Transcript FROM AS TO A2 - The Economics Network

FROM AS TO A2
Quintin Brewer
27 June 2007
WIDER READING (1)
Newspapers and journals:
 The Economist
 Sunday Times (David Smith)
 Times
 Sunday Telegraph (Liam Halligan)
 Independent on Sunday
 Independent esp. Monday & Thursday
 Observer (William Keegan)
 Guardian esp. Monday (Larry Elliot)
WIDER READING (2)
Books: Why not try:
 Free Lunch: David Smith (Profile Books)
 Eat the Rich: PJ O’Rouke
 The Great Crash: JK Galbraith (Penguin)
 Key ideas in Economics R & D
Dransfield (Nelson Thornes)
WIDER READING (3)
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The Undercover Economist: Tim Harford
Making Globalisation Work: Joseph
Stiglitz
Freakonomics: Steven Levitt & Stephen
Dubner
The Truth about Markets: John Kay
WIDER READING (4)
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Read articles/books critically ….
What is positive?
What is normative?
Which economic concepts can be
applied?
What analysis is relevant?
What information is missing?
Extended Writing at A2
Need to write essays and extended
responses (to some parts of data q’s)
These requires ability to ……..
 develop a coherent argument
 apply concepts
 explain transmission mechanisms fully
 evaluate data, theories, ideas
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SYNOPTIC ASSESSMENT AT
A2
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All syllabuses include synoptic
assessment in one or more A2 modules
Therefore, don’t forget what you’ve
learned in AS!
You may need to use concepts from AS
in your answers to A2 questions e.g.
micro supply & demand; elasticities;
AD/AS analysis
Assess the view that the main aim of
government economic policy should
be economic growth.
1. : INTRODUCTION:
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Knowledge, understanding and application:
Meaning of economic growth…..
increase in real GDP; associated with a
rightward shift in PPF or LRAS curve
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Analysis: associated with a rightward shift in
PPF or LRAS curve
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Evaluation: in practice difficult to measure
increase in productive capacity
Growth as an aim of economic
policy (2)
2. BENEFITS OF GROWTH:
 Knowledge, understanding and application:
~ to consumers:…
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Analysis:
Growth implies higher real incomes so consumers
can afford to buy more goods and services
Evaluation: Extent of impact depends on how
much incomes rise; whether or not the marginal
propensity to save changes; impact of taxes e.g.
“fiscal drag”
Growth as an aim of economic
policy (3)
3. BENEFITS OF GROWTH TO BUSINESSES:
 Knowledge, understanding and application:
Increase in sales; increase in profits
 Analysis:
Higher real incomes lead to increase in
consumption (C is over 60% of GDP)
 Evaluation: Impact on consumption of
domestic goods might be limited if the MPM
(marginal propensity to import is high)
Growth as an aim of economic
policy (4)
4. BENEFITS OF GROWTH TO THE GOVERNMENT :
 Knowledge, understanding and application:
Increase in tax revenues
 Analysis: Increased real incomes imply increase
AD. Workers earn higher incomes and pay more
tax. Also, more people employed who are
subject to taxes on incomes and increased
spending.
 Evaluation:….
Growth as an aim of economic
policy – The downsides
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Opportunity cost of growth
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External costs of growth
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Increased inequality
Growth as an aim of economic
policy. The downsides (2)
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Costs to individuals and society
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Inflation
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Deterioration in the trade in goods and
services balance
Growth as an aim of economic
policy – other objectives
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Given the problems of pursuing growth
what about alternative objectives?
Low inflation
Low unemployment
B/P equilibrium
Now consider this….
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Evaluate the likely economic effects of a
substantial increase in immigration on
the UK economy.
Plan an answer; assume each issue will
form a paragraph.
DEVELOPING YOUR SKILLS
Apply economics to everything you do!
How about:
 The economics of relationships?
 The economic case for and against
taking a gap year?
 The case for and against doing a nonvocational degree
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