Microeconomics

• Scarcity and Choice: Examines resource allocation and opportunity cost at individual and societal levels.

• Supply and Demand: Analyzes how market forces determine prices and quantities in product and labour markets.

• Market Failure: Investigates causes such as public goods, externalities, and income inequality, and the need for government intervention.

• Elasticities: Focuses on price, income, and cross-price elasticities of demand and supply, and their impact on decision-making.

• Wage Determination: Studies factors affecting labour demand and supply, including wage differentials and the minimum wage.

• Resource Allocation: Explores the price mechanism and the effects of government intervention in free markets.

Macroeconomics

• Circular Flow of Income: Analyzes income flows, injections, withdrawals, and the multiplier effect.

• Aggregate Demand and Supply: Examines the components of AD and AS and their role in determining national output and prices.

• Fiscal Policy: Focuses on government taxation and spending policies to manage economic performance.

• Monetary Policy: Reviews the Bank of England’s role in managing inflation and setting interest rates.

• International Trade: Evaluates free trade, protectionism, and their effects on global and domestic markets.

Quantitative Skills

• Mathematical Competence: Includes working with ratios, percentages, elasticity calculations, and interpreting data.

Assessment Structure

• Component 1: 1-hour exam, 40% of qualification – Short-answer and structured questions.

• Component 2: 2-hour exam, 60% of qualification – Data-response questions.

Assessment Objectives

• AO1: Demonstrate knowledge of economic theories.

• AO2: Apply economic concepts to contexts.

• AO3: Analyze economic issues and their implications.

• AO4: Evaluate economic arguments using evidence.

This qualification develops critical thinking and the application of economic theories to real-world issues.