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 accountantâ€‹
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.