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.