Economics

What is Economics AS/A level about?

AS and A level Economics aims to give an insight into key issues in the news affecting everyday life. Our goal is to allow you to understand the forces driving things like the price of oil, exchange rates and the level of unemployment in an economy. Big areas of the course include:

 

¨       Interest rates; what are they, why do they change, what effect do they have?

¨       Unemployment; why does it happen, what can be done?

¨       Exchange rates – why are they so variable, and why do they matter

¨       Prices; why do they always seem to rise?

¨       Business; why and how do firms compete?

 

The subject is split into two main sections, microeconomics and macroeconomics. Whereas macro looks at the big issues affecting the economy as a whole (unemployment, inflation, growth and so on), micro looks at a smaller scale; the pricing of individual products like oil or gold; the salaries paid to different people, and the reasons for any differences.

The feel of the subject is one that looks at the reasons why changes occur, and builds models to help you to analyse changes. Hence a student having studied Economics would understand clearly why prices of oil, copper, gold, silver and wood are rising quickly at present. They would understand why unemployment in the UK is so much lower than in Germany. They would understand why some countries are so much richer than others, and what can be done about it.

Taken together, micro and macroeconomics give a complete understanding of the economy as a whole that will be valuable in career terms as well as bringing an increased understanding of the last five minutes of the news!

What does the course consist of?

 

The AS (units 1 and 2) aims to give a broad understanding of the whole of Economics – it forms a complete course in its own right. By the end of the first year you will have a very good understanding of:

  • The forces driving the UK and other global economies
  • The sets of policies available to the UK government to make the economy stronger.
  • Why price for different goods and services are at different levels and the forces that might make them change.
  • Why governments need to intervene in the supply of some goods and services with taxes or laws.

 

The A2 (units 3 and 4) looks at issues in more detail, as well as expanding the scope of analysis from rich successful economies to poorer struggling ones. We see how the same sets of principles which explain why economies such as the UK and the US are successful also allow us to understand the obstacles keeping countries such as Tanzania or Ethiopia in poverty. The key areas of study are:

  • How firms compete with one another and the consequences of monopoly power
  • Further, more detailed analysis of the big issues facing countries such as unemployment, inflation, Growth and the Balance of Payments.
  • In-depth analysis of the issues affecting less developed economies, why some poorer countries have succeed in growing quickly, whereas others are still desperately poor.

 

 

Sample questions

Q1 £ stronger against the dollar since 2001

Using the data, evaluate the likely impact of the pound’s rise since 2002 on the UK economy

Q2) Sun, sea but no visitors: Spain's hot spots lose their appeal for Britons

Alarmed by a drop in visitor numbers of up to 20 per cent, Spain has launched a frenzy of last-minute discounts - some prices slashed by 50 per cent - to tempt once-loyal visitors back to the delights of sun, sand and sangria

Spanish experts cite a number of causes for the downturn, including the growing strength of the euro, the fear of street crime, the slackening German economy, competition from cheaper and more exotic resorts in Turkey, Tunisia, Morocco, Bulgaria and Croatia, a saturation of Spain's cheap package market and even fall-out from the World Cup.

The problem is that the supply of tourist beds continues to increase unchecked, as more and more local entrepreneurs have tried to cash in on the boom that started back in the 1950s. With few planning controls, putting up a hotel and opening for business is essentially very straightforward.

Explain using supply and demand analysis why Spanish tour operators have been forced to cut prices.                                           

 

 

 

Who does the subject suit?

Anyone with an interest in knowing more about the way the world works. Students take Economics in combination with a very wide array of other subjects - everything ranging from Art and English Literature at one end to Further Maths and Physics at the other.

 

A common misconception is that a strong mathematical background is important for the A level - this is not true; all that is needed is an ability to argue a case, to compare theory with reality and observe the differences, but these are the skills needed for almost any AS/A2 level. Many students have taken up Economics as an additional AS subject only to find that they have enjoyed it so much they have decided to study it at university.

What will it be like studying Economics at d’Overbroeck’s?Students enjoy Economics at d’Overbroeck’s because it is contemporary and rooted in the real world, but at the same time it is always closely related to a clearly explained set of economic theory. Students always feel that their views are valued, and lessons are based around student input – student examples, ideas and arguments all form an integral part of developing a collective understanding of the work covered.

Students also comment on the excellent level of support available to all students whenever they have issues. From a support website designed and written by the Head of Department, to weekly support sessions or individual one-to-one attention, students feel that they matter, that their progress is being monitored and that there is always someone or somewhere to turn if they face difficulties. 

The most common problems students elsewhere have with Economics is that they get lost with the theory and are then unable to apply it successfully to the real world. Our approach is one which will ensure that you don’t get lost, and will therefore be able to get the most out of your study of a vibrant and dynamic subject.

Which books can I read to get a sense of the subject?

 The main textbook is Alain Anderton’s Economics  (Causeway Press), but other more readable introductions include:

“The Undercover Economist” by Tim Harford (Abacus) 

“The Great Unravelling” by Paul Krugman (Penguin)

 

Good websites to look at 

The UK’s outstanding economics website is www.tutor2u.net with a whole array or economics based resources, and an excellent blog which will give a great feel for the subject.

The College’s own department’s website will give you a sense of the subject at d’Overbroeck’s (www.economicsalevel.co.uk) 

The BBC’s website is also excellent, the most relevant section being: news.bbc.co.uk/1/hi/business/economy

 

Who will teach me?

Simon Harrison (BA) has been Head of Department since 1998. He graduated in PPE from University College, Oxford in 1988 and has worked at d'Overbroeck's since. Simon is a senior examiner for WJEC Economics and has been involved in the development of the new specification.

Andy Sheahan (BSc(Econ)) graduated from UCL in Economics. He has taught Economics at d'Overbroeck's for 20 years, during which time he has taken a second degree in Philosophy through the University of London part time. Andy has taught Philosophy at various times for the college, but the work-load in the Economics Department means that his efforts and enthusiasm are now channelled solely into Economics.

Richard Knowles (MA, DPhil) is the College’s AdministrativePrincipal is another Oxford PPE graduate. He has taught at undergraduate level within Oxford University, and has worked at d'Overbroeck's for over 20 years. He rose rapidly to become Head of Economics, until his burgeoning responsibilities elsewhere in the College led him to relinquish the role in 1998.

What are the results like?

Have been consistently excellent over a number of years. In the last 4 years 84% of students have scored either A or B grades.

In terms of the College's own value-added system (where results are analysed in comparison with the students' GCSE results, giving an idea of what they might have been 'expected' to get), Economics is similarly excellent, with students who have scored only modest GCSE grades consistently coming out with A and B grades at AS/A level.

What can I go on to do with it?

Whether or not you go on to read an Economics degree, Economics is well regarded by universities as a rigorous A level, because of the analytical skills that it teaches. The model-based approach of the subject gives a good mental framework for almost any subsequent degree.

Statistically, those students who do take a degree in Economics on average command higher starting salaries out of university, and are more likely to make it into the ‘elite’ graduate jobs in areas such as management consultancy.

This year, student destinations for Economics based courses at university included: Cambridge, LSE, Manchester, Bath, UCL, Royal Holloway and Aston