ECONOMICS

Economics is the science of how societies choose about how to best allocate resources. Do we follow the words of Adam Smith, and allow the ‘invisible hand’ of markets to dictate who gets goods and services? Or should we place greater responsibility on the state to improve society? An A level in Economics prepares you to be able to discover various schools of thought on how to improve market conditions and help promote economic growth.

Controversial topics, such as Brexit, the 2008 Global Financial Crisis and even cigarette consumption are discussed, with all viewpoints encouraged if supported with analysis and examples. After all, as John Maynard Keynes famously said; “There is no harm in being sometimes wrong — especially if one is promptly found out.”The subject will require an appreciation of different arguments, but an ability to make reasoned judgements.

No prior knowledge of Economics is assumed but good grades in Mathematics and English GCSEs are desirable, as is an ability to write essays. Old Oundelians who have studied in the department have gone on to read Economics, Management and Business related degrees across the country.

Sam Janes Head of Economics

Scheme Of Assessment

• Paper 1: Markets and Market Failure

An A level in Economics prepares you to be able to discover various schools of thought on how to improve market conditions and help promote economic growth.

Microeconomics: Pupils study the interaction of firms and consumer behavior, looking at the forces of supply and demand in the allocation of resources to produce goods and services. They also examine the reason why the market system may lead to unacceptable outcomes. They analyse possible remedies and consider how government action may improve or reduce economic efficiency and the role of the government in maintaining competitive markets. Pupils study various theories of the firm, including analysis of cost curves and perfectly competitive, monopoly and oligopolistic markets. There is aslo a focus on how to resolve income inequality.

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Paper 2: The National and International Economy

Macroeconomics: Study of the aggregate economy. Pupils learn how to measure a country’s economic performance with respect to growth, inflation, unemployment and the balance of payments. They study the role of government and central banks to attain these objectives, as well as the conflicts between them. An examination of the position of the UK in the context of the world economy, this paper has a focus on international issues such as the financial markets, globalisation, protectionism, economic development, free trade, foreign direct investment and exchange rates. Pupils should be able to evaluate the macroeconomic performance of the UK in a global context.

• Paper 3: Economic Principles and Issues

Microeconomics and Macroeconomics — A multiple-choice paper plus a data response. This paper examines the ability to use economic models to answer a range of multiple-choice questions. There will also be an economics article on which essay questions will be based. This paper does not have ‘new’ topics in, but rather brings together the content of the other two papers.