Economics is a fascinating subject that will enable you to learn more about how the world works. For example in the last two years the global financial crisis has rarely been out of the news. The coalition’s emergency budget has promised spending cuts of 25%. How will these spending cuts affect the economy and the quality of life in Britain? Is a double-dip recession now more likely? If you opt to study Economics you’ll find out the answer to this question and many more, such as:
Why was Britain’s recession longer and deeper than in many other European countries. And was it all Gordon’s fault?
Should the government intervene to artificially prop up the housing market? Was the government right to bailout banks that made loans to households that borrowed too much?
Why are some countries richer than others? The gap between rich and poor grew under New Labour. Why did this happen? And does this issue of inequality matter anyway?
In addition to these national and international issues, Economics also explains decisions made by firms and consumers. For example, how do businesses go about deciding how much they should produce, and at what price? If you want to know the answers to all of these questions and more study Economics.
Lower Sixth AS: Microeconomics is the study of individual markets. Economists use supply and demand analysis to make predictions about future price movements in various micro markets. A good example of a micro market that has rarely been out of the news in the last decade is housing. For many years house prices rose at a spectacular rate, Economists such as Nouriel Roubini, Marc Faber, Merryn Somerset Webb, Jim Rodgers and Peter Schiff spotted and warned against the speculative bubble that was emerging in both the US and the UK property markets years before the inevitable crash. Unfortunately, market forces can, at times, create unfavourable outcomes for society. Some firms are happy to ignore the pollution that they have created because it may not have reduced their profits. Should the government intervene to correct this market failure? Does society benefit from green taxes designed to make the polluter pay, or would society be better off without these taxes?
Upper Sixth A2: In the second year you will study macroeconomics, which concerns the study of the economy in aggregation. Studying macroeconomics will help you to understand economy-wide issues such as the causes of economic growth, inflation and unemployment. You will also study the impacts that government economic policy has on the economy. For example, at the time of writing the UK government is running a huge fiscal deficit - government spending is way above taxation income. What has caused this situation, and why does it matter? Can the UK cope with the near record levels of debt created by the current government's economic policies? Will the policy of quantitative easing - quite literally printing money - lead to recovery, or hyperinflation Zimbabwe style?
Will I enjoy it?
The course is relevant and up-to-date: in class we use economic theory to analyse a wide range of topical issues, usually via case studies and newspaper articles that have been adapted into data response questions. Today’s news is often the basis of today’s lesson. Beware, Economics is addictive! Economics will stimulate, challenge and engage you- learning to think like an economist gives huge satisfaction. We love classroom discussion! Lots of students enjoy it in class and go on to read Economics at the very best universities, even when they had little idea of what Economics was about to start with.
Assessment
AS: 2 x 1.5 hour papers (data response questions)
A2: 2 x 2 hour papers (a mixture of data response and essays)
Coursework Requirements: None