Economics A Level

Economics A Level

Exam Format

A Level Economics consists of 4 units in total:
AS Level = 2 units
A2 Level = 2 units

AS Level
Unit 1: ECON1 – Markets and Market Failure
Examination: 1 hour 15 minutes

Unit 2: ECON2 – The National EconomyExamination: 1 hour 15 minutes

A2 Level
Unit 3: ECON3 – Business Economics and the Distribution of IncomeExamination: 2 hours

Unit 4: ECON4 – The National and International EconomyExamination: 2 hours

Course summary

This course is designed to allow you to study at your own pace and is designed to develop an interest and understanding of economics in the real world, both on a business and personal level.

Read on to find out more about our A Level Economics distance learning course and how you can learn with our amazing materials and online support.

Course Outline

An outline of what is offered in our A Level Economics course:

AS Level
Unit 1: ECON1 – Markets and Market Failure

• The Economic Problem
• The Allocation of Resources in Competitive Markets
• Production and Efficiency
• Market Failure
• Government Intervention in the Market

Unit 2: ECON2 – The National Economy

• Introduction to Macroeconomics
• How the Macro-economy works
• Economic performance
• Macroeconomic policy

A2 Level
Unit 3: ECON3 – Business Economics and the Distribution of Income

• The Firm: Objectives, Costs and Revenues
• Competitive Markets
• Marketing Strategies
• Concentrated Markets
• The Labour Market
• Government Intervention in the Market

Unit 4: ECON4 – The National and International Economy

• Macroeconomic Indicators
• Managing the national economy
• The international economy

Course Content

Unit 1: ECON1 – Markets and Market Failure

The Economic Problem

• Nature and Purpose of Economic Activity
• Economic Resources
• The Economic Objectives of Individuals, Firms and Government
• Scarcity, choice and the allocation of resources
• Production Possibility Diagrams
• Value Judgements, Positive and Normative statements

The Allocation of Resources in Competitive Markets

• The Determinants of the Demand for Goods and Services
• Price, Income and Cross Elasticity’s of Demand
• The Determinants of the Supply of Goods and Services
• Price Elasticity of Supply
• The Determination of Equilibrium Market Prices
• Demand and Supply Analysis to Particular Markets
• The Interrelationship Between Markets
• How Markets and Prices Allocate Resources

Production and Efficiency

• Specialisation, Division of Labour and Exchange
• Production
• Economies and Diseconomies of Scale

Market Failure

• The Meaning of Market Failure
• Public Goods
• Externalities in Consumption and Production
• Merit and Demerit Goods
• Monopoly and the Allocation of Resources
• Immobility of Factors of Production
• Inequalities in the Distribution of Income and Wealth

Government Intervention in the Market

• Rationale for Government Intervention
• Methods of Government Intervention to Correct Distortions
• The Impact of Government Intervention on Market Outcomes
• Government Failure

Unit 2: ECON2 – The National Economy
Introduction to Macroeconomics

• The Measurement of macroeconomic performance
• Macroeconomic Indicators
• The Economic Cycle

How the Macro-economy works: AD/AS analysis, the circular flow of income and related concepts

• Circular flow of income
• Aggregate Demand (AD) and Aggregate Supply (AS) Analysis
• The Determinants of Aggregate Demand
• Aggregate Demand and the Level of Economic Activity
• Determinants of Short-Run Aggregate Supply
• Determinants of Long-Run Aggregate Supply

Economic Performance

• The Objectives of Government Economic Policy
• Economic Growth
• Inflation and Deflation
• Employment and Unemployment
• The Balance of Payments on Current Account

Macroeconomic Policy

• Fiscal Policy
• Monetary Policy
• Supply-Side Policies

Unit 3: ECON3 – Business Economics and the Distribution of Income

The Firm: Objectives, Costs and Revenues

• The objectives if firms
• The Divorce of ownership from control
• The Law of diminishing returns and returns to scale
• Fixed and Variable Costs,Marginal, Average and Total Costs
• Economies and Diseconomies of Scale
• Technological Change
• Total, Average and Marginal Revenue

Competitive Markets

• The Model of Perfect Competition
• Competition and the Efficient Allocation of Resources
• The Dynamics of Competition and Competitive Market Processes

Concentrated Markets

• Monopoly and Oligopoly
• Price Makers and Price Takers
• The Growth of Firms
• Sources of Monopoly Power
• The Model of Monopoly
• Collusive and Non-Collusive Oligopoly
• Interdependence in Oligopolistic Markets
• Price Discrimination
• Consumer and Producer Surplus
• Contestable and Non-contestable Markets
• Market Structure, Static Efficiency and Dynamic Efficiency

The Labour Market

• The Demand for Labour, Marginal Productivity Theory
• Influences upon the Supply of Labour to Different Markets
• Competitive Labour Markets
• Imperfectly Competitive Labour Markets
• The Impact of a National Minimum Wage Rate
• Discrimination in the Labour Market

Government Intervention in the Market

• Market failure and Government failure
• Competition Policy
• Notions of Equity
• The Problem of Poverty
• Cost Benefit Analysis

Unit 4: ECON4 – The National and International Economy

Macroeconomic Indicators

• The Economic Cycle and Economic Growth
• Uses of National Income Data
• Unemployment
• Inflation and Deflation

Managing the National Economy

• Macroeconomic Models and Policies
• Fiscal Policy
• Supply-Side Policies
• Monetary Policy, the
• Money Supply and Interest Rates
• Exchange Rate Policy

The International Economy

• Globalisation
• Trade
• The balance of payments
• Exchange rate systems
• The European Union

Summary of Assessments
Unit 1: ECON1 – Markets and Market Failure

• 50% of AS Level
• 25% of A Level
• 1 hour 15 minutes examination
• 75 marks
  Section A: 25 compulsory objective test items, 25 marks
  Section B: Two optional data response questions are set; candidates answer one, 50 marks

Unit 2: ECON2 – The National Economy

• 50% of As Level
• 30% of A Level
• 1 hour 15 minutes examination
• 75 marks
  Section A: 25 compulsory objective test items, 25 marks
  Section B: Two optional data response questions are set; candidates answer one, 50 marks

Unit 3: ECON3 – Business Economics and the Distribution of Income

• 25% of A Level
• 2  hour examination
• 80 marks
  Section A: Two optional data response questions are set; candidates answer one, 40 marks, one question will always relate to the global context and the other to the European Union context.
  Section B: Three optional essay questions are set; candidates answer one, 40 marks

Unit 4: ECON4 – The National and International Economy

• 25 % of A Level
• 2  hour examination
• 80 marks
  Section A: Two optional data response questions are set; candidates answer one, 40 marks, one question will always relate to the global context and the other to the European Union context.
  Section B: Three optional essay questions are set; candidates answer one, 40 marks

Recommended Reading
AQA AS Economics Student Book, 2nd edition
by Chris Vidler and Charles Smith
ISBN-10: 0435692224
ISBN-13: 978-0435692223

AQA A2 Economics Student's Book
by Jim Lawrence, Steve Stoddard
ISBN-10: 0748799656
ISBN-13: 978-0748799657

Revision Guide to AS & A2 Level Economics – James Keefe
Publisher – Informe
ISBN – 0 907529 70 4