Economics

12 

What students will learn 

How it builds on learning 

In Year 12 students will study both Microeconomics and Macroeconomics 

Microeconomics 

In Year 12 the key microeconomic topics covered are:  

• Economic methodology and the economic problem 

• Price determination in a competitive market 

• Production, costs and revenue 

• Individual economic decision making 

As part of your learning, you will acquire knowledge and understanding of a selection of microeconomic models and to apply these to current problems and issues.  

Microeconomic models such as demand and supply, the operation of the price mechanism and causes of market failure are central to this part of the specification. 

You will explore price determination in a competitive market. You will also look at price, income, and cross-elasticities of demand. The supply of goods and services coupled with price elasticity of supply. 

This year also covers production, costs and revenue specialisation, division of labour and exchange. You will examine the law of diminishing returns and economies and diseconomies of scale. Finally looking at technological change. 

Macroeconomics 

The key macroeconomic topics covered in Year 12 are:  

• The measurement of macroeconomic performance 

• How the macroeconomy works  

• Economic performance 

You will explore the objectives of government economic policy. How markets and prices allocate resources. You will also look at the meaning and causes of market failure. You will also investigate positive and negative externalities in production and consumption. 

You will learn how the macroeconomy works: the circular flow of income, Aggregate Demand/Aggregate Supplies analysis, and related concepts. You will also look at the theoretical background to competition policy. The arguments for and against the privatisation of state-owned enterprises. 

You will examine factors influencing economic performance including economic growth and the economic cycle. You will also look at employment and unemployment, inflation and deflation. 

Economics as a subject is new to most students at A Level. However, throughout the course students will build on their critical thinking skills as well as their ability to analyse and interpret quantitative data.  

Students apply mathematical concepts taught in Years 7-11 to real world economic scenarios. Using these pre learnt skills they will learn to formulate logical decisions that are based on economic data.  

Topics are sequenced so that students are constantly building on prior learning of topics from earlier stages of the course. For example, supply and demand are taught early on in microeconomics; this learning is then used to help students with their understanding of resource allocation in macroeconomics.  

13 

What students will learn 

How it builds on learning 

The focus of Year 13 is on  

Microeconomics 

Topics include: 

• Perfect competition, imperfectly competitive markets and monopoly 

• The labour market 

• The distribution of income and wealth: poverty and inequality 

• The market mechanism, market failure and government intervention 

In Year 13 you will explore perfect competition, imperfectly competitive markets and monopoly and monopolistic power. You will also look at the dynamics of competition and competitive market processes. There will be opportunities to investigate the influences on the labour market including labour supply and the influences of trade unions in determining wags and the level of employment. 

You will investigate the distribution of income and wealth: poverty and inequality. You will also discuss government policies to alleviate poverty and to influence the distribution of income and wealth. 

You will look at the market mechanism, market failure and government intervention in markets. Market imperfections and competition policy. You will have an opportunity to explore reasons for public ownership, privatisation, regulation and deregulation. 

Macroeconomics 

Topics include: 

• Financial markets and monetary policy 

• Fiscal policy and supply-side policies 

• The international economy 

The headline of financial markets and monetary policy covers the structures of financial markets and financial assets. You will also explore the regulation of the financial system including commercial and investment banks. 

You will explore fiscal policy and supply-side policies. How these can be used to influence both aggregate demand and aggregate supply. You will also investigate both Keynesian macroeconomic policies also Margaret Thatcher’s Monetarist Policies. Public expenditure and taxation. 

Here you will explore the international economy covering the consequences of globalisation for both economically developed and less economically development countries. You will also look at multinational corporations and the changing patterns of trade. You will also investigate the case for import controls and protectionism. Finally, you will investigate the UK’s balance of payments and current account. 

The Year 13 course content builds on the content from Year 12. Students will further deepen their understanding of Economic theory and issues.  

In Year 13 students will bring together the topics they have been taught and look at themes in economics. This will also include linking in their deepened understanding of real-life examples and economics case studies that they have acquired over the course.