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2. What’s changed?2. What’s changed?2.1 How have AS and A level changed?Changes to AS and A level qualificationsFrom September 2015, A level Economics A will be a linear qualification.This means that all examinations must be sat at the end of the course.More information about the implications of the move to linear assessment is givenin Section 3 on page 13.From September 2015, AS level Economics A will be a standalone qualification.This means that it cannot be used to contribute towards an A level grade.More information about the relationship between AS and A level is given inSection 3 on page 13.Changes to subject criteriaThe subject content requirements for AS and A level Economics have been revised.All awarding organisations’ specifications must meet these criteria. The full subjectcontent document can be found on the Department for Education website, but theboxes below highlight the key requirements.The following requirements apply to both AS and A level Economics specifications:AS and A level specifications must require students to:4 develop an understanding of economic concepts and theories through acritical consideration of current economic issues, problems and institutionsthat affect everyday life develop analytical and quantitative skills in selecting, interpreting and usingappropriate data from a range of sources, including those in the Annex explain, analyse and evaluate the strengths and weaknesses of the marketeconomy and the role of government within it develop a critical approach to economic models of enquiry, recognising thelimitations of economic models understand microeconomic and macroeconomic market models; use themodels to explore current economic behaviour; make causal connections;and develop an understanding of how the models shed light on the economyas a whole be aware of the assumptions of the model of supply and demand; explain theway it works using a range of techniques; and use the model to describe,predict and analyse economic behaviour develop an understanding of the benefits of markets and the reasons whythey may fail; understand the implications of market failure for individuals,firms and government, and recognise the possibility of government failure use the aggregate demand/aggregate supply (AD/AS) model and data tounderstand why supply-side and/or demand-side policies may be seen asappropriate ways of managing an economy consider the possible impact of macroeconomic policies; recognise the issuesgovernment faces in managing the macroeconomy; argue for differentapproaches; and identify criteria for success and evaluate effectiveness develop the ability to apply and evaluate economic models as represented inwritten, numerical and graphical forms; interpret and evaluate different typesof data from multiple sources; and propose and justify possible responses toeconomic issues. Pearson Education Ltd 2014. This material is not copyright free.

2. What’s changed?All AS and A level specifications must cover the following core knowledge,understanding and skills:Economic choices and markets Scarcity and choice: the basic economic problem, opportunity cost,specialisation and trade. How competitive markets work: allocation of resources, the objectives ofeconomic agents, supply and demand, elasticity. Market failure and government intervention: externalities, alternativemethods of government intervention, government failure.The national and global economy The determination of output, employment and prices: circular flow of income,expenditure and output, aggregate demand and aggregate supply. Economic policy objectives and indicators of macroeconomic performance: forexample, economic growth, employment, inflation, the balance of payments;potential policy conflicts and trade-offs. The global context: international trade, exchange rate changes. The application of policy instruments: the nature and impact of fiscal,monetary, exchange rate and supply-side policies.The following requirements also apply to A level Economics specifications:A level specifications must require students to: develop an understanding of the role and impact of the financial sector recognise the assumptions, relationships and linkages of the possible impactsof macroeconomic policies apply and evaluate economic concepts, theories, methods and models to awider range of contexts.A level specifications must also cover the following core knowledge,understanding and skills:Economic choices and markets Scarcity and choice: the margin. How competitive markets work: productive and allocative efficiency, theinteraction of markets. Competition and market power: business objectives, market structures andtheir implications for the way resources are allocated, interdependence offirms. Labour market: wage determination, labour market issues, governmentintervention. Market failure and government intervention: market power, informationasymmetries.The national and global economy Financial sector: the role of the financial sector and its impact on the realeconomy, financial regulation, role of central banks. Economic policy objectives and indicators of macroeconomic performance:income distribution and welfare. The global context: globalisation, trade policies and negotiations. Pearson Education Ltd 2014. This material is not copyright free.5

2. What’s changed?The main changes in the revised subject content are: the core content requirements (outlined in the tables on page 5) mustconstitute 60% of the AS and A level specification content there is defined core content for AS level the inclusion of the financial sector and labour markets within the core contentfor A level there is greater emphasis on the application of appropriate quantitative skills ina range of economic contexts. The assessment of these skills will include atleast level 2 mathematical skills as a minimum of 15% of the overall AS and20% of the overall A level marks.Students are expected to accomplish the following quantitative skills as part of theirAS and A level study: calculate, use and understand ratios and fractions calculate, use and understand percentages and percentage changes understand and use the terms mean, median and relevant quantiles construct and interpret a range of standard graphical forms calculate and interpret index numbers calculate cost, revenue and profit (marginal, average, totals) make calculations to convert from money to real terms make calculations of elasticity and interpret the result interpret, apply and analyse information in written, graphical and numericalforms* skills in bold are not a requirement in the AS level.More information about the application of quantitative skills is given in Section 6.Changes to Assessment ObjectivesThe AS and A level Economics Assessment Objectives have been revised.The objectives have been made more explicit to exemplify the skills developedthrough the AS and A level specifications. The Assessment Objectives are the samefor both AS and A level but the weightings are different.AO1AS 25–35%A level 20–30%AO2AS 25–35%A level 20–30%AO3AS 15–25%Demonstrate knowledge of terms/concepts andtheories/models to show an understanding of the behaviourof economic agents and how they are affected by andrespond to economic issuesApply knowledge and understanding to various economiccontexts to show how economic agents are affected by andrespond to issuesAnalyse issues within economics, showing an understandingof their impact on economic agentsA level 20–30%AO4AS 15–25%A level 20–30%6Evaluate economic arguments and use qualitative andquantitative evidence to support informed judgementsrelating to economic issues Pearson Education Ltd 2014. This material is not copyright free.

2. What’s changed?2.2 Changes to the Pearson Edexcel AS and A levelEconomics A specificationsThe A level specification is structured into four themes. In this structure studentsare introduced to core economic concepts and principles and develop anunderstanding of microeconomic and macroeconomic issues, before building on thiscore knowledge and understanding to consider more complex issues and widercontexts. In this thematic approach, progression is continuous as students developtheir knowledge and understanding throughout the course of study.Students use economic models to help them understand the complexities of theworld around them, and use data to help them analyse markets and economies,and how governments try to influence both. Students are introduced to differentperspectives, aspects of economic history and develop an understanding ofeconomic issues.In developing the 2015 specifications we have retained the strengths of the 2008specification: Engaging and updated content Development economics Global focus AS and A level courses designed to allow co-teachabilityThe layout of the specification content has changed to make clear what studentsneed to learn. The guidance column has been removed and the contentrequirements are detailed in the main content columns.Changes have been made to the specification content and the assessments toensure the revised subject content and assessment requirements for economics aremet (as outlined in Section 2.1), and to bring the specification up-to-date(see page 9).Specification overviewThe A level qualification is structured into four themes, with two microeconomic andtwo macroeconomic themes. The content is structured coherently and logically,which enables students to build on their knowledge and understanding as theyprogress throughout the course – students are introduced to economics throughbuilding knowledge and application of microeconomic and macroeconomic conceptsin Theme 1 and Theme 2, with breadth and depth of knowledge and understanding,and applications to more complex concepts and models developed in Theme 3 andTheme 4. This division between microeconomic and macroeconomic themes alsosupports teacher specialism and ensures the specification is deliverable for twoteaching specialists.The charts on page 8 provide an overview of the A level and AS level specifications,indicating the relationship between the two. (Further guidance on the relationshipbetween AS and A level is provided in Section 3 on page 13.) Pearson Education Ltd 2014. This material is not copyright free.7

2. What’s changed?The A level is structured into four themes with three externally assessed exams:Theme 1Introduction to markets and marketfailureTheme 2The UK economy – performanceand policies1.1 The nature of economics2.1 Measures of economic performance1.2 How markets work2.2 Aggregate demand1.3 Market failure2.3 Aggregate supply1.4 Government intervention2.4 National income2.5 Economic growth2.6 Macroeconomic objectives andpolicyTheme 3Theme 4Business behaviour and the labourmarketA global perspective3.1 Business growth4.1 International economics4.2 Poverty and inequality3.2 Business objectives3.3 Revenues, costs and profit4.3 Emerging and developingeconomies3.4 Market structures4.4 The financial sector3.5 The labour market4.5 Role of the state in themacroeconomy3.6 Government interventionPaper 1Markets and business behaviourAssessing Theme 1 and Theme 3Paper 2The national and global economyAssessing Theme 2 and Theme 4Paper 3Microeconomics and macroeconomicsAssessing all themesThe AS level is embedded in the A level: Theme 1 and Theme 2 comprise the samecontent for both the AS and A level specifications. There are two externallyassessed exams:Theme 1Introduction to markets and marketfailureTheme 2The UK economy – performanceand policies1.1 The nature of economics2.1 Measures of economic performance1.2 How markets work2.2 Aggregate demand1.3 Market failure2.3 Aggregate supply1.4 Government intervention2.4 National income2.5 Economic growth2.6 Macroeconomic objectives andpolicyPaper 1Introduction to markets and marketfailure8Paper 2The UK economy – performanceand policies Pearson Education Ltd 2014. This material is not copyright free.

2. What’s changed?Changes to specification contentChanges have been made to the specification content, both to ensure the revisedsubject content requirements for economics are met and to refresh thespecifications to bring them more up-to-date in response to our research findings;for example, by incorporating current issues such as some introductory ideasrelating to behavioural economics.The following content has been included in addition to the core content specified inthe DfE subject criteria (outlined on pages 4-5). The content outlined in the tablebelow has been included to enable students to build on the core contentrequirements to ensure sufficient depth, and to include additional subject content toensure sufficient breadth.Specification contentRationale for inclusionThe nature of economicsThis introductory content addresses the aimsand objectives with regards to appreciating thecontribution of economics, developing an abilityto think as an economist and understandingthat economic behaviour can be coveredthrough a range of perspectives.Rational decision making andalternative views of consumerbehaviourThis content addresses the requirement fromstakeholders to include an element ofbehavioural economics and ensure thespecification includes up-to-date andcontemporary issues in the subject area.Economic history and economicthinkersAspects of economic history have beenintegrated throughout the course to supportcontextual awareness and informmacroeconomic debate. The contentdemonstrates how economic events can beinterpreted in different ways and how theyimpact on more recent economic events.The inclusion of reference to economic thinkerssupports the understanding that there aredifferent perspectives in economics, withdifferent ways of approaching economic issues.References to current economic policies andissues, and the requirement to develop anawareness of recent events are outlined in thespecification.Emerging and developingeconomies (in Theme 4)Theme 4 focuses on macroeconomics in theglobal context, with particular reference toemerging and developing economies. Thisdemonstrates how economic concepts andtheories can be applied in different and realworld contexts. Pearson Education Ltd 2014. This material is not copyright free.9

2. What’s changed?The table below is an overview of the main changes in content from our 2008specification. More detailed mapping of individual topics from the 2015 specificationto the 2008 specification can be found on the Economics pages of the Edexcelwebsite.2015 specification contentChanges from 2008specificationTheme 1Introduction to markets and marketfailure1.1 The nature of economics1.2 How markets work1.3 Market failureInclusion of an awareness ofeconomic thinkers with reference toSmith, Hayek and Marx.Inclusion of rational decision makingand alternative views of consumerbehaviour – an introduction tobehavioural economics.1.4 Government interventionTheme 2The UK economy – performance andpolicies2.1 Measures of economic performance2.2 Aggregate demand2.3 Aggregate supply2.4 National incomeSelected aspects of economic historyfor context, with the inclusion ofKeynes and references to andawareness of different interpretationsof and policy responses to the GreatDepression and the Global FinancialCrisis.Inclusion of national happiness as ameasure of wellbeing.2.5 Economic growth2.6 Macroeconomic objectives and policyTheme 3Business behaviour and the labourmarketCoverage of the labour market in thistheme.3.1 Business growth3.2 Business objectives3.3 Revenues, costs and profit3.4 Market structures3.5 The labour market3.6 Government interventionTheme 4Inclusion of a topic on the financialsector covering the role of financialmarkets and central banks, functionsof money and market failure in thefinancial sector.A global perspective4.1 International economics4.2 Poverty and inequality4.3 Emerging and developing economies4.4 The financial sector4.5 Role of the state in themacroeconomy10 Pearson Education Ltd 2014. This material is not copyright free.

2. What’s changed?Changes to assessmentThe assessment structures for the AS and A level qualifications are outlined belowand on page 12. More detail on the assessment for each component is given inSection 5 on page 87.There are three A level papers, each comprising 100 marks and 2 hours induration.Paper 1Markets and businessbehaviourTotal marks: 100Weighting: 35%Section A: Multiple-choice and short-answerquestions. Students answer all questions.Section B: Based on stimulus material.One data response question comprising anumber of parts.Exam time: 2hrsQuestions drawn from Theme 1and Theme 3 content.Paper 2The national and globaleconomyTotal marks: 100Weighting: 35%Exam time: 2hrsQuestions drawn from Theme 2and Theme 4 content.Paper 3Microeconomics andmacroeconomicsTotal marks: 100Section C: One extended open-responsequestion. Students select one from a choiceof two.Section A: Multiple-choice and short-answerquestions. Students answer all questions.Section B: Based on stimulus material.One data response question comprising anumber of parts.Section C: One extended open-responsequestion. Students select one from a choiceof two.Section A: Based on stimulus material.One data response question comprising anumber of parts, including one extendedopen-response question (students select oneextended open-response question from achoice of two).Weighting: 30%Exam time: 2hrsQuestions drawn from all themes.Section B: Based on stimulus material.One data response question comprising anumber of parts, including one extendedopen-response question (students select oneextended open-response question from achoice of two). Pearson Education Ltd 2014. This material is not copyright free.11

2. What’s changed?There are two AS level papers, each comprising 80 marks and 1.5 hoursin duration.Paper 1Introduction tomarkets and marketfailureTotal marks: 80Weighting: 50%Exam time: 1hr 30Questions are drawnfrom Theme 1 contentPaper 2The UK economy –performance andpoliciesTotal marks: 80Weighting: 50%Exam time: 1hr 30Questions are drawnfrom Theme 2 contentSection A: Multiple-choice and short-answerquestions.Students answer all questions.Section B: Based on stimulus material.One data response question comprising a numberof parts, including one extended open-responsequestion (students select one extended open-responsequestion from a choice of two).Section A: Multiple-choice and short-answerquestions.Students answer all questions.Section B: Based on stimulus material.One data response question comprising a numberof parts, including one extended open-responsequestion (students select one extended open-responsequestion from a choice of two).Changes have been made to the approach of the AS level and A level papers toensure the assessments are clear and consistent, enabling students to understandthe skills they are required to demonstrate and not overly focus on examtechnique. The changes summarised be

This Getting Started guide provides an overview of the new AS and A level specifications to help you get to grips with the changes to content and assessment, and to help you understand what these changes mean for you and your students. We will be providing a package of support to help you plan and implement the new specifications: Planning.