Economics is broadly divided into two main areas – microeconomics and macroeconomics. Microeconomics deals with the actions of individual firms or markets. These concepts are introduced through the use of market supply and demand analysis and questions of interest apply the theory to reality, through contemporary issues such as: government policy to reduce household waste; subsidies and the arts; and how to tackle rising petrol prices.
Macroeconomics deals with the whole economy. Students analyse changes to the economy through understanding the impact of interest rates, inflation, unemployment, the balance of payments and international trade. Students will apply economic theory to current problems and issues. For example:
How the Government should stimulate growth in the UK economy; and the effects of rich countries relaxing laws controlling immigration.
Aims of the Course
Many students study Economics with a view to continuing to university level or starting careers in Government, financial and corporate roles. The course also prepares students to understand what goes on in the economy that will affect them at different stages of their own personal life.
Please click here to read Brad's (Upper 6th) Exemplar Essay written under exams conditions this week.
The global economy is slowing even though interest rates are at record lows. Monetary policy appears to be ineffective in preventing the slowdown. To what extent do you agree that fiscal policy is now the only response if the slowdown worsens?