Using Key Economic Concepts To Solve Real-Life Problems

Why Study Economics?

Economics is the study of how scarce resources can be used to meet human needs. Microeconomics looks at the basic building blocks of the economy, including supply and demand. It also examines the behaviour of firms and consumers. The efficiency of the market is examined. In turn, market failure looks at where it works less effectively and how government action can provide solutions. Finally, government action is also critically examined.

Macroeconomics focused on the UK economy at a national economy is explored looking at problems such as unemployment, inflation, recession and debt. The main emphasis is on how the Bank of England manage the economy to keep inflation at a target level.

Business Behaviour and the labour market which focuses on business economics looks at how firms compete in a variety of market situations including monopoly and oligopoly as well as perfect competition and contestable markets.

The course also deals with international economics examining how globalisation has changed the role of the UK in the world economy. The economic relationship between China and the USA is another important topic. Development economics, which shows how countries can grow and become more prosperous, is also discussed. The current economic crisis in the European Union, which is particularly severe in countries such as Greece, is another area of study.

The A-Level uses the key concepts in economics such as the balance of trade and elasticity of demand to study real-life problems. Economic theory is linked to practical issues and problems in a lively and relevant way.

What is Covered by the Course?

The A-Level Economics course has been developed so that students can learn to apply economic theory to support analysis of current economic issues. Students are encouraged to understand the interrelationships between microeconomics and macroeconomics which help them to develop real-life skills which are needed to understand and analyse data. Pupils develop their quantitative skills and learn to evaluate arguments using both qualitative and quantitative data, in addition to developing their abilities to think critically and make informed decisions.

How is it Examined?

The course comprises four units:

  • Unit 1 – Markets and market failure, both multiple-choice and data response questions are used in the examination
  • Unit 2 – The UK economy, assessed using data response questions
  • Unit 3 – Business behaviour and the labour market focusing on business economics, both multiple-choice and data response questions are used in the examination
  • Unit 4 – Global economics, assessed using essays and data response questions

Related University Courses and Careers?

A very wide range of careers are available to those who successfully complete an Economics course including finance, management and business. Economics is relevant for university courses including Economics, Accountancy, Management and Finance.