Edexcel Advanced GCE in A Level Economics


Topics covered (Unit 1):

  1. Positive and normative economics.
  2. Scarcity and opportunity cost.
  3. The production possibility boundary or frontier.
  4. Specialization and the division of labor.
  5. The advantages of international trade: the principle of comparative advantage.
  6. Consumer and producer surplus.
  7. The price mechanism as a means of allocating resources.
  8. The role of the price mechanism in resource allocation in free market and mixed economies.
  9. The supply of, and demand for, goods and services.
  10. The concept of elasticity with respect to both supply and demand.
  11. Applications of supply and demand analysis in the product and factor markets.
  12. Entry and exit of firms.
  13. Indirect taxes and subsidies.

Topics covered (Unit 2):

  1. Economies of scale.
  2. Market failure.
  3. Government intervention in markets: rationale for such intervention and the effects on consumers, producers and the government.
  4. Types of market failure.
  5. Externalities.
  6. Information problems.
  7. Remedies for market failure.
  8. Government failure

Topics covered (Unit 3):

  1. Measures of the economic performance of countries.
  2. Economic growth.
  3. Aggregate demand.
  4. Aggregate supply.
  5. The equilibrium level of real output.
  6. Macroeconomic policy objectives in an EU context.
  7. The relative merits of supply side and/or demand side policies as means of realizing policy objectives

Topics covered (Unit 4):

  1. The birth and growth of firms.
  2. The motives for the growth of firms.
  3. Internal and external growth.
  4. Alternative motives of firms.
  5. Productive efficiency.
  6. Allocative efficiency.
  7. Measures of market concentration.
  8. Pricing and output decisions under different market structures and different motives.
  9. The conditions necessary for price discrimination in monopoly.
  10. Pricing and Non-pricing strategies.
  11. Barriers to entry and exit.
  12. Contestable markets.
  13. Competition policy in the UK and EU.
  14. Regulation of privatized industries.

Topics covered (Unit 5):

  1. The supply of labor: the working population.
  2. The demand for labor. Labor as a derived demand.
  3. Wage determination in competitive markets.
  4. Differentials in different occupations; between men and women; skilled/unskilled workers: ethnic groups. Discrimination.
  5. The role of trade unions.
  6. Government intervention in labor markets.
  7. The case of monopsony.
  8. Unemployment and labor market imperfections.
  9. Government policies to influence geographical mobility and occupational mobility.
  10. The changing structure and flexibility of UK and EU labor markets.
  11. Ageing populations in developed economies.
  12. Factors influencing the distribution of income and wealth.
  13. Changes in the distribution of income and wealth.
  14. Measurement of inequality. The Lorenz curve.
  15. Aggregate and disaggregated data.
  16. Policy issues associated with poverty and inequality.
  17. Indicators of development in developing countries in sub-Saharan Africa, Asia and Latin America.
  18. The causes of economic growth in developing countries.
  19. Differences between developing countries.
  20. The costs of economic growth.
  21. Constraints on economic growth.
  22. Development strategies.
  23. Sources of external finance.

Topics covered (Unit 6):

  1. Factors contributing to globalization.
  2. International exchange.
  3. Trade liberalization and protectionism.
  4. Sources of possible conflict between trading blocs and the role of the World Trade Organization (WTO).
  5. The Balance of Payments.
  6. International competitiveness.
  7. The UK’s changing international competitive situation.
  8. Balance of payments disequilibrium.
  9. Exchange rate systems.
  10. European Monetary Union.
  11. Inward foreign investment by MNCs.
  12. External shocks to the global economy.
  13. Public expenditure and taxation.
  14.  The working of fiscal, monetary and supply side policies.
  15. Conflicts between these objectives.
  16. Unemployment and inflation in an EU and global context.
  17. The relationship between real output and the non-accelerating inflation rate of unemployment (NAIRU).

Textbooks followed:

    • Anderton A – The Economy in Focus (Causeway Press, 1997/8) ISSN 1 873929 70 6
    • Anderton A –Economics – 2nd Ed (Causeway Press, 1995) ISSN 0 873929 374
    • Davies B, Hale G, Smith C, Tiller H – Investigating Economics (Macmillan, 1996) ISSN 0 333 63808 5.
    • Maunder P. et al – Economics Explained – 3rd Ed (Collins, 1995) ISSN 0 00 327503 5
    • Mulhearn C, Vane H – Economics (Macmillan, 199) ISSN 0 333 69183 0
    • Sloman J – Essentials of Economics (Prentice Hall, 1998) ISSN 0 13 779844 X

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