optional tasks. We would encourage you to complete all the tasks including the optional ones to fully prepare for Sixth Form study. Any problems then please email [email protected] Contents Page 3: Welcome to Economics Page 4: Tasks Page 12: Optional extra challenges Page 13: Stretching your learning further Page 15: Careers and HE Page 16: Key terms for microeconomics Page 17: Key terms for macroeconomics Page 19: Long terms plan for Year 12 Welcome to Economics There has never been a better time to study economics as the news is packed with stories about the economic impacts of Coronavirus. You may have seen articles about the impact on the economy with predictions of the worst financial crisis since 1706! It has been interesting to assess the policies used by the government and Bank of England to reduce the effects of the crisis which include the new Furlough scheme as well as interest rates cut to their lowest point since 1694. Of course, there is much more to the course than the effects of the virus and studying economics will help you view society in a mature, rational and logical way. There are life changing skills developed in studying economics such as ability to analyse, evaluate and interpret data. Many students comment on how they suddenly see the world in a different way. Oh, and if you are motivated by money it’s a great discipline to master. There are two main strands to economics Microeconomics is the study of markets, individuals and businesses Should the rail industry be run by private firms or the state? Why is the pay of professional footballers so much higher than nurses? Macroeconomics looks at entire economies. The unemployment, inflation, and monetary challenges of countries, and continents How do we know whether the UK economy has entered a recession? What caused hyperinflation in Zimbabwe? At Dixons we study Edexcel A Economics which is broken down into 4 Themes Theme 1 Introduction to markets and market Failure (Micro) Theme 2 The UK economy – performance and policies (Macro) Theme 3 Business behaviour and the labour market (Micro) Theme 4 A global perspective (Macro) Link to course information guide Tasks - In this bridging work we will initially focus on MICROECONOMICS Introduction to microeconomics – section 1 a. Watch this Introductory video and complete the table below (on lined paper) What is economics What is microeconomics What is macroeconomics b. Define the term scarcity c Define finite resource d Choose one resource and explain why it is scarce e In April 2020 the BBC reported that petrol prices, in the UK, were nearing £1 a litre. A key topic in economics is price determination. Do you think this is a micro or macro topic? Justify your answer. Remember, throughout your study of economics, it is important to keep up to date with national and global events. Good practice, after learning a new area of theory, is to practise applying it to a news story. Look at the graph, “Oil price in 2020”, presented above . This is the type of information that is frequently used in economics questions. The 3 comments underneath help to explain the data. However, they are largely descriptive rather than demonstrating quantitative skills. g . What was the peak (highest) crude oil price in 2020 by month? Month Price $ Jan Feb Mar Apr h. Using the table above what was the mean price between January and April? i. What was the lowest crude oil price in 2020 by month? Month Price $ Jan Feb Mar Apr j. Calculate the percentage change in the price of oil between the start and end point on the chart Introduction to economics 2 We are going to look in more detail at the economic models that are an important part of price determination. These are demand, supply and price equilibrium. These are core components in microeconomics. Demand is the amount a customer is willing and able to buy, at a set price, at a given point in time. Watch this short YouTube video to learn about demand. Youtube clip on demand curves Open the BBC story : Coronavirus: Why is the petrol price nearing £1 a litre? Petrol article A. Read the whole article and pick out any factors that contributed to a change in demand. Note down the factors below. b. Did demand increase or decrease? c. Was this as a result of a change in the price of petrol or other factors? d. Draw a diagram showing a fall in price leading to an increase in demand (use the earlier video to help) Introduction to economics 3 We are going to look in more detail at the economic models that are an important part of price determination. These are demand, supply and price equilibrium. These are core components in microeconomics. a. State 4 key points about demand (link back to the previous youtube video): Supply is the amount a producer is willing and able to provide, at a set price, at a given point in time. Watch this short YouTube video to learn about supply. Supply video Open the BBC story: Coronavirus: Why is the petrol price nearing £1 a litre? The article Consider the line from the article “It kicked off when Saudi Arabia failed to convince Russia to back production cuts that had been agreed with the other members of the Opec oil producers' group.” B What does Opec stand for? What is its objective? (you will need to research this) C Did Saudi Arabia want supply to increase or decrease? D Show the effect of a shift left in the supply curve ( use the earlier video to help ) E Assume that Russia increased the supply of oil. Show the effect of a shift right in the supply curve Introduction to economics 4 We are going to look in more detail at the economic models that are an important part of price determination. These are demand, supply and price equilibrium. a. State 4 key points about supply (use the earlier video to help): Price equilibrium is the price at which supply is equal to demand. On a graph it is, therefore, the point where the supply curve and the demand curve cross. Watch this short YouTube video to learn about price equilibrium. Video on price equilibrium Petrol prices have been affected by changes in both supply and demand leading to a lower equilibrium price. B) Draw a price equilibrium diagram to demonstrate a shift left in demand. Think through the steps logically. It should have a supply and demand curve. (again use the previous video to help) c) Explain your diagram. What change did you make and why? How has it altered each axis? d) Draw a price equilibrium diagram to demonstrate a shift right in supply. Think through the steps logically. e) Explain your diagram. f) Write a list of all the factors that contributed to the fall in the price of petrol. g) One factor affecting price is the degree of competition in the market. If there is a lot of competition power sways towards the consumer as they have greater choice. If there is no, or little, competition the power sways towards to supplier. With reference to the petrol market, backed by information from the earlier article, explain how the degree of competition in a market can affect price. Section 5 Introduction to macroeconomics One of the key concepts in macroeconomics is gross domestic product Watch this video on GDP GDP video Then answer these questions a What does GDP stand for? b. What does GDP measure? c. List the 4 sectors of the economy d. Which industries make the greatest contribution to UK GDP? e. Explain two limitations of using GDP to measure output f Use this macroeconomic article to jot down as many problems for the UK economy as you can find g What policies have been used by the government and Bank of England to help reduce the problems of the current economic crisis. You will need to research this Option for a challenge Watch Tutor2U’s ‘Head start to A level economics’ series Introduction to micro and macroeconomics The changing world economy Introduction to globalisation Factors driving globalisation For each video make notes about the key information that is included Option for a real challenge Try a course at Future Learn Future learn economics courses Stretching your learning further… Every time you encounter some economics you improve your economic literacy and knowledge of this new subject. Here are some highly recommended sources to access. Weblinks Dixons economics twitter feed bbc economy The Guardian Podcasts Wake up to money Business daily Weekly economics podcast Stephanomics Extra economics learning Khan academy MJ Foodie Recommended Books Microeconomics Mark Gavin: Pearson Edexcel A-level Economics A Student Guide: Theme 1 Introduction to markets and market failure David Smith: Free lunch Tom Wainwright: Narconomics Tim Harford: The Undercover Economist Macroeconomics Quintin Brewer: Pearson Edexcel A-level Economics A Student Guide: Theme 2 The UK economy – performance and policies Tim Harford: The Undercover Economist Strikes Back HE & Careers Why study economic A Level Why
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