Economics

Why study Economics?

Economics is an exciting social science. It may seem to be all about money, but Economics is actually the study of life. Pupils examine the behaviour of individuals and how we make decisions in a world of finite resources. Economics is a cornerstone to understanding current affairs and international relations. It imparts an understanding of the world’s greatest problems such as inequality, obesity and plastic pollution. Economics is a highly credible subject with academic rigour, allowing students to access some of the most prestigious universities in the UK and overseas.

Why study this subject?

Economic issues are important to everyone. Economists try to understand and provide solutions to the most challenging questions facing society today, such as: • How can a government intervene to reduce the impacts of climate change? To what extent are different measures to tackle CO2 emissions effective? What are the pros and cons of different sources of energy: offshore wind farms, nuclear plants or fracking for natural gas?

• Have some internet companies such as Google,

Facebook and Twitter become too big for the good of society? Are these firms so essential to daily life that they should be regulated as public utilities?

• Who should pay for healthcare? Is it feasible for the NHS to continue providing healthcare free at the point of delivery? Should health treatments be based on clinical need or on ability to pay?

• What are the consequences of the increased trade war between the US and China – for consumers and firms in each country, and for the global economy?

• The increasing income gap between top and bottom earners: should the government increase the national minimum wage, or introduce a maximum wage? Alternatively, is inequality an inevitable (or even essential) ingredient in a capitalist society?

Course content

There are four themes: 1. Introduction to Markets: this theme focuses on microeconomic concepts. Pupils develop an understanding of how markets work, market failure and government intervention (i.e. tax, subsidies and regulation) 2. The UK Economy: this theme focuses on macroeconomic concepts. Pupils develop an understanding of macroeconomic objectives (economic growth, low inflation, low unemployment and a trade balance). They examine the policies that governments can use to achieve these goals, including monetary policy, fiscal policy and supply-side policies 3. Business behaviour and the labour market: this theme develops the microeconomic concepts introduced in Theme 1 and focuses on business economics. Pupils develop an understanding of business growth, business objectives, revenues, costs and profits, market structures, the labour market and the role of government intervention 4. A Global Perspective: this theme develops the macroeconomic concepts introduced in Theme 2 and applies these concepts in a global context.

Pupils develop an understanding of international economics, poverty and inequality, emerging and developing economies, the financial sector and the role of the state in the macro-economy.

Will I enjoy it?

Economics provides plenty of challenge and stimulation for pupils who enjoy discussing current affairs and analysing problems.

What else should I consider?

Economics is a particularly useful subject to study alongside Geography (there is much overlap with the Geography A Level), Psychology (Economics involves a module on behavioural economics, which is closely linked to Psychology), and Mathematics (Economics involves the application of mathematical skills to real-world contexts). Economics is not compulsory in order to apply to read Economics at university, but it does demonstrate interest in the subject in a UCAS application. Economics is a highly regarded subject in many careers, including management consultancy, accounting, banking, insurance, marketing, the Civil Service and any large multinational company. Economics also equips pupils with useful skills and knowledge if they are hoping to set up in business.

Assessment

Examination Board: Edexcel

Three examination papers, involving a mix of calculations, data response questions and essays: • Paper 1: Markets and business behaviour (35%) • Paper 2: The national and global economy (35%) • Paper 3: Microeconomics and macroeconomics (30%)

Who can give me more information? Mrs Morray-Jones

e.morrayjones@sherborne.com