Course Overview

The Pearson Edexcel International Advanced Level (iAL) Economics course equips students with a rigorous foundation in economic theory, quantitative analysis, and real-world policy evaluation, structured around the four-unit specification from the Pearson syllabus. Students develop ​​critical thinking​​ and ​​analytical skills​​ through microeconomic principles (consumer behaviour, market structures) and macroeconomic frameworks (national income, globalization), while mastering ​​quantitative techniques​​ such as elasticity calculations, cost-revenue analysis, and diagrammatic interpretation of models like PPFs and AD/AS curves.

Study Module:

What You Will Learn:

Unit 1: Markets in Action​​

1. ​​Core Concepts​​: Scarcity, PPFs, rational decision-making, and price elasticity of demand (PED).
2. ​​Market Dynamics​​: Supply/demand shifts, consumer/producer surplus, and price mechanism functions (rationing, signalling).
3. ​​Market Failure​​: Externalities (positive/negative), public goods, asymmetric information, and moral hazard.
4. ​​Policy Interventions​​: Indirect taxes, subsidies, and price controls; evaluate effectiveness in contexts like healthcare or agriculture.

​​Unit 2: Macroeconomic Performance and Policy​​

1. ​​Economic Indicators​​: Calculate real/nominal GDP, interpret CPI inflation, and analyse unemployment trends (ILO definitions).
2. ​​AD/AS Models​​: Multiplier effect, output gaps, and causes of economic growth (actual vs. potential).
3. ​​Policy Conflicts​​: Trade-offs between inflation/unemployment (Phillips Curve), supply-side reforms (deregulation, education investment).
4. ​​Global Comparisons​​: Contrast macroeconomic performance in developed vs. emerging economies using PPP-adjusted data.

​​Unit 3: Business Behaviour​​

1. ​​Firm Strategies​​: Revenue maximisation vs. profit optimisation; cost curves (MC, AC), economies of scale.
2. ​​Market Structures​​: Perfect competition, monopolies (price discrimination), oligopolies (game theory), and contestable markets.
3. ​​Labour Markets​​: Wage determination, monopsony power, and government interventions (minimum wage, anti-discrimination laws).
4. ​​Regulation​​: Evaluate policies like price capping or merger controls in industries like energy or tech.

​​Unit 4: Developments in the Global Economy​​

1. ​​Globalisation​​: Role of TNCs, trade liberalisation (WTO), and FDI impacts on developing economies.
2. ​​Trade & Exchange Rates​​: Comparative advantage, terms of trade calculations, and currency fluctuations (Marshall-Lerner condition).
3. ​​Inequality​​: Analyse Gini coefficients, absolute/relative poverty, and fiscal policies (progressive taxation).
4. ​​Synoptic Themes​​: Link climate change policies to macroeconomic objectives (e.g., green subsidies vs. inflation targets).

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