Visit the Youtube channel of Khan Academy, where you can find a series of tutorial videos in economics.

Chapter 1: Basic economic ideas and resource allocation

Outline

At the outset of the course, it is essential that learners develop their understanding of the basic economic problem of scarcity and choice, and why this arises. This section also introduces the key fundamental economic ideas and principles which will underpin learning throughout the rest of the course. In particular, basic economic concepts and their links to the key concept Scarcity and choice are examined in detail.

The AS Level (2iec) topics covered in this section are:

  • scarcity, choice and opportunity cost

  • positive and normative statements

  • factors of production

  • resource allocation in different economic systems and issues of transition

  • production possibility curves

  • money

  • classification of goods and services.


Week Date Topic Coursework

Scarcity, choice and opportunity cost

(1) Scarcity and Choices (tutor2u)
(2) Theory of Demand (tutor2u)
(3) Explaining Fixed and Variable Costs of Production

Positive and normative statements

(1) Positive and Normative Economic Statements (tutor2u)

Factors of production

(1) Factors of production (tutor2u - broken)

Resource allocation in different economic systems and issues of transition

(1) Scarcity and Choice in Resource Allocation (tutor2u - pdf)
(2) Economic data

Production possibility curves

(1) Production Possibility Frontier (tutor2u)

Money

Classification of goods and services

(1) Externalities - broken

Chapter 2: The price system and the micro economy

Outline

The theory of supply and demand and how it is used to determine market equilibrium levels of price and output are fundamental requirements for understanding and applying economic knowledge throughout the curriculum and in real-life practice. This section provides a basic platform from which learners are able to analyse and evaluate a variety of alternative market situations.

The AS Level (2iec) topics covered in this section are:

  • demand and supply curves

  • price elasticity, income elasticity and cross-elasticities of demand

  • price elasticity of supply

  • interaction of demand and supply

  • market equilibrium and disequilibrium

  • consumer and producer surplus.


Week Date Topic Coursework

Demand and supply curves

(1) Theory of Demand (tutor2u)
(2) Theory of Supply (tutor2u)

Price elasticity, income elasticity and cross-elasticities of demand

(1) Explaining Price Elasticity of Demand
(2) Elasticity
(3) Income elasticity of demand
(4) Cross Price Elasticity of Demand
(5) Price elasticity of demand

Price elasticity of supply

(1) Explaining Price Elasticity of Supply (tutor2u)
(2) Elasticity
(3) Explaining Price Elasticity of Supply
(4) Explaining Price Elasticity of Demand

Interaction of demand and supply; Market equilibrium and disequilibrium

(1) Equilibrium Market Prices (tutor2u)
(2) Coffee Market
(3) Cross Price Elasticity of Demand

Consumer and producer surplus

Chapter 3: Government microeconomic intervention

This topic builds upon the market analysis developed in section 2. The emphasis is on government intervention in the market and learners will be given opportunities to apply theory introduced in section 2.

Outline

The AS Level topics covered in this section are:

  • maximum, and minimum prices

  • taxes (direct and indirect)

  • subsidies

  • transfer payments

  • direct provision of goods and services

  • nationalisation and privatisation.


Week Date Topic Coursework

13

6/1 — 10/1

Government microeconomic intervention (part 1)

Maximum and minimum prices

(1) Watch tutor2u video,
(2) Watch youtube video,
(3) Read Economics Online,
(4) Study revision guide (pages 32-33),
(5) Read coursebook (pages 68-69),
(6) Answer Self-assessment task 3.1 in coursebook (page 70),
(7) Exercise 1 in workbook (page 45),
(8) Progress check A in revision guide (page 33)

Direct and indirect taxes (part 1)

(1) Read Economics Online (tax incidence) and Economics Online (specific tax and ad valorem tax),
(2) Read tutor2u,
(3) Read tutor2u,
(4) Study revision guide (pages 33-36),
(5) Read coursebook (pages 70-73),
(6) Answer Self-assessment task 3.2 in coursebook (page 72)

Direct and indirect taxes (part 2)

(7) Exercises 2 and 3 in workbook (page 46) ,
(8) Check Economics Help for Incidence of tax,
(9) Worksheet: numerical example on average vs. marginal rate of tax.
(10) Revision activity A in revision guide (page 34),
(11) Progress check B in revision guide (page 35),
(12) Progress check C in revision guide (page 36)

14

13/1 — 17/1

Government microeconomic intervention (part 2)

Subsidies;
Transfer payment

(1) Read coursebook (pages 73-74),
(2) Answer Self-assessment task 3.3 in coursebook (page 74),
(3) Exercises 4 and 5.i in workbook (page 47) ,
(4) Revision activity B in revision guide (page 37)

Direct provision of goods and services
Nationalisation and privatisation

(1) Read coursebook (pages 74-76),
(2) Visit tutor2u (public goods and market failure),
(3) Visit tutor2u (analysing and evaluating government intervention in markets),
(4) Read Economics Online (healthcare as a merit good),
(5) Progress check D in revision guide (page 37),
(6) Progress check E in revision guide (page 37),
(7) Revision activity C in revision guide (page 38),
(8) Exercise 5.ii, 6, 7, 8,
(9) Self-assessement task 3.4 in coursebook (page 77),
(10) Self-assessment task 3.5 in coursebook (page 77),
(11) Self-assessment task 3.6 in coursebook (page 78)

Assessment

(1) Exam-style questions in coursebook (page 79),
(2) Data response question in workbook (page 48),
(3) Essay questions in workbook (page 48),
(4) Multiple choice questions in workbook (pages 49-50),
(5) Think like an economist in workbook (pages 51-52),
(6) Improve your answer in workbook (page 53-54),
(7) Multiple choice questions in revision guide (pages 40-41),
(8) Data response questions in revision guide (pages 41-42),
(9) Essay questions (page 43)

Chapter 4: The macroeconomy

This section introduces learners to the study of the economy as a whole, rather than focusing upon the behaviour of particular markets. It develops knowledge and understanding of key macroeconomic indicators such as inflation, balance of payments and exchange rates and enables learners to apply this understanding to analyse and evaluate aggregate economic behaviour in a range of different economic settings.

Outline

The AS Level topics covered in this section are:

  • aggregate demand (AD) and aggregate supply (AS) analysis

  • inflation

  • balance of payments

  • exchange rates

  • the terms of trade

  • principles of absolute and comparative advantage

  • protectionism.


Week Date Topic Coursework

15

20/1 — 24/1

The macroeconomy

Aggregate demand (AD) and aggregate supply (AS) analysis

(1) Read coursebook (pages 81-85),
(2) Visit Economics Online (aggregate demand),
(3) Visit Economics Online (aggregate supply),
(4) Visit tutor2u (aggregate supply),
(5) Research a current macroeconomic problem in your country of choice (use ft.com/macroeconomics),
(6) Self-assessment task 4.1 in coursebook (page 85),
(7) Self-assessment task 4.2 in coursebook (page 85),
(8) Exercises 1, 2 and 3 in workbook (page 56),
(9) Progress check A and B in revision guide (pages 45-46),
(10) Revision activity A in revision guide (page 47)

Inflation

(1) Read coursebook (pages 86-90),
(2) Visit tutor2u (inflation),
(3) Visit tutor2u (real economic data),
(4) Visit Economics Online (price stability),
(5) Self-assessment task 4.3 in coursebook (page 88),
(6) Exercise 4 in workbook (pages 56-57),
(7) Progress check C in revision guide (page 49),
(8) Progress check D, E and F in revision guide (pages 49-50)

Balance of payments

(1) Read coursebook (pages 90-94),
(2) Visit Economics Help (balance of payments disequilibrium),
(3) Visit Economics Online (balance of payments),
(4) Visit Economics Help (UK Balance of Payments),
(5) Self-assessment task 4.4 in coursebook (page 91),
(6) Self-assessment task 4.5 in coursebook (page 93),
(7) Exercise 5 in workbook (page s 57-58),
(8) Revision activity B in revision guide (page 51),
(9) Progress check G in revision guide (page 51),
(10) Revision activity C in revision guide (page 52)

16

27/1 — 31/1

The macroeconomy

Exchange rate

(1) Read coursebook (pages 94-100),
(2) Prepare PowerPoint presentation on the impact of a change of a country’s exchange rate on their key indicators (for Friday),
(3) Self-assessment task in coursebook 4.6 (page 94),
(4) Self-assessment task 4.7 in coursebook (page 98),
(5) Exercise 6 in workbook (page 58),
(6) Progress check H in revision guide (page 53),
(7) Revision activity D in revision guide (page 54)

Terms of trade

(1) Prepare PowerPoint presentation on the data response question,
(2) Visit Economics Online (terms of trade),
(3) Visit Economics Online (policies to promote development), (optional) Visit quandl.com,
(4) Self-assessment task 4.8 in coursebook (page 101),
(5) Exercise 6 in workbook (page 58),
(6) Exercise 8 in workbook (page 59)

Assessment

Chapter 5: Government macro intervention

This section builds on the learning undertaken in the previous AS units to link together macroeconomic theory and government macroeconomic policy. In particular, learners will have the opportunity to focus on the key fiscal, monetary and supply side policy instruments and look at how effective these are in correcting balance of payment deficits, inflation and deflation. Learners will also have plenty of opportunity to look at different approaches and assess and evaluate how effective governments are in achieving their macro-economic aims.

The AS Level topics covered in this section are:

  • types of policy: fiscal, monetary and supply side policy

  • policies to correct balance of payments disequilibrium

  • policies to correct inflation and deflation.


Week Date Topic Coursework

24

2/3 — 6/3

Government macro intervention

Fiscal policy

(1) Expansionary Fiscal Policy: Definition, Examples
(2) Impact of Expansionary Fiscal Policy (Economics Help)
(3) Is a global recession on the horizon? (FT video)
(4) What should macro policymakers do about the coronavirus?

Monetary policy and supply side policies

(1) Monetary Policy - Managing Demand (tutor2u)
(2) What are Supply-Side Policies? (tutor2u)
(3) How the end of QE will affect asset prices (FT video)

Revision (March-April)

Outline

Revise will include the five chapters of the AS level. We will start with elements of chapter 4.


Week Date Topic Coursework

16/3

Terms of trade

\( \textrm{Terms of trade index}\)

\( = \frac{\textrm{index of export prices}}{\textrm{index of import prices}} \times 100\)

(1) Read pages 100-101 in your coursebook (10 min)
(2) Tutorial video (video, 8 min)
(3) Chain of reasoning (video, 4 min)
(4) Question 7 page 58 in your workbook (upload into Teams, 20 min)
(5) Read page 54-55 in your revision guide (10 min)
(6) Describe what is meant by a rise in an economy’s terms of trade. Outline how a change in an economy’s exchange rate and its domestic price level might each cause this to come about. (upload into Teams, 15 min)
(7) Discuss whether a rise in an economy’s terms of trade is likely to be of overall benefit to that economy. (upload into Teams, 20 min)

17/3

Absolute and comparative advantage

(1) Read pages 102-104 in your coursebook (10 min)
(2) Tutorial videos: (i) Absolute advantage (3 min), (ii) Comparative advantage (8 min) (iii) Comparative and absolute advantage, (iv) Comparative advantage specialization and gains from trade
(3) Self-assessment task 4.9 (page 103 in your coursebook, 10 min)
(4) Data response question 1 and 2 (pages 60 and 61 in your workbook, 40 min)
(5) Explain the benefits of free trade as suggested by the principle of comparative advantage. (15 min)
(6) Explain how the principle of comparative advantage might be used to justify Thailand and Vietnam specialising in rice production and Japan specialising in some other product. (10 min)

19/3

Free trade

(1) Read pages 104-108 in your coursebook (20 min)
(2) Tutorial videos:
(i) Patterns of trade (8 min)
(ii) Advantages and Disadvantages of Trade for Developing Countries (8 min)
(iii) Gains from trade (6 min)
(iv) Economic Integration between Countries (5 min)
(v) Customs Union (4 min)
(vi) Difference between Customs Union and Monetary Union (4 min)
(vii) Trade creation (6 min)
(3) This task is optional: Economics of Brexit
(i) Trade Patterns, Customs Unions and the Single Market
(ii) Options for the UK when leaving the EU
(iii) Micro and Macro Effects of the UK leaving the EU
(4) Work on Self-Assessment Task 4.10 (page 105 in your coursebook, 25 min)
(5) Work on Question 10a and 10b (page 59 in your workbook, 15 min)
(6) FT The Big Read: Brexit talks: the brutal reckoning that awaits the UK
(7) Optional: Read 18.1 and 18.2. at Core Econ. You are advised to do the self-assessment MCQs at the end of each section.

23/3

Protectionism

(1) Read pages 108-111 in your coursebook (20 min)
(2) Tutorial videos:
(i) Import Tariffs - Basic Analysis (5 min)
(ii) Analysing and Evaluating Import Tariffs (11 min)
(iii) Dumping (The Economist, 2 min)
(iv) Trade Theory - Import Dumping (8 min)
(v) Synoptic Economics: Trump’s Tariffs on Mexico (8 min)
(vi) Import Quotas - Example Exam Answer (11 min)
(vii) A Level Economics Synoptic Essay Guide: Steel Tariffs (11 min)
(3) Work on Self-Assessment Task 4.11 (page 111 in your coursebook, 15 min)
(4) Think like an economist (pages 64-67 in your workbook)
(5) Watch Dani Rodrik’s video on globalisation and answer the following questions. Hint: Check out this video on Rodrik’s Trilemma.

27/3

Doing Economics: Measuring Climate Change

(1) Read the empirical project 1 on measuring climate change, and complete it with the introduction to Capitalism and Democracy, as well as the Capitalist Revolution and finally Economics of the Environment
(2) Working in Excel:
(i) Part 1.1 The behaviour of average surface temperature over time and
(ii) Part 1.2 Variation in temperature over time
(3) All the applications will be done in your Microsoft 365 account using the online version of Excel. Once you have completed the exercises, you will share your Excel worksheets with me using Assignments .