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AS/A Level Economics 9708


Unit 1: Introductory ideas and the price system
Recommended Prior Knowledge

This Unit starts the course by introducing basic ideas and tools of analysis. Students personal experiences as consumer, worker and observer can be drawn into the exposition of the content.

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Context
The material includes demand and supply which will be developed in the following Unit and also used to explain the setting of exchange rates and the effects of some types of government intervention. Comparative advantage is introduced and will form the basis of international trade in a later Unit.

Outline
The Unit considers the basic ideas of economics and its methods with introductory models of demand and supply and comparative advantage explored.

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Learning outcomes
The outcomes indicate the abilities and skills candidates need to develop in relation to each section of the syllabus

Suggested Teaching activities


The following activities may be incorporated into standard exposition of the subject content The activities are intended to encourage student involvement

Learning resources
Book references: Anderton refers to Anderton Economics (third edition) (Causeway Press) Bamford refers to Bamford AS Level and A Level Economics (first edition) (CUP) Gillespie refers to Gillespie AS & A Level Economics Through Diagrams (new edition) (OUP) Stanlake refers to Stanlake`s Introductory Economics by S J Grant (seventh edition) (Longman) Website references: http://www.bized.ac.uk http://www.imf.org http://www.jusbiz.org

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Learning outcomes

Suggested Teaching activities

Learning resources
http://www.oheschools.org http://www.s-cool.co.uk http://www.tutor2u.net http://www.worldbank.org http://www.wto.org

Candidates should understand the context of economics be aware of the skills involved consider the economists toolkit

Survey the weeks news items to establish economic content.

Bamford Introduction Stanlake Chap 1 Newspapers and magazines: Business Week http://www.businessweek.com The Economist http://www.economist.com The Financial Times http://www.news.ft.com The Guardian http://www.guardian.co.uk The Independent http://www.independent.co.uk The Telegraph http://www.telegraph.co.uk The Times http://www.timesonline.co.uk Television: BBC http://www.bbc.co.uk CNN http://www.cnn.com Students should also be encouraged to use appropriate newspapers,

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Learning outcomes

Suggested Teaching activities

Learning resources
magazines and television programmes in their own country and region

Review past exam papers to establish nature of approach and content

http://www.cie.org.uk http://www.cambridgestudents.org.uk http://www.learncie.org.uk Anderton Unit 45 Bamford Introduction Gillespie Page 1 Stanlake Chap 1 Tutor2u Positive and Normative Economics

1e

Candidates should distinguish between a positive and normative statement

Survey press headlines to identify and contrast positive and normative statements

1d

Candidates should understand the concept of the margin and relate decisions to marginal changes

Contrast marginal and average idea by use of numerical data e.g. weekly film attendances, golf round scores or goals scored each game by footballers

Anderton Unit 47 Bamford Chap 9 Gillespie Pages 27, 29 and 30 Stanlake Chap 13 S-cool Costs and their curves Tutor2u Marginal Costs

1g

Candidates should be familiar with the economists classification of resources apply the classification to economic activities

Analyse inputs in contrasting production activities e.g. manufacturing and farming activity Cotton choices activity

Anderton Unit 2 Bamford Chap 1 Gillespie Page 1

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Learning outcomes

Suggested Teaching activities

Learning resources
Stanlake Chap 5 Bized Learning materials Economics Topic 1, Introductory micro-economics, Jusbiz The real price of cotton Tutor2u Factors of Production

1a

Candidates should understand the nature of wants and resources and the resulting economic problems recognise the operation of opportunity cost apply opportunity cost to different choices

Role play e.g. shipwreck, survival (Economics and Business Education Association resource} Analyse scarcity for individual, company and nation

Anderton Unit 1 Bamford Chap 1 Gillespie Pages 1 and 2

Apply opportunity cost to family e.g. holiday and government e.g. public spending decisions

Stanlake Chap 1 Bized Learning materials Economics Topic 1, Introductory micro-economics Oheschools Unit 1 The problems of health care S-cool Scarcity and Opportunity Cost Tutor2u Opportunity Cost Tutor2u Scarcity

1c

Candidates should understand the nature of the production possibility curve employ production possibility curves to illustrate the basic economic problem and opportunity cost interpret the production possibility curve diagram

Introduce plotting graphs of ppcs Examine alternative shapes of curves and significance of movements Analyse effects of range of changes moving between and within curves

Anderton Unit 1 Bamford Chap 1 Gillespie Pages 2 and 3 Stanlake Chap 2 Bized Learning materials Economics

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Learning outcomes

Suggested Teaching activities

Learning resources
Topic 1, Introductory micro-economics Oheschools Unit 1 The problems of health care Tutor2u Production Possibility Frontier Tutor2u Shifts in the Production Possibility Frontier

1i

Candidates should understand the functions and characteristics of money and its importance for economic progress recognise the drawbacks of barter

Role play exchange without money Analyse suitability of selected items to serve as money highlighting weaknesses

Anderton Unit 82 Bamford Chap 1 Gillespie Page 67 Stanlake Chap 7 Bized Learning materials Economics Topic 8, Money Tutor2u Money and its Functions

1h

Candidates should understand the nature, benefits and limits of division of labour contrast the operation of division of labour in different settings

pin factory, Ford model T and automated production case studies student research on division of labour within a selected organisation with report back discussion of modern working conditions and motivation

Anderton Unit 2 Bamford Chap 1 Stanlake Chap 6 Bized Learning materials Economics Topic 1, Introductory micro-economics; Topic 3, Firms and virtual developing country copper field trip Anderton Unit 14 Bamford Chap 4 Bized Learning materials Economics Topic 11, International economics and virtual developing country trade field trip Tutor2u Theory of Comparative Advantage

4a

Candidates should distinguish between absolute and comparative advantage apply the principle to demonstrate the benefits of division of labour

Apply to individuals employment work numerical example translate to production possibility curve approach

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Learning outcomes

Suggested Teaching activities

Learning resources
Tutor2u Comparative Advantage Worked Examples

2a/b c d

Candidates should understand the nature of individual and market demand curves analyse the factors which influence demand curves distinguish between a shift in and movement along a curve

collate student observation of demand/price relationship survey factors underlying demand for specified products e.g. oil, holidays, CDs, DVDs etc graph demand schedules and their movements

Anderton Unit 4 Bamford Chap 2 Gillespie Pages 4, 5 and 6 Stanlake Chap 8 Bized Learning materials Economics Topic 2, Markets Oheschools Unit 2 The free market approach S-cool The Demand Curve Tutor2u Theory of Demand Anderton Unit 5 Bamford Chap 2 Gillespie Pages 10, 11 and 13 Stanlake Chap 10 Bized Learning materials Economics Topic 2, Markets Oheschools Unit 2 The free market approach S-cool The Supply Curve Tutor2u Theory of Supply Anderton Units 4 and 5 Bamford Chap 2

2f g

Candidates should understand the nature of individual and market supply curves analyse the factors which influence supply curves show the effect of the introduction of an indirect tax or subsidy distinguish between a shift in and movement along a curve

examine producer maximisation motivation analyse changing supply conditions for different products graph supply schedules and their movements

1f

Candidates should appreciate the need for ceteris paribus in supply and demand analysis identify the elements left unchanged in the application of the assumption Candidates should understand the setting of an equilibrium price use diagrams to represent changing conditions analyse the effects of changes in variables apply the analysis to different products

consider range of outcomes without assumption

2i

discuss operation of familiar market e.g. produce or shares study price behaviour in a commodity market plot changes to equilibrium student analysis of given changes on equilibrium and interrelationships between products with report back determining the price of a house simulation (virtual learning arcade) the interrelationship between markets simulation (virtual learning

Anderton Unit 6 Bamford Chap 2 Gillespie Pages 12 and 13 Stanlake Chaps 11 and 12 Bized Learning materials Economics Topic 2, Markets; virtual learning arcade; virtual developing country rural

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Learning outcomes
and markets recognise the relationships between different products and services e.g. joint demand and joint supply

Suggested Teaching activities


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Learning resources
life field trip Oheschools Unit 2 The free market approach S-cool The Equilibrium Price S-cool Real World Applications Tutor2u Equilibrium Market Price Anderton Unit 4 Bamford Chap 2 Gillespie Page 23 Stanlake Chap 8 Tutor2u Consumer Surplus

2j

Candidates should understand the concept of consumer surplus illustrate consumer surplus recognise consumer surplus in diagrams

discuss consumer behaviour examine the demand curve diagram