A-Level Economics is about understanding how people, businesses and governments make choices, and what happens as a result.
Why do prices rise? Why are some jobs better paid than others? What causes unemployment? Why do governments raise taxes or change interest rates?
These are the sorts of questions economists investigate.
Economics isn't just about money or the stock market. It is about understanding how the world works and why people make the decisions they do.
What Do You Learn in A-Level Economics?
The course is divided into two broad areas.
Microeconomics looks at individual consumers, businesses and markets. You study how prices are determined, why firms compete, how wages are set and why governments sometimes intervene in markets.
Macroeconomics looks at the economy as a whole. You study inflation, unemployment, economic growth, interest rates, government spending, taxation and international trade.
AQA and Edexcel cover broadly similar topics, although the precise content and structure differ.
What Does Thinking Like an Economist Involve?
Imagine the government introduces a tax on sugary drinks.
Would shops raise their prices? Would people buy fewer sugary drinks? Might manufacturers change their recipes? Would some consumers be affected more than others?
An economist tries to understand what might happen and why.
You will learn to use simplified models and diagrams to explore questions like these. But you will also learn to question the predictions.
For example, a tax might reduce consumption considerably if people are sensitive to price changes. But if they are not, the effect could be much smaller.
Economics is not simply about predicting what will happen. It is about explaining why something might happen and considering the circumstances in which the outcome could be different.
What Is Studying A-Level Economics Actually Like?
You will learn economic concepts, draw diagrams, interpret data and write essays. But success is not simply about remembering definitions or reproducing diagrams.
Suppose an exam question asks how higher interest rates might affect inflation. You need to explain how higher borrowing costs could affect household spending and business investment, and how those changes might influence inflation. You might then consider why the effect could be stronger in some circumstances than others.
This is the kind of reasoning you will develop throughout the course. You can see how it works in How to Build a Chain of Analysis in A-Level Economics.
Does A-Level Economics Involve Much Maths?
There is some maths, but it is generally based on GCSE-level skills.
You will use percentages, ratios, averages, graphs and straightforward calculations. You will also learn some new formulas, including those used to measure elasticity. You do not normally need to take A-Level Maths to study A-Level Economics.
The challenge is often less about doing the calculation and more about understanding what the result tells you.
Is A-Level Economics Right for You?
Economics may appeal to you if you enjoy asking questions about the world.
You might be interested in why houses are expensive, why businesses change their prices, why some countries are richer than others or whether government policies actually achieve what they are supposed to.
You will need to be comfortable with some numerical work, but also willing to explain ideas, analyse evidence and consider different points of view.
You don't need to have studied GCSE Economics or arrive knowing much about the economy.
If you enjoy asking why things happen, and are willing to think carefully about the answers, A-Level Economics could be a good choice.
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