A2 Economics
Student Handbook
2015 -2016
What comes after AS Economics?
The A2 Economics course follows on from the AS. The exam papers are very different. You will
have to complete a 40 mark essay and there is no multiple choice! A2 exam papers are
synoptic and therefore build on the knowledge that you acquired at AS Level. Much of the
subject matter of Unit 3, Business Economics and the distribution of Income, differs greatly
from that of Unit 1. However, the good news is that Unit 4, The national a nd international
economy, builds on much of the macroeconomic concepts that you learned in Unit 2.
I hope you enjoy A2 Economics!
What do Economists do?
These are the destinations for UK graduates in Economics:
The largest category is Business and Financial professionals which breaks down as:

Business analysts

Chartered accountants

Chartered and certified accountants

Economists

Management accountants

Other
1.2%
7.0%
1.4%
2.7%
1.2%
3.6%
The average starting salary for economists is £ 21,975.
As you can see there are a large variety of jobs that a degree in Economics prepares you for. At A
level you can choose to go into employment directly with such employers as the Bank of England,
KPMG, PKF (international) and a host of other firms based down the road in the City of London.
But studying Economics is not just about going to University or getting a job, it also helps you to
understand the world and the events that take place in it.
Economics is in the news daily and reading newspapers regularly helps you to gain an understanding
of how economics is applied in the world around you, and how economists contribute to the shape of
the world we all live in.
Course structure
A2 Examinations
A2 Examinations
Unit 3 – ECON3 - Economics: Business Economics and the Distribution of
Income
25% of A Level
2 hour examination, 80 marks (100 UMS)
Section A: Two optional data response questions are set; candidates answer on (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)
Available June
Unit 4 – ECON4 - Economics: The National and International Economy
25% of A Level
2 hour examination, 80 marks (100 UMS)
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)
Available June
Differences between AS and A2 level studies
Further course breakdown
You will start on A2 Unit 4. Much of this unit will continue to build on the knowledge that you
developed during Unit 2. You will look again at the macroeconomic objectives of economic
growth, full employment, and control of inflation together with the main types of macroeconomic
policies – monetary policy, fiscal policy and supply-side policy. AD/AS is still a key part of Unit 4.
The additional content in Unit 4 is the international economy. This will develop your
understanding of the Balance of Payments and exchange rates and include the new areas of
trade theory and globalization. Unit 3 focuses on the theory of the firm. This will require you to
develop an understanding of businesses and how they behave. You will understand the differing
objectives that firms may have and gain an understanding of how the structure of the industry
can determine their behaviour. You will study the motives for firms’ decisions to grow. Supply
and demand do feature in Unit 3, but in the context of labour markets rather than the markets
for goods and services.
Year 13 Economics
Unit 3: Objectives, production and cost theory
Unit 3: Revenue theory
Unit 3: Market structures
Unit 3: Competitive markets
– Perfect competition
Unit 3: Concentrated markets
– Oligopoly
– Monopoly
Unit 3: Growth of firms
Unit 3: Industrial policy
Unit 3: Market failure, government failure and cost-benefit analysis
Unit 3: The labour market
Unit 3: poverty and the distribution of income and wealth
Unit 4: Macroeconomic indicators:
– Economic cycle
– Economic growth, development and standards of living
– Employment and unemployment
– Inflation, deflation and the Phillips curve
Unit 4: Managing the national economy
– Money, banks and monetary policy
– Fiscal policy
– Supply-side policy
Unit 4: The international economy
– International trade and globalisation
– The balance of payments
– Exchange rates
Resources
Books
Course text book
AQA Economics A2: Student's Book - Jim Lawrence, Steve Stoddard
Other useful books
AQA A2 Economics – Ray Powell
AQA AS Economics Student Unit Guide: Business economics and the
distribution of income: Unit 3 – Ray Powell
AQA AS Economics Student Unit Guide: The national and international
economy: Unit 4 – Ray Powell
Revision Guide to A2 Level Economics – Peter Cramp and James Keefe
AQA A Level Economics Student Book – Alain Anderton
Useful websites
www.tutor2u.net
http://www.youtube.com/user/pajholden
http://www.bbc.co.uk/news/correspondents/robertpeston/
http://www.bized.ac.uk/
http://www.economics.about.com/
http://www.s-cool.co.uk/a-level/economics
http://www.bankofengland.co.uk/
Summer Homework
‘For a strong recovery there is a need to encourage spending, ideally by
businesses but also by households in the short term.’
1. Explain four features of a recession. (15 marks)
2. Discuss the importance of low interest rates in bringing about a recovery
from recession in an economy such as the UK. (25 marks)
Complete the above essay. You have covered the Economic Cycle, Economic Growth
and Monetary Policy during your lessons.
To supplement your knowledge from the lessons use:
http://www.tutor2u.net/economics/revision-notes/a2-macro-fluctuations-economicactivity.html
http://www.tutor2u.net/economics/revision-notes/a2-macro-monetary-policy.html
Remember this is an A2 essay. It needs to be hand written.
For the 15 mark question, make sure you explain four features of a recession.
Include appropriate definitions and diagrams. At A2 you only get one mark for each
valid point you make! You need to writing about a page and a half.
The 25 mark question has a similar structure as AS. However you need to write
twice as much to get the same marks! You should be analysing and evaluating three
relevant points and then concluding with a final evaluative paragraph. Remember
you could consider alternative ways of bringing about a recovery other than just
lowering interest rates.