Economics is the study of human behaviour and social interaction. Economics examines how people choose to use scarce resources to satisfy their needs and wants; a study of choice.

AS Topics

Markets & Market Failure

• The economic problem
• Allocation of resources
• Production and efficiency
• Market failures
• Role of Government

The National Economy

• Measuring the economy
• Economic cycle
• Models of the economy
• Economic performance
• Macroeconomic policy

A2 Topics

Business Economics and the Distribution of Income

• Theory of the firm
• Markets and government intervention

National and International Economy

• Economic indicators
• Managing the economy
• International economy

Where does it lead?

Economics is possibly the most powerful single A Levels. A qualification in Economics has widespread application. It is especially powerful for university entrants no matter what subject(s) they are intending to study.

A degree in Economics opens up careers in all kinds of businesses, especially financial institutions. The average earnings of an Economics graduate 6 months after graduating are about £1,500 more than the average for all graduates – only engineering and medical graduates earn more.

Why you should study Economics?

The world of economics touches every person’s life on a daily basis. Every human activity has an economic aspect to it. To understand the economics that underlies our daily lives is to understand better the world we inhabit. Economics helps inform our everyday actions so that we are more capable of making rational, intelligent choices. Where else in education will you learn about taxes, saving, investing and borrowing, including mortgages?

Economics is more than a body of knowledge and understanding. Economics trains you to think through problems in a rational and logical manner. In doing this it provides you with skills that can be employed to better understand all manner of problems.

Economics is fun. Most economists do not take themselves too seriously. Look at Eddie George, former Governor of the Bank of England, when asked about the mathematical requirements for being an economist : “There are three kinds of economist,” he replied, “those that can count and those that can’t.”

At a practical level, the proportion of students obtaining grade A at A Level Economics is higher than the average for all other subjects. In fact, this is also true for the proportion of students obtaining grades A – C.

What skills do I need to be successful in this subject?

Most important of all – think logically. Take a scenario and think through the consequences. This is not a skill but is invaluable: an ongoing interest in the world around you. Economics is not . But politicians make decisions every day about the economy – you need to know what they are up to.

Preparing for Study

For an enjoyable and unusual approach ‘Freakonomics’ by Steven D. Levitt & Stephen J. Dubner has been a best seller. More valuable in the long-run is ‘Sex, Drugs and Economics’ by Diana Coyle. An entertaining introduction to most of the important concepts in Economics.