GCE Economics

AS At AS, candidates investigate micro and macroeconomics. Microeconomics

addresses issues such as: ‘Why are house prices so high?’, ‘Can pollution A2 At A2, candidates develop the micro and macroeconomics already learnt at AS,
considering economic concepts and theories in greater depth and recognising
effectively be controlled?’ and ‘Should governments interfere with markets?’. the values and limitations of economic models. Both A2 modules explore two
The macroeconomic issues covered include: ‘Why does the government have an contemporary and relevant contexts: the global context, which includes the impact
inflation rate target and how does it affect us?’, ‘What happens to the economy if of globalisation on UK economic performance; and the European Union context,
people decide to spend more?’ and ‘How are we affected by the Chinese and Indian embracing the effect of EU membership and economic policy on the UK economy.
economies?’.

Unit 1: Markets and market failure Unit 2: The National Economy Unit 3: Business Economics and the Unit 4: The National and International
Distribution of Income Economy
Written Paper: 1 hour 15 minutes Written Paper: 1 hour 15 minutes
25% of total A Level marks 25% of total A Level marks Written Paper: 2 hours Written Paper: 2 hours
75 raw marks (100 UMS) 75 raw marks (100 UMS) 25% of total A Level marks 25% of total A Level marks
Section A: 25 compulsory OT items (25 marks) Section A: 25 compulsory OT items (25 marks) 80 raw marks (100 UMS) 80 raw marks (100 UMS)
Section B: T
 wo optional data response Section B: T
 wo optional data response Section A: Two optional data response Section A: Two optional data response
questions are set; candidates questions are set; candidates
questions are set; candidates questions are set; candidates
answer one answer one
answer one answer one
Each question will have three sub-questions, Each question will have three sub-questions
Each question will have four sub-questions, Each question will have four sub-questions, carrying 5, 10 and 25 marks (40 marks in total) carrying 5, 10 and 25 marks (40 marks in total)
carrying 5, 8, 12 and 25 marks carrying 5, 8, 12 and 25 marks One question will always relate to a global One question will always relate to a global
(50 marks in total) (50 marks in total) context and the other to a European context and the other to a European
Union context Union context
Available January and June Available January and June Section B: Three optional essay questions are Section B: Three optional essay questions are
set; candidates answer one set; candidates answer one
Subject Content Subject Content Each question will have two sub-questions, Each question will have two sub-questions,
• The economic problem • The measurement of macroeconomic carrying 15 and 25 marks (40 marks in total) carrying 15 and 25 marks (40 marks in total)
• The allocation of resources in competitive performance
markets • How the macroeconomy works: AD/AS Available January and June Available January and June
• Production and efficiency analysis, the circular flow of income, and
related concepts Subject Content Subject Content
• Market failure • The firm: objectives, costs and revenues • Macroeconomic indicators
• Economic performance
• Government intervention in the market • Competitive markets • Managing the national economy
• Macroeconomic policy
• Concentrated markets • The international economy
• The labour market
• Government intervention in the market

Assessment Objectives

AO1 AO2 AO3 AO4

Demonstrate knowledge and understanding of the Apply knowledge and understanding of the specified Analyse economic problems and issues Evaluate economic arguments and evidence,
specified content content to problems and issues arising from both making informed judgements
familiar and unfamiliar situations

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