Outcome 1
Explain the allocation of resources within the economy.
Knowledge and/or skills

Scarcity of resources and the choices of what to produce, how to produce it and for whom.

Opportunity cost.

The determinants of demand and supply.

Interaction within the market.

Price and income elasticity.
Evidence requirements
Evidence will be presented in response to specific questions which may be based on stimulus material.
Evidence must be produced for all parts of the knowledge/skills section. Each time the outcome is assessed candidates will be required to give a satisfactory explanation of:

the basic economic problem

opportunity cost

the determinants of demand and supply

the interaction of demand and supply

elasticity and examples of price and income
Diagrams where appropriate must also be evidenced.
Outcome 1
Explain the allocation of resources within the economy
Knowledge and/or Skills

The basic economic problem

Opportunity cost

Determinants of demand and supply

Interaction of demand and supply

Price and income elasticity
Evidence Requirements
Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that they can:

explain with an example the basic economic problem

explain with an example the concept of opportunity cost

identify changes to demand and supply when two determinants for each are altered

explain with the aid of a diagram/graphical information the interaction of demand and supply in a given scenario

explain the concepts of price elasticity of demand and income elasticity of demand in a given scenario
Evidence will be generated through assessment
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Assessment guidelines
Assessment for this Outcome could include stimulus material including statistical data. Assessment will be carried out under supervision in one sitting and in no more than 60 minutes. Candidates may bring with them one side of A4 notes as source material.
Outcome 3
Explain and evaluate the role of government policy in the UK market.
Knowledge and/or skills

The role of government in market failure, i.e. missing markets, externalities and imperfect competition.

Government policy instruments
—regulation, taxes, public ownership.

Current Government welfare policy.

Current Government competition policy. undertaken in supervised conditions. Candidates will be permitted to refer to the equivalent of 250 words of their own summary notes. Candidates’ notes will be submitted with their response. Candidate responses should demonstrate the correct use of economic terms as appropriate.
Assessment Guidelines
Questions for this Outcome may be based upon stimulus material. Assessment could be undertaken using an integrative assessment approach with Outcome 2, or using an individual instrument of assessment for each
Outcome. Where Outcome 1 is assessed on an integrated basis with Outcome 2 in a single assessment, the permitted notes for each Outcome should be combined. If assessed separately, Outcome 1 will be assessed using specific questions which may be based upon stimulus material. Centres may choose to allocate a time limit for the completion of each assessment.
Outcome 3
Explain and evaluate the role of government policy in the
UK market
Knowledge and/or Skills

The role of government in market failure

Current Government policy

Government policy instruments

Evaluation of Government policy
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Evidence Requirements
Evidence will be presented in response to specific questions which may be based on stimulus material.
Each time the outcome is assessed candidates will be required to:

Explain the role of government in market failure
The remaining knowledge and skills may be obtained on a sample basis. The candidate’s response will be satisfactory when they can:

Select one current government policy on welfare or competition.

Accurately explain the policy and the instruments used to achieve that policy.

Evaluate the policy in relation to UK market.
Assessment guidelines
The assessment should be conducted under supervised conditions, lasting no more than one hour.
Candidates should be allowed to bring with them one sheet of A4 paper as source material. Where possible, current relevant articles from newspapers or the internet could be used as stimulus material.
Evidence Requirements
Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that they can:

explain the role of government in market failure

select one current government policy on either welfare, competition or the environment, and accurately explain the policy selected

identify and describe the instruments used to achieve the policy

evaluate the success or failure of the policy in relation to its use within the UK
Candidate evidence should make correct use of economic terms as appropriate.
Assessment Guidelines
Evidence may be generated through assessment undertaken in open-book conditions. Where stimulus material is used, responses should relate to that material where appropriate.
Assessment for this Outcome may be undertaken using an individual instrument of assessment. This may take the form of a short investigative exercise with a word guide of approximately 800 to 1,000 words in length excluding any appendices.
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Outcome 1
Explain the nature of organisations
Knowledge and/or Skills

Elements of the formal organisation

Elements of the informal organisation

Organisational goals, objectives, and policy

Systems Theory - the internal and external environment of an organisation

Different stakeholders in organisations

Different strategies for organisational control
Evidence Requirements
Evidence for the Knowledge and/or Skills in this
Outcome will be provided on a sample basis . In order to ensure that candidates will not be able to foresee what items they will be questioned about, a different sample of the Knowledge and/or Skills items is required each time the Outcome is assessed.
The candidate must provide evidence of any three from the six items listed below to show that she/he can with reference to a particular situation:

Distinguish between the formal organisation and informal organisation by contrasting relevant elements of each of them

Explain the relationship between organisational goals, objectives, and policy
Outcome 1
Explain the characteristics and purpose of the organisation and its environment
Knowledge and/or Skills

Types of organisation

Formal and informal organisation

Organisational goals, objectives, and policies

Open Systems Theory

Stakeholder Theory

Strategies for organisational control
Evidence Requirements
Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that they can:

correctly identify the main differences between the formal organisation and informal organisation

clearly illustrate the relationship between organisational goals, objectives, and policy and justify their contribution to the effective management of a given organisation

explain the nature of Open Systems Theory and apply it to a given organisation

outline the different stakeholders of an organisation and explain the influence and interest of each stakeholder in a given organisation

propose a strategy of control in a given organisation and justify its suitability
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
Explain the contribution organisational goals or objectives or policy to the effective management of a work organisation

Use Systems Theory to explain relevant aspects of the internal and external environment of an organisation

Identify two different stakeholders of an organisation and explain the role of each stakeholder in the organisation

Justify a suitable strategy of control in a particular situation in an organisation
Evidence for this Outcome should be generated under controlled conditions. Candidates will be permitted to bring with them one A4 page of notes which should be submitted with the candidate’s answer. Candidates should respond to questions set in accordance with the sample. Candidates who achieve a score of 50% or more of the available marks for the questions will have satisfied the Evidence Requirements.
Assessment Guidelines
The assessment can consist of structured questions and should be based on a specific organisation probably in the form of a case study. A suitable time limit for the assessment could be 45 minutes and the questions could be given a total 30 marks.
The same case study could be used for the assessment of all 4 Outcomes. Where this is the case, a suitable length for the case study could be between
1,750 and 2,500 words including any information provided in appendices. Candidates could be given a
Assessment Guidelines
Refer to Outcome 4.
Assessment Guidelines
It is possible that either of two different forms of assessment could be used to generate the necessary evidence.
The first method of assessment could be an open-book response covering Outcomes 1 to 4. It could be based on a case study of a real or fictitious organisation which, for
Outcome 4, would require a solution to a structural problem of a work/organisation. Candidates will be required to examine the given problem and prepare and present their solutions to the problem. If desired this
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copy of the case study before the date of the examination. They could be given a clean copy at the examination in which case there will be no need for them to bring their copy with them.
could be presented in a way which would give candidates an opportunity to provide content which may provide opportunity for integration with Communication:
Analysing and Presenting Complex Information (DE3N
34). While it is recommended that some form of case study stimuli be used for assessment purposes, candidates who have current or past work experience may be able to base their response upon an organisation in which they have or do work. A single case study based upon a real or fictitious organisation can be used for the assessment of all four Outcomes or for any combination of Outcomes.
A second possible option for assessment would be to use separate case studies for each Outcome. If this is the case the case studies are likely to be shorter.
Candidates who have access to a suitable organisation could complete Outcome 4 with reference to that organisation.
It is unlikely that candidates will be assessed via a single submission. Individual Outcomes and/or logical groupings of Outcomes (for example Outcomes 1 and 4 or Outcomes 2 and 3) will most likely provide candidates with the best opportunities to satisfy the Evidence
Requirements of the Unit. Where centres wish, opportunities exist to use more than one instrument of assessment. For example, in addition to the use of structured questions for an Outcome(s), some form of group assessment could be used for Outcome 2.
Any of the Outcomes could be assessed in the
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candidate’s own time via an assessment based upon an organisation that enables the examination of the nature of an organisation and one that could benefit from restructuring. This would enable candidates to explain goals, objectives and policies and identify stakeholders of the organisation; justify control strategies for that organisation; and explain the relevance of systems theory to the organisation. In addition candidates should be able to present an alternative structure.
Candidates could be given approximately two weeks to research and prepare evidence and perhaps a further week to write up the evidence. Centres could use questioning to authenticate learning and to ensure responses are candidates’ own work.
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Outcome 1
Explain statistical techniques for collecting data
Knowledge and/or Skills

Quantitative, ordinal and qualitative data

Sources of secondary data

Survey methods for collecting data

Sampling methods
Evidence Requirements
Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that they can with reference to a particular task:

define and give an example of the following terms: qualitative, ordinal, quantitative, primary, secondary, discrete and continuous

select sources where specified data may be found

select survey methods for data collection

select sampling methods for data collection
Evidence should be generated through assessment undertaken in closed-book controlled conditions.
To achieve this Outcome, candidates should attain 60% of available marks.
Outcome 1
Explain statistical techniques for collecting data
Knowledge and/or Skills

Types of data

Sources of data

Survey methods

Sampling methods
Evidence Requirements
Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that they can:

provide clear and accurate definitions of four types of data, and provide one example of each

identify two appropriate sources where specified types of data may be found

identify and explain appropriate survey methods for data collection in three given circumstances

identify and explain appropriate sampling methods for data collection in three given circumstances
The evidence should be generated under supervised conditions.
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Assessment Guidelines
It is recommended that candidates are assessed by a short response test covering all aspects of Outcome 1.
It is suggested that this test should be completed within a working period of no more than one hour.
Assessment Guidelines
Assessment could take the form of short response questions and on possible scenarios covering all aspects of Outcome 1.
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