A Level

Economics

Student

Handbook

2017 - 2019

What is Economics?

A question you have probably already asked. Listed below are examples of

viewpoints of some key economic issues and problems that make up the subject.

What happens when oil runs out?

Why can't we just pay doctors and nurses more?

Why can't I just get a grant to go to university?

The unemployed should get off their backside and get a job.

Why do people get so excited about interest changes?

It's obvious that fining polluters will stop them doing it.

That CD was £10, I got a real bargain, I was going to pay £30 as it is so cool.

It is so annoying how my train journey cost more before 9:30 am.

Why did teachers go on strike?

Should the UK join the Euro?

Is the congestion charge a good thing?

More runways at the airports!

What is Economics Exactly?

Economics exists because we live in a world in which resources are finite. We do not

have endless supplies of energy, minerals, food so on. Yet even though these

resources are finite, many people aspire to improving their lifestyle by having

more and better and newer and nicer things. In short, people have unlimited

wants. Our needs outstrip the means of satisfying them. There is not enough to go

round. Some people starve, while others enjoy fantastic luxury. This is not a

morality tale but a description of the world we live in.

Making choices

People have virtually unlimited wants, yet resources are finite. Economics is about

understanding that if one choice is made others have to be forgone. For example,

it can be argued that is we want cleaner air, and then we need to use cars less

often. This sacrifice is called opportunity cost. Economics is classed as a social

science... This means that it has much in common with the subjects like sociology

and psychology. You can't study people to strict laboratory conditions, although

theories and concepts should be based on careful collection of evidence. This means

that numerical data is very important, as is the development of a logical and

ordered argument.

Choice and politics

Finally, economics is about choices. It is often about controversial issues. Economic

arguments are often used by politicians to support particular ideas. In fact,

economics and arguments go hand in hand. Often there are no right or wrong

answer and no clear cut solutions to economic problems. Governments and

political parties often disagree about economic issues. This means that

economics often appeal to those who enjoy argument and debate and also take

interest in current affairs and politics.

You might already be an expert

Just because you have not studied Economics before doesn't mean to say that you

know nothing about economics! All of us have a basic understanding of many of the

concepts that when put together make up economics. You will know that prices go

up if there is a shortage of something that people wish to buy and if the reverse

were likely to happen, price would be likely to fall. Similarly if there is only one

supplier of a particular good customer may be forced to pay more than if lots of

different companies are competing for custom. You will also know that

government play a big part in influencing the provision of many services like

housing, health and education and that these are financed by the taxes we pay. It

follows that the government will have to increase its spending in order to build

more hospitals or increase the number of nurses. This could mean cutting spending

elsewhere, on defense for example, raising more taxes or perhaps borrowing more

money. The point being made is that someone somewhere will have to pay for

such improvements. These examples may sound like things you know about, what

make economics special is that it uses technical vocabulary to explain it.

Economics is useful

To understand the things in the newspaper you read

To help you understand many problems the world faces and how they can be

solved.

To help you understand what politicians are trying to convince you of and how

truthful are they being.

It is a highly respected subject at university and will support many, many careers

Finally it will help you win arguments!

I hope you enjoy this new subject and get as much out of it as possible.

Why study economics?

The skills required for Economics – numeracy, problem solving and the ability to

communicate clearly with different groups of people are highly prized amongst

employers. These skills together with a thorough knowledge of the workings of the

economic system which affects so many aspects of our lives (both personal and in work)

make you very employable. These skills are known as transferable skills, this means you

can transfer them to plenty of other jobs - not just those of professional economists.

If you are interested in how wealth is created and enjoy lively debates about how it

ought to be distributed, Economics should appeal to you

Economists assume that we all have unlimited wants. If that is true we then ask whether

the world can provide to meet those wants. It can’t for two reasons:

If wants are really infinite (i.e. endless) then, by definition, they can’t all be

satisfied

The world doesn’t contain infinite resources

Given that we can’t have or do everything, we end up having to make choices. So you

can think of economics as the study (or science) of making choices.

What do Economists do?

These are the destinations for UK graduates in Economics:

The largest category is Business and Financial professionals which breaks down as:

Business analysts 1.2%

Chartered accountants 7.0%

Chartered and certified accountants 1.4%

Economists 2.7%

Management accountants 1.2%

Other 3.6%

The average starting salary for economists is £ 21,975.

As you can see there are a large variety of jobs that a degree in Economics prepares you

for. At A level you can choose to go into employment directly with such employers as

the Bank of England, KPMG, PKF (international) and a host of other firms based down

the road in the City of London.

But studying Economics is not just about going to University or getting a job, it also helps

you to understand the world and the events that take place in it.

Economics is in the news daily and reading newspapers regularly helps you to gain an

understanding of how economics is applied in the world around you, and how

economists contribute to the shape of the world we all live in.

Expectations

Due to the demands of AS, a lot is expected of you in order for you to maximize

your grade

– Ensure you have 100% commitment to the course – if you do not

you will struggle next year

– Ensure you have excellent attendance and punctuality. If you are

going to miss a lesson then let your teacher know in advance and

copy up all the work that you miss

– Get yourself organized right from the start. Get a Unit 1 folder and

have a current work folder. Make sure all the materials I give you get

put into the folders in the correct order

– Ensure you complete, at the very minimum, 5 hours of private

study/homework in Economics each week. This includes homework

that your teacher sets you, additional notes to extend

understanding, organizing folders, reading over class work,

preparing revision notes and flash cards as the unit progresses. It is

important to realise that you will have considerably more wotk to do

than Y11. Not all work is set by your teacher. You must take

responsibility for your own learning. You will need to do a lot of note

taking and background reading in order to prepare yourself for the

longer written answers testing analysis and evaluation.

– You will need to attend revision sessions on Saturday mornings and

holiday time when they take place

– Make sure you use all the resources that are available to you

including the course text book, online resources and your teachers!

Past experience has shown that students who gain an A or B have worked very

hard throughout Year 12. Remember no pain, no gain!

Resources

Books

Course text book

AQA A Level Economics Year 1 – Ray Powell and James Powell

Other useful books

Revision Guide to Economics (Year 1) – Peter Cramp

There are a number of books based on the old AQA specification which are still

useful and have much relevant content.

AQA AS Economics – Ray Powell

AQA AS Economics Student Unit Guide: Markets and Market Failure: Unit 1 – Ray Powell

AQA AS Economics Student Unit Guide: The National Economy: Unit 2 – Ray Powell

AQA A Level Economics Student Book – Alain Anderton

Useful websites

www.tutor2u.net

http://www.youtube.com/user/pajholden

https://www.youtube.com/user/EconplusDal

http://www.bbc.co.uk/news/correspondents/kamalahmed

http://www.economics.about.com/

http://www.s-cool.co.uk/a-level/economics

http://www.bankofengland.co.uk/

http://www.economicshelp.org

What will I be doing in Year 1?

The operation of markets and market failure

1 The economic problem and economic methodology

2 Price determination in a competitive market

3 Production, costs and revenue

4 Competitive and concentrated markets

5 The market mechanism, market failure and government intervention in markets

The national economy in a global context

6 The measurement of macroeconomic performance

7 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate

supply analysis, and related concepts

8 Economic performance

9 Macroeconomic policy

How will I be assessed?

What will I be doing at A Level?

Individuals, firms, markets and market failure

1 The economic problem and economic methodology

2 Individual economic decision making

3 Price determination in a competitive market

4 Production, costs and revenue

5 Perfect competition, imperfectly competitive markets and monopoly

6 The labour market

7 The distribution of income and wealth: poverty and inequality

8 The market mechanism, market failure and government intervention in markets

The national and international economy

9 The measurement of macroeconomic performance

10 How the macroeconomy works: the circular flow of income, aggregate

demand/aggregate supply analysis and related concepts

11 Economic performance

12 Financial markets and monetary policy

13 Fiscal policy and supply-side policies

14 The international economy

How will I be assessed at A Level?

What is the scheme of assessment?

The AS specification is designed to be taken over one year with all assessments taken at the

end of the course. The A Level specification is designed to be taken over two years with all

assessments taken at the end of the course.

AS exams and certification for this specification are available for the first time in May/June

2016 and then every May/June for the life of the specification.

A-level exams and certification for this specification are available for the first time in

May/June 2017and then every May/June for the life of the specification.

These are linear qualifications. In order to achieve the award, students must complete all

exams in May/June in a single year. All assessments must be taken in the same series.

AS and A Level

The assessment in AS and A-level Economics includes questions that allow students to

demonstrate their ability to:

• draw together their knowledge, skills and understanding from across the full

course of study

• provide extended responses.

For example questions in Section B of Papers 1and 2 for AS and Paper 3 for A Level are

extended response questions which require a student to draw together different areas of

the specification. An ‘extended response’ is evidence generated by a student which is of

sufficient length to allow that student to demonstrate the ability to construct and develop a

sustained line of reasoning which is coherent, relevant, substantiated and logically

structured.

What are the aims of the course?

Courses based on this specification are designed to encourage students to:

• develop an interest in and enthusiasm for the subject

• appreciate the contribution of economics to the understanding of the wider

economic and social environment

• develop an understanding of a range of concepts and an ability to use those

concepts in a variety of different contexts

• use an enquiring, critical and thoughtful approach to the study of economics and

develop an ability to think as an economist

• understand that economic behaviour can be studied from a range of perspectives

• develop analytical and quantitative skills, together with qualities and attitudes

which will equip them for the challenges, opportunities and responsibilities of

adult and working life.

Skills required at AS

In order to develop their skills, knowledge and understanding in economics, students need

to have acquired competence in the quantitative skills that are relevant to the subject

content and which are applied in the context of an economics AS, including:

• calculate, use and understand ratios and fractions

• calculate, use and understand percentages and percentage changes

• understand and use the terms mean, median

• construct and interpret a range of standard graphical forms

• calculate and interpret index numbers

• calculate cost, revenue and profit (average, totals)

• make calculations to convert from money to real terms

• make calculations of elasticity and interpret the result

• interpret, apply and analyse information in written, graphical and numerical

forms

The assessment of quantitative skills will include at least Level 2 mathematical skills as a

minimum of 15% of the overall AS marks. These skills may be assessed across the

assessment objectives.

Skills required A Level

In order to develop their skills, knowledge and understanding in economics, students need

to have acquired competence in the quantitative skills that are relevant to the subject

content and which are applied in the context of an economics A-level, including:

• calculate, use and understand ratios and fractions

• calculate, use and understand percentages and percentage changes

• understand and use the terms mean, median and relevant quantiles

• construct and interpret a range of standard graphical forms

• calculate and interpret index numbers

• calculate cost, revenue and profit (marginal, average, totals)

• make calculations to convert from money to real terms

• make calculations of elasticity and interpret the result

• interpret, apply and analyse information in written, graphical and numerical

forms.

The assessment of quantitative skills will include at least Level 2 mathematical skills as a

minimum of 20% of the overall A-level marks. These skills may be assessed across the

assessment objectives.

Summer Task

Instructions – Complete the 25 mark question using the case study to help you. This should be 2 sides of hand-written A4 sheets. Your answer must include a conclusion.