Cambridge A & AS Level- Economics

by Nandana Surendran

Students learn how to explain and analyse economic issues and arguments, evaluate economic information, and organise, present and communicate ideas and judgements clearly.

The syllabus covers a range of fundamental economic ideas, including an introduction to the price system and government intervention, international trade and exchange rates, the measurement of employment and inflation, and the causes and consequences of inflation. Students also study the theory of the firm, market failure, macroeconomic theory and policy, and economic growth and development.

Aims of the Syllabus

The syllabus aims to enable candidates to develop-
• An understanding of the factual knowledge of economics
• A facility for self-expression, not only in writing but also in using additional aids, such as statistics and diagrams, where appropriate
• the habit of using works of reference as sources of data specific to economics
• the habit of reading critically to gain information about the changing economy we live in
• An appreciation of the methods of study used by the economist, and of the most effective ways economic data may be analysed, correlated, discussed and presented.

Syllabus

1. Basic economic ideas and resource allocation
• 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
A LEVEL-
• Efficient resource allocation
• Externalities and market failure
• Social costs and benefits; cost-benefit analysis

2. The price system and the micro economy
• 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
A LEVEL-
• Law of diminishing marginal utility
• Indifference curves
• Budget lines
• Types of cost, revenue and profit, short-run and long-run production
• Different market structures
• Growth and survival of firms
• Differing objectives of a firm

3. Government microeconomic intervention
• Maximum and minimum prices
• Taxes (direct and indirect)
• Subsidies
• Transfer payments
• Direct provision of goods and services
• Nationalisation and privatisation
A LEVEL-
• Policies to achieve efficient resource allocation and correct market failure
• Equity and policies towards income and wealth redistribution
• Labour market forces and government intervention:
– Demand and supply of labour
– Wage determination in perfect markets
– Wage determination in imperfect markets
• Government failure in microeconomic intervention

4. The macro economy
• Aggregate Demand and Aggregate Supply analysis
• Inflation
• Balance of payments
• Exchange rates
• The terms of trade
• Principles of absolute and comparative advantage
• Protectionism
A LEVEL-
• Economic growth, economic development and sustainability
• National Income statistics
• Classification of countries
• Employment/unemployment
• The circular flow of income
• Money supply (theory)
• Keynesian and Monetarist schools
• The demand for money and interest rate determination
• Policies towards developing economies; policies of trade and aid

5. Government macro intervention
• Types of policy: fiscal, monetary and supply side policy
• Policies to correct balance of payments disequilibrium
• Policies to correct inflation and deflation
A LEVEL-
• Government macro policy aims
• Inter-connectedness of problems
• Effectiveness of policy options to meet all macroeconomic objectives

Objectives of Assessment

1. Knowledge and understanding
Demonstrate knowledge and understanding.

2. Application
Interpret and apply knowledge and understanding to information presented in written, numerical or graphical form.

3. Analysis
Analyse economic issues and arguments, using relevant economic concepts, theories and information, and communicate conclusions in a clear, reasoned manner.

4. Evaluation
Critically evaluate economic information, arguments, proposals and policies, taking into consideration relevant information and economic principles and distinguishing facts from hypothetical statements and value judgements.

Assessment
For Cambridge International AS & A Level Economics, candidates:
• Take Papers 1 and 2 only (for the Cambridge International AS Level qualification)
(or)
• Follow a staged assessment route by taking Papers 1 and 2 (for the Cambridge International AS Level qualification) in one series, then Papers 3 and 4 (for the Cambridge International A Level qualification) in a later series
(or)
• Take Papers 1, 2, 3 and 4 in the same examination series (for the Cambridge International A Level qualification).

COMPONENTS-

1. Paper 1 Multiple Choice
30 multiple choice questions based on the AS Level syllabus content
(1 hour)
30 marks
AS Level- 40%
A Level- 20%

2. Paper 2 Data Response and Essay
Section A: one data response question
(20 marks)
AS Level- 30%
A level- 15%
Section B: one structured essay from a choice of three
Based on the AS Level syllabus content
(20 marks)
AS Level- 30%
A Level- 15%
40 marks
(1 hour 30 minutes)

3. Paper 3 Multiple Choice
30 multiple choice questions based on the A Level syllabus content
(1 hour 15 minutes)
30 marks
A Level- 15%

4. Paper 4 Data Response and Essays
Section A: one data response question
(20 marks)
A Level- 10%
Section B: two essays from a choice of six
Based on the A Level syllabus content
(50 marks)
A Level- 25%
(2 hours 15 minutes)
70 marks

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