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Subject criteria for economics AS/A level
ACCAC
CCEA
QCA
GCE ADVANCED SUBSIDIARY AND ADVANCED LEVEL SPECIFICATIONS
SUBJECT CRITERIA FOR ECONOMICS
1. Introduction
1.1 AS and A level subject criteria set out the knowledge, understanding, skills and assessment objectives common to all AS and A level specifications in a given subject. They provide the framework within which the awarding body creates the detail of the specification.
Subject criteria are intended to:
- help ensure consistent and comparable standards in the same subject across the awarding bodies;
- define the relationship between the AS and A level specifications, with the AS as a subset of the A level;
- ensure that the rigour of A level is maintained;
- help higher education institutions and employers know what has been studied and assessed.
Any specification which contains significant elements of the subject Economics must be consistent with the relevant parts of these subject criteria.
2. Aims
2.1 AS and A level specifications in Economics should encourage students to:
- develop an understanding of economic concepts and theories through a critical consideration of current economic issues, problems and institutions that affect everyday life;
- apply economic concepts and theories in a range of contexts and to appreciate their value and limitations in explaining real-world phenomena;
- analyse, explain and evaluate the strengths and weaknesses of the market economy and the role of government within it.
3. Specification Content
3.1 There are no prior knowledge requirements for AS and A level specifications in Economics.
3.2 AS and A level specifications in Economics should:
- provide a coherent combination of micro and macro content and methods of enquiry;
- allow students to explore a range of economic issues and to draw on data from local, national and international sources;
- develop a critical approach to economic models and methods of enquiry.
AS specifications will require the use of basic models to explore current economic behaviour, whilst A level specifications will require the use and evaluation of more complex modelling and its application to a wider range of contexts.
Knowledge, Understanding and Skills
3.3 The knowledge and understanding is set out in a two-column format. The essential knowledge and understanding is set out on the left-hand side of the page together with a commentary, where appropriate, on the right-hand side of each section. A preface to each section sets out how expected progression in students' knowledge, understanding and skills should be reflected in AS and A level specifications.
3.4 AS and A level specifications should require students to study:
- Economic choices and markets
- The national and international economy.
3.4.1 Economic choices and markets
The emphasis should be on the market model of resource allocation. Students should understand the economic behaviour of consumers, producers and governments in competitive and non-competitive markets. The impact of technological innovation, environmental change, globalisation and of better informed consumers on present and future economic behaviour should be considered.
As students should be aware of the assumptions of the market model and be able to use it, for example to explore the impact of a new product and new supplier in a competitive market. They should be able to analyse the implications for consumers and government of a market dominated by one supplier.
In addition, A level students should be able to evaluate economic models as represented in written, numerical and graphical forms. They should be able to use and evaluate methods of enquiry, interpret different types of data from multiple sources and be able to propose possible solutions to problems.
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Students should understand: - the basic economic problem and the way it gives rise to the need to make choices and exchange; - the concepts of opportunity cost, production possibility curve, specialisation, division of labour and exchange. |
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Students should understand: - the role of markets in influencing choices and allocating resources; - the objectives of consumers and producers as participants in a market; - the basic model of supply and demand and price determination in product, factor and money markets; (a knowledge of the theoretical derivation of the demand and supply curve is not required.) - the concepts of price, income and cross elasticity of demand, price elasticity of supply and their applications; - the concepts of consumer and producer surplus; - the conditions for both productive and allocative efficiency. |
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Students should understand: - the importance of the profit motive and other objectives in determining the competitive behaviour of firms; - the significance of freedom of entry and exit of firms into markets; - the models of perfect competition and monopoly, their limitations and relationship to the way in which firms behave in real world markets; - other market structures and their implications for the way resources are allocated. |
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Students should understand: - that externalities, market dominance, public goods, merit goods and an unequal distribution of income are significant causes and consequences of market failure. |
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Students should understand: - the way governments, in pursuit of their economic, social and distributional objectives, intervene in markets to correct market failure, for example through taxation, subsidies, price controls, state provision and regulations; - that, in certain cases, governments create rather than remove distortions, for example in agriculture and housing; - the reasons for, and consequences of, price and non-price competition, including cartels, price agreements and price wars; - the nature and consequences of barriers to competition; - competition policy and its impact. |
3.4.2 The national and international economy
The emphasis should be on the use of economic models to develop critical understanding of macroeconomic and international issues. AS and A level specifications should use contemporary and recent historical data. [Awarding bodies should define ‘recent historical' in their AS and A level specifications.] Students should understand government objectives and policies as they relate to economic growth and employment and to the stability of prices and the balance of payments.
AS students should be able to use the basic AS/AD model and data to understand why supply side and/or demand side policies may be seen as appropriate ways of managing an economy. They should be able to predict the possible impact of such policies and to recognise the assumptions involved. They should be able to argue for different approaches and identify success criteria.
In addition, A level students should understand the relationships and linkages which underpin macroeconomic models and be able to predict the possible impact of policy changes on local, national and international markets. They should be able to evaluate the effectiveness of government policies across a wide range of contexts.
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Students should understand: - governments' objectives as they relate to economic growth, employment, inflation and the balance of payments; - how data relating to these objectives can be used to make comparisons with other economies. |
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Students should understand: - the consequences of inflation, unemployment, instability of exchange rates and a balance of payments deficit; - the costs, benefits and sustainability of economic growth; - possible conflicts between policy objectives. |
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Students should understand: - the constituents of, and influences upon, aggregate demand; - the factors which influence aggregate supply; - how aggregate demand and supply analysis can be used to illustrate macro-economic problems and issues. |
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Students should understand: - the nature and impact of fiscal, monetary, exchange rate and supply side policies; - the theories of interest rate and exchange rate determination. |
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Students should understand: - the general pattern of trade between the UK and the rest of the world; - trade with developing economies; - the principle of comparative advantage and its limitations; - the reasons for, methods and consequences of, protection against non-EU competition; - the determination of exchange rates; European Monetary Union. |
4. Key Skills
4.1 AS and A level specifications in Economics should provide opportunities for developing and generating evidence for assessing the Key Skills listed below. Where appropriate, these opportunities should be directly cross-referenced, at specified level(s), to the criteria listed in Part B of the Key Skills specification.
- Communication
- Information Technology
- Application of Number
- Improving Own Learning and Performance
- Working with Others
- Problem Solving
5. Assessment Objectives
5.1 The assessment objectives for AS and A level are the same.
5.2 All candidates must be required to meet the following assessment objectives. The assessment objectives are to be weighted in all specifications as indicated. Assessment objectives 3 and 4 should be given a greater weighting for A level than for AS (at least 25% for A level).
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Assessment Objectives |
Weighting | |
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AO1 |
demonstrate knowledge and understanding of the specified content; |
20-30% |
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AO2 |
apply knowledge and critical understanding to problems and issues arising from both familiar and unfamiliar situations; |
20-30% |
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AO3 |
analyse economic problems and issues; |
20-30% |
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AO4 |
evaluate economic arguments and evidence, making informed judgements. |
20-30% |
6. Scheme of Assessment
Internal Assessment
6.1 All A level specifications in Economics may have a maximum internal assessment weighting of 30%.
Synoptic Assessment
6.2 All specifications should include a minimum of 20% synoptic assessment. All synoptic assessment units should be taken at the end of the course and be externally assessed. Synoptic assessment in Economics will candidates' understanding of the connections between different elements of the subject. It will relate to all the assessment objectives. In particular, synoptic assessment should test candidates' ability to:
- understand the inter-relatedness of many economic issues, problems and institutions;
- understand how certain economic concepts, theories and techniques may be relevant to a range of different contexts;
- apply such concepts, theories and techniques in analysing economic issues and problems and in evaluating arguments and evidence.
Synoptic assessment may be based on one section of the specification content provided that the tasks set allow candidates to demonstrate their ability in relation to the above. The emphasis in synoptic assessment should be on candidates' ability to think as economists and to use effectively the economist's ‘tool kit' of concepts, theories and techniques which they have built up during their course of study.
Synoptic assessment could be conducted through the use of an extended case study or essay questions.
Key Skills Assessment
6.3 The Key Skill of Communication must contribute to the assessment of Economics at AS and A level as stated in paragraph 13 of the Advanced Subsidiary and Advanced level qualification-specific criteria.
The requirement for all AS and A level specifications to assess candidates' quality of written communication will be met through all four assessment objectives.
7. Grade Descriptions
7.1 The following grade descriptions indicate the level of attainment characteristic of the given grade at A level. They give a general indication of the required learning outcomes at each specified grade. The descriptions should be interpreted in relation to the content outlined in the specification; they are not designed to define that content. The grade awarded will depend in practice upon the extent to which the candidate has met the assessment objectives overall. Shortcomings in some aspects of the examination may be balanced by better performances in others.
7.2 Grade A
Candidates will demonstrate in-depth knowledge and critical understanding of a wide range of economic theories and concepts. They will apply this knowledge and understanding to analyse familiar and unfamiliar situations, issues and problems, using appropriate numerical and non-numerical techniques accurately. They will effectively evaluate evidence and arguments, making reasoned judgements to present appropriate and well supported conclusions.
7.3 Grade C
Candidates will demonstrate knowledge and understanding of a range of economic theories and concepts. They will apply this knowledge and understanding to analyse familiar and unfamiliar situations, issues and problems, using appropriate numerical and non-numerical techniques. They will evaluate evidence and arguments to present reasoned conclusions.
7.4 Grade E
Candidates will demonstrate knowledge and understanding of a limited range of economic theories and concepts. They will show some ability to use this knowledge and understanding in order to analyse familiar and unfamiliar situations, issues and problems making use of numerical and/or non-numerical techniques. Candidates' evaluation of evidence and arguments will be limited.