Economics

What is Economics?

·         Economics is the study of the ways in which individuals and societies choose among the alternative uses of scarce resources to satisfy wants.  In other words we have an unending wish list of things that we would like to have, but a limited amount of labour, raw materials, machines and other resources to produce them.

·         Why do individuals specialise in one job or one part of a production process?  Why has the price of computers fallen even though the demand for them is increasing?  Is the minimum wage a good idea?  What can be done about global warming?  Should the government increase taxes in order to increase spending on education and health care?

·         These are the sort of issues that are dealt with in Economics.  Pupils sit the CCEA Board examinations, and whilst there are no basic requirements at GCSE level, in order to study the subject, pupils need to be able to undertake basic calculations with the aid of a calculator.  While mathematical ability is useful, the style of assessment favours those with skills in written communication.

AS Modules

1.      Markets and Prices

Every day you make choices about the goods and services you could buy.  If you decide to buy an extra can of Coke, for example, you may not be able to afford a chocolate bar.  Society faces a similar choice; the wants of its members are unlimited, but the resources available to satisfy those wants are limited.  This module examines how prices are used to signal to producers what they should produce.  An increase in demand for a product by consumers, for example, will be reflected in a willingness to pay more for it, making it attractive for suppliers to increase production.

This module also examines situations where leaving production of a good or service to the forces of demand and supply produces an unsatisfactory outcome.  If, for example, everyone had to pay the full cost of their education directly, rather than through taxation, some would decide to have less of it.  It is, however, in society’s interest to have a well educated workforce.  This explains government intervention to ensure that individuals have the opportunity to, and are required to, attend school until the age of sixteen.

2.      The National Economy

Why should the government be concerned about inflation, imports and exports, unemployment and economic growth (the rate at which a country’s income grows)?  The module explores these issues and examines the government’s policy options to achieve its goals with respect to each.

A2 Modules

1.      Business Economics

In some industries, such as farming, there are many small firms while in others such as electricity supply in Northern Ireland, there is only one.  This module explains why this is so and why, in some industries, the government would wish to encourage competition.  It also examines the impact of other influences on firms, such as globalisation (connections between economies at a global level), the environment and the internet.

2.      The Global Economy.

Why is trade between countries a good idea?  Should a government be concerned when imports exceed exports?  What are the advantages of membership of the European Union?  Why does the vast majority of the world’s population face a daily struggle for survival?  How can they escape from poverty in a way that is sustainable for the environment?  These and other issues are examined in this module.

Assessment

All modules are assessed by examination. At AS level each paper is 1 hour 30 minutes long and consists of one compulsory data response question and one structured essay, selected from a choice of three.  The data response question consists of one or more pieces of information such as newspaper articles or statistical tables, on which a series of questions is asked.  The structured essays are essays which are divided into three parts.  At A2 level each paper is two hours long and consists of one compulsory unseen case study and one essay, selected from a choice of three.  The unseen case study is similar to the data response question at AS level, but will contain more information, while the essay will be in two rather than three sections, as is the case at AS level.

Other Notes

·         Economics can be studied at degree level and forms a major element of most courses in business studies, management and accountancy.  It also provides a useful background for anyone considering the study of politics, social policy, or economic history at degree level.

·         A number of surveys place Economics graduates at, or near the top of, the list of graduate earnings.  Employment opportunities for economists exist within banks, the civil service, stock-broking and management consultancy firms.  A recent Bank of England report warned of a shortage of trained economists, with the Bank and Civil Service finding difficulty in attracting suitably qualified applicants to fill posts.

·         Not everyone who studies economics at degree level will wish to become professional economists.  However, study of the subject equips students with knowledge and analytical and communication skills useful in a range of contexts and many economics graduates are found in careers in management, administration and accountancy.