United Kingdom A-Level Economics Syllabus

This syllabus outlines the topics covered in the A-Level Economics course, based on the AQA 7135/7136 specification for first teaching from 2015. The course is designed to provide a broad-based knowledge and understanding of economic issues, applying economic theory to analyze current problems and encouraging students to appreciate the interrelationships between microeconomics and macroeconomics. The syllabus emphasizes the development of analytical and quantitative skills, critical thinking, and informed decision-making.

AS Level

The AS Level consists of two papers, each contributing 50% to the final grade:

Paper 1: The Operation of Markets and Market Failure

This paper covers microeconomic principles, including:

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

Paper 2: The National Economy in a Global Context

This paper covers macroeconomic principles, including:

• Measurement of macroeconomic performance
• How the macroeconomy works (circular flow of income, AD/AS analysis)
• Economic performance (growth, unemployment, inflation, balance of payments)
• Macroeconomic policy (monetary, fiscal, supply-side)

A-Level

The A-Level consists of three papers, each contributing 33.3% to the final grade:

Paper 1: Markets and Market Failure

This paper delves deeper into microeconomic concepts, building upon the AS Level content:

• Economic problem and economic methodology
• Individual economic decision-making (including behavioral economics)
• Price determination in a competitive market
• Production, costs, and revenue (including law of diminishing returns and returns to scale)
• Perfect competition, imperfectly competitive markets, and monopoly
• Labour market (demand, supply, wage determination, minimum wage, discrimination)
• Distribution of income and wealth (poverty, inequality, government policies)
• Market mechanism, market failure, and government intervention (including competition policy, public ownership, privatization, regulation)

Paper 2: National and International Economy

This paper expands upon macroeconomic concepts from the AS Level:

• Measurement of macroeconomic performance (including uses of national income data)
• How the macroeconomy works (circular flow of income, AD/AS analysis, multiplier)
• Economic performance (growth, economic cycle, unemployment, inflation, Phillips curve)
• Financial markets and monetary policy (including regulation)
• Fiscal policy and supply-side policies
• International economy (globalization, trade, balance of payments, exchange rates, economic development)

Paper 3: Economic Principles and Issues

This paper assesses the application of economic principles to real-world issues, drawing on content from both Paper 1 and Paper 2. It includes multiple-choice questions and a case study.

Quantitative Skills

Both AS and A-Level Economics require competence in quantitative skills, including calculations involving ratios, percentages, means, medians, index numbers, costs, revenues, profits, elasticities, and real values. Students are also expected to interpret and analyze information presented in written, graphical, and numerical forms. The assessment of quantitative skills constitutes at least 15% of the AS Level and 20% of the A-Level marks.