REVISED GCE AS & A Level

Scheme of Work
Economics
This is an exemplar scheme of work which
supports the teaching and learning of the
Economics specification
CCEA Exemplar Scheme of Work: GCE Economics

GCE Economics

Contents Page
Introduction 1

Unit AS 1: Markets and Prices 5

Unit AS 2: The National Economy 19

Unit A2 1: Business Economics 29

Unit A2 2: The Global Economy 39

CCEA Exemplar Scheme of Work: GCE Economics
CCEA Exemplar Scheme of Work: GCE Economics

Introduction
CCEA has developed new GCE specifications for first teaching from September 2008. This scheme
of work has been designed to support you in introducing the new specification.

The scheme of work provides suggestions for organising and supporting students’ learning
activities. It is intended to assist you in developing your own scheme of work and should not be
considered as being prescriptive or exhaustive.

The time allocations have been based on a notional 120 hours a year of guided learning hours for
the AS and A2 courses.

Please remember that this document contains suggestions only. It is the specification on which
assessment is based and which details the knowledge, understanding and skills that students need to
acquire during the course. The scheme of work should therefore be used in conjunction with the
specification.

Published resources and web references included in the scheme of work have been checked and
were correct at the time of writing. However they may be updated by the time that the specification
is introduced. You should therefore check with publishers and websites for the latest versions.
CCEA accepts no responsibility for the content of particular publications or websites referred to.

CCEA will be making Word versions of these schemes of work available on its subject micro-site.
This will enable you to use them as a foundation for developing your own schemes of work which
are matched to your teaching and learning environment and the needs of your students.

I hope you find this aspect of our support package useful in your teaching.

Best wishes

Nick Heard
Principal Officer
Economics

E-mail nheard@ccea.org.uk
Telephone 028 90 261413

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CCEA Exemplar Scheme of Work: GCE Economics

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CCEA Exemplar Scheme of Work: GCE Economics

Exemplar Scheme of Work:

GCE Economics

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CCEA Exemplar Scheme of Work: GCE Economics

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CCEA Exemplar Scheme of Work: GCE Economics

Unit AS 1:
Markets and Prices

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CCEA Exemplar Scheme of Work: GCE Economics

GCE Economics: Scheme of Work

Unit AS 1: Markets and Prices

Prior Learning: No specific qualifications are required though students should have adequate levels of literacy and numeracy. Students who have
previously studied GCSE Economics may be able to progress more quickly through certain topics and could be provided with extension work to prepare for
unit A2 1.

Basic Reading:
• Sloman, J, Essentials of Economics, 3rd Edition, FT Prentice Hall.
• Anderton, Alain (2006) Economics, 4th edition, Causeway Press.
• www.tutor2u.net - Revision notes for AS economics.
• Economics Review (ER) Magazine - (Philip Allan Updates, www.philipallan.co.uk)

Assessment: Students should be given regular practice in completing data response questions and writing essays, making use of CCEA past and specimen
papers wherever possible. Teacher-designed or commercially available multiple choice tests can be used as diagnostic assessment instruments to help
identify gaps in understanding.

Content and Suggested Learning Outcomes Resources Teaching and Learning

Time Allocation Activities

The basic economic Students should be able to:

problem of scarcity and
choice (3 hours)
• understand the nature of economic
resources; and
• appreciate that the finite supply and
alternative uses of resources creates
the need for individuals, organisations
and communities to make choices.
Sloman: Introduction
Tutor2u: Economic resources.
Scarcity and choice in resource
allocation
Anderton: Unit 1
• Give students a list of resources
and ask them to classify these as
land, labour, capital or enterprise
• Discuss the different types of
scarcity faced by rich and poor
societies

6
CCEA Exemplar Scheme of Work: GCE Economics
Content and Suggested Learning Outcomes
Time Allocation
The basic economic Students should be able to:
problem of scarcity and
choice (cont.)
Opportunity cost • understand the concept of
(4 hours) opportunity cost;
• understand the concept of a
production possibility curve or
frontier; and
• use these concepts as tools for
analysing and evaluating the choices
facing individuals, organisations and
societies.
Resources Teaching and Learning
Activities
ER, September 2006: PPFs • Discuss the difference between
renewable and non-renewable
resources
• Use local newspapers to
illustrate the economic problem
in a local context
• Illustrate the nature of enterprise
by examining the biographies of
successful entrepreneurs
Sloman: Introduction • Discuss the different types of
opportunity cost faced by
Tutor2u: individuals and government
Scarcity and choice in resource
allocation • Discuss the possible causes and
Production possibility frontier costs to society of an economy
(PPF) operating inside its PPF
Anderton: Unit 1 • Numerical exercises to show that
opportunity cost may not be
constant and may vary with the
slope of the PPF
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CCEA Exemplar Scheme of Work: GCE Economics
Content and Suggested Learning Outcomes
Time Allocation
Rational decision- Students should be able to:
making (2 hours)
• understand that economic choices are
made at the margin;
• understand that decision making
involves weighing up the costs and
benefits of alternative options;
• understand that costs and benefits may
be monetary or non-monetary;
• understand that economic agents
respond to incentives; and
• understand that globalisation and
technological development have
changed the context in which
decisions are made.
The benefits of • explain the impacts of specialisation at
specialisation (3 hours) a personal, regional and national level;
and
Resources Teaching and Learning
Activities
Sloman: Introduction • Illustrate the concept of the
Tutor2u: margin by considering the
Scarcity and choice in resource spending of a typical student and
allocation examining changes in spending
patterns over time
• Discuss the extent to which
consumers are prepared to be
altruistic by paying more for
items which are “fair trade” or
environmentally friendly
• Show the impact of globalisation
and technological development
by comparing shopping today
with shopping a decade ago
Tutor2u: • Use classroom simulation to
Specialisation and trade show how specialisation and
exchange allow both parties to
Anderton: Unit 2 have more consumption than
through self-sufficiency
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CCEA Exemplar Scheme of Work: GCE Economics
Content and Suggested
Time Allocation
The benefits of
specialisation (cont.)
Markets as an allocative
mechanism (3 hours)
Learning Outcomes
Students should be able to:
• analyse how specialisation and
voluntary economic exchange may
lead to higher living standards.
• understand the meaning and nature of
markets;
• explain the rationing and signalling
functions of price in a market; and
• understand the objectives of economic
agents such as consumers, workers and
shareholders.
Resources Teaching and Learning
Activities
• Examine historical examples of
regional and national
specialisation
Sloman: Chapter 1 • Ask students to predict the
impact on a variety of markets of
Tutor2u: changes in demand and supply
The price mechanism (technical analysis is not required
at this stage)
Anderton: Unit 15
• Use the above exercise to
introduce, at a very basic level,
concepts such as elasticity and
time lags
• Examine the likely response of
economic agents to changes in
market conditions
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CCEA Exemplar Scheme of Work: GCE Economics
Content and Suggested
Time Allocation
The basic market model
of demand, supply and
price determination
(10 hours)
Learning Outcomes
Students should be able to:
• understand the distinction between a
movement along and a shift of
demand and supply curves;
• explain the causes of such movements
and shifts;
• explain how supply and demand
determine equilibrium price and
quantity in competitive product and
factor markets;
• explain how changes in one market
may have effects on other markets;
and
• evaluate the relevance of this model in
analysing how resources are allocated
in most economies.
Resources Teaching and Learning
Activities
Sloman: Chapter 1 • Emphasise difference between
changes in demand which
Tutor2u: impact upon consumers and
Theory of demand changes in supply which impact
Theory of supply upon producers
Market equilibrium price
• Practise converting information
Anderton: Units 4, 5, 6, and 7 in prose into a demand and
supply diagram
• Emphasise that a change in
demand does not cause a change
in supply and that a change in
supply does not cause a change
in demand
• Show why a non-equilibrium
price would be unstable
• Introduce factor markets and
show how they are affected by
events in the product market
• Explore further the idea of time
lags and show that market
clearing may be a lengthy
process
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CCEA Exemplar Scheme of Work: GCE Economics

Content and Suggested Learning Outcomes Resources Teaching and Learning

Time Allocation Activities

The basic market model Students should be able to:

of demand, supply and
price determination
(cont.)
• Use the internet to track the
price of a key variable such as oil
or housing and try to explain the
causes of price changes

• Explore links between related

markets, eg substitutes,
complements, products jointly
supplied

• Examine the brochure of a tour

operator and explore why similar
holidays may have different
prices at different times of the
year

Elasticity of demand and • define, measure and interpret:
supply (7 hours) - price elasticity of demand;
- income elasticity of demand;
- cross-price elasticity of demand;
- price elasticity of supply;
Sloman: Chapter 2
Tutor2u:
Price elasticity of demand
Income elasticity of demand
Cross-price elasticity of demand
Price elasticity of supply
• Students continue to have
problems both with calculation
of values for elasticity and with
the interpretation of these values
- lots of practice in this area is
appropriate

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CCEA Exemplar Scheme of Work: GCE Economics
Content and Suggested Learning Outcomes
Time Allocation
Elasticity of demand and Students should be able to:
supply (cont.)
• use these concepts as tools to analyse
and evaluate market changes and the
behaviour of firms and government;
and
• evaluate the usefulness of these
concepts as decision-making tools.
Resources
Anderton: Units 8, 9 and 10
ER, September 2006: Elasticities
and the housing market
12
Teaching and Learning
Activities
• Emphasise the connection
between price elasticity and total
revenue. Again numerical
examples are appropriate
• Examine the problems in
obtaining accurate estimates for
elasticities especially the ‘other
things being equal’ assumption
and the possibility of time-lagged
responses
• Examine relevant markets such
as oil and food and see how the
revenue of producers has been
affected by price changes
• Examine the difference between
normal and inferior goods and
show how a product might
move from one category to the
other
CCEA Exemplar Scheme of Work: GCE Economics
Content and Suggested Learning Outcomes
Time Allocation
Consumer surplus and Students should be able to:
producer surplus (3
hours)
• understand the concepts of consumer
and producer surplus; and
• use these concepts as tools to analyse
and evaluate the effects of market
changes and government policy upon
economic welfare.
Economic rent and • understand the concepts of economic
transfer earnings rent and transfer earnings;
(3 hours)
• use these concepts as tools to analyse
and evaluate the effects of market
changes and government policy upon
economic welfare; and
• apply these concepts in the analysis of
the distribution of income.
Resources Teaching and Learning
Activities
Tutor2u: • Identify the areas of consumer
Consumer surplus and producer surplus on a
Producer surplus demand and supply diagram
Anderton: Units 4 and 5 • Identify and explain the changes
in these surpluses brought about
by changes in demand, changes
in supply or government
intervention
Tutor2u: • The links between barriers to
Economic rent entry, inelasticity of supply and
Transfer earnings high levels of economic rent
should be analysed in depth
Anderton: Unit 77
• Comparisons between
occupations where large
inequalities in earnings exist, eg
sports stars and unskilled
workers, could be examined
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CCEA Exemplar Scheme of Work: GCE Economics

Content and Suggested Learning Outcomes Resources Teaching and Learning

Time Allocation Activities

Economic rent and Students should be able to:

transfer earnings
(cont.)
• Examine how the transfer
earnings of sports stars may
change as they become more
famous, eg options as a TV
pundit or newspaper columnist
become available

Allocative and • demonstrate a basic understanding of Tutor2u: • Examine how free markets
productive efficiency allocative and productive efficiency; Economic efficiency should in theory deliver
(3 hours) and productive and allocative
Anderton: Units 16 and 61 efficiency
• use these concepts as tools to analyse
and evaluate market changes and • Show how efficiency could be
government policy. affected by government
intervention

• Introduce the concept of market

failure by pointing out that there
may be occasions when markets
do not deliver productive and
allocative efficiency

(A technical analysis of efficiency in

terms of price and marginal and
average cost is not required at this
stage)

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CCEA Exemplar Scheme of Work: GCE Economics

Content and Suggested Learning Outcomes Resources Teaching and Learning

Time Allocation Activities

Why markets may fail Students should be able to:

(7 hours)
• explain the reasons why markets may
not allocate resources efficiently
including:
- The existence of externalities;
- Market dominance and extreme
inequality in the distribution of
income and wealth;
- A failure to supply public goods;
- The under-provision of de-merit
goods; and
- Mis-matches in information.
Sloman: Chapter 6
Tutor2u:
Market failure
Negative externalities
Positive externalities
Merit goods
Demerit goods
Public and private goods
Imperfect information
Anderton: Units 16, 19, 20, 61,
and 62
ER, September 2006: Air Travel
ER, April 2007: Hosting Major
Events
• Emphasise that the most
important cause of market
failure is external and therefore
involves unpriced costs and
benefits as in the case of demerit
and merit goods
• Initiate class discussion on
discouraging the consumption
and production de-merit goods:
Is this “nannyism” or a genuine
desire to protect the public?
• Examine environmental issues,
pointing out that reducing
greenhouse gas emissions
involves the problems of free
riders and external costs

• Examine traffic congestion as a

typical example of market failure

• Examine local media for

examples of
articles/reports/letters on
negative externalities such as
litter, pollution or binge drinking

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CCEA Exemplar Scheme of Work: GCE Economics
Content and Suggested Learning Outcomes
Time Allocation
Government Students should be able to:
intervention in markets
(8 hours)
• explain the main reasons why
governments may intervene in
markets, including political
considerations; and
• describe and analyse the various forms
of government intervention such as
price controls, state provision,
regulation, taxation and subsidies.
Government failure • explain how government intervention
(4 hours) may sometimes reduce efficiency
because of factors such as conflicts of
interest, unexpected responses by
economic agents, administrative costs
and unforeseen circumstances and
consequences; and
• evaluate the impact of government
intervention in a range of markets such the National Minimum Wage
as agriculture, housing, transport and
labour.
Resources
Sloman: Chapter 6
Tutor2u:
Government intervention in the
market
Government intervention and
externalities
Maximum prices
Minimum prices
Anderton: Units19 and 20
ER, February 2007,
Environmental Tax
Tutor2u:
The economics of farm support
- the CAP.
Government failure
Anderton: Unit 20
ER, November 2006, Assessing
16
Teaching and Learning
Activities
• Use tools of consumer and
producer surplus to show impact
of government intervention
• Analyse the link between
negative externalities and tax and
positive externalities and subsidy
• Evaluate the role of subsidies in
areas such as transport, higher
education and agriculture
• Emphasise and Examine the role
of governments, pointing out
that they are just as capable of
making bad decisions as free
markets
• Examine the main features of
the Common Agricultural Policy
of the European union. Consider
whether it is an example of
government failure
CCEA Exemplar Scheme of Work: GCE Economics

Content and Suggested Learning Outcomes Resources Teaching and Learning

Time Allocation Activities

Government failure
(cont.)
• Examine the problems and costs
of government intervention

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CCEA Exemplar Scheme of Work: GCE Economics

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CCEA Exemplar Scheme of Work: GCE Economics

Unit AS 2:
The National Economy

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CCEA Exemplar Scheme of Work: GCE Economics

GCE Economics: Scheme of Work

Unit AS 2: The National Economy

Prior Learning: No specific qualifications are required though students should have adequate levels of literacy and numeracy. Students who have
previously studied GCSE Economics may be able to progress more quickly through certain topics and could be provided with extension work to prepare for
unit A2 2.

Basic Reading:
• Sloman, J, Essentials of Economics, 3rd Edition, FT Prentice Hall.
• Anderton, A (2006) Economics, 4th edition,Causeway Press.
• www.tutor2u.net - Revision notes for AS economics.
• Economics Review (ER) Magazine - (Philip Allan Updates, www.philipallan.co.uk)

Assessment: Students should be given regular practice in completing data response questions and writing essays, making use of CCEA past and specimen
papers wherever possible. Teacher designed or commercially available multiple choice tests can be used as diagnostic assessment instruments to help
identify gaps in understanding.

Content and Suggested Learning Outcomes Resources Teaching and Learning

Time Allocation Activities

The scope of Students should be able to:

macroeconomics
(3 hours)
• distinguish between micro- and newspapers • Discuss current economic news
macroeconomics. www.bbc.co.uk items and attempt to categorise
Sloman: pp 5-7 them. Overview of
Anderton: Unit 24 macroeconomics content of A
Level economics. Emphasise
that distinction may be blurred

20
CCEA Exemplar Scheme of Work: GCE Economics

Content and Suggested Learning Outcomes Resources Teaching and Learning

Time Allocation Activities

The circular flow of Students should be able to:

income (6 hours)
• understand and apply the circular flow
of income model, which involves
firms, households, government and
other economies.
Sloman, Chapter 13 • Illustrate flows of output,
Anderton, Unit 25 income and expenditure and
show how, after allowances for
www.statistics.gov.uk injections and withdrawals, these
www.tutor2u.net/economics/ should be equal
content/topics/macroecono
my/circular_flow.htm • Study material from the Office
www.bized.co.uk/virtual/dc/ of National Statistics. Discuss
copper/theory/th11.htm and assign to categories various
activities or sources of income

Macroeconomic policy • understand that governments are
objectives of government concerned generally with inflation,
(13 hours) employment and unemployment,
economic growth and the balance of
international payments;
• understand the concepts of
macroeconomic stability and the
output gap;
Sloman: Chapter 15 • Brainstorm problems faced by
Anderton: pp 172 – 278 government and record. Discuss
which government problems
Manifestos/websites of UK from group lists are economic,
political parties political, social and cultural.
Highlight the main economic
www.tutor2u.net/economics/ policy objectives
content/topics/macroecono
my/government_policy.htm • Discuss the expected outcomes
of various policy measures and
www.hm-treasury.gov.uk demonstrate how, for example,
ant-inflationary measures may
also involve slowing growth
rates

21
CCEA Exemplar Scheme of Work: GCE Economics
Content and Suggested
Time Allocation
Macroeconomic policy
objectives of government
(cont.)
Learning Outcomes
Students should be able to:
• understand that governments may
have, or be compelled to consider,
other policy objectives, such as
redistribution of income or protection
of the environment;
• analyse possible policy conflicts and
trade-offs;
• analyse possible causes and
consequences of inflation,
unemployment, poor economic
growth and long-term international
trading imbalances;
• consider the possibility if the existence
of a natural rate of unemployment;
• understand that rates of economic
growth may vary over time, between
different regions of an economy and
between economies;
• analyse the impact of various
economic events, including changes in
global demand or supply, on a
domestic economy;
Resources
Institute of Fiscal Studies
website :
www.ifs.org.uk
Organisation for Economic Co-
operation and Development
www.oecd.org
Bank of England Quarterly
Bulletin
The First Trust Bank Economic
Outlook and Business Review
22
Teaching and Learning
Activities
• Ask students to carry out
research assignments on
inflation stories from
newspapers, TV, radio and the
internet
(The same approach may be
adopted with any of the major
macroeconomic issues, perhaps
with different groups researching
different issues)
• Use material from newspapers,
political publications or the
internet to illustrate
dissatisfaction with government
policy due to regional
imbalances or uneven impact of
economic events on different
sectors or industries
• Devise simple exercises in
economic forecasting. Compare
outcomes with official statistics
before and after these have been
adjusted and revised
CCEA Exemplar Scheme of Work: GCE Economics

Content and Suggested Learning Outcomes Resources Teaching and Learning

Time Allocation Activities

Macroeconomic policy Students should be able to:

objectives of gov. (cont.)
• analyse and evaluate attempts by
government to achieve more equitable
distribution of income;

• appreciate the difficulties of economic

forecasting;

• examine economic policy priorities

and how these may differ over time
and between political parties; and

• evaluate the success of government

economic policies.

Measures of economic
performance (10 hours)
• understand the differences between
the main national income accounting
concepts;
• make basic calculations based on the
above;
• appreciate the uses to which national
income statistics may be put, including
as an indicator of economic growth;
Monthly Digest of Statistics • Carry out calculations based on
Annual Abstract of Statistics selected simplified national
income figures
www.oxfam.org.uk
www.unicef.org.uk • Calculate a simple index of retail
www.undp.org prices. Discuss differences
between this and government’s
www.community.foe.co.uk/to preferred CPI measure
ols/isew

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CCEA Exemplar Scheme of Work: GCE Economics
Content and Suggested Learning Outcomes
Time Allocation
Measures of economic Students should be able to:
performance
(cont.)
• analyse the factors which limit the
usefulness of national income statistics
in comparing living standards over
time and between countries; compare
the usefulness of published national
income statistics with other indicators
of economic welfare;
• explain how the rate of inflation is
measured in the UK and why the
government uses a range of measures;
• distinguish between the claimant-
count and International Labour
Organisation approaches to measuring
the levels of unemployment in an
economy; and
• understand how the economic activity
rate is measured and explain its
usefulness.
Resources Teaching and Learning
Activities
www.ilo.org/global/lang-- • Students carry out research
en/index.htm assignment on United Nations
Development Programme
www.direct.gov.uk/en/Empl Human Development Indices or
oyment/index.htm compile personal Indices of
Economic Welfare on “Friends
Sloman: Chapters 13, 14 of the Earth” website
Anderton: Units 27, 28, 29
• Get students to investigate how
price changes of certain products
may affect different groups in
different ways.
• Develop the link between
conclusions from this exercise
and the possible need for
different measures of inflation
24
CCEA Exemplar Scheme of Work: GCE Economics
Content and Suggested Learning Outcomes
Time Allocation
Aggregate demand, Students should be able to:
aggregate supply and
determination of
macroeconomic
equilibrium
(14 hours)
• demonstrate knowledge and
understanding of the components of
aggregate demand:
- consumption;
- investment;
- government expenditure;
- net exports (X – M);
• apply these concepts to explain effects
of injections into or withdrawals from
the circular flow of income;
• apply these concepts to define
aggregate demand (AD) and explain
the shape of the aggregate demand
curve;
• analyse the effects on the aggregate
demand curve of such factors as fiscal
policy, monetary policy, expectations
and changes in exchange rates;
Resources
Sloman: Chapters 16, 18, 20
Anderton: Units 33, 34, 35
www.tutor2u.net/economics/
content/topics/ad_as/ad-
as_notes.htm
www.bized.co.uk/educators/
16-
19/economics/adas/presenta
tion/adas_map.htm
Sloman: Chapters 17, 19, 22
Anderton: Units 79 -81, 85, 88,
90 and 92
www.sparknotes.com/econo
mics/macro/aggregatedema
nd/section1.html
www.en.wikipedia.org/wiki/
SimCity
25
Teaching and Learning
Activities
• Discuss and demonstrate links
between elements of the circular
flow model and the components
of aggregate demand
• Develop graphical illustration of
aggregate demand in stages to
avoid confusion with concept of
commodity demand
• Develop graphical illustration of
SR aggregate supply curve as
before. Use production-
possibility analysis of factors
causing shift in PPF to aid
understanding of nature of LR
aggregate supply curve
CCEA Exemplar Scheme of Work: GCE Economics
Content and Suggested Learning Outcomes
Time Allocation
Aggregate demand, Students should be able to:
aggregate supply and
determination of
macroeconomic
equilibrium (cont.)
• understand the concept of aggregate
supply (AS) and the aggregate supply
curve;
• identify factors which may cause the
short-run aggregate supply curve to
shift, such as changes in factor prices
and business taxation;
• understand that the long-run AS
represents the productive potential of
the economy and that it can shift due
to:
- changes in the quantity or quality of
factors of production available;
- the efficiency with which existing
resources are used;
• understand that AD and AS interact to
determine equilibrium levels of
income, output and prices; and
Resources Teaching and Learning
Activities
www.tutor2u.net/economics/ • Ask students to examine OECD
content/topics/ad_as/aggreg website and browse by country
ate_supply.htm to access statistical profiles of
selected nations. Use findings to
www.whitenova.com/ThinkE investigate different composition
conomics/adas.html of AD and AS in different
economies
• Ask students to monitor in
groups newspaper, TV, radio
and internet coverage of issues
relating to AS and AD. Use
internet search engines to
research references to concepts
such as ‘output gap’
• Use one of the commercially
available society building
simulation games such as Sim
City to consider the effects of
alternative ways of using
resources
26
CCEA Exemplar Scheme of Work: GCE Economics
Content and Suggested Learning Outcomes
Time Allocation
Aggregate demand, Students should be able to:
aggregate supply and
determination of
macroeconomic
equilibrium (cont.)
• explain the effects of shifts in the AD
and/or AS curves.
Government economic • explain what is involved in fiscal,
policy (14 hours) monetary and supply-side policies;
• use AS/AD analysis to predict the
possible effects of changes in the
above policies such as alterations to
tax rates, government spending,
interest rates or incentives to effort
and enterprise;
• appreciate that different policy
instruments may be required to
address different aspects of a single
macroeconomic problem;
Resources Teaching and Learning
Activities
• Visit the ThinkEconomics
webpage and get students to
experiment with changes in
economic variables
Anderton: Units 78, 83, 84 • Use leaflets and educational
Sloman: Chapters 16, 19, 22 videos published by HM
Customs and Revenue to
www.bankofengland.co.uk/m explore nature of fiscal policy
onetarypolicy/overview.htm
• Distinguish between automatic
www.bized.co.uk/learn/econ stabilisers and discretionary fiscal
omics/govpol/macropolicies policy
/index.htm
• Organise class debate on the
www.tutor2u.net/economics/ possible disincentive effects of
content/topics/macroecono high rates of tax.
my/government_policy.htm
• Research the importance of
www.hm-
credit and borrowing in the UK
treasury.gov.uk/documents/
economy
uk_economy/monetary_polic
y/ukecon_mon_index.cfm
27
CCEA Exemplar Scheme of Work: GCE Economics
Content and Suggested Learning Outcomes
Time Allocation
Government economic Students should be able to:
policy (cont.)
• appreciate that external constraints
such as international treaty obligations
may limit the government’s scope for
macro-economic policy changes;
• understand that setting targets for
improvement in any one economic
indicator reduces its effectiveness as an
indicator (Goodhart’s law); and
• compare and evaluate the likely
effectiveness of different policy
options.
Resources
www.hmrc.gov.uk/leaflets/sc • Investigate the issues of
hools.htm
www.en.wikipedia.org/wiki/
Goodhart's_law
www.moneysense.rbs.co.uk/r
bs/default.asp
www.bankofengland.co.uk/e
ducation/index.htm
www.bba.org.uk/bba/jsp/po
lopoly.jsp?d=103
28
Teaching and Learning
Activities
“responsible borrowing” using
material from the British
Bankers’ Association as a
stimulus
• Explore the nature of supply-
side policies including measures
such as reducing the
government’s involvement in the
economy, increasing mobility of
factors of production, increasing
incentives, reducing the power
of monopolies in product and
factor markets and developing a
culture where enterprise is more
highly valued
• Use film or other subjective
accounts of experience of major
structural changes – eg Brassed
Off, The Full Monty – to consider
perspectives on the
implementation of supply-side
policies. Widen the debate by
reference to statistics on average
material living standards over a
25-year period
CCEA Exemplar Scheme of Work: GCE Economics

Unit A2 1:
Business Economics

29
CCEA Exemplar Scheme of Work: GCE Economics

GCE Economics: Scheme of Work

Unit A2 1: Business Economics

Prior Learning: It is assumed that students taking this unit will already have the foundation of knowledge and understanding developed in Unit AS 1,
Markets and Prices, and have acquired the appropriate levels of literacy and numeracy required for A2 study.

Basic Reading:
• Sloman, J, Essentials of Economics, 3rd Edition, FT Prentice Hall.
• Anderton, A (2006) Economics, 4th edition, Causeway Press.
• Parkin, M; Powell, M and Mathews, K, Economics, 7th edition, Addison Wesley.
• www.tutor2u.net - Revision notes for AS economics
• Economics Review (ER) Magazine - (Philip Allan Updates, www.philipallan.co.uk)

Assessment: Students should be given regular practice in completing data response/case study questions and writing essays, making use of CCEA past and
specimen papers wherever possible. Teacher-designed or commercially available multiple choice tests can be used as diagnostic assessment instruments to
help identify gaps in understanding.

Content and Suggested Learning Outcomes Resources Teaching and Learning Activities
Time Allocation

The diverse nature of Students should be able to:

production (3 hours)
• understand that production comes in a
wide variety of forms; and
• appreciate that all production involves
the use of resources and creates
opportunity costs.
Sloman: Chapter 5
www.bbc.co.uk/dragonsden
• Give students a list of activities
and ask them to identify those
which are production
• Emphasise and illustrate the
growth of the service sector in the
UK economy with reference to
the role of sectors such as

30
CCEA Exemplar Scheme of Work: GCE Economics
Content and Suggested
Time Allocation
The diverse nature of
production (cont.)
Decision-making in the
short and long term
(10 hours)
Learning Outcomes
Students should be able to:
• explain the difference between the long
and short run;
• understand that the timescales of the
short and long runs may differ between
industries;
• explain the law of diminishing marginal
returns to a variable factor;
Resources
Anderton:
Units 46, 47, 48 and 49
Parkin et al: Chapter 10
Tutor2u:
Short and long run production
Background to supply - short run
costs
Long run costs: economies and
diseconomies of scale
31
Teaching and Learning Activities
finance, advertising and
entertainment
• Ask students to explain the
difference between recreational
sport (consumption ) and
professional sport (production)
• Ask students to identify the
factors of production used by a
major football club
• Use extracts from Dragons’ Den
series to illustrate different
business ideas and identify the
requirements for success
• Use as many real life examples as
possible to make concepts less
abstract
• Explain the importance of the
distinction between fixed and
variable costs in situations such as
deciding whether or not to shut
an unprofitable firm
CCEA Exemplar Scheme of Work: GCE Economics

Content and Suggested Learning Outcomes Resources Teaching and Learning Activities
Time Allocation

Decision-making in the Students should be able to:

short and long term
(cont.)
• explain the distinction between fixed
and variable costs of production;
• analyse trends in short-run marginal,
average and total costs as output
changes;
• understand the concepts of total
average and marginal revenue;
• apply these costs and revenue concepts
in analysing a firm’s decision-making:
• explain the connection between short
and long run average and marginal cost
curves;
• apply the distinction between the short
and long run in analysing the
implications of a firm’s costs and
revenue situation, for example, whether
or not a loss-making firm should close;
Sloman: Chapter 3
ER: “Total, marginal, average”
Nov 2004
ER “Long run costs and output”
September 2003
ER “Short run costs” September
2003
www.bbc.co.uk/dragonsden
• Examine some of the economic
and ethical issues which arise in
industries such as pharmaceuticals
which often have very high fixed
costs and low marginal costs
• Discuss the issue of water
metering in terms of the costs of
the water industry
• Examine the growth of online
commerce and its implications for
distribution costs
• Use Dragons’ Den interviews to
illustrate the costs involved in
different types of business idea

• understand the concepts of economies

of scale, diseconomies of scale, external
economies and external diseconomies;

32
CCEA Exemplar Scheme of Work: GCE Economics

Content and Suggested Learning Outcomes Resources Teaching and Learning Activities
Time Allocation

Decision-making in the Students should be able to:

short and long term
(cont.)
• analyse the effects of such economies
and diseconomies on returns and costs
for the firm and industry; and

• explain how globalisation,

environmental concerns and the growth
of internet usage may affect firms’ costs
and consumers’ behaviour.

The growth of the firm • understand the distinction between
(7 hours) organic growth and growth by merger
or acquisition;
• explain different types of integration;
and
• analyse and evaluate the motives for
growth, including the inputs of workers,
directors, shareholders and government
into the firm’s decision-making process.
Anderton: Unit 64 • Illustrate this process by the use
of topical examples
Tutor2u:
Growth of firms • Ask students to use Competition
Commission website to find
www.competition- examples of mergers which were
commission.org.uk subject to investigation
• Use Competition Commission
reports to examine the
perspectives of the various groups
affected by a merger

33
CCEA Exemplar Scheme of Work: GCE Economics

Content and Suggested Learning Outcomes Resources Teaching and Learning Activities
Time Allocation

The objectives of the firm Students should be able to:

(9 hours)
• explain the conditions for profit
maximisation in terms of the equality of
marginal cost and marginal revenue;
• evaluate how useful the assumption of
profit maximisation is as the basis for
business decision-making;
• explain how the inputs of other
stakeholders, such as workers, directors,
pressure groups and government may
affect firms’ objectives; and
Tutor2u: • Examine company reports for
Business objectives. examples of businesses apparently
Anderton: Unit. 50 not engaging in profit
maximisation eg charitable trusts.
Investigate and discuss the
motivation for such behaviour
• Use press reports and the internet
to examine the role of venture
capitalists in taking over under-
performing companies

• understand and evaluate other theories

of firms behaviour such as the
maximisation of sales revenue, long run
profits and managerial utility.

The competitive
environment (12 hours)
• understand the main features of Sloman: Chapter 4 • Compare the outcome of
perfectly competitive, monopolistic and different market structures by
oligopolistic markets; Tutor2u: examining the efficiency issues
Perfect competition involved
• compare firms’ behaviour in different Monopoly
market structures, for example Price discrimination • Use textbook and workbook
competitive pricing, product Oligopoly-overview exercises to improve students’
differentiation, non-price competition, Contestable markets competence in analysing market
collusion and price leadership and wars; structures

34
CCEA Exemplar Scheme of Work: GCE Economics

Content and Suggested Learning Outcomes Resources Teaching and Learning Activities
Time Allocation

The competitive Students should be able to:

environment (cont.)
• use the concepts of productive Anderton:
efficiency, allocative efficiency and Units 53, 54, 56 and 58
deadweight welfare loss to evaluate the
implications of different market Parkin et al: Chapters 11, 12 and
structures; 13

• show how the theory of contestable ER: “Price discrimination” Feb

markets can be used to explain the 2003
behaviour of firms in a range of market ER: “Cartel problems” Nov 2003.
structures where barriers to entry and ER: “The market for oil” Nov
exit are low; and 2004

• consider the strengths and limitations of

this theory.

Market dominance and • understand how market dominance may Tutor2u: • Use a variety of case studies from
competition policy be measured and some of the problems Competition policy the Office of Fair Trading and the
(8 hours) experienced in attempting such Competition Commission to
measurement; Anderton: Unit 63 show competition policy in action

• appreciate that there may be different
approaches to dealing with market
dominance and a lack of competition
and consider how these may be affected
by views about the contestability of
markets;
Parkin et al: Chapter 14 • Use newspaper reports to
examine a proposed merger from
ER “ A stronger UK competition the initial approach to its
policy” February 2004 conclusion

35
CCEA Exemplar Scheme of Work: GCE Economics

Content and Suggested Learning Outcomes Resources Teaching and Learning Activities
Time Allocation

Market dominance and Students should be able to:

competition policy(cont.)
• consider a range of policy instruments, www.oft.gov.uk • Examine the role of the
such as: competition authorities
- breaking up monopolistic businesses; www.competition- throughout this process
- restricting mergers and acquisitions; commission.org.uk
- regulation of natural monopolies and
the outlawing of unfair trading
practices; and

• evaluate the effectiveness of these

instruments.

Business and the
environment (11 hours)
• understand how certain types of
business activity may have negative
environmental impacts;
• appreciate that increasing
environmental awareness may create
market openings for business;
• explain how government policy on
environmental protection may affect
consumers and producers; and
Sloman: Chapter 6 • Re-examine the issue of
externalities to show how
Anderton: Unit 19 business with a goal of profit
maximisation may create a
Parkin et al: Chapter 15 negative environmental impact
www.sustainable-
development.gov.uk
www.environment- • Examine the annual reports of a
agency.gov.uk number of companies to see what
contribution they are making
www.defra.gov.uk towards protecting the
environment

36
CCEA Exemplar Scheme of Work: GCE Economics

Content and Suggested Learning Outcomes Resources Teaching and Learning Activities
Time Allocation

Business and the Students should be able to:

environment (cont.)
• evaluate the effectiveness of the main • Monitor prices in the EU
government policy instruments for emissions trading scheme and
environmental protection including: analyse the causes of price
- Regulation; fluctuations
- ‘Green’ taxation;
- Tradeable pollution permits; • Compare the performance of a
- Voluntary agreements. number of countries in meeting
their targets under the Kyoto
protocol

37
CCEA Exemplar Scheme of Work: GCE Economics

38
CCEA Exemplar Scheme of Work: GCE Economics

Unit A2 2:
The Global Economy

39
CCEA Exemplar Scheme of Work: GCE Economics

GCE Economics: Scheme of Work

Unit A2 2: The Global Economy

Prior Learning: It is assumed that students taking this unit will already have the foundation of knowledge and understanding developed in Unit AS 2, The
National Economy, and have acquired the appropriate levels of literacy and numeracy required for A2 study.

Basic Reading:
• Sloman, J, Essentials of Economics, 3rd Edition, FT Prentice Hall.
• Anderton, A 2006 Economics, 4th edition, Causeway Press.
• www.tutor2u.net - Revision notes for AS economics
• Economics Review (ER) Magazine - (Phillip Allan Updates, www.philipallan.co.uk)

Assessment: Students should be given regular practice in completing data response/case study questions and writing essays, making use of CCEA past and
specimen papers wherever possible. Teacher-designed or commercially available multiple choice tests can be used as diagnostic assessment instruments to
help identify gaps in understanding.

Content and Suggested Learning Outcomes Resources Teaching and Learning

Time Allocation Activities

Reasons for Students should be able to:

international trade
(5 hours)
• understand the reasons for trade,
including unequal distribution of
resources, comparative advantages in
production, and strategic and geo-
political motives;
Anderton: Unit 14
Sloman: Chapter 23
www.tutor2u.net/economics/
gcse/revision_notes/internati
onal_trade_introduction.htm
• Ask students to take an
inventory of a room or area,
either at home or in a communal
school/college space, and
identify non-UK origins of as
many goods as possible.

40
CCEA Exemplar Scheme of Work: GCE Economics
Content and Suggested Learning Outcomes
Time Allocation
Reasons for Students should be able to:
international trade
(cont.)
• apply the concepts of specialisation
and comparative advantage to explain
the gains from, and patterns of, trade
(Students are not required to have detailed
advance knowledge of patterns of trade); and
• evaluate the usefulness of the theory
of comparative advantage.
Free trade and • explain and evaluate arguments for
protection (9 hours) and against free trade;
• understand the range of measures
which may be used to control trade;
• analyse the motivation for and
effectiveness of trade controls; and
• understand the main purposes of the
World Trade Organisation (WTO) and
evaluate its effectiveness.
Resources
Monthly Digest of Statistics
www.uktradeinfo.com
www.fco.gov.uk/servlet/Fron
t?pagename=OpenMarket/X
celerate/ShowPage&c=Page
&cid=1007029391386
www.globalexchange.org/ca • Organise classroom debate on
mpaigns/wto/
www.wto.org
www.hsc.csu.edu.au/econom
ics/global_economy/tut7/Tu
torial7.html • Discuss articles or web pages
www.tutor2u.net/economics/
content/topics/trade/import
_controls.htm
www.maketradefair.com/en/
index.php/index.php?file=iss
ues_freetrade.htm
Sloman: Chapter 23
Anderton: Unit 40
41
Teaching and Learning
Activities
Students should seek to explain
why these goods may have been
purchased from abroad rather
than from UK producers
• Use the internet and official UK
statistics to research how broad
patterns of UK trade have
changed over the past 10 years
the issue of whether the UK
should be able to protect itself
from foreign competition
expressing deep-seated hostility
to WTO. Examine why this
hostility arises and whether it is
justified
CCEA Exemplar Scheme of Work: GCE Economics
Content and Suggested Learning Outcomes
Time Allocation
The United Kingdom Students should be able to:
balance of payments
(5 hours)
• understand, in broad terms, the main
elements of the UK balance of
payments accounts;
• appreciate that inward flows of
investment may partially offset deficits
on current accounts;
• describe in general terms the trends
since 1997 in the UK’s trade in goods
and services and in financial
investment flows; explain problems
caused by imbalances in national
trading accounts;
• appreciate that the UK government is
constrained in its response to balance
of payments difficulties; and
• evaluate the significance of payments
imbalances.
Exchange rates • understand how exchange rates are
(6 hours) determined under a floating exchange
rate system;
Resources
Sloman: Chapter 24
Anderton: Unit 30
Annual Abstract of Statistics
www.economicshelp.org/ma
croeconomics/bop/index.ht
ml • Ask students to research news
www.tutor2u.net/economics/
content/topics/trade/bop_ac
counts.htm
Sloman: Chapter 24
Anderton: Units 93 – 96
42
Teaching and Learning
Activities
• Ask students to obtain current
information on items from the
UK balance of payments on
current and financial accounts.
Discuss the meaning and
significance of the figures
stories such as the blocking by
domestic governments of the
purchase of certain assets by
overseas companies and analyse
the motives behind such actions
• Get students to follow for a
short period TV, internet or
press pages with details of
CCEA Exemplar Scheme of Work: GCE Economics
Content and Suggested Learning Outcomes
Time Allocation
Exchange rates Students should be able to:
(cont.)
• analyse effects of changes in the
exchange rate;
• explain why a stable exchange rate may
assist international trade; and
• explain how exchange rates may be
stabilised by government or
international action.
The European Union • distinguish between free trade areas,
(10 hours) customs unions and common currency
areas;
• explain how European Union policies
both create and divert trade;
• evaluate the effects of European
Union enlargement since 2001;
• evaluate the case for the UK and other
countries joining the ‘eurozone’;
Resources
www.bized.co.uk/learn/econ
omics/international/exchang
e/index.htm
Sloman: Chapter 25
www.europa.eu/abc/index_e
n.htm
www.epp.eurostat.ec.europa.e
u/portal/page?_pageid=1090, • Get students to prepare a dossier
30070682,1090_33076576&_da
d=portal&_schema=PORTA
L that of the Bank of England.
www.ecb.int/ecb/html/index
.en.html
43
Teaching and Learning
Activities
foreign exchange values. Discuss
reasons for variations in the
exchange rate of the £ against
the euro, another European
currency and the US dollar
• Emphasise that government or
central bank actions to influence
or stabilise exchange rates are
limited, but may involve buying
or selling their own currency on
international markets
• Ask individual students to carry
out specific information searches
on key ideas and topics using the
EU office in Northern Ireland as
a resource
comparing the role and
effectiveness of the ECB with
Students should look, in
particular, at rates of inflation in
the UK and eurozone countries
over the same period of time
CCEA Exemplar Scheme of Work: GCE Economics
Content and Suggested
Time Allocation
The European Union
(cont.)
Globalisation (9 hours)
Learning Outcomes
Students should be able to:
• evaluate the aims, operation and
impact of the European Central Bank
(ECB); and
• analyse and evaluate the effects of the
Common Agricultural Policy (CAP)
within and outside the European
Union.
• understand the main features of
globalisation;
• analyse and evaluate the impacts of
globalisation on developed and less
developed economies; and
Resources
www.economicshelp.org/eur
ope/european-union.html
European Commission Windsor
House
9-15 Bedford Street BELFAST
BT2 7EG
Sloman: Chapter 25
Anderton: Unit 97
www1.worldbank.org/econo
micpolicy/globalization/
www.imf.org/external/np/ex
r/key/global.htm
www.direct.gov.uk/en/Gtgl1
/GuideToGovernment/Inter
nationalBodies/DG_4003091
44
Teaching and Learning
Activities
• Get students to gather
information on the Common
Agricultural Policy through web
searches or guided library
research. Students should use
this information to write a short
report arguing for or against the
ending of the CAP
• Students could collect
information on Norway and
Switzerland and discuss why
there are European states
remaining voluntarily outside the
EU
• Students could brainstorm ideas
associated with globalisation and
attempt to categorise them as
‘for’ and ‘against’
• Discuss whether increasing ease
of access to factor and
commodity markets is a good
thing and, if so, how it can be
made easier
CCEA Exemplar Scheme of Work: GCE Economics

Content and Suggested Learning Outcomes Resources Teaching and Learning

Time Allocation Activities

Globalisation (cont.) Students should be able to:

• appreciate that negotiations by www.guardian.co.uk/globalis • Organise a class debate on

international groupings of economies ation/story/0,,823097,00.html controversial issues such as the
may have significant roles in shaping influence of multinational
the direction of global economic www.news.bbc.co.uk/1/hi/ta companies or the existence of
change. lking_point/1444930.stm ‘cultural imperialism’

www.tutor2u.net/economics/ • Students could consider the

content/topics/trade/globali outcomes of the most recent
sation.htm round of major trade
negotiations or international
summit conference

• They should try and assess the

likely impact of any decisions or
agreements

Trade, aid and economic • understand the main classifications, Sloman: Chapter 26 • From a list of characteristics,
development (8 hours) characteristics and priorities of Anderton: Units 99 – 104 students identify which apply to
countries at different stages of less economically developed,
economic development; www.oxfam.org.uk recently industrialised and more
economically developed
• explain factors that may enhance or www.unicef.org.uk countries
inhibit development;
www.trocaire.org/wherewew
ork/index.php

45
CCEA Exemplar Scheme of Work: GCE Economics
Content and Suggested
Time Allocation
Trade, aid and economic
development (cont.)
Government
macroeconomic policy
in an open economy
(8 hours)
Learning Outcomes
Students should be able to:
• understand the roles of governments,
non-governmental organisations and
international agencies in providing and
administering aid;
• understand the roles of the
International Monetary Fund and the
World Bank; and
• evaluate the effectiveness of foreign
aid programmes and trade
liberalisation in assisting less
developed countries.
• understand that internal and external
pressures may oblige governments of
developed countries to develop
policies to protect the environment;
and
Resources Teaching and Learning
Activities
www.undp.org • Discuss the various means by
www.dfid.gov.uk which development could be
www.imf.org/external/about. accelerated - eg, through
htm formation of capital in all its
www.worldbank.org forms, development of
www.adb.org physical and social infrastructure,
promotion of cultural factors,
eradication of corruption
• Ask students to carry out a
survey of the relative prices of
“fair trade” products and
equivalent goods not branded in
that way
• Compare the prices and discuss
the pros and cons of this
approach to helping producers
in poorer countries
Sloman: Chapter 25 • Explore and analyse the
implications for aggregate
www.greenpeace.org.uk demand of shifts in the external
value of the currency
46
CCEA Exemplar Scheme of Work: GCE Economics

Content and Suggested Learning Outcomes Resources Teaching and Learning

Time Allocation Activities

Government Students should be able to:

macroeconomic policy
in an open economy
(cont.)
• analyse how government fiscal and
monetary policy may be influenced
and constrained by international
considerations.
newspapers and journal archives, • Explain, and illustrate with
especially: reference to statistics and media
www.ft.com/home/europe reports, how developments in
www.economist.com the global economy have
www.timesonline.co.uk/tol/n changed relative competitiveness
ews/ of industries in the developed
www.ireland.com countries, creating current and
www.belfasttelegraph.co.uk future problems with
www.irishnews.com employment and current account
www.independent.co.uk trade balances

• Students could research the

effects of international pressure
groups such as Greenpeace on
international trade

• Local MPs, MEPs and MLAs

could be consulted as to
instances in their experience
when policies or initiatives have
had to be modified in the light
of EU or other treaty obligations

47