Scheme of work

Where there is just one teacher delivering this subject, the scheme of work assumes
microeconomics (Section 4.1) is taught first followed by macroeconomics (Section 4.2). With two
teachers delivering the subject, Teacher 1 could teach the microeconomics alongside Teacher 2
teaching the macroeconomics. Section 4.1.1 Economic methodologyand the economic problem
are covered in Year 1 as part of the AS course.

4.1.2. Individual economic decision-making

4.1.2.1 Consumer behaviour
4.1.2.2 Imperfect information
4.1.2.4 Behavioural economics and economic policy
Prior knowledge: knowledge of 'Price determination in a competitive market' (AS section
3.1.2/A-level section 4.1.3) would be helpful.

Learning Learning activity with ideas for

objectives/skills Guidance differentiation and extension Resources

To learn how and Students should Introduction to behaviour and Sloman,J. et al. 8th ed.
why individual be able to decision making: Teacher-led (2012). pp 124–128.
decision-making appreciate that presentation of what behaviour is
may support or the actions of and influences on behaviour Perloff,J. 6th ed. (2011).
pp 124–127.
conflict with individuals in linking to consumption theories
conventional certain Rationality: Students to analyse Pindyck,R. et al. 8th ed.
demand theory circumstances the concept of the rational (2012). pp 189–197.
may suggest a economist and the influences
Skills different which possibly make normal Dan Ariely: Behavioural
Application of outcome from everyday interactions 'irrational' Economics. Youtube
utility theory plus the traditional Utility and marginal utility: Use Economic Review, Vol.
reinforcement of theory of of tables and data to explain utility 29, Sep 2011, 'Why do
supply and demand supply and and marginal utility including people make bad
analysis. demand. A maximisation behaviour. This can decisions?'
Learning Learning activity with ideas for
objectives/skills Guidance differentiation and extension Resources

variety of be linked to demand theory Socialsciencespace.

examples could Utility comprehension: Using website
be used to economic journals or articles to Big Think with Richard
support these develop deeper understanding of Thaler. Youtube
ideas. behaviour and information. Economic Review, Vol.
Students to evaluate the usefulness 27, Apr 2010, 'Beyond
(6 hours of theories to understand human homo economicus'
allocated) behaviour Economic Review, Vol.
Information failure and 30, Apr 2013, 'Who’s
asymmetric who in economics:
information: Students to develop George A Akerlof'
an understanding of simple Economic Review, Vol.
information failures such as in the 30, Apr 2013,
consumption of demerit goods 'Asymmetric information'
Aspects of behavioural Economic Review, Vol.
theory: Teacher-led presentation 30, Nov 2012,
explaining rules of thumb and 'Overconfidence: how
anchoring and how social norms does it affect decision-
affect decision making. Students to making?'
try exercises or experiments to see Dan Kahneman on Bias.
how behaviour changes for each Socialsciencespace.
person Website
Government Behavioural economics –
intervention: Students to seven principles for
understand how policymakers can policy-makers.
influence individual decisions Neweconomicfoundation.
using concepts such as nudge Website
theories. Students to develop an
understanding of choice
architecture and framing
Ideas for differentiation and
extension
Learning Learning activity with ideas for
objectives/skills Guidance differentiation and extension Resources

Research into the activities of the

‘nudge unit’ and/or reading of a
related book, such as ‘Nudge’ by
Sunstein and Thaler.

4.1.4. Production, costs and revenue

Total time: 8 hours + 1 hour for assessment activities.

4.1.4.3 The law of diminishing returns and returns to scale

Prior knowledge: This section builds on ‘Production, costs and revenue’ (AS section
3.1.3).

Learning Learning activity with ideas for

objectives/skills Guidance differentiation and extension Resources

To learn about the This section Short run and long run: Teacher-led Anderton,A.
possible looks at the presentation on the differences between the 5th ed. (2008).
relationships technical short run and the long run. Students to link pp 260–264.
between inputs and relationship issues from the first year including
Lawrence,J. et
output, in a technical between inputs specialisation and factors of production
al. (2009). pp
sense, both in the and output and Inputs and output: Students to link the
4–16.
short run and long the consequent concept of specialisation to production
run impact of this possibly considering 'Adam Smith’s pin Powell,R.
on the costs of factory' example or other suitable local (2014). pp 13–
Skills firms examples such as waiters/waitresses in 14 & 23–24.
Calculation of restaurants
different types of (3 hours Total product, average product,
returns and the allocated) marginal product: Students introduced to
ability to draw and the concept of the margin. Numerical
interpret the examples can be used to illustrate concepts
Learning Learning activity with ideas for
objectives/skills Guidance differentiation and extension Resources

resulting curves Product curves

diagrammatically: Students to recreate
numerical examples using diagrams or
plotting points on graph paper. (Stretch and
challenge opportunity: extend quantitative
skills with more complex data)
Ideas for differentiation and extension
Research into the ideas of Thomas Malthus
and the extent to which food production has
kept pace with population growth over time

4.1.4.4 The costs of production (part)

4.1.4.5 Economies and diseconomies of scale (part)
4.1.4.6 Marginal, average and total revenue (part)
4.1.4.7 Profit (part)
4.1.4.8 Technological change
Prior knowledge: Knowledge of AS ‘Production, costs and revenue’ (AS section
3.1.3/rest of A-level section 4.1.4) is necessary.

Learning Learning activity with ideas for

objectives/skills Guidance differentiation and extension Resources

To reinforce and This section Revenue: Teacher-led presentation of Anderton,A. 5th

extend knowledge builds on revenue. This can be linked to supply ed. (2008). pp
and understanding of prior/AS and demand analysis. Marginal revenue 265–284.
the different costs knowledge and can be introduced but this will be
Lawrence,J. et
and revenues, and understanding of encountered again in the perfect
al. (2009). pp 5–
how they can be some costs and competition and monopoly section
Learning Learning activity with ideas for
objectives/skills Guidance differentiation and extension Resources

affected by revenues and Cost curve recap: Students learn to 28.

technological change extends the ideas recreate short run and long run cost
Powell,R.
to include a curves from the first year and recap on
Skills (2014). pp 13–
wider range of economies and diseconomies of scale.
Calculation of a 14, 21–43 & 82–
concepts, plus Teacher-led presentation on costs
variety of costs and 97.
their Total cost, average cost and marginal
revenues, and the interpretation cost: Students to develop an Revenue
ability to draw and and application understanding of the concepts of
interpret the resulting pres.tutor2u
different costs including spreading fixed Costs
curves (5 hours costs across greater output. Introduction pres.tutor2u
allocated) of marginal costs using numerical Cost and
examples. (Stretch and challenge revenue
opportunity: use of more complex quiz.tutor2u
examples) E.O.S
ICT opportunity – Cost and revenue pres.tutor2u
quiz: quiz assessing knowledge gained Economics
or teacher-led activity with students Today, Vol. 20,
showing responses to questions on Nov 2012,
whiteboards 'External
economies of
Internal and external economies of
scale'
scale and the minimum efficient
Growth of firms
scale: Explanation and development of
pres.tutor2u
the concepts with students analysing
Profit
issues diagrammatically
pres.tutor2u
The growth of firms: Teacher-led
Economics
presentation of why firms grow in size –
Today, Vol. 21,
this could be linked to why firms may
Nov 2013, 'How
wish to shrink
important are
Profits: The nature and types of profit
economies of
and how profit can be used in firms.
scale?'
Students to evaluate how profits can be
Learning Learning activity with ideas for
objectives/skills Guidance differentiation and extension Resources

used in a business
Ideas for differentiation and extension
Research into how technological change
has impacted on costs in a variety of
real-world markets

4.1.5 Perfect competition, imperfectly competitive

markets and monopoly
Total time: 14 hours + 1 hour for assessment activities.

4.1.5.1 Market structures

4.1.5.2 The objectives of firms
4.1.5.3 Perfect competition
4.1.5.4 Monopolistic competition
Prior knowledge: Knowledge of ‘Production, costs and revenue’ (A level section 4.1.4) is
necessary. This also builds on ‘Competitive and concentrated markets’ (AS section
3.1.4). Knowledge and understanding of ‘Price determination in a competitive market’
(AS section 3.1.2/A level section 4.1.3) would also be helpful.

Learning Learning activity with ideas for

objectives/skills Guidance differentiation and extension Resources

To learn more about Students should Market structure:Introduce market Anderton,A. 5th
how and why the appreciate that structures with the spectrum of ed. (2008). pp
conduct and there is a competition. Students to identify where a 285–305.
performance of spectrum of range of companies fall on the spectrum
Lawrence,J. et
firms may differ in a competition and Performance and behaviour: Teacher-
al. (2009). pp
variety of market a range of led presentation explaining how
Learning Learning activity with ideas for
objectives/skills Guidance differentiation and extension Resources

structures and objectives, performance and behaviour can affect 29–39.

situations and how influencing the firms. Identification of types of business
Powell,R.
price and output are behaviour and eg sole trader to PLC and how ownership
(2014). pp 44–
determined when performance of concepts affect variables
63.
there are many small firms, both in The objectives of firms: Students to
firms in the market theory and identify various objectives and analyse the Structure and
practice importance to each market – links can be performance
Skills made to the divorce of ownership in terms
Ability to draw and (6 hours pres.tutor2u
of firms objectives being different from Perfect
interpret a variety of allocated) individuals competition
diagrams to show Perfect competition:Teacher-led pres.tutor2u
price and output presentation explaining the development Barriers
determination in of the model of perfect competition. A pres.tutor2u
perfect and development of the characteristics of Economics
monopolistic perfect competition. Students to use Today, Vol. 21,
competition concepts learnt earlier such as cost and Mar 2014, 'Do
revenue curves firms always
Barriers to entry: A development of the profit
concept of barriers to entry using maximise?'
presentations or real life examples from Economics
the news Today, Vol. 19,
Monopolistic competition: Teacher-led Mar 2012,
explanation of the concept of monopolistic 'What is the
competition with students recreating difference
diagrams and analysis of real life between
examples monopolistic
Competition comprehension: Students to competition and
develop further understanding of concepts monopoly?'
using news articles or journals Economic
ICT opportunity – Perfect competition Review, Vol. 29,
quiz: quiz assessing knowledge gained or Nov 2011,
teacher-led activity with students showing
Learning Learning activity with ideas for
objectives/skills Guidance differentiation and extension Resources

responses to questions on whiteboards 'Monopolistic

Ideas for extension and differentiation competition'
Research into the behaviour and Perfect comp
performance of a variety of small real- quiz.tutor2u
world firms - does perfect competition
exist?

4.1.5.5 Oligopoly
4.1.5.6 Monopoly and monopoly power
4.1.5.7 Price discrimination
4.1.5.8 The dynamics of competition and competitive market
processes
4.1.5.9 Contestable and non-contestable markets
4.1.5.10 Market structure, static efficiency, dynamic efficiency and
resource allocation
4.1.5.11 Consumer and producer surplus
Prior knowledge: Knowledge of ‘Production, costs and revenue’ (A-level section 4.1.4) is
necessary. This section builds on ‘Competitive and concentrated markets’ (AS section
3.1.4) and the rest of ‘Perfect competition, imperfectly competitive markets and
monopoly (A-level section 4.1.5 – see above) is necessary. Knowledge and understanding
of ‘Price determination in a competitive market’ (AS section 3.1.2/A-level section 4.1.3)
would also be helpful.

Learning Learning activity with ideas for

objectives/skills Guidance differentiation and extension Resources

To learn more Students Oligopoly: An introduction to the concept Anderton,A. 5th

Learning Learning activity with ideas for
objectives/skills Guidance differentiation and extension Resources

about how and why should of oligopoly with consideration of the ed. (2008). pp
the conduct and appreciate that characteristics of the market. Students to 306–339.
performance of the market develop an understanding of the concept of
Lawrence,J. et
firms may differ in power of firms interdependence and collusive and non-
al. (2009). pp
concentrated in concentrated collusive
40–75.
markets and how markets will be Government involvement in oligopolies:
this could be affected by a Students to develop an understanding of Powell,R.
affected by number of competition laws and regulation. ICT (2014). pp 64–
competition over factors opportunity: Investigate recent competition 81.
time. laws and rulings by the competition
(8 hours authorities in the UK and EU Oligopoly
Skills allocated) Oligopoly collusion
Ability to draw and diagrammatically: Development of the pres.tutor2u
interpret a variety Sweezy kinked demand curve and Economics
of diagrams to understanding of price and non-price Today, Vol. 19,
show possible competition. Tacit behaviour can also be Sep 2011, 'What
outcomes in linked policies can be
concentrated Monopoly: Teacher-led introduction to the used to stop
markets. concept of monopoly with students firms in an
identifying the characteristics with possible oligopoly
contrasts to other market structures colluding?'
Monopoly diagrams: Development of the Monopoly
monopoly diagram drawing on previous output
learning. Concepts of efficiency can be pres.tutor2u
linked to outputs and prices Economics
Pricing strategies:Leaners to develop Today, Vol 18,
understanding of pricing strategies such as Jan 2011,
predator or limit pricing and how barriers 'Predator pricing'
can be strategically created by monopolies Price
Contestable markets: Students to evaluate discrimination
how contestability affects actions in various pres.tutor2u
markets and why firms may or may not be Economic
Learning Learning activity with ideas for
objectives/skills Guidance differentiation and extension Resources

dynamically efficient Review, Vol. 29,

Efficiency: A detailed analysis of types of Sep 2011, 'Price
efficiency and how each structure achieves discrimination:
(or doesn’t achieve) each type of efficiency. university
Students to develop an understanding of tuition fees'
why each structure may or may not be Contestable
desirable markets
ICT opportunity – Monopoly and pres.tutor2u
efficiency: quiz assessing knowledge gained Economics
or teacher-led activity with students Today, Vol. 18,
showing responses to questions on Sep 2010, 'How
whiteboards contestable is
Producer and consumer surplus:Recap of the market for
prior learning and linking of consumer and holiday and
producer surplus concepts to market leisure travel?'
structure Efficiency
Ideas for extension and differentiation pres.tutor2u
Research into the behaviour and Monopoly
performance of a variety of real-world firms quiz.tutor2u
- are they profit maximising? Efficiency
quiz.tutor2u
Economics
Today, Vol. 20,
Sep 2012,
'Producer and
consumer
surplus'

4.1.6 The labour market

Total time: 12 hours + 1 hour for assessment activities.

4.1.6.1 The demand for labour, marginal productivity theory

4.1.6.2 Influences on the supply of labour to different markets
4.1.6.3 The determination of relative wage rates and levels of
employment in perfectly competitive labour markets
Prior knowledge: Knowledge of ‘Price determination in a competitive market’ (AS
section 3.1.2/A level section 4.1.3), ‘Production, costs and revenue’ (A level section
4.1.4) and ‘Perfect competition, imperfectly competitive markets and monopoly’ (A level
section 4.1.5) is necessary.

Learning
objectives/skills Guidance Learning activity Resources

To learn about Students should Labour markets Anderton,A. 5th

influences on the appreciate that all introduction: Students to ed. (2008). pp 399–
demand and supply of real-world labour develop an understanding of 'the 426.
labour and how wage markets are to labour market' realising it is
Lawrence,J. et al.
rates and levels of some extent made up of a number of
(2009). pp 76–55.
employment are imperfectly submarkets each with individual
determined in perfectly competitive but as characteristics Powell,R. (2014).
competitive labour with perfect MRP theory: Teacher- led pp 153–169.
markets competition in presentation of the demand for
product markets, labour explaining the Demand for labour
Skills this provides a relationship between the pres.tutor2u
Application of supply yardstick for physical output and revenue Economic Review,
and demand theory to judging how well generated. Students to identify Vol. 29, Feb 2012,
labour markets, real-world markets the problems of measuring 'Bankers and
including diagrams and perform output in some markets footballers: what
elasticity The supply of do they have in
(5 hours labour: Consideration of common?'
allocated) occupational mobility and Supply of labour
supply constraints on labour pres.tutor2u
such as innate ability, education Economic Review,
and skills on the supply of Vol. 30, Apr 2013,
labour in various markets. 'What motivates
Teacher-led presentations of people to work
Learning
objectives/skills Guidance Learning activity Resources

issues in labour markets harder?'

The labour market Equilibrium wages
diagrammatically: Considering pres.tutor2u
changes in the demand and Flexible labour
supply of labour and why pres.tutor2u
people are paid differently using
journals or clips. Illustration of
supply and demand in labour
markets.
Wage rate
determination: Student
analysis of diagrams and
equilibriums in competitive
markets. Analysis of changes in
the demand and supply of
labour linking to recent
developments such as new EU
member states and migration
Flexible labour
markets: Teacher-led
presentation of labour market
flexibility and changes over the
last few decades with evaluation
by students over whether
flexible working is always
beneficial – this can be linked to
trade unions later
Ideas for extension and
differentiation
Investigation of pay in a range
of jobs and to what extent the
differentials can be explained
Learning
objectives/skills Guidance Learning activity Resources

by supply and demand

4.1.6.4 The determination of relative wage rates and levels of

employment in imperfectly competitive labour markets
4.1.6.5 The influence of trade unions in determining wages and
levels of employment
4.1.6.6 The National Minimum Wage
4.1.6.7 Discrimination in the labour market
Prior knowledge: Knowledge of ‘Price determination in a competitive market’ (AS
section 3.1.2/A level section 4.1.3), ‘Production, costs and revenue’ (A level section
4.1.4) and ‘Perfect competition, imperfectly competitive markets and monopoly’ (A level
section 4.1.5) is necessary. This also builds on the rest of ‘The labour market’ (A level
section 4.1.6 – see above).

Learning Learning activity with ideas for

objectives/skills Guidance differentiation and extension Resources

To learn how wage Students Imperfect labour markets: Explanation of Anderton,A. 5th
rates and levels of should how intervention by organisations such as ed. (2008). pp
employment are appreciate trade unions or monopsony employers can 427–443.
determined in that, for a distort the labour market. Students to
Lawrence,J. et
imperfectly variety of develop an understanding of how labour is
al. (2009). pp
competitive labour reasons, real- not homogenous and factors affecting
86–95.
markets, including world labour supply and demand of labour.
the roles played by markets may Trade unions: Teacher- led explanation of Powell,R.
trade unions, result in an the role of trade unions and how they distort (2014). pp 170–
monopsonistic inefficient the market. The role of industrial action and 176.
employers and the allocation of collective bargaining can be analysed.
Trade union diagrammatically: Students Wage
Learning Learning activity with ideas for
objectives/skills Guidance differentiation and extension Resources

government resources to develop an understanding of the trade differentials

union diagram and be able to apply pres.tutor2u
Skills (7 hours concepts such as union density and strength Trade unions
Diagrams allocated) to the effects on the diagram pres.tutor2u
illustrating the Unions in the UK: Current issues Economics
impact of regarding trade unions and disputes. Clips Today, Vol 20,
monopsony power, from the news may be useful in highlighting Mar 2013,
trade unions and the issues. Students to develop an 'Trade Union
government understanding of the pros and cons of union membership in
membership the UK and
Employment protection, legislation and labour market
flexible working: Students to read articles flexibility'
from the news or journals to develop deeper Economics
understanding of conflicts between flexible Today, Vol. 18,
working and union activity Mar 2011, 'To
National minimum wage: This can be what extent has
done through recent budget announcements the labour
or news clips. Students to develop an market in the
understanding of how the national UK become
minimum wage affects employment levels. more flexible?'
Students may consider how the NMW has Economic
different effects regionally or in different Review, Vol. 29,
occupations Feb 2012,
Monopsony employers:Teacher-led 'Employment
presentation regarding monopsony. protection
Students to develop an understanding of legislation –
monopsony or “virtual” monopsony Impacts on
employment. Students can evaluate whether labour markets'
different markets really display these NMW
characteristics against theoretical models pres.tutor2
Monopsony diagrammatically: Students Economics
to be able to identify the effects of Today, Vol. 20,
Learning Learning activity with ideas for
objectives/skills Guidance differentiation and extension Resources

monopsonies on diagrams. Students to Nov 2012, 'The

develop and understanding of the concept NMW and its
of the marginal cost of labour and firms impact on the
aiming to employ workers where the labour market'
marginal cost equals the marginal revenue Monopsony
product pres.tutor2u
Monopsony vs trade union: Students to be Economic
able to develop an understanding of the Review, Vol. 30,
model of where monopsony meets trade Nov 2012,
union. Students to be able to understand 'Labour market
how the relative strength of each group failure'
determines the wage rate
Labour market failure: Students to
develop an understanding of why there is
failure in the labour market such as
geographical immobility and how markets
are distorted by different institutions
Ideas for extension and differentiation
Investigation of the impact of the National
Minimum Wage and/or of evidence of
discrimination in UK labour markets

4.1.7 The distribution of income and wealth: poverty

and inequality
Total time: 8 hours + 1 hour for assessment activities.

4.1.7.1 The distribution of income and wealth

4.1.7.2 The problem of poverty
4.1.7.3 Government policies to alleviate poverty and to influence
the distribution of income and wealth
Prior knowledge: None necessarily but knowledge of ‘Economic methodology and the
economic problem’ (AS/A level section 4.1.1) would be helpful.

Learning Learning activity with ideas for

objectives/skills Guidance differentiation and extension Resources

To learn how and Students should Poverty and Inequality: Teacher-led Anderton,A. 5th
why income and appreciate the presentation highlighting the differences ed. (2008). pp
wealth are unequally distinction between inequality and poverty. 444–461.
distributed, and what between equity Explanation of terms such as quartiles,
Lawrence,J. et
could and should be and equality, quintiles or deciles and distinctions
done about it and that value between absolute and relative values al. (2009). pp
96–108.
judgements Consequences of poverty: Students to
Skills will influence identify and analyse the effects of poverty Powell,R.
Interpretation of views of a fair on different groups such as individuals, (2014). pp 177–
Lorenz Curves and distribution and society, firms and the government 190.
Gini coefficients what, if possibly using a grid
anything, Poverty comprehension: Students to Poverty and
should be done develop further understanding of poverty inequality
using articles or recent news stories pres.tutor2u
( 8hours ICT opportunity – Poverty research: Economic
allocated) Students to access poverty UK or Review, Vol. 30,
OXFAM websites and research into levels Apr 2013,
of poverty in the UK and possibly around 'Looking at
the world inequality'
Poverty UK
ICT opportunity – Poverty investigation: website
Student investigation/report into current OXFAM
levels of poverty in the UK and current website
solutions or reasons why poverty may be Poverty causes
getting worse. International comparisons pres.tutor2u
can be made and some analysis of Gini Inequality
coefficients or Lorenz curves of several policies
counties pres.tutor2u
Economics
Groups in poverty: Identification of
Learning Learning activity with ideas for
objectives/skills Guidance differentiation and extension Resources

groups susceptible to poverty. Students to Today, Vol 19,

be able to explain why each group has Sep 2011, 'What
characteristics which makes them more are the causes of
susceptible inequality of
Solutions to reduce poverty: Students to income and
develop solutions based upon earlier wealth in the
activities identifying which groups are in UK?'
poverty. Students to develop evaluation of
the benefits and costs of each method
Government intervention, inequality
and poverty: Possible use of recent
budget or news articles regarding the
taxation or benefits system to stimulate
consideration of current policies effects on
the distribution of income. It is useful to
use material that is heavily biased in order
to generate student discussion
Ideas for extension and differentiation
Research into the distribution of income
and wealth in the UK and/or Gini
coefficients in a range of countries

4.1.8 The market mechanism, market failure and

government intervention in markets
Total time: 10 hours + 4 hours for assessment/revision activities. Section 4.1.8.2 the meaning of
market failure will have been covered in Year 1 as part of the AS subject content.

4.1.8.1 How markets and prices allocate resources (part)

4.1.8.3 Public goods, private goods and quasi-public goods (part)
4.1.8.4 Positive and negative externalities in consumption and
production (part)
4.1.8.5 Merit and demerit goods (part)
4.1.8.6 Market imperfections
Prior knowledge: This section builds on ‘The market mechanism, market failure and
government intervention in markets’ (AS section 3.1.5). Knowledge of ‘Price
determination in a competitive market’ (AS section 3.1.2/A level section 4.1.3),
‘Production, costs and revenue’ (A level section 4.1.4) and ‘Perfect competition,
imperfectly competitive markets and monopoly’ (A level section 4.1.5) is necessary.
Knowledge of ‘The distribution of income and wealth: poverty and inequality’ (A level
section 4.1.7) would also be helpful.

Learning Learning activity with ideas for

objectives/skills Guidance differentiation and extension Resources

To learn more about Students Markets and the functions of Anderton,A. 5th
the advantages and should be able price: Students to recap on the market ed. (2008). pp
disadvantages of the to recognise a mechanism and how the functions of price 106–115.
price mechanism, wide range of work. Students to develop an understanding
Lawrence,J. et
and how situations of why markets may fail to allocate
al. (2009). pp
externalities can be where markets resources effectively
109–117.
illustrated on could fail, all Market failures:Students to recap on why
diagrams illustrated by markets may fail. The concepts of complete
Powell,R.
real-world and partial failure may be introduced along (2014). pp 121–
Skills examples with possible solutions studied in year one. 140.
The drawing of This could include teacher-led presentations
MSB/MSC diagrams (4 hours Public, merit and demerit Market and
to illustrate positive allocated) goods: Teacher- led presentation on public, govt. failure
and negative merit and demerit goods. Introduction of the pres.tutor2u
externalities, and the concepts of the divergence between private Public goods
misallocation of costs and benefits and social costs and pres.tutor2u
resources resulting benefits Merit & demerit
from the Positive and negative externalities in goods
consumption of consumption diagrammatically: For some pres.tutor2u
Learning Learning activity with ideas for
objectives/skills Guidance differentiation and extension Resources

merit and demerit students this may prove quite difficult. Positive
goods Teacher-led explanation of why external externalities
costs lead to a divergence between private pres.tutor2u
and social costs and why external benefits Economic
lead to a divergence between private Review, Vol.
benefits and social benefits. A clear 28, Apr 2011,
distinction should be made between 'The tragedy of
externalities in consumption differ from the commons:
production road congestion'
Externalities in consumption Imperfect
analysis: Students to analyse and explain information
how externalities impact on society and pres.tutor2u
possibly require government intervention to Economics
correct (Stretch and challenge: Students Today, Vol. 18,
may be able to develop analysis of why Nov 2010,
goods or services with high marginal 'Should the
external costs may be banned whereas provision of
smaller marginal external costs may be renewable
subject to different intervention). energy be left to
Externalities in production analysis and market forces?'
diagrammatically:Students to develop an Economic
understanding of why social costs and Review, Vol.
benefits diverge from private costs and 30, Apr 2013,
benefits and be able to illustrate this 'Imperfect
diagrammatically(Stretch and challenge: information'
Students to be able to evaluate why there
are much fewer examples of positive
externalities of production compared to
negative based upon assumptions of profit
maximisation)
Real world examples: Students to develop
understanding of real world examples using
Learning Learning activity with ideas for
objectives/skills Guidance differentiation and extension Resources

newspaper articles or news clips from a

variety of sources
Imperfect and asymmetric
information:Students to develop an
understanding of why markets often fail in
terms of imperfect information. This can be
linked back to the behavioural topic studied
at the start of the course. Journals or articles
can be used to illustrate issues
Ideas for extension and differentiation
Research into examples of current market
failure and what has been/could be done

4.1.8.7 Competition policy

4.1.8.8 Public ownership, privatisation, regulation and deregulation
of markets
4.1.8.9 Government intervention in markets (part)
4.1.8.10 Government failure (part)
Prior knowledge: Knowledge of ‘Price determination in a competitive market’ (AS
section 3.1.2/A level section 4.1.3), ‘Production, costs and revenue’ (A level section
4.1.4) and ‘Perfect competition, imperfectly competitive markets and monopoly’ (A level
section 4.1.5) is necessary. Knowledge of ‘The distribution of income and wealth:
poverty and inequality’ (A level section 4.1.7) would also be helpful. This section builds
on ‘The market mechanism, market failure and government intervention in markets’ (AS
section 3.1.5) and the rest of this section at A level (4.1.8 – see above).
Learning Learning activity with ideas for
objectives/skills Guidance differentiation and extension Resources

To learn more about Students should Government intervention to correct Anderton,A. 5th
how and why be able to market failure: Students to recap on ed. (2008). pp
governments discuss the pros different methods of government 347–352 &
intervene in markets and cons of intervention to correct market failure. This 372–382.
and why this may alternative could be in the form of mind maps or grids
Lawrence,J. et
not necessarily policies, Competition policy: Teacher- led
al. (2009). pp
improve economic including presentation on competition policy and the
65–75.
welfare whether role of the competition authorities. This
intervention is could also include news clips of recent Powell,R.
Skills necessarily legal action against companies (2014). pp 98–
The drawing of a appropriate, all Competition policy 120.
variety of diagrams illustrated by comprehension: Students to read journals
to illustrate potential real-world or articles to provide further depth of Competition
solutions to market examples understanding regarding how government policy
failure and the intervenes in markets. Students could also pres.tutor2u
ability to analyse (6 hours develop an understanding of how PFI and Economics
possible problems allocated) competitive tendering work Today, Vol 20,
associated with these Government intervention in Mar 2013, 'The
‘solutions’ markets: Students to look at the pros and Competition
cons of each form of intervention and Authorities'
evaluate the effectiveness of each form Economic
Public ownership, privatisation and Review, Vol. 27,
deregulation: This could be taught using Apr 2010,
recent examples such as the Royal Mail or 'Economics of
using clips from Youtube. Links to industry – Isle
allocative efficiency and how best to of Wight ferries
create competitive markets can be made. and the OFT'
Evaluation of the various forms of Economic
government intervention can be brought in Review, Vol. 29,
Public choice theory: This can be linked Feb 2012,
to all aspects of the specification such as 'Dynamic
behaviour and market failure pricing: What
Learning Learning activity with ideas for
objectives/skills Guidance differentiation and extension Resources

Government failure: Students to analyse are the

reasons why the government may fail consequences of
when intervening in markets and develop regulation?'
an understanding of why the functions of Economics
price may mean that markets would work Today, Vol. 18,
better if left alone Jan 2011, 'To
Carbon trading: Teacher- led what extent is
presentation of government intervention in there
the market for permits. Many links can be competition in
made here to areas such as the tragedy of the markets
the commons and issues regarding where state-
European Union owned
Ideas for extension and differentiation industries were
Research into recent competition cases privatised?'
and/or the behaviour and performance of a Carbon trading
privatised industry, to consider the pres.tutor2u
effectiveness of UK competition policy Economic
and regulation Review, Vol. 29,
Sep 2011, 'The
energy industry:
new regulation
for new
challenges'

4.2.1 The measurement of macroeconomic

performance
Total time: 2 hours

4.2.1.4 Uses of national income data

Prior knowledge: None necessarily but knowledge of the rest of ‘The measurement of
macroeconomic performance’ (AS section 3.2.1 and A-level section 4.2.1) would be
helpful.

Learning Learning activity with ideas for

objectives/skills Guidance differentiation and extension Resources

To learn about the Students should Introduction to Anderton,A.

uses and limitations use their existing macroeconomics: Recap of prior 5th ed. (2008).
of national income knowledge of the learning from first year. This could be in pp 157–164.
data when making concept of the form of diagrams on mini-
comparisons over national income whiteboards or recall of the government's Lawrence,J. et
al. (2009). pg
time and between to consider its macroeconomic goals
126.
countries appropriateness National income: Update students on the
as a measure of a state of the economy in terms of growth Powell,R.
Skills country’s and position in the trade cycle using (2014). pp 209–
An understanding of standard of living newspaper articles or news clips 212.
the meaning and role Purchasing power parity: Students to
of purchasing power (2 hours develop understanding of the concept of Purchasing
parity in assessing allocated) purchasing power parity (Stretch and power parity
living standards in challenge opportunity: Students to
different countries analyse different countries changes in
exchange rate and the effects on PPP).
Ideas for extension and differentiation
Research into data for national income
for different countries, in terms of
purchasing power parity and not – what
does this say about their living standards?

4.2.2 How the macroeconomy works: the circular flow

of income, AD/AS analysis and related concepts
Total time: 2 hours. Sections 4.2.2.1 the circular flow of income, 4.2.2.2 aggregate demand and
aggregate supply analysis, 4.2.2.3 the determinants of aggregate demand and 4.2.2.5
determinants of short-run aggregate supply will have been covered in Year 1 as part of the AS
subject content

4.2.2.4 Aggregate demand and the level of economic activity

4.2.2.6 Determinants of long-run aggregate supply
Prior knowledge: This section builds on ‘How the macroeconomy works: the circular
flow of income, AD/AS analysis, and related concepts’ (AS section 3.2.2) and knowledge
of ‘The measurement of macroeconomic performance (A level section 4.2.1) would also
be helpful.

Learning Learning activity with ideas for

objectives/skills Guidance differentiation and extension Resources

To learn more about Students will Aggregate demand: Activities recapping Anderton,A. 5th
the multiplier and an not be on the determinants of aggregate demand ed. (2008). pp
alternative view of expected to and how far the UK is from full capacity 183–190 & 234.
the AS curve calculate the in recent times. This could include current
Lawrence,J. et al.
value of the news clips or newspaper articles
Skills (2009). pp
multiplier The multiplier
Calculations of the 132,133.
using the diagrammatically: Students to be able to
multiplier using the marginal identify how the multiplier impacts on AD Powell,R.
MPC and propensities to and how injections into the economy (2014). pp 216–
diagrammatic withdraw create greater than proportionate increases 232.
analysis of the in real national income
Keynesian AS curve (2 hours The marginal propensity to consume MPC and
allocated) and marginal propensity to multiplier clip.
save: Teacher-led explanation of the Khanacademy
marginal propensity to consume and save.
Possible use of short clips to reinforce
ideas
Multiplier calculations: Students activity
to calculate and manipulate data to work
out the values of the multiplier and the
effects of changes to the MPC
Learning Learning activity with ideas for
objectives/skills Guidance differentiation and extension Resources

Ideas for extension and differentiation

Investigation of a wider range of
applications of AD/AS analysis relating to
the UK economy, using the Keynesian AS
curve

4.2.3 Economic performance

Total time: 10 hours + 1 hour for assessment activities.

4.2.3.1 Economic growth and the economic cycle

4.2.3.2 Employment and unemployment
Prior knowledge: This section builds on ‘Economic performance’ (AS section 3.2.3) and
knowledge of ‘The measurement of economic performance’ (A-level section 4.2.1) and
‘How the macroeconomy works: the circular flow of income, AD/AS analysis, and
related concepts’ (A-level section 4.2.2) is also necessary.

Learning Learning activity with ideas for

objectives/skills Guidance differentiation and extension Resources

To learn more about Students should The economic cycle: Teacher-led Anderton,A. 5th
the causes and be able to discuss presentation of the economic cycle ed. (2008). pp
effects of economic the sustainability identifying the various phases and the 462–495.
growth and of economic current situation (this could be done with
Lawrence,J. et al.
unemployment on growth and a the use of recent growth data)
(2009). pp 120–
both individuals and wider range of Cyclical instability: Students to identify
135 & 146–156.
the economy factors affecting reasons as to why the economy may go
unemployment, into recession or enter a recovery. This Powell,R.
Skills plus the could be a good starting point for (2014). pp 198–
More diagrammatic consequences of introducing past questions and 215 & 233–248.
practice to illustrate developing students' chains of reasoning
Learning Learning activity with ideas for
objectives/skills Guidance differentiation and extension Resources

growth and unemployment Economic growth: Teacher-led Economic cycle

unemployment presentation on the effects of economic pres.tutor2u
(5 hours
issues, including for growth. Students to develop a wider Economic
allocated)
the natural rate of understanding of the costs and benefits growth
unemployment of growth and link to prior learning such pres.tutor2u
as environmental damage or inequality Economic
Economic growth Review, Vol. 29,
comprehension:Students to read articles Feb 2012,
on economic growth and evaluate the 'Explaining
effects on individuals, firms and society economic
Growing AD: Teacher-led presentation growth'
on the growth of AD and its Economic
components. Students to be able to growth costs &
evaluate the effectiveness of components benefits
or recent trends pres.tutor2u
Growth theories: Students to explore S.O.L
different theories regarding growth such pres.tutor2u
as endogenous and exogenous factors. Consumption
Some links to development can also be pres.tutor2u
made here but this will be studied in a Investment
separate topic(This could be linked to an pres.tutor2u
ICT opportunity investigating theories Unemployment
and world experiences). pres.tutor2u
Standards of living: Students to Phillips curve
investigate alternatives to GDP per pres.tutor2u
capita in measuring living standards. Happy planet
This could be introduced with a clip of index clip.
the happy planet index. It could also be Youtube
done as an ICT lesson with a structured Economics
look at the HDI and its components Today, Vol 18,
ICT opportunity – Economic growth Jan 2011, 'What
quiz: quiz assessing knowledge gained has happened to
Learning Learning activity with ideas for
objectives/skills Guidance differentiation and extension Resources

or teacher-led activity with students the vertical

showing responses to questions on Phillips curve?'
whiteboards Economic
Unemployment: A good introduction to growth
this topic is to look into local news in quiz.tutor2u
order for students to link what is
happening locally to the national
economy. This could be through news
clips or articles
Unemployment and the Phillips
curve: Teacher-led presentations and
development of the idea of the long run
Phillips curve. Students may have done
some work on short run Phillips curve
and trade-offs in the first year. Focus
could be shifted on to the relative
prioritisation of inflation by some
governments. The concepts of NRU or
NAIRU may be introduced
Phillips curve
comprehension: Students to critically
evaluate the relevance of the long run
Phillips curve after reading articles
Ideas for extension and differentiation
Further research into recent causes of
cyclical instability, such as debt and
asset price bubbles; and what the current
natural rate of unemployment is

4.2.3.3 Inflation and deflation

4.2.3.4 Possible conflicts between macroeconomic policy
objectives
Prior knowledge: This section builds on ‘Economic performance’ (AS section 3.2.3) and
it would also be helpful to have studied the rest of this section at A level (4.2.3 – see
above). Knowledge of ‘The measurement of economic performance’ (A level section
4.2.1) and ‘How the macroeconomy works: the circular flow of income, AD/AS analysis,
and related concepts’ (A level section 4.2.2) is also necessary.

Learning objective Guidance Learning activity Resources

To learn about the Students may use T Inflation: Students to Anderton,A. 5th ed.
Quantity Theory of instead of Q in Fisher's mind map prior learning (2008). pp 496–502.
Money and the effects equation of exchange such as how inflation is
Lawrence,J. et al.
of inflation and but should appreciate measured and the different
(2009). pp 136–145.
deflation on both their different types/measurements
individuals and the meanings, and also Inflation Powell,R. (2014). pp
economy, plus the how possible presentation:Teacher-led 249–268.
possibility of conflicts macroeconomic development of ideas
between conflicts may be previously covered and Inflation pres.tutor2u
macroeconomic policy reconciled in the long extended, including the Inflation targets
objectives run importance of expectations pres.tutor2u
and links to unemployment Inflation costs
Skills (5 hours allocated) and the Phillips curve pres.tutor2u
Manipulation and Calculating BBC inflation
interpretation of the inflation: Students to calculator website
Fisher equation, and develop a more detailed Economics Today,
the use of Phillips understanding of the Vol. 19, Jan 2012,
curve diagrams to different methods of 'Inflation: CPI vs RPI'
illustrate possible calculating the inflation Deflation
conflicts between figures such as the pres.tutor2u
objectives and their differences between the
implications for policy CPI and RPI (Stretch and
challenge activity – some
students may be able to
interpret weightings and
Learning objective Guidance Learning activity Resources

the effects on inflation

using numerical examples).
The money supply and
inflation: Explanation of
the Fisher equation with
links to quantitative easing
and the money supply.
Costs of
inflation: Teacher-led
presentation followed by
students mind mapping
effects on different groups
such as individuals,society,
the government and firms.
Inflation calculator ICT
opportunity: Students to
calculate their own
inflation using the BBC’s
calculator.
Deflation: Teacher-led
presentation on the costs
and problems of deflation.
Students to analyse news
articles of countries'
experiences (such as Japan)
and the effects on society
and individuals. Students
should be able to identify
the differences and relative
merits and drawbacks of
malign and benign
deflation.
Ideas for extension and
Learning objective Guidance Learning activity Resources

differentiation Research
into the experience of
Japan in their ‘lost decade’
and/or the circumstances of
the ‘NICE decade’ in the
UK

4.2.4 Financial markets and monetary policy

Total time: 10 hours + 1 hour for assessment activities.

4.2.4.1 The structure of financial markets and financial assets

4.2.4.2 Commercial banks and investment banks
4.2.4.3 Central banks and monetary policy
4.2.4.4 Regulation of financial markets
Prior knowledge: This section builds on ‘Macroeconomic policy’ (AS section 3.2.4),
particularly the part on ‘Monetary policy’. Knowledge of ‘The measurement of economic
performance’ (A level section 4.2.1), ‘How the economy works: the circular flow of
income, AD/AS analysis, and related concepts’ (A level section 4.2.2) and ‘Economic
performance’ (A level section 4.2.3) is also required.

Learning Learning activity with ideas for

objectives/skills Guidance differentiation and extension Resources

To learn more about Students should Functions of money: Teacher-led Anderton,A. 5th
monetary policy, understand presentation into the functions of money ed. (2008). pp
including the roles of current and establishing the two main measures; M0 503–510 &
different financial recent monetary as narrow money and M4 as broad money 545–563.
markets and policy The money markets: Students to
Lawrence,J. et
institutions, and the instruments and develop an understanding of different
al. (2009). pp
how these are markets and the role they play in the
Learning Learning activity with ideas for
objectives/skills Guidance differentiation and extension Resources

need for regulation used to achieve economy. Further understanding of 171–179.

the bonds, yields and the differences between
Skills Powell,R.
government’s bonds and shares is needed
Calculation of the (2014). pp 269–
objectives Calculating yields: Students to carry out
yield on a 284.
exercises calculating the bond yield based
government bond (10 hours upon numerical examples (Stretch and Monetary policy
allocated) challenge: More difficult calculations can pres.tutor2u
be carried out for those with higher Economics
maths abilities) Today, Vol 19,
Banking: Students to develop an Nov 2011, 'How
understanding of the banking system useful is
including the difference between quantitative
commercial and investment banks. easing?'
Students to develop an understanding of Economic
risk and how banks create credit Review, Vol. 27,
Financial regulation: Teacher-led Apr 2010,
presentation demonstrating the need for 'Monetary
financial regulation linked to the policy'
2007/2008 crisis. Possible use of clips Economics
and newspaper articles to illustrate Today, Vol 18,
possible failures in the market. Students Jan 2011, 'How
to develop an understanding of liquidity effective has
ratios and moral hazard UK monetary
Monetary policy presentation: Teacher- policy been?'
led presentation on monetary policy. Economic
Students to develop a deeper Review, Vol. 30,
understanding of the role of the Bank of Nov 2013,
England and other monetary variables 'Bond yields:
The money supply: Students to develop why are they so
an understanding of the money supply important?'
and how changes in the money supply
can affect output and the price level. This
Learning Learning activity with ideas for
objectives/skills Guidance differentiation and extension Resources

can be done with newspaper articles or

journals
ICT opportunity: The effectiveness of
monetary policy: Students to read articles
or journals then write a small report
considering the effectiveness of monetary
policy over recent years in the UK
Research into the extent to which the
activities of financial institutions
contributed to the recession

4.2.5 Fiscal policy and supply-side policies

Total time: 6 hours + 1 hour for assessment activities.

4.2.5.1 Fiscal policy

Prior knowledge: This section builds on ‘Macroeconomic policy’ (AS section 3.2.4),
particularly the part on ‘Fiscal policy’. Knowledge of ‘The measurement of economic
performance’ (A level section 4.2.1), ‘How the economy works: the circular flow of
income, AD/AS analysis, and related concepts’ (A level section 4.2.2) and ‘Economic
performance’ (A level section 4.2.3) is also required. Knowledge of other parts of this
section at A level (4.2.5 – see above) would be helpful.

Learning Learning activity with ideas for

objectives/skills Guidance differentiation and extension Resources

To learn about the Students should Identify the major areas of government Anderton,A. 5th
roles and relative be able to spending and taxation: Student activity ed. (2008). pp
merits of different analyse the highlighting areas of spending and 511–536.
types of tax and effects of fiscal justification for example public goods,
Lawrence,J. et al.
government policy changes merit goods etc. Use of HM Treasury
(2009). pp 157–
Learning Learning activity with ideas for
objectives/skills Guidance differentiation and extension Resources

spending, and the to both the website or recent budget summary to 170.
significance of level and highlight recent changes
Powell,R.
budget deficits and pattern of Government spending: Teacher-led
(2014). pp 285–
surpluses economic presentation of the major areas of
299.
activity and government spending and changes
Skills should be able Changes in policy HM Treasury
Further use of to build on comprehension: Students to develop website
AD/AS diagrams, their AS understanding of terms such as automatic
together with Govt. spending
knowledge to stabiliser and discretionary policy and pres.tutor2u
microeconomic consider the analyse changes diagrammatically. Economic
supply and demand pros and cons Students to understand the government’s Review, Vol. 28,
diagrams to analyse of unbalancing role in the multiplier (studied earlier) Apr 2011,
the effects of the budget Taxation: Teacher-led presentation on 'Spending cuts
different fiscal types and justifications of taxation. The and the UK
policy changes (5 hours relative importance of types of taxation economy'
allocated) such as progressive and regressive can be Taxation
discussed as well as their effects on things pres.tutor2u
such incentives to work Economic
Corporation tax: : Students to evaluate Review, Vol. 28,
the role of corporation tax in attracting Apr 2011, 'Fiscal
FDI and its effects on domestic policy –
investment Globalisation
The Laffer curve: Teacher-led activity and challenges
on the Laffer curve. Students to evaluate for corporate tax'
the effects of changing taxation Borrowing
Government borrowing: Analysis of the pres.tutor2u
current deficit (or surplus) and the Fiscal policy and
addition (or reduction) in national debt. AD pres.tutor2u
This can be obtained from the Treasury Economics
website. Links back to the money markets Today, Vol. 21,
and bonds can be made here. Students Mar 2014,
could be shown “the debt bombshell” to
Learning Learning activity with ideas for
objectives/skills Guidance differentiation and extension Resources

give them some perspective of the size of 'Understanding

the national debt the budget'
Debt: Comprehension activities on the Economics
size and changes in the UK national debt. Today, Vol. 18,
Students should be able to identify the Nov 2010, 'What
consequences of debt such as the effects problems does a
on future generations and crowding out or budget deficit
crowding in cause for
Ideas for extension and differentiation government
Research into recent changes to the financing?'
budget balance – to what extent have they Economic
been desirable Review, Vol. 29,
Sep 2011, 'The
history of public
debt'
Debt bombshell
website

4.2.5.2 Supply-side policies

Prior knowledge: This section builds on ‘Macroeconomic policy’ (AS section 3.2.4),
particularly the parts on ‘Fiscal policy’ and ’Supply-side policies’. Knowledge of ‘The
measurement of economic performance’ (A level section 4.2.1), ‘How the economy
works: the circular flow of income, AD/AS analysis, and related concepts’ (A level
section 4.2.2) and ‘Economic performance’ (A level section 4.2.3) is also required.
Knowledge of the rest of this section at A level (4.2.5 – see above) would be helpful.

Learning Learning activity with ideas for

objectives/skills Guidance differentiation and extension Resources

To learn more about Students should Supply-side policy: Students recap on Anderton,A. 5th
the variety of appreciate that work done in first year. Students able to ed. (2008). pp
Learning Learning activity with ideas for
objectives/skills Guidance differentiation and extension Resources

supply-side supply-side demonstrate diagrammatically LRAS 537–544.

measures and how improvements shifting outwards and the effects on the
Lawrence,J. et al.
they impact on the can help to deal macroeconomic goals
(2009). pp 166–
economy with aspects of Supply-side intervention or laissez-
170.
market failure faire: Student consideration of the
Skills relative merits or costs of the two Powell,R. (2014).
Further use of (1 hour approaches to supply-side policy pp 300–308.
macro and allocated) Supply-side comprehension: Students
microeconomic to read relevant articles and evaluate the Economics Today,
diagrams to effectiveness of supply-side policy Vol 21, Mar 2014,
illustrate the Ideas for extension and 'What is meant by
possible impact of a differentiation competitiveness?'
range of supply-side Research into the impact of recent
measures supply-side measures on macro and
microeconomic performance

4.2.6 The international economy

Total time: 28 hours + 5 hours for assessment/revision activities.

4.2.6.1 Globalisation
Prior knowledge: Knowledge of ‘The measurement of macroeconomic performance’ (AS
level section 3.2.1 and A level section 4.2.1) is necessary and an awareness of the various
aspects of the AS macroeconomics section would be helpful.

Learning Learning activity with ideas for

objectives/skills Guidance differentiation and extension Resources

To learn the meaning Students should Globalisation: A good way of Anderton,A. 5th
and causes of appreciate both introducing this topic might by drawing ed. (2008). pp
globalisation and its the opportunities on prior student knowledge or links with 569–574.
Learning Learning activity with ideas for
objectives/skills Guidance differentiation and extension Resources

consequences for and threats of other subjects such as Geography. This Lawrence,J. et
countries at different globalisation to can be further enhanced with clips from al. (2009). pp
stages of less-developed the internet 180–195.
development and more- The global economy: Teacher-led
Powell,R.
developed presentation on globalisation and the
Skills (2014). pp 309–
countries, whilst opportunities and threats. Recent issues
None particularly 330.
also recognising can be brought into discussion such as if
that the natural disasters have impacted on Globalisation
experience of certain countries more than others documentary.
individual Globalisation and developed CH4. Youtube
countries in each economies: Student-based activities on Globalisation
category will researching the effects of globalisation pres.tutor2u
vary according on the UK or similar economies such as Globalisation
to their the movement away from manufacturing and the
circumstances or structural unemployment due to developed world
outsourcing clip. BBC
(3 hours Globalisation and developing Hardtalk.
allowed) countries: Some links can be made to
later topics such as development.
Students could have some understanding
of the role of multinational corporations
and FDI
Ideas for extension and differentiation
Research into the activities of two
multinational corporations, one in the
secondary and the other in the tertiary
sector

4.2.6.2 Trade
Prior knowledge: Knowledge of supply and demand theory is necessary in order to draw
a tariff diagram (AS section 3.1.2/A level section 1.3 ‘Price determination in a
competitive market’). Knowledge of ‘Specialisation, division of labour and exchange’
and ‘Economies and diseconomies of scale’ (parts of AS section 3.1.3/A level section
4.1.4 ‘Production, costs and revenue’) would be helpful. A general understanding of
macroeconomics at AS level would also help to put this section into context.

Learning Learning activity with ideas for

objectives/skills Guidance differentiation and extension Resources

To learn how and Students should International trade Anderton,A. 5th

why countries trade appreciate the introduction:Building upon students' ed. (2008). pp
but also how and benefits of trade prior knowledge and understanding from 575–591.
why measures may but also how and the first year, students could be asked to
Lawrence,J. et
be taken to restrict why countries produce a mind map of learning from the
al. (2009). pp
trade, plus the role may impose first year such as the effect of exchange
202-206 & 218–
of the WTO; and trade restrictions rates or the advantages of different
231.
also to learn about and the effects systems
the Single European of these. The International trade and protectionism Powell,R.
Market and the arguments for presentations: Teacher-led activity with (2014). pp 309–
arguments for and and against UK students developing a wider knowledge 330.
against UK membership of of trade at A-level. Students to develop
membership of the the EU should analysis of diagrams to demonstrate International
EU be assessed, different forms of protectionism trade. Youtube
given the Tariff diagram: Extended analysis of the International
Skills characteristics of tariff diagram with links to how it can be trade
Calculation of a the SEM used. Explanations of deadweight welfare pres.tutor2u
numerical example loss and the effects of removal of tariffs Trade &
to illustrate (10 hours in terms of producer and consumer protectionism
comparative allocated) surplus pres.tutor2u
advantage and the Comparative advantage: Students to Economic
gains from trade; develop understanding of comparative Review, Vol. 30,
and using a diagram advantage through numerical examples. Nov 2013, 'Why
to show the effects Use of terms such as absolute advantage do firms
of a tariff and terms of trade. Students could be export?'
asked to create their own numerical Economics
examples (Stretch and challenge: Today, Vol. 18,
Learning Learning activity with ideas for
objectives/skills Guidance differentiation and extension Resources

students could develop more detailed Mar 2011, 'If

models or consider multilateral trade) Protectionism is
Protectionism comprehension: Students self defeating,
to develop a deeper understanding of why why is it on the
trade wars develop and the costs of trade increase?'
wars. Recent examples from the news Economic
would be useful to illustrate trade issues Review, Vol. 29,
ICT opportunity -The EU: Students to Feb 2012,
develop an understanding of the workings 'Imports and
of the EU and the single market. This protectionism'
could be done in an investigation lasting a Trade
few lessons where issues such as freedom quiz.tutor2u
of movement of goods, services and Protectionism
people are analysed and presented. This quiz.tutor2u
could analyse the characteristics of the Economics
SEM Today, Vol. 21,
ICT opportunity - Trade + protectionism Mar 2014,
quizzes: quizzes assessing knowledge 'Should the UK
gained or teacher-led activity with leave the EU?'
students showing responses to questions Economics
on whiteboards Today, Vol. 17,
The EU and the single market: Linking Jan 2010, 'What
issues discussed earlier such as are the costs and
protectionism and trade to explain the benefits of
origins and development of the EU and membership of
the gains from trade the Eurozone?'
Should the UK leave the EU: Students
to evaluate the pros and cons of EU
membership possibly linking to past
exam questions. Footage of recent
debates may be useful on this
The Eurozone: This links to the next unit
Learning Learning activity with ideas for
objectives/skills Guidance differentiation and extension Resources

in terms of exchange rate systems but

could be suitably analysed here with
students assessing the current state of the
Eurozone nations as well as the costs and
benefits of being in the single currency.
This may be developed further later
Ideas for extension and differentiation
Research into other trade blocs and/or
how the EU has evolved. Should the UK
stay in the EU?

4.2.6.3 The Balance of Payments

4.2.6.4 Exchange rate systems
Prior knowledge: Knowledge of ‘The measurement of macroeconomic performance’ (AS
section 3.2.1 and A level 4.2.1) and ‘The balance of payments on current account’ (part
of AS section 3.2.3 ‘Economic performance’) is necessary, as is ‘Price determination in a
competitive market’ (AS section 3.1.2/A level section 4.1.3) for the determination of
exchange rates. An awareness of the various aspects of the AS macroeconomics module
would also be helpful.

Learning Learning activity with ideas for

objectives/skills Guidance differentiation and extension Resources

To learn more about Students only The balance of payments: Teacher-led Anderton,A. 5th
the composition of need a general presentation and recap of prior learning. ed. (2008). pp
the balance of appreciation of Teacher to draw particular attention to the 592–627.
payments and the the capital and capital account
Lawrence,J. et
significance of financial Trade in goods and services: Students to
al. (2009). pp
imbalance; and also accounts but analyse actual balance data to perform
196–217.
to learn about the should have a calculations and make comparisons of data
Learning Learning activity with ideas for
objectives/skills Guidance differentiation and extension Resources

determination and detailed or charts Powell,R.

pros and cons of knowledge of The current account deficit (2014). pp 331–
different exchange the current comprehension: Students to read journals 369.
rate regimes account or articles and develop understanding of
Balance of
why the current account deficit exists
Skills (9 hours payments
Is the current account deficit a
More practice with allocated) pres.tutor2u
problem: Students develop understanding
calculations relating Economics
of why deficits on the current account may
to the balance of Today, Vol. 20,
or may not be a problem
payments and the Nov 2012, 'The
Exchange rates: Students mind map all
use of supply and UK current
they know from the first year about the
demand diagrams account deficit'
exchange rate with possible links to
for the determination Economic
understanding of the Eurozone
of exchange rates Review, Vol. 29,
Exchange rate systems: Students
Nov 2011,
evaluate the pros and cons of each type of
'Interpreting
system and are able to apply some brief
economic data –
knowledge of historical changes
The balance of
Changing exchange rates and Marshall-
payments'
Lerner: Explanation of how changes in
Exchange rates
the exchange rate affect trade flows
pres.tutor2u
The single currency: Teacher-led
Ex rate systems
presentation of issues regarding the single
pres.tutor2u
currency. This could be developed with
Single currency
clips showing the current climate in the
pres.tutor2u
Eurozone or debates about membership
Ideas for extension and differentiation
Research into whether the Eurozone
should be broken up or extended

4.2.6.5 Economic growth and development

Prior knowledge: A basic knowledge of ‘The objectives of government economic policy’
(part of AS section 3.2.1 and A-level 4.2.1) and the concept of ‘Economic growth’ (part
of AS section 3.2.3 and A-level section 4.2.3) would be helpful.

Learning Learning activity with ideas for

objectives/skills Guidance differentiation and extension Resources

To learn about the Students should Growth and development: Teacher- Anderton,A. 5th
characteristics of be able to led presentation linking growth, trade ed. (2008). pp
less-developed compare market- and development. Some growth 637–642.
countries, and how based and theories may be analysed. Clips can be
growth and interventionist used to highlight development in other Powell,R. (2014).
pp 198–215.
development can be strategies and countries
achieved or the issue of trade Aid: Student activity developing an Aid and
hindered versus aid. This understanding of bilateral and development
section links multilateral aid and the pros and cons slides. Tutor2u
Skills with several of each and an understanding of tied aid Microfinance
Interpretation of a other parts of the ICT opportunity - Measuring human slides. Tutor2u
variety of indicators Specification development: Student activity Global economics
to judge the such as producing a short report explaining the –
development of a globalisation measurement of human development development.clip.
country and inequality and changes over time. Particular focus Youtube
could be on emerging markets Economic Review,
(6 hours Barriers to growth: Possible use of Vol. 28, Apr 2011,
allocated) clips and news articles to highlight 'Measuring human
global problems which may inhibit development'
growth and development opportunities Economic Review,
Equity and freedom: Clips to Vol. 30, Apr 2013,
demonstrate countries experiences 'Human
including problems or factors which development: the
may inhibit development Millenium
Ideas for extension and Development
differentiation goals'
In-depth investigation into a less- Economic Review,
developed country – what has happened Vol. 30, Nov
Learning Learning activity with ideas for
objectives/skills Guidance differentiation and extension Resources

over the last 20 years? To what extent 2013, 'Growth and

is it now more or less developed? development in
developing
countries'
A debate on equity
and freedom
clip.Youtube
Economics Today,
Vol. 20, Mar
2014, 'Is the UK’s
aid programme
working as
intended?'
Economics Today,
Vol. 18, Mar
2011, 'Why may
official aid
programmes prove
disappointing in
their impact?'