A LEVEL – ECONOMICS

Exam Format
A Level Economics consists of 4 units in total:
AS Level = 2 units
A2 Level = 2 units

AS Level
Unit 1: ECON1 – Markets and Market Failure
Examination: 1 hour 15 minutes

Unit 2: ECON2 – The National Economy

Examination: 1 hour 15 minutes

A2 Level
Unit 3: ECON3 – Business Economics and the Distribution of Income
Examination: 2 hours

Unit 4: ECON4 – The National and International Economy

Examination: 2 hours

Course summary
This course is designed to allow you to study at your own pace and is designed to
develop an interest and understanding of economics in the real world, both on a
business and personal level.

No prior knowledge of the subject is required, however basic knowledge is desirable.

It is recommended that students have attained GCSE or equivalent communication and
literacy skills in English and numeracy skills in mathematics.

This course is suitable to be studied by all students irrespective of age, creed, religion or
gender.

Read on to find out more about our A Level Economics distance learning course and how
you can learn with our amazing materials and online support.
Course Content
An outline of what is offered in our A Level Economics course:

AS Level
Unit 1: ECON1 – Markets and Market Failure
• The Economic Problem
• The Allocation of Resources in Competitive Markets
• Production and Efficiency
• Market Failure
• Government Intervention in the Market

Unit 2: ECON2 – The National Economy

• Introduction to Macroeconomics
• How the Macro-economy works: AD/AS analysis, the circular flow of income and
related concepts
• Economic performance
• Macroeconomic policy

A2 Level
Unit 3: ECON3 – Business Economics and the Distribution of Income
• The Firm: Objectives, Costs and Revenues
• Competitive Markets
• Marketing Strategies
• Concentrated Markets
• The Labour Market
• Government Intervention in the Market

Unit 4: ECON4 – The National and International Economy

• Macroeconomic Indicators
• Managing the national economy
• The international economy

Course Outline in Detail:

Unit 1: ECON1 – Markets and Market Failure

The Economic Problem

• The Nature and Purpose of Economic Activity and the Economic Problem
 • Economic Resources
• The Economic Objectives of Individuals, Firms and Government
• Scarcity, choice and the allocation of resources
• Production Possibility Diagrams
• Value Judgements, Positive and Normative statements

The Allocation of Resources in Competitive Markets

• The Determinants of the Demand for Goods and Services
• Price, Income and Cross Elasticity’s of Demand
• The Determinants of the Supply of Goods and Services
• Price Elasticity of Supply
• The Determination of Equilibrium Market Prices
• Applications of Demand and Supply Analysis to Particular Markets
• The Interrelationship Between Markets
• How Markets and Prices Allocate Resources

Production and Efficiency

• Specialisation, Division of Labour and Exchange
• Production
• Economies and Diseconomies of Scale

Market Failure
• The Meaning of Market Failure
• Public Goods
• Positive and Negative Externalities in Consumption and Production
• Merit and Demerit Goods
• Monopoly and the Allocation of Resources
• Immobility of Factors of Production
• Inequalities in the Distribution of Income and Wealth

Government Intervention in the Market

• Rationale for Government Intervention
• Methods of Government Intervention to Correct Distortions in Individual
• The Impact of Government Intervention on Market Outcomes
• Government Failure
Unit 2: ECON2 – The National Economy
Introduction to Macroeconomics
• The Measurement of macroeconomic performance
• Macroeconomic Indicators
• The Economic Cycle

How the Macro-economy works: AD/AS analysis, the circular flow of income
and related concepts
• Circular flow of income
• Aggregate Demand (AD) and Aggregate Supply (AS) Analysis
• The Determinants of Aggregate Demand
• Aggregate Demand and the Level of Economic Activity
• Determinants of Short-Run Aggregate Supply
• Determinants of Long-Run Aggregate Supply

Economic Performance
• The Objectives of Government Economic Policy
• Economic Growth
• Inflation and Deflation
• Employment and Unemployment
• The Balance of Payments on Current Account

Macroeconomic Policy
• Fiscal Policy
• Monetary Policy
• Supply-Side Policies

Unit 3: ECON3 – Business Economics and the Distribution of Income

The Firm: Objectives, Costs and Revenues

• The objectives if firms
• The Divorce of ownership from control
• The Law of diminishing returns and returns to scale
• Fixed and Variable Costs, Marginal, Average and Total Costs, Short-run and
Longrun
• Economies and Diseconomies of Scale
• Technological Change
• Total, Average and Marginal Revenue
Competitive Markets
• The Model of Perfect Competition
• Competition and the Efficient Allocation of Resources
• The Dynamics of Competition and Competitive Market Processes

Concentrated Markets
• Monopoly and Oligopoly
• Price Makers and Price Takers
• The Growth of Firms
• Sources of Monopoly Power
• The Model of Monopoly
• Collusive and Non-Collusive Oligopoly
• Interdependence in Oligopolistic Markets
• Price Discrimination
• Consumer and Producer Surplus
• Contestable and Non-contestable Markets
• Market Structure, Static Efficiency, Dynamic Efficiency and Resource Allocation

The Labour Market

• The Demand for Labour, Marginal Productivity Theory
• Influences upon the Supply of Labour to Different Markets
• The Determination of Relative Wage Rates and Levels of Employment in Perfectly
• Competitive Labour Markets
• The Determination of Relative Wage Rates and Levels of Employment in
• Imperfectly Competitive Labour Markets
• The Influence of Trade Unions in Determining Wages and Levels of Employment
• The Impact of a National Minimum Wage Rate
• Discrimination in the Labour Market
• Discrimination in the Labour Market

Government Intervention in the Market

• Market failure and Government failure
• Competition Policy
• Public Ownership, Privatisation, Regulation and De-regulation of Markets
• Notions of Equity
• The Problem of Poverty
• Government Policies to Alleviate Poverty and to Influence the Distribution of
 • Income and Wealth
• Cost Benefit Analysis

Unit 4: ECON4 – The National and International Economy

Macroeconomic Indicators
• The Economic Cycle and Economic Growth
• Uses of National Income Data
• Unemployment
• Inflation and Deflation

Managing the National Economy

• Macroeconomic Models and Policies
• Fiscal Policy
• Supply-Side Policies
• Monetary Policy, the
• Money Supply and Interest Rates
• Exchange Rate Policy

The International Economy

• Globalisation
• Trade
• The balance of payments
• Exchange rate systems
• The European Union

Summary of Assessments
Unit 1: ECON1 – Markets and Market Failure
• 50% of AS Level
• 25% of A Level
• 1 hour 15 minutes examination
• 75 marks
• Section A: 25 compulsory objective test items, 25 marks
• Section B: Two optional data response questions are set; candidates answer
one, 50 marks

Unit 2: ECON2 – The National Economy

• 50% of As Level
 • 30% of A Level
• 1 hour 15 minutes examination
• 75 marks
• Section A: 25 compulsory objective test items, 25 marks
• Section B: Two optional data response questions are set; candidates answer
one, 50 marks

Unit 3: ECON3 – Business Economics and the Distribution of Income

• 25% of A Level
• 2 hour examination
• 80 marks
• Section A: Two optional data response questions are set; candidates answer
one, 40 marks, one question will always relate to the global context and the other
to the European Union context.
• Section B: Three optional essay questions are set; candidates answer one, 40
marks

Unit 4: ECON4 – The National and International Economy

• 25 % of A Level
• 2 hour examination
• 80 marks
• Section A: Two optional data response questions are set; candidates answer
one, 40 marks, one question will always relate to the global context and the other
to the European Union context.
• Section B: Three optional essay questions are set; candidates answer one, 40
marks

Assignment Information
Throughout the course there will be self-assessment questions, and tutor marked
questions, to enable students to monitor their progress.

Recommended hours of study

It is recommended that 150 hours of your time should be allocated towards study for the
AS examinations.

It is recommended that 150 hours of your time should be allocated towards study for the
A2 examinations.
Recommended Reading:
AQA AS Economics Student Book, 2nd edition
by Chris Vidler and Charles Smith
ISBN-10: 0435692224
ISBN-13: 978-0435692223

AQA A2 Economics Student's Book

by Jim Lawrence, Steve Stoddard
ISBN-10: 0748799656
ISBN-13: 978-0748799657

Revision Guide to AS & A2 Level Economics – James Keefe

Publisher – Informe
ISBN – 0 907529 70 4

Support
As a student of UK Open Learning you will have access to tutor via email who will mark
your work and guide you through the course to ensure you are ready for your
examinations.

Examination Centres
UK Open Learning will provide you with a list of examination centres but it is entirely
your responsibility to find a centre which will accept you as an external candidate.
In some cases you should be prepared to travel to another town or city to take your
exams.

The contract for sitting exams is between you and the centre and we will provide you
with comprehensive instructions on when and how to deal with the examination centre.

Please email for a list of centres and we will provide you with a link or a PDF for you to
contact centres directly. We are unable to provide this information by telephone.

Entry Requirements
Basic English reading and writing skills. It is recommended that students should have
acquired the skills and knowledge associated with a GCSE course or equivalent.
Pre-requisites
To take an A Level with UK Open Learning it is recommended that you should have a
GCSE grade C or above in your chosen subject.

Qualification
AS +A2 = A level in Economics. Both AS and A2 level courses and examinations must be
successfully completed to gain a full A level.

Language of Examination
Units are provided in English only

Frequently Asked Questions

Q. Do your courses meet the latest syllabus changes?
A. yes, all our course materials meet any changes and will be updated free of charge if
further changes are made.

Q. Why do I have to find a centre myself?

A. We have students all over the UK and Europe and it is impossible for us to arrange
dates and times for individual students.

Q. What if I cannot find an examination centre in my home town?

A. If you wish to gain the qualification then be prepared to travel it is worth it!

Q. How much are exam fees?

A. These vary from centre to centre so please check with your local centre.

Q. Are the courses paper based or on-line?

A. All our courses are paper based and come in attractive sturdy folders.

Q. How do I contact my tutor?

A. Tutors are all working Teachers or Lecturers so contact is by email only.

Q. Why can I not take my exams when I have completed the course and why do I have
to wait?
A. Exams are taken at the same times as schools and colleges and are not flexible.
Q. I want to take my exams but there are only a few months to study, is this possible?
A. Depending on the time of year, it is sometimes impossible to complete your studies in
a short space of time as your work has to be marked and checked. More importantly the
examination boards have cut off times which are not flexible. See our web site for
further information.

Q. Will I receive UCAS points on completion of this course?

A. Yes all of our A Levels carry UCAS points. The number of points awarded will depend
on the grade you achieve.

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