Description
The International A Level Economics course will give you an excellent understanding of how economies allocate their scarce resources to meet the needs and wants of their citizens. You will develop a greater understanding of the economic problems which face individuals, firms and governments on a local, national and global level and the alternative ways these problems can be resolved.
You will investigate microeconomic topics such as how individual decisions impact economic outcomes, the importance of competition, how markets operate and why they fail and how the distribution of income and wealth is affected. At the same time you will learn about macroeconomics, looking at the ‘big picture’ of how our national economy fits into the global context, the global impact of financial markets and monetary policy and the operation of the international economy.
Progression
An A’ level in Economics will benefit you if you are looking to go on to study economics, business or finance at university. The skills you acquire will help you no matter what degree course you choose.
You may choose to pursue a career in a directly related field such as banking or finance. The A-level course in Economics will stand you in good stead by giving you an insight and understanding of the economic forces that impact your day to day activities.
Alternatively, you may decide to follow a career path which isn’t directly related to your course of study. The analytical and evaluation skills that you will have developed will be useful whatever path you choose in the future.
Other subjects which compliment A Level Economics include Accounting and Business.
Cambridge Specification
Awarding Body: Cambridge
Course Code: 9708
Study Hours: Recommended 300 – 360 hrs
Exams Available: June & November (also March in India only)
Cambridge International AS & A Level Economics provides learners with the skills needed to use economics in work or further study, including how to explain and analyse economic issues and arguments, evaluate economic information, and organise, present and communicate ideas and judgements clearly.
How will I benefit from the International A Level Economics Cambridge course?
The aims are to enable students to:
- know and understand the terminology, concepts, theories and principles of economics
- express ideas in writing and using statistics and diagrams, or other methods, where appropriate
- develop the habit of using works of reference as sources of information specific to economics
- read critically to gain information about the changes in the wider economic and social environment
- appreciate the methods of study that economists use, and the most effective ways economic information may be analysed, correlated, discussed, evaluated and presented
- develop an interest in and enthusiasm for economics that could lead to further study.
Key Concepts
The key concepts for Cambridge International AS & A Level Economics are:
Scarcity and choice
The fundamental problem in economics is that resources are scarce and wants are unlimited, so there is always a choice required between competing uses for the resources and an opportunity cost in making this choice.
The margin and decision-making
In economic theory, decision-making by consumers, firms and governments is based on choices at the margin – for example firms will produce up to the point where the revenue generated by an extra unit of output is equal to the cost of producing it. However, economic decision-making can be based on facts, theory, effectiveness, priorities/objectives and values/ethical judgements.
Equilibrium and disequilibrium
Individual markets and the economy as a whole are always moving into and out of equilibrium, constantly altering the allocation of resources.
Time
Economic conditions change in different time periods, such as the short run and the long run. Individuals, firms, markets and governments are able to respond to these changes in different ways depending on the time frame. Some economic decisions have a time frame element – trading off a cost in the present for a benefit in the future, for example.
Efficiency and inefficiency
Individual markets and the economy as a whole can be both efficient and inefficient in different ways when using scarce resources.
The role of government and the issues of equality and equity
There is a trade-off between, on one side, freedom for firms and individuals in unregulated markets and, on the other side, greater social equality and equity through government regulation of individuals and markets.
Progress and development
Economics studies how societies can progress in measurable money terms and develop in a wider more normative sense regarding living standards, inclusivity and sustainability.
Cambridge Economics Content Overview
YEAR 1 – IAS
- Basic economic ideas and resource allocation
- Scarcity, choice and opportunity costs
- Economic methodology
- Factors of production
- Resource allocation in different economic systems
- Production possibility curves
- Classification of goods and services
- The price system and the micro-economy
- Demand and supply curves
- Price elasticity, income elasticity and cross elasticity of demand
- Price elasticity of supply
- The interaction of demand and supply
- Consumer and producer surplus
- Government microeconomic intervention
- Reasons for government intervention in markets
- Methods and effects of government intervention in markets
- Addressing income and wealth inequality
- The macro-economy
- National income statistics
- Introduction to the circular flow of income
- Aggregate Demand and Aggregate Supply analysis
- Economic growth
- Unemployment
- Price stability
- Government macroeconomic intervention
- Government macroeconomic policy objectives
- Fiscal policy
- Monetary policy
- Supply-side policy
- International economic issues
- The reasons for international trade
- Protectionism
- Current account of the balance of payments
- Exchange rates
- Policies to correct imbalances in the current account of the balance of payments
YEAR 2 – IA2
- The price system and the microeconomy
- Utility
- Indifference curves and budget lines
- Efficiency and market failure
- Private costs and benefits, externalities and social costs and benefits
- Types of cost, revenue and profit, short-run and long-run production
- Different market structures
- Growth and survival of firms
- Differing objectives and policies of firms
- Government microeconomic intervention
- Government policies to achieve efficient resource allocation and correct market failure
- Equity and redistribution of income and wealth
- Labour market forces and government intervention
- The macroeconomy
- The circular flow of income
- Economic growth and sustainability
- Employment/unemployment
- Money and banking
- Government macroeconomic intervention
- Government macroeconomic policy objectives
- Links between macroeconomic problems and their interrelatedness
- Effectiveness of policy options to meet all macroeconomic objectives
- International economic issues
- Policies to correct disequilibrium in the balance of payments
- Exchange rates
- Economic development
- Characteristics of countries at different levels of development
- Relationship between countries at different levels of development
- Globalisation
Cambridge Assessment
There are three routes learners can take when completing exams for the Economics course with Cambridge
- AS Level Qualification only – Learners take all AS exam papers (Paper 1 & Paper 2) in one exam sitting.
- Full A Level over 2 years – At the end of year 1, learners take all AS exam papers (Paper 1 & Paper 2) in one exam sitting. In a separate exam sitting at the end of year 2, learners then take all A2 papers (Paper 3 & Paper 4). If learners achieve a pass in all four papers, they will be awarded their Full A Level in Economics.
- Full A Level – Learners take all papers for AS and A2 in one sitting (Paper 1, Paper 2, Paper 3 & Paper 4).
Exam Papers
Paper 1: Multiple Choice
Written Examination: 1 hour
Availability: June and November
Assessment Overview: 30 multiple choice questions based on the AS Level syllabus content.
30 marks
Paper 2: Data Response and Essay
Time: 2 hours
Availability: June and November
Assessment overview:
Section A: one data response question (20 marks)
Section B: one essay from a choice of two focusing mainly on microeconomics; there are two parts to each essay question (20 marks)
Section C: one essay from a choice of two focusing mainly on macroeconomics; there are two parts to each essay question (20 marks)
Questions are based on the AS Level subject content.
60 marks
Paper 3: Multiple Choice
Written examination: 1 hour 15 minutes
Availability: June and November
Assessment overview. 30 multiple choice questions based on the A Level syllabus content; knowledge of material from the AS Level subject content is assumed.
30 marks
Paper 4: Data Response and Essays
Practical examination: 2 hours
Availability: June and November
Assessment overview:
Section A: one data response question (20 marks)
Section B: one essay from a choice of two focusing mainly on microeconomics; the essay questions are unstructured with no parts (20 marks)
Section C: one essay from a choice of two focusing mainly on macroeconomics; the essay questions are unstructured with no parts (20 marks)
Questions are based on the A Level subject content; knowledge of material from the AS Level subject content is assumed.
60 marks
Edexcel Specification
Awarding Body: Edexcel
Specification codes: XEC11/ YEC11
Edexcel Exams: January, June & October
Edexcel Study Hours: 300 – 360 hours
The International Advanced Level Economics has been developed to be engaging for international learners and to give them the necessary skills to support progression to higher education or further study in Economics, as well as to a wide range of other subjects.
How will I benefit from the International A Level Economics Edexcel course?
The aims and objectives of these qualifications are to enable 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 that will equip them for the challenges, opportunities and responsibilities of adult and working life.
Key Concepts
The key concepts for Edexcel International AS & A Level Economics are:
Engaging content
Allows students to develop an awareness of trends in the global economy, researching developed and developing economics, including a focus on contemporary issues.
Development of quantitative skills
Students develop these skills throughout the content of the course and are required to apply these skills to relevant economic contexts within the assessment.
Consistent command word taxonomy
We have reduced the number of command words used in the assessment and applied a consistent mark tariff.
Accessible assessment
To ensure all students can access the whole exam paper we have introduced ramping within each question. Questions start with a low mark tariff and become more challenging as students work their way through the paper, helping to build confidence.
Edexcel Economics Content Overview
YEAR 1 – IAS
1: Markets in Action
- Introductory concepts
- Consumer behaviour and demand
- Supply
- Price determination
- Market failure
- Government intervention in markets
2: Macroeconomic performance and policy
- Measures of economic performance
- Aggregate demand (AD)
- Aggregate supply (AS)
- National income
- Economic growth
- Macroeconomic objectives and policies
YEAR 2 – IA2
3: Business behaviour
- Types and sizes of businesses
- Revenue, costs and profits
- Market structures and contestability
- Labour markets
- Government intervention
4. Developments in the global economy
- Causes and effects of globalisation
- Trade and the global economy
- Balance of payments, exchange rates and international competitiveness
- Poverty and inequality
- The role of the state in the macroeconomy
- Growth and development in developing, emerging and developed economies
Edexcel Assessment
Pearson Edexcel International Advanced Subsidiary in Economics
This qualification consists of two externally-examined units.
The International Advanced Subsidiary is the first half of the International Advanced Level qualification and consists of two IAS units, Units 1 and 2. This qualification may be awarded as a discrete qualification or may contribute 50 per cent towards the International Advanced Level qualification.
Pearson Edexcel International Advanced Level in Economics
This qualification consists of four externally-examined units.
The International Advanced Level consists of the two IAS units (Units 1 and 2) plus two IA2 units (Units 3 and 4). Students wishing to take the International Advanced Level must, therefore, complete all four units.
Exam Papers
Paper 1: Markets in Action
Written Examination: 1 hour 45 minutes
Availability: January, June and November
Assessment overview:
Section A: Six multiple-choice questions (6 marks).
Section B: Five short-answer questions (20 marks).
Section C: A five-part question, based on data provided in a source booklet (34 marks). Section D: One 20-mark essay question from a choice of two (20 marks).
80 marks
Paper 2: Macroeconomic performance and policy
Written Examination: 1 hour 45 minutes
Availability: January, June and October
Assessment overview:
Section A: Six multiple-choice questions (6 marks).
Section B: Five short-answer questions (20 marks).
Section C: A five-part question, based on data provided in a source booklet (34 marks). Section D: One 20-mark essay question from a choice of two (20 marks).
80 marks
Paper 3: Business behaviour
Written Examination: 2 hours
Availability: January, June and November
Assessment overview:
Section A: Six multiple-choice questions (6 marks).
Section B: A five-part question, based on data provided in a source booklet (34 marks). Section C: Two 20-mark essay questions from a choice of three (40 marks).
80 marks.
Paper 4: Developments in the global economy
Written Examination: 2 hours
Availability: January, June and October
Assessment overview:
Section A: Six multiple-choice questions (6 marks).
Section B: A five-part question, based on data provided in a source booklet (34 marks). Section C: Two 20-mark essay questions from a choice of three (40 marks).
80 marks.
