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Economics

Syllabus:  Edexcel Economics A

1 - Why study Economics

Economics is a social science and is the study of the allocation of resources. Economics considers the ‘Basic Economic Problem’ where wants and needs are unlimited but resources are finite. Consequently, Economics argues that resources must be allocated efficiently!

Studying Economics will allow you to understand current affairs, politics and business which all are informed by economics. Therefore, Economics is ever present and enables you to understand the way society functions.

2 - What will you study?

Year 12

Term 1 Micro:

  • Economic Problem and
    opportunity cost
  • Renewable and non-renewable resources.
  • Positive & Normative statements
  •  Economics as a social science
  • Production Possibility Frontier
  • Money, trade and specialisation
  • Law of Demand
  • Law of Supply
  •  Price Determination
  •  Price mechanism
  • Behavioural Economics

Term 1 Macro:

  • Circular flow of income
  • Measures of economic performance
  • National Happiness
  • Overview Aggregate demand
  • Consumption (c)
  • Investment (I)
  • Government spending (G)
  • Net Trade (X-M)
  • Aggregate demand (AD) downward sloping
  • Aggregate supply (AS)
  • Short run aggregate supply (SRAS)
  • Long run aggregate supply (LRAS)

Term 2 Micro:

  •  Equilibrium output and output gaps
  • The Multiplier effect
  • Introduction to macroeconomic objectives - objective economic growth
  • Comparing economic growth
  • Costs and benefits of growth
  • Objective balance of payments
  • Objective inflation
  •  Calculating inflation
  • Measuring unemployment
  • Objective unemployment

Term 2 Macro:

  • Equilibrium output and output gaps
  • The Multiplier effect
  • Introduction to macroeconomic objectives -Objective economic growth
  • Comparing economic growth
  • Costs and benefits of growth
  • Objective balance of payments
  • Objective inflation
  • Calculating inflation
  • Measuring unemployment
  • Objective unemployment

Term 3 Micro:

  • Public Goods & Information Gaps. Market Failure
  • Externalities – Positive and Negative
  • Methods of government intervention. Maximum and Minimum Prices (Price Controls)
  • Regulation and provision of information
  • State Provision
  • Tradable Pollution Permits
  • Government failure

Term 3 Macro:

  • Conflicts between objectives
  • Fiscal Policy
  • Austerity
  • Monetary policy
  • Supply side policies
  • Conflicts between objectives and policies
  • Great depression and 2008 global financial crisis

Year 13

Term 1 Micro:

  • Economies of scale
  • Types of efficiency
  • Costs
  • Revenue
  • Profit maximisation and supernormal profit
  • Perfect competition
  • Monopoly
  • Barriers to entry
  • Price discrimination
  • Monopolistic competition
  • Concentration ratio
  • Oligopoly
  • Oligopoly - game theory and collusion
  • CMA and collusion
  • Monopsony
  • Contestability
  • Market regulation intervention
  • Government intervention
  • Labour market and wage determination

Term 2 Macro:

  • International trade and specialisation
  • Comparative advantage
  • Trade liberalisation
  • Globalisation
  • Bilateral trade agreements and terms of trade
  • Trade blocs
  • World trade organisation
  • Monetary unions
  • Protectionism
  • Measures of competitiveness
  • Policies for improving international competitiveness
  • Balance of payments
  • Policies to correct the current account
  • Exchange rates
  • The role of central banks
  • Terms of trade
  • Absolute and relative poverty
  • Inequality
  • Human development index
  • Factors influencing development
  • Strategies for development
  • Macro in a global context application
  • Public expenditure and debt
  • Taxation
  • The financial sector

Term 3 Micro and Macro:

  • Revision in the form of practice papers

3 - How will you be assessed?

Paper 1  Markets and business behaviour 2 hours 35%
Paper 2 The national and global economy 2 hours 35%
Paper 3 Microeconomics and macroeconomics 2 hours 30%

4 - What skills will you develop?

Problem solving
Making decisions
Numerical skills
Literacy skills
Data analysis
Understanding current affairs
Understanding elements of finance

5 - What makes a good Economics student?

Numerical ability.
An ability to interpret graphical and diagrammatic information.
An ability to analyse and evaluate complex issues.
An ability to write clearly and succinctly, drawing on evidence and examples.

6 - Where can Economics lead?

  • Chartered accountant​
  • Data analyst
  • Economist
  • External auditor
  • Risk manager
  • Statistician
  • Stockbroker
  • Business development manager
  • Civil Service
  • Management consultant
  • Policy officer
  • Quantity surveyor
  • And many other careers

7 - Reading list and preparation

  • Basic Economics by Thomas Sewell (2000) – Relatable context of how the economy works and affects people within it.
  •  Freakonomics by Steven D. Levitt and Stephen J. Dubner (2007) - Blends microeconomics with pop culture.
  •  Superfreakonomics by Steven D. Levitt and Stephen J. Dubner (2010) – Sequel to Freakonomics
  •  The Armchair Economist by Steven E. Landsburg (2012) – Explains the economics of everyday life.
  •  The Undercover Economist by Tim Harford (2010) – Shows how economics plays a massive part in everyday life.
  •  The Undercover Economist Strikes Back by Tim Harford (2014) – Sequel to The Undercover Economist.
  •  23 Things They Don’t Tell You About Capitalism by Ha-Joon Chang – Turns big myths in society and turns them upside down and inside out.
  • Animal Spirits by George A. Akerlof and Robert J. Shiller – Discusses the role emotions plays in economic decision making and an excellent overview of basic Keynesian Ideas.
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