A Level Economics

About the course

Have you ever wondered how the free market operates and how the government intervenes to improve its operation? Do you want to know more about why there are such high taxes on products such as alcohol and tobacco and why legislation is passed?

Do you want to know what causes inflation and economic growth and how macroeconomic policies can be used to improve the economy? If the answer to any of these questions is yes, then Economics is the subject for you!

Economics is the study of the economy. It explores both microeconomics, which looks at the workings of individual markets and the choices that individuals, businesses, and nations make in response to limited resources and challenges.

It also looks at macroeconomics which is the study of the economy as a whole. You will gain a firm foundation of how markets work and sometimes fail and what governments attempt to do to manage the economy.

Economics is taught from the AQA board. At the end of the second year, you will sit the full A Level exam composed of three examination papers, each worth a third of the final grade.

Course content

You will study two units in the first year and two more units in the second.

Year 1

1. ‘The Operation of Markets and Market Failure’: This unit gives you an introduction to microeconomics. You will look at different economic models and apply these to current issues. You will look at how supply and demand works, the operation of the price mechanism and what the causes of market failures are. You will evaluate different forms of government intervention to reduce market failure in real-world contexts.

2. ‘The National Economy in a Global Context’: This unit is an introduction to macroeconomics. You will explore what sits behind macroeconomic performance and how the models of circular flow of income and aggregate supply and demand help explain it.

You will also see how governments try to implement monetary, fiscal and supply policies to meet macroeconomic objectives in regards to economic growth, inflation, employment and international competitiveness.

Year 2

3. ‘Individuals, Firms, Markets and Market Failure’: This unit explores further how individuals make decisions using traditional theory and behaviour economics. Market structures including perfect competition, monopolies and oligopolies are explored in more detail.

Labour markets are also studied, including the impact of trade unions, dominant employers and discrimination on wage rates and levels of employment.

The distribution of income & wealth and market failure and government intervention are further developed and you will also study about the role of privatisation, nationalisation, and competition policy.

4. ‘The National and International Economy’: This last unit further develops an understanding of the UK economy and government policies as well as developments in the world economy; such as globalisation and economic development and the importance of exchange rates and international trade.

What do I need to join

• A minimum of five GCSEs at grade 4 and above.
• A grade 5 in both GCSE English Language and GCSE Maths
• We recommend learners studying Economics also consider choosing Core Maths as a fourth subject to continue their mathematical development.

What can I do next

Learners studying Economics often find that this goes well with Business and Politics due to the overlap of economic and political themes. Another good combination is Economics, Politics and Religion, Ethics and Philosophy to mirror a PPE programme that is offered at top universities. Economics is also a natural subject to take alongside Mathematics, History, and Psychology.

Studying Economics at A Level naturally gives you a firm understanding to be able to study Economics Degrees at university and dependent on your other choices may allow you to gain an area of specialism; for example, if you wish to study Economic History, or Global Finance, or Business Law. Studying Economics also gives you opportunities for a variety of different careers from government policy analysists to careers in finance, accounting and marketing.