Economics

In Year One – to prepare for the A Level Economics examination – basic microeconomics and macroeconomics are studied. The themes studied are:

• Theme 1: Introduction to markets and market failure

How do markets work? What are their strengths and weaknesses?  Here you will learn the basic principles of market economics (e.g. supply and demand analysis), and how to apply them to real world situations, such as why house prices have more than doubled in the past decade. You will also learn why the government intervenes into particular markets and provides public services.

• Theme 2: The UK economy – performance and policies

How do we measure the performance of the economy? How can the government influence the economy?  Here you will gain an understanding of the key goals of government economic policy, and the tools its uses to manage the economy. You will examine questions such as: how has China helped the UK keep inflation low; why might the Bank of England change interest rates and what is quantitative easing?

In Year Two – to prepare for the A Level Economics examination – more advanced microeconomics and macroeconomics are studied. The themes studied are:

• Theme 3: Business behaviour and the labour market

Why in some markets are firms very large, and in other markets small? How do firms behave under different market conditions?  How do labour markets work? Here you will examine how the degree of competition in a market affects how firms act, why some firms control costs more than others, how the government can promote competition and the factors influencing wage rates. You will consider questions such as: why does Tesco’s dominant retailing; and why does Easyjet charge different prices for the same journey?

• Theme 4: A global perspective

How is the world economic system organised? Why is international trade so important in promoting growth?  Among the issues you will investigate are the role of the financial sector, poverty and inequality and the rise of China as a global economic power. You will consider questions such as: what is globalisation; the system of international trade and how can economic growth and better living standards be promoted in poorer countries?

Paper 1

Markets and business behaviour

Questions drawn from Theme 1 and Theme 3

100 marks, 2 hours and 35% of qualification.

Section A: multiple-choice and short-answer questions

Section B: one data response question

Section C: one extended open response question (choice of one from two)

Paper 2

The national and global economy

Questions drawn from Theme 2 and Theme 4

100 marks, 2 hours and 35% of qualification.

Section A: multiple-choice and short-answer questions

Section B: one data response question

Section C: one extended open response question (choice of one from two)

Paper 3

Microeconomics and macroeconomics

Questions drawn from all themes

100 marks, 2 hours and 30% of qualification.

Two data response questions broken down into a number of parts, each including one extended open response question (choice of one from two for extended open response questions)

Students with A Level Economics have access to a wide range of possible higher education and career opportunities.

Many students go on to study Economics, Politics Management, Business or Finance at university. Studying Economics can lead to subsequent careers in such areas as law, banking, accountancy, politics, journalism, public administration and, of course, economics.

If you want to study Economics at university it is recommended, though not always necessary, that you also study A Level Mathematics.

Economics is suitable for students who have a strong interest in current affairs and politics, but who also enjoy solving logical problems using mathematical skills. Essay writing requires a lot of practice and critical analysis, whereas the technical aspect of the subject demands students to feel confident with using mathematical principles and applying them to social dilemmas.

In addition, A level Economics covers a broad and diverse syllabus, so strong memory and analytical skills are essential for success. You’ll study the subject through two main lenses: macroeconomics, which looks at the economy as a whole — including topics like government budgets, inflation, unemployment, and taxation — and microeconomics, which explores how individuals and businesses make decisions, covering areas such as market structures, pricing, competition, and the cost of living.

While the core concepts in A level Economics are generally accessible, the real challenge lies in applying them effectively. The subject involves a significant amount of mathematical reasoning, particularly when interpreting graphs and using formulas to analyse real-world economic situations. You’ll develop the ability to problem-solve and make informed predictions based on economic data. Success comes from building a solid understanding of key principles and applying them to explain and evaluate different economic outcomes.

Subjects that go well with Economics

Mathematics
Maths strengthens your ability to work with graphs, data, and formulas — all key parts of Economics. It’s especially useful if you’re considering studying Economics, Finance, or related courses at university.

Further Maths or Sciences

Students who study Economics alongside Maths, Further Maths, or a science build a strong, analytical subject combination that is highly valued by top universities. This pairing is ideal for competitive courses such as Economics, Finance, Engineering, or Data Science, and equips students with the skills to apply mathematical reasoning to real-world problems.

Politics
Economics and Politics often overlap, particularly in areas like taxation, government spending, and international trade. Studying both gives you a deeper understanding of how policy decisions shape the economy.

Geography
Geography explores global development, inequality, and environmental challenges, which tie in closely with economic concepts. It’s a great combination if you’re interested in real-world issues and global change.

History
History helps develop strong essay-writing and analytical skills, while also providing useful context for understanding economic systems and events, such as recessions, industrialisation, or globalisation.

Psychology or Sociology
These subjects offer insight into how individuals and groups behave, helping you understand the human side of Economics — especially in areas like decision-making, incentives, and consumer behaviour.

We do not allow students to take both Economics and Business Studies.