Economics (A Level)

What Will I Study?

Students will investigate both the broader macro economy including government objectives and policies and the micro behaviour of economic agents such as consumers and firms. They will develop an understanding of how the UK and global economy works in terms of theory and real world application.

Year 12

Theme 1 – Introduction to markets and market failure

In this theme students will consider how markets work, looking at how supply and demand interact to allocate resources in local, national and international markets. They will learn how to apply supply and demand analysis to real-world situations and be able to offer explanations of consumer behaviour. Having investigated how markets work, students will look at the nature and causes of market failure before considering the strengths and weaknesses of possible government intervention to remedy market failures.

Theme 2: The UK economy – performance and policies

Students will be introduced to the aggregate demand/aggregate supply model so that they can use it to analyse changes in real output and the price level affecting problems such as inflation and unemployment. They will: examine the use of different government policies that may be used to improve an economy’s performance. Students will consider the different approaches that may be used by policymakers to address macroeconomic issues and be able to identify the criteria for success. Students will gain knowledge of the UK economy in the last 10 years.

Year 13

 Theme 3: Business behaviour and the labour market

This theme examines how the number and size of market participants, and the level of contestability, affect the pricing and nature of competition among firms. Students will consider the size and growth of firms through exploring organic growth, mergers and takeovers. Students will look at the rational

assumption that firms are profit maximisers and then challenge this by looking at alternative business objectives. Revenues, costs and profits are explored before linking these ideas to different market structures such as monopolies.

Theme 4: A global perspective

Students will be expected to understand the significance of globalisation, international trade, the balance of payments and exchange rates. They will examine public finance, macroeconomic policies and the role of the financial sector in a global context. Students will consider the factors influencing the growth and development of emerging and developing countries and develop an awareness of trends in the global economy over the last 25 years.

Suggested Reading List