Economics A Level

YEAR 12

IN THE FIRST YEAR STUDENTS WILL LEARN THE FOLLOWING TOPICS STUDY THE FOLLOWING TOPICS:

Theme 1: Introduction to markets and market failure

1.1 Nature of economics

1.1.1 Economics as a social science 1.1.2 Positive and normative economic
statements 1.1.3 The economic problem 1.1.4 Production possibility frontiers
1.1.5 Specialisation and the division of labour 1.1.6 Free market economies,
mixed economy and command economy

1.2 How markets work.

1.2.1 Rational decision making 1.2.2 Demand 1.2.3 Price, income and cross elasticities of
demand 1.2.4 Supply 1.2.5 Elasticity of supply 1.2.6 Price determination 1.2.7 Price
mechanism 1.2.8 Consumer and producer surplus 1.2.9 Indirect taxes and subsidies 1.2.10
Alternative views of consumer behaviour

1.3 Market failure

1.3.1 Types of market failure 1.3.2 Externalities 1.3.3 Public goods 1.3.4 Information
gaps

1.4 Government intervention

1.4.1 Government intervention in markets 1.4.2 Government failure

Theme 2: The UK economy – performance and policies

2.1 Measures of economic performance

2.1.1 Economic growth 2.1.2 Inflation 2.1.3 Employment and unemployment 2.1.4
Balance of payments

2.2 Aggregate demand (AD)

2.2.1 The characteristics of AD 2.2.2 Consumption (C) 2.2.3 Investment (I) 2.2.4
Government expenditure (G)

2.3 Aggregate supply (AS)

2.3.1 The characteristics of AS 2.3.2 Short-run AS 2.3.3 Long-run AS

2.4 National income

2.4.1 National income 2.4.2 Injections and withdrawals 2.4.3 Equilibrium levels of
real national output 2.4.4 The multiplier

2.5 Economic growth

2.5.1 Causes of growth 2.5.2 Output gaps 2.5.3 Trade (business) cycle 2.5.4 The
impact of economic growth

2.6 Macroeconomic objectives and policies

2.6.1 Possible macroeconomic objectives 2.6.2 Demand-side policies 2.6.3 Supply-side
policies 2.6.4 Conflicts and tradeoffs between objectives and policies

YEAR 13

IN THE SECOND YEAR, STUDENTS STUDY ALL THE AS TOPICS PLUS:

1. Production, costs and revenue
2. Individual economic decision making
3. Price determination in a competitive market
4. Perfect competition, imperfectly competitive markets and monopoly
5. The labour market
6. The distribution of income and wealth: poverty and inequality
7. The market mechanism, market failure and government intervention in markets. The National and International Economy
8. The measurement of macroeconomic performance
9. How the macro-economy works : the circular flow of income, AD/AS analysis, and related concepts Economic performance
10. Economic performance
11. Financial markets and monetary policy
12. Fiscal policy and supply-side policies
13. The international economy