Economics - Year 13

Economics Overview

Term 1: Business behaviour and the labour market

3.1 Business growth

3.1.1 Sizes and types of firms

3.1.2 Business growth

3.1.3 Demergers

3.2 Business objectives

3.2.1 Business objectives

3.3 Revenues, costs and profits

3.3.1 Revenue

3.3.2 Costs

3.3.3 Economies and diseconomies of scale

3.3.4 Normal profits, supernormal profits and losses

  1. End of unit assessments based on Topic 3.1, 3.2 and 3.3, these assessments are completed in timed conditions and are based on A-level exam questions, which helps prepare students for their A-Level examinations
Business growth

When a business increases the size of its operations This could be: Internally Opening new stores Franchising Externally Mergers Takeovers

Public sector organisations

That sector of the economy that is owned and controlled by the government rather than individuals or groups of individuals

Private sector organisations

The sector of the economy that is owned and controlled by individuals or groups of individuals rather than by the government

Principal-agent problem

A situation that occurs when there is a difficulty in getting one party, the manager or director, to work in the best interests of the principal party, the owners

Demergers

The process of splitting a business into separate components

Business objectives

Targets that a business wants to achieve within a set period of time

Revenue

The income received by a firm from selling goods and services

Costs

Expenditures incurred by a firm as part of the firm’s operations

Economies of scale

The advantages enjoyed by a firm, when unit costs fall, as it increases the scale of production

Diseconomies of scale

The problems experienced when unit costs, or average cost per unit, rise as a firm increases the scale of production

Normal profit

The minimum level of profit required by a firm to continue to operate and remain competitive in a market

Supernormal profit

Profit in excess of normal profit that occurs when average revenue > average total cost (AR > ATC)

Losses

The situation where total costs made by a business are greater than total revenue

  • Spiritual
  • Moral
  • Social
  • Cultural
Develop the individual:

Understanding of the global impact of companies and economic policy.

Create a supportive community:

Group work and the development of research will help create an environment where students will support each other.

Term 2: Business behaviour and the labour market 2

3.4 Market structures

3.4.1 Efficiency

3.4.2 Perfect competition

3.4.3 Monopolistic competition

3.4.4 Oligopoly

3.4.5 Monopoly

3.4.6 Monopsony

3.4.7 Contestability

3.5 Labour market

3.5.1 Demand for labour

3.5.2 Supply of labour

3.5.3 Wage determination in competitive and non-competitive markets

3.6 Government intervention

3.6.1 Government intervention

3.6.2 The impact of government intervention

  1. End of unit assessments based on Topic 3.4, 3.5 and 3.6, These assessments are completed in timed conditions and are based on A-level exam questions, which helps prepare students for their A-Level examinations.
Efficiency

When the maximum amount of products are produced at their minimum cost whilst maximising their benefit to society

Inefficiency

A situation where a firm does not maximise the amount of products it produces, operates above minimum cost and does not maximise benefits to society

Perfect competition

A hypothetical market structure where all firms sell homogenous products and are price takers

Monopolistic competition

A type of imperfect competition with many firms selling differentiated products.

Oligopoly

A type of market structure where a few firms dominate, the concentration ratio is high

Monopolies

A market structure where there is only one producer in an industry

Monopsony

A market structure where there is a sole (pure monopsony) or dominant buyer in the market

Contestability

The degree to which markets are contestable i.e. the degree of freedom to enter or exit the market, the degree of sunk costs and the degree of perfect knowledge

Demand for labour

A derived demand for workers directly linked to the demand for the product being made

Derived demand

The demand for a good or factor of production that results from the demand for something else

Supply of labour

The total number of hours that a worker is willing to work at a specific real wage rate

Maximum wages

A situation where the government cap the amount payable to employees

Minimum wages

When the government ensure that all employees are paid above a set wage rate

Government intervention

The use of regulatory frameworks to improve the working of individual markets

  • Spiritual
  • Moral
  • Social
  • Cultural
Develop the individual:

Develop revision skills and further introduce global economics.

Create a supportive community:

Students work together t understand the concepts being introduced.

Term 3: A Global perspective

4.1 International economics

4.1.1 Globalisation

4.1.2 Specialisation and trade

4.1.3 Pattern of trade

4.1.4 Terms of trade

4.1.5 Trading blocs and the World Trade Organisation (WTO)

4.1.6 Restrictions on free trade

4.1.7 Balance of payments

4.1.8 Exchange rates

4.1.9 International competitiveness

4.2 Poverty and inequality

4.2.1 Absolute and relative poverty

4.2.2 Inequality

  1. End of unit assessments based on Topic 4.1 and 4.2, these assessments are completed in timed conditions and are based on A-level exam questions, which helps prepare students for their A-Level examinations
Globalisation

The integration of international economies leading to a world market

Specialisation

When economic units, such as individuals, firms, regions or countries, concentrate on producing specific goods or services

The goods and services that a country trades and who it trades with

Pattern of trade

Terms of trade

The terms of trade is the ratio of export prices to import prices

Trading blocs

Economic units formed when the governments of a group of countries agree to trade together freely i.e. normally with no trade barriers

World Trade Organisation (WTO)

An organisation whose purpose is to promote free trade by persuading countries to abolish import tariffs and other barriers

Restrictions on free trade

The instruments of policy that are used by governments to limit the free movement of goods and services between countries

Balance of payments

A record of a country’s trade in goods and services, investment income and transfers with the rest of the world

Exchange rate systems

The way in which the value of a domestic currency e.g. £ is determined. Exchange rate systems include floating, fixed and managed exchange rates

International competitiveness

The ability of a business to compete in global markets to become a leader in a given industry across the world

Absolute poverty

When an individual cannot afford the basic needs of life in the country in which they live

Wealth inequality

This occurs when there is a disparity in the stock of financial assets e.g. houses owned by individuals or households

Income inequality

This occurs when there is a disparity in the flow of earnings of individuals or households

  • Spiritual
  • Moral
  • Social
  • Cultural
Develop the individual:

Student will get an appreciation of how market failure works and is impacted by governments and companies.

Create a supportive community:

Through group discussion and independent learning, students will develop analytical and evaluative skills.

Term 4: A Global perspective 2

4.3 Emerging and developing economies

4.3.1 Measures of development

4.3.2 Factors influencing growth and development

4.3.3 Strategies influencing growth and development

4.4 The financial sector

4.4.1 Role of financial markets

4.4.2 Market failure in the financial sector

4.4.3 Role of central banks

4.5 Role of the state in the macroeconomy

4.5.1 Public expenditure

4.5.2 Taxation

4.5.3 Public sector finances

4.5.4 Macroeconomic policies in a global context

  1. End of unit assessments based on Topic 4.3, 4.4 and 4.5, These assessments are completed in timed conditions and are based on A-level exam questions, which helps prepare students for their A-Level examinations
Measures of development

Indicators used to look at the extent to which countries have improved their economic wellbeing and quality of life

Growth

An increase in the value of real output in an economy over time

Development

The process of improving economic well-being and quality of life

Financial markets

One where buyers and sellers exchange financial assets (securities) such as shares (equities), currency or bonds

Market failure

When the market is unable to efficiently allocate scarce resources to meet the needs of society

Central banks

The institution that manages currency, money supply and monetary policy, as well as providing oversight of the commercial banking system

Market failure

When the market is unable to efficiently allocate scarce resources to meet the needs of society

  • Spiritual
  • Moral
  • Social
  • Cultural
Develop the individual:

Group and individual work will help develop skills of challenging other peoples ideas and influencing skills.

Create a supportive community:

Help student recognise issues in the economy and to have differing view and accept that other will challenge their views.

Term 5: Revision of all four themes

Revision for theme 1,2,3 and 4.

  1. Paper 1- Markets and how they work. (theme 1 and 4) Paper 2- Competing in the global economy (theme 2 and 3) Paper 3- The economic environment and business (theme 1,2,3 and 4)
  • Spiritual
  • Moral
  • Social
  • Cultural
Develop the individual:

Test all assessment objectives in all four themes.

Create a supportive community:

Mentoring and helping each other to achieve the best possible grade in the final examination.