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Introduction |
Welcome to your ‘A’ level Economics course. This Introduction should provide you with all the information you need to make a successful start to your studies.
The Specification (or Syllabus)
This course has been designed to give you a full and thorough preparation for the AS level or A level Economics specification, set by the Assessment and Qualifications Alliance (AQA). The specification gives you two options at A2: with or without coursework. This course pack is designed for students who are not doing coursework.
The Subject Code for entry to the AS only award is 5141.
The Subject Code for entry to the A level award is 6141.
Private Candidates
The AQA specification is open to private candidates. Private candidates should contact AQA for a copy of ‘Information for Private Candidates’.
The Arrangement of Lessons
Chapter and page references are to Maunder (revised 3rd ed.) (see below).
Part 1: AS Level
Lesson
Subject
Chap.
Pages
Module One: Markets and Market Failure
1
The Basic Economic Problems
1
3-19
2
The Demand and Supply Curves
3
42-52
Tutor-marked Assignment A
3
Elasticity
5
75-95
4
Price Determination
4
59-74
TMA B
5
More on Markets
20, 21, 22
343-59, 360-77, 378-95
6
Market Failure
7
121-37
7
Government Intervention
7, 9
121-37, 159-80
TMA C: Progress Test One
Module Two: The National Economy
8
Economic Indicators
1, 13
15-17, 241-58
9
Aggregate Supply and Demand
14, 15, 16
259-66, 267-80, 281-96
TMA D
10
Inflation and Interest Rates
8, 25, 27
138-9, 150, 440-3, 471-85
11
Unemployment
8, 12
141-6, 219-40
TMA E
12
The Balance of Payments
6, 30
95-103, 107-20, 517-29
13
Government Economic Policy Instruments
17, 28
298-304, 486-97
14
Recent Changes in the UK Economy
–
–
TMA F: Progress Test Two
Module Three: Markets at Work –
The Environment15
Environmental Resources
10
181-98
16
Environmental Impact Analysis
–
–
17
The Economics of Pollution
2, 7, 10, 31
28, 123-4, 181-3, 190-1, 543
18
Roads and Transportation
10, 11, 26
1191-2, 196, 465
TMA G: Progress Test Three
Part 2: A2 Level
Module Four: Case Study: The European Union
The Background to the EU
19
The Formation and Opportunities of the Single Market
9, 26
167, 169, 458
20
Economic Aspects – the Euro and Regional Problems
6, 9, 26
103, 161, 170-1, 458, 460
TMA H
Future Prospects for the EU
21
Expansion and Reforms
18, 29
315, 503, 505-8, 513
22
The EU in a Global Context
-
-
TMA I: Progress Test Four
Module Five: Business Economics and The Distribution of Income
23
The Firm
20
344-55
24
Imperfect Competition and Oligopoly
22, 23
378-89, 396-418
25
Mergers and Competition Policy
22, 26
391-5, 452-62
26
Nationalisation and Privatisation
26
462-70
TMA J
27
The Labour Market
24, 25
419-37, 442-4
28
Poverty and Inequality
12
227-240
TMA K: Progress Test Five
Module Six: Government Policy, the National and International Economy
29
Economic Growth: Developing Economies
30, 31
515-30, 531-47
30
National Income
13
241-58
31
Inflation and Unemployment
8, 17, 27
141-53, 303-4, 481-2
TMA L
32
International Trade
6, 29
96-118, 511-4
TMA M
Textbook
The course has been prepared in conjunction with the following textbook:
Maunder, Myers, Wall, Miller: Economics Explained
Collins Educational (revised 3rd ed. ISBN: 0-00-32-77-58-5)
One easy way of acquiring accompanying textbooks is through this website. Economics Explained is a detailed text with superb diagrams. Most topics are accompanied by case studies so the applied economics is integrated into the theory. This is very useful for the data response type questions.
Supplementary Reading
The more you read around the subject the better, so you could also look for the following books in libraries:
Begg, Fisher & Dornbush: Economics, McGraw-Hill
R. Lipsey: Introduction to Positive Economics, Weidenfeld & Nicolson
You will find most of the topics covered in these books. Use the Table of Contents and the Index to find the required reading. In fact, you will find that it is essential to use the index even if you are using one of the two main recommended texts. For example, if you want to find out about the idea of price system, you will find that Maunder’s index lists these as:
price system 22, 59-74
decision-making 60
definition 22
distribution 68-70
efficiency 66-7, 70
evaluating 70-2
growth 70
individual freedom 70
market economics 60-1
If you are aiming – as you should be – for a clear understanding of economics, you should not be content with your main course textbooks. Try to obtain from your local library a few of the books recommended in the supplementary reading lists at the end of this Introduction. The most valuable books have an asterisk next to them.
AQA also produces a reading list. This list is primarily intended as a collection of sources which teachers may find useful in preparing their students for the Case Study exam paper and for Module 3.
General Texts
All textbooks will cover the basic theory needed for this topic and many will also have specific sections referring to environmental issues.
Economics (plus answerbook), Anderton A. G. (Causeway Press 1995,1873929374)
Investigating Economics , Davies B. etc. (Macmillan, 1996, 0333638085)
Core Economics, EBEA (Heinemann, 1995,0435331019)Applied Economics: An Introductory Course (7th edition): Griffiths and Wall (Longman, 1997, 0582306027)
Specialist Books for Module 3 – The Environment
Transport Economics, Barnford C (Heinemann, 1995, 0435330314)
Global Warming- Apocalypse or Hot Air? Bate R. and Morris J (I.E.A. 1994, 0255363311)
The Wealth of Nations and the Environment, Bernstam (I.E.A. 1991, 0255362404)
Environmental Economics, Hodge I (Macmillan, 1995, 033357771X)
The Economics of Social Problems, Le Grand J. & Robinson R (3rd edition) Propper C (ed) (Macmillan, 1992, 033355258X)
Journals
The following have had relevant articles in the past.
Economic Affairs - Published quarterly by Blackwell Publishers.
The Economic Review - Published quarterly by Philip Allan Publishers.
Fiscal Studies - Published quarterly by the Institute of Fiscal Studies.(0171 636 3784)
Teaching Business and Economics - Published by the Economics and Business Education Association, lA Keymer Road, Hassocks, West Sussex, BN6 8AD (01273 846033).
The Economist - Published weekly by The Economist Newspaper Ltd.
General Information
Economics is a dynamic subject, with considerable relevance to current controversy. Your studies are designed to cover the basic theory required for examinations at this level, together with up-to-date data required to relate your theory to real life.
Examination papers are increasingly integrating the theoretical and applied parts of economics, so it is essential for you to keep abreast of current developments. So, as far as possible, read a quality daily or Sunday newspaper, and/or a financial journal such as The Economist.
You may find it helpful to keep a notebook with extracts of useful articles and information from your reading.
Mathematical Background Required
Knowledge of mathematics up to GCSE level standard is not required for this course. Students are, however, required in the course to make simple calculations, understand percentages and fractions, and have the ability to construct a graph from simple statistics. The use of algebraic formulae is kept to the minimum.
Using the Course Materials
There are seven tutor-marked assignments, five progress tests and a practice examination paper located at strategic points in the course. Taken together, these are the thirteen pieces of work which you are expected to send to your tutor for marking. Suggested answers will be sent to you when your work has been marked. Bear in mind that at ‘A’ level, simple description will not gain many marks. Analysis, i.e. clear logical explanation is the key to success. You must read as widely as possible and try to consider different or conflicting views.
The tutor-marked assignments (or TMAs) occur after every three lessons or so. These test your understanding of topics in that particular lesson. If the lesson does not include a TMA, there will be a self-assessment test (SAT) instead. This takes the same form but you are expected to mark this yourself. Suggested answers to the SATs are to be found at the end of each module. Even though you are marking the work yourself, you are expected to approach the test with the same seriousness and to produce a detailed, formal answer.
Progress Tests are more substantial than most of the TMAs and these test your understanding of the last four or five lessons. Progress Tests include different sections for the multiple choice, data response, and essay-type questions you are likely to face in your examination. If possible, the Progress Tests should be attempted under examination conditions without reference to the rest of the course or textbooks.
There are also ‘activities’ in most of the lessons. These are ‘ruled off’ from the rest of the lesson and you should stop your reading in order to tackle the specified task at this point. Answers may be found at the end of the lesson.
Because the course is designed to complement the accompanying textbook, there are some likely topics that are passed over fairly quickly in the course. This is because they are already more than adequately covered in the textbook. Conversely, this course goes into greater detail on some topics which are considered lightly in the textbook.
The ‘AS’ level and 'A' level System
Students should be aware that the ‘A’ level system in the UK was changed in 2000. As a result, all the awarding bodies, including AQA (which brought together the old AEB and NEAB exam groups) introduced new Advanced Subsidiary (AS) as well as revised Advanced (‘A’) level specifications and examinations across the full subject range.
The Advanced Subsidiary (AS) Level
Advanced Subsidiary (AS) courses may be used in one of two ways:
- As a final qualification, allowing candidates to broaden their studies and to defer questions about specialism;
- As the first half (50%) of an Advanced Level qualification, which must be completed before an Advanced Level award can be made.
Advanced Subsidiary is designed to provide an appropriate assessment of knowledge, understanding and skills expected of candidates who have completed the first half of a full Advanced Level Qualification.
The Advanced Level (AS + A2)
The Advanced Level examination is in two parts:
Advanced Subsidiary (AS) - 50% of the total award;
A second examination, called A2 - 50% of the total award
Most Advanced Subsidiary and Advanced level courses are modular. The AS level normally comprises three teaching and learning modules and the A2 comprises a further three teaching and learning modules. These modules generally match the Units of Assessment (or Exam Papers).
Examination Flexibility
The new style ‘A’ levels allow for more flexibility in the taking of exams. The two most popular options are:
- AS is completed at the end of one year and A2 at the end of the second year;
- AS and A2 are completed at the end of the same year.
Both of these options are open to students following this course as it is divided into two halves and follows the same modular sequence as the specification.
Grading and Shelf-Life
The grading system has not changed much from the old ‘A’ level system. For both AS level and the full ‘A’ level qualification, there is a 5-grade scale: A, B, C, D and E. Candidates who fail to reach the minimum standard for Grade E will be recorded as U (unclassified).
The shelf-life of the results, prior to the award of the qualification, is limited only by the shelf-life of the specification. As long as the specification stays in its present form, grades can therefore be carried forward indefinitely.
The Examination Structure
This information is correct at the time of publication but may be subject to change. Prior to the examination, students should contact the exam board for the latest information.
AS Examination
Unit 1 (Exam entry code: ECN1) 35% of the total AS marks
17.5% of the total ‘A’ level marks
1 hour 30 minutes
Subject Content Module 1: Markets and Market Failure
25 compulsory objective test questions and one from a choice of two data response questions.
Unit 2 (code ECN2) 35% of the total AS marks
17.5% of the total ‘A’ level marks
1 hour 30 minutes
Subject Content Module 2: The National Economy
25 compulsory objective test questions and one from a choice of two data response questions.
Unit 3 (code ECN3) 30% of the total AS marks
15 % of the total ‘A’ level marks
1 hour
Subject Content Module 3: Markets at Work
(Option: The Environment)
1 data response question on this option. Candidates are expected to apply previously learnt concepts and theories from Modules 1 and 2.
A2 Examination
Unit 4W (code ECN4W) 20% of the total ‘A’ level marks
1 hour 40 minutes
Subject Content Module 4: Working as an Economist
Compulsory structured question based on a Case Study. The topic of the Case Study will be the European Union.
Unit 5 (code ECN5) 15% of the total ‘A’ level marks
1 hour 30 minutes
Subject Content Module 5: Business Economics and
the Distribution of Income
This unit comprises two sections; A and B.
Section A: one compulsory data response question.
Section B: one from a choice of three essay questions.
This assessment is synoptic and candidates will be expected to draw together concepts and theories from other modules.
Unit 6 (code ECN6) 15% of the total ‘A’ level marks
1 hour 30 minutes
Subject Content Module 6: Government Policy, National and International Economy
This unit comprises two sections; A and B.
Section A: one compulsory data response question.
Section B: one from a choice of three essay questions.
This assessment is synoptic and candidates will be expected to draw in concepts and theories from other modules.
Use of Electronic Calculators in the Examination
Electronic calculators are permitted by AQA but you should check the syllabus if you are in any doubt about the kind of calculator that you can use.
What Sort of Examination Paper will cover the Case Study?
You are advised to spend the first 15 minutes (out of 100 mins) studying the documents supplied before answering the question.
You will be asked to answer all parts of the question.
You are strongly advised to acquire a Specimen Paper from AQA (contact details below) in order to get a feel for the type of paper you will face. In the exam, you will be given extracts from a mixture of documents, e.g. newspaper articles on environmental issues, pages from The Economist, statistics on the EU, etc.
Further Guidance
Techniques of Testing
The tests within the course consist of a mixture of data-response, objective test and essay questions. In the exam, the AS section (the first three modules) will be examined by objective test and data-response questions, while the A2 section (modules 4-6) is examined by data-response and essay questions. However the AS section of the course also contains essay questions as practice and for assessment, while the A2 section continues to set objective test questions to make sure candidates are keeping up with the basics of the theory.
Objective-Test Questions
There are three basic types:
1. Simple Completion Items.
2. Multiple Completion Items.
3. Double Statement Items.
1. Simple Completion Items
These consist of two parts, a stem which contains the idea or question followed by 4 or 5 possible responses/answers. You select the most correct response. If you cannot answer the question from the information in the stem, try to eliminate as many of the responses as possible and then think which one of those remaining is most correct.
In the actual exam you would normally mark an answer sheet, invariably with a H.B. pencil, by a variety of means. Below is an easy example:
Which of the following automatically increases with inflation?
A Pocket money
B Student grants
C Index of Prices
D Old-Age Pensions
E Interest Rates
The answer is C – all the others may rise but they do not do so automatically.
2. Multiple Completion Items
In this type the stem or question is followed by three possible responses/answers. Some or all of these may be correct. You must decide which of the responses is/are correct and then choose:
A when all three options are correct
B when options 1 and 2 are correct
C when options 2 and 3 are correct
D when option 1 only is correct
E when option 3 only is correct.
B when options 1 and 2 are correct
C when options 2 and 3 are correct
D when option 1 only is correct
E when option 3 only is correct.
Here is an example, using the above grid:
The following are forms of INDIRECT tax:
1. V.A.T.
2. import tariffs.
3. poll tax.
The answer is B as responses 1 and 2 are correct.
3. The Double Statement Item
Most candidates find these the most difficult. Each of the questions consists of a statement in the left-hand column followed by a statement in the right-hand column. It explores your ability to associate ideas and determine the truth or otherwise of the ideas and of the link between them.
You therefore have to decide whether one or both statement is/are true and if both true whether the 2nd statement is a correct explanation of the first statement. Then you select a letter according to the following code:
A if both statements are true and the second statement is a correct explanation of, or reason for, the first statement
B if both statements are true but the second statement is NOT a correct explanation of, or reason for, the first statement
C if the first statement is true but the second statement is false
D if the first statement is false but the second statement is true
E if both the first and second statements are false.
Here is an example:
1) Savings and investments can only be made equal through government intervention.
2) Savings and investment can be undertaken by different persons and therefore, are not planned to balance.
The answer is D, since the first statement is false but the second statement is true.
You do not need to study any new material to do well in objective tests but you do need to cover the whole of the syllabus.
Data Response Questions
You are expected to show you understand the elements of economic analysis which are included in the syllabus and apply such knowledge to a simple problem. You are expected to understand the structure of the main economic institutions of the U.K. and the problems of the economy with the government’s reaction to them.
Candidates are required to evaluate and interpret given data. Only relatively simple techniques of analysis are required but the use of diagrams is required as well as are very simple mathematical techniques.
You will frequently find that part of the question requires you to summarise material contained in a table of statistics or a passage, and this relatively straightforward task should give you the confidence to tackle the remaining parts of the question.
Do remember these answers require you to give examples from the data or passage.
The syllabus is divided into six modules; the OOL course follows these closely, so you can refer to the ‘arrangement of lessons’ table above for the module titles. It is important to bear in mind that economics is not a subject which divides easily into separate modules. Most of the topics which are placed for convenience in a specific section of the syllabus or course are actually linked to most of the other topics throughout your studies. It would be better to think of economics as a kind of jigsaw with lots of interlocking pieces and the complete picture will only emerge when the end of the course has been reached.
Keeping Up to Date with a Scrapbook
It has already been noted that it is vital to keep up-to-date with the latest economic events. If you can illustrate your essays with examples drawn from topical current events, it will show your teacher or examiner that you are relating the theories you study to the world in which you live and you should gain extra marks.
A scrapbook of cuttings from newspapers and magazines can be a great help in this respect. You may not know when a particular news item is going to come in handy but save it all the same. A number of the ‘Activities’ contained in this course require you to look out for particular kinds of cuttings (see Lessons 7, 11, 15, 24, 25, 29, 30, and 31) but it should really be a continuous process and the sooner you start the better.
Studying the Syllabus
You should be sure to acquire your own copy of the syllabus, either via the AQA Publications Dept or from the website www.aqa.org.uk.
The syllabus can be purchased from
Publications,AQA, Aldon House, 39 Heald Grove, Rusholme, Manchester, M14 4NA (tel: 0161-953-1170)
or downloaded from www.aqa.org.uk/qual/pdf/AQA6141WSP.pdf.
We advise that you obtain a copy of the syllabus so that you can assess which topics you have covered in the most detail and which ones you will feel happiest about in the exam. AQA can also provide advice booklets on your course, including ‘Supplementary Guidance for Private Candidates’. As you approach the examination, it will also be helpful to purchase and tackle past papers from AQA.
Finally, good luck with your studies!
Copyright © Oxford Open Learning, 2002
