Year 1

All of our students at AS will learn about both microeconomic and macroeconomic models in order to apply them to current problems and issues within the economy today.

Microeconomics: The operation of markets and market failure.

Microeconomic models such as demand and supply, the operation of the price mechanism and causes of market failure are central to this part of AS study. Students will be provided with plentiful opportunities to use these models to explore current economic behaviour.

Topics covered are:

• Economic methodology and the economic problem
• Price determination in a competitive market
• Production, costs and revenue
• Competitive and concentrated markets
• The market mechanism, market failure and government intervention in markets

Macroeconomics: The national economy in a global context.

This section of the course focuses on the economy as a whole whereas microeconomics studies particular markets. During this element of the course, students will gain a good knowledge of developments in the UK economy and government policies over the past fifteen years. They should also be aware that the performance of the United Kingdom economy is influenced by its membership of the European Union (EU) and by external events in the international economy.

Topics covered are:

• The measurement of macroeconomic performance
• How the macro-economy works, the circular flow of income, AD/AS analysis, and related concepts
• Economic performance
• Macroeconomic policy

Year 2

A2 study continues to build upon the AS micro and macroeconomic principals but builds in a much more synoptic approach to learning so that the two topic areas are brought together in order for students to make an informed judgement based on critical analysis.

Microeconomics

• Individuals, firms, markets and market failure
• Economic methodology and the economic problem
• Individual economic decision making
• Price determination in a competitive market
• Production, costs and revenue
• Perfect competition, imperfectly competitive markets and monopoly
• The labour market
• The distribution of income and wealth: poverty and inequality
• The market mechanism, market failure and government intervention in markets

Macroeconomics

• The national and international economy
• The measurement of macroeconomic performance
• How the macro-economy works: the circular flow of income, AD/AS analysis, and related concepts
• Economic performance
• Financial markets and monetary policy Fiscal policy and supply-side policies
• The international economy