IGCSE Economics

What is Economics?
Economics is the study of how society (people) deals with the
problem of using the earth’s limited resources to produce goods
and services that satisfy the unlimited wants and needs of an
ever expanding global population.
What is Economics not about?
• How to run a successful business
• Banking, finance and investment in stock markets (although
we do consider the role of banks when looking at monetary
policy)
 What is the difference between IGCSE
Economics and IGCSE Business Studies?

Quite simply, Economics is much broader in scope. It looks at

issues on a macro-level (e.g. spending and taxation decisions
made by the Singaporean government) and on a micro-level (e.g.
how rising incomes affects the market for luxury cars in China).

Business Studies is much narrower in focus. It concern decisions

made within businesses. It looks at issues on a ‘nano’-level (e.g.
how market research helps a business develop a new product)
Back to Economics….Course Overview
• We follow the syllabus set by Edexcel. Students are awarded
with a 9-1 grade in their final examinations.

• Course content:
• 1. The market system
• 2. Business economics
• 3. Government and the economy
• 4. The global economy
1. The market system
• The role of supply and demand in markets, pricing and
quantities of goods/services produced.
• How markets often get it wrong.
2. Business economics
• Production and productivity. Business costs, revenue and
profit.
• Business growth
• The labour market
• Competition
3. Government and the economy
• Economics objectives- e.g. low unemployment, low inflation.
• Government policies- e.g. fiscal policy, monetary policy
4. The Global economy
• Globalisation, international trade and protectionism
• Exchange rates
Assessment- 100% examination
• Two-paper assessment – testing knowledge, understanding,
analytical and evaluation skills around two themes:
 Paper 1: Microeconomics and Business Economics
 Paper 2: Macroeconomics and the Global Economy.

• Broad and deep development of skills – for example students

will develop the ability to:
 read sources to interpret and evaluate economic information
 write extended responses
 respond appropriately to a range of question types, including
multiple-choice, short-answer, data response and open-ended
questions
 develop an understanding of economic concepts and apply these
concepts to real-life situations
 What questions will I (hopefully) know the
answer to when I finish the course?
• Why is Lionel Messi paid approx. £300,000 per week?
• Why do cars cost so much in Singapore?
• Why are deep sea divers paid more than some
doctors?
• What impact will Brexit have on the value of the
Pound? And how might this affect British exports?
• How can Japan increase its workforce with an ageing
population?
• Why did the government of the Philippines close
Boracay to tourists?
 So, should I take Economics or Business?
• It really depends on what you are interested in.

• Neither subject is required for further study at Diploma or A-Level

• Neither subject has maths that students find ‘difficult’

• If you have an interest in current affairs and politics (e.g. Brexit,

Trump’s trade wars, why the Singaporean government builds
HDBs) then you should consider Economics.

• If you an interest in how businesses operate, how the produce and

market goods and how manage their employees (e.g. the pricing
strategy of Apple, how Dyson will recruit staff for its new car
factory in Singapore) then you should consider Business Studies
How can parents help?
• Encourage your son/daughter to read the news/watch
the news- make links between economic theory and
reality

• Talk to your son/daughter about your experiences as a

consumer, employee, business owner.

• Resources:
• Textbook