This guide compares the new GCSE Economics qualification to the previous economics qualifications.

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1 Summary of changes This guide compares the new GCSE Economics qualification to the previous economics qualifications. Overview of changes Structure There is now only one GCSE Economics qualification available. The option for a short course qualification has been removed. There s no longer a choice of units that could be combined to form an economics qualification. Unit exams have been replaced with final exams at the end of the course. Assessment There will be two exams. There are now multiple choice questions. The two research areas have been removed and so there are no research topics that will be formally assessed. There is no separation of the specification into Personal Economics/National and Global/International. Quality of Written Communication will no longer be assessed. The marks available for each paper have been increased by almost 15%. The time available for each paper is increased by 40%. This increases the time available to students for reading the items. The assessment objective weightings become: AO1 35% (formerly 30%) AO2 35% AO3 30% (formerly 35%). The essence of the three assessment objectives remains. Some extended response questions do not award AO1 marks. Content Many of the topics remain from the current The new specification signposts further opportunities for analysis and evaluation.

2 Increased focus on numeracy skills relates to familiar content areas. It will enable students to demonstrate the ability to apply their knowledge to different contexts and allow them to use numeric information in the decision-making process. The content looks to develop students ability to operate as enquiring, independent learners who think critically and reflectively. A greater proportion of marks will be allocated to calculation and the interpretation and use of quantitative data in economic contexts. Includes increased amplification of the range and complexity of the content to be covered. An increased focus on economic knowledge applied to real-world contexts. Changes to subject content Economic foundations Economic activity Introductory concepts now include the key economic decisions. Understanding the personal life cycle and its stages. Unit 11, section 1.1 The underpinning concepts of personal finance has been removed. There is now a greater emphasis on economic knowledge and understanding. The factors of production rewards accruing to each of the factors. This is now clearly spelt out rather than being alluded to. Making choices Unit 11, section 1.2

3 Resource allocation Markets and allocation of resources The difference between fact and product markets. Economic sectors interaction of markets in establishing price as well as being a mechanism for allocating scarce resources. Understand interactions of supply and demand. meaning of primary, secondary and tertiary sectors. Much of the content around goods and services remains the same. Specialisation, division of labour, and exchange Unit 11, section 2.2 Greater emphasis on understanding the costs and benefits associated with division of labour to the firm, and not just to the individual. How prices are determined Demand for goods and services Construct an individual demand curve from consumer data. Demonstrate an understanding Unit 11, section 1.3 Construct, use and interpret graphical information.

4 of the difference between a shift of the demand curve and a movement along it. Supply for goods and services Construct an individual firm s supply curve from production data. Demonstrate an understanding of the difference between a movement along a supply curve and the shift of a curve. Greater emphasis on the factors affecting the supply of a good or service. Construct, use and interpret data based on individual firms. Equilibrium price Use supply and demand diagrams to illustrate a producer s revenue. Illustrate on a graph the implications of excess demand and supply. There is now a requirement to be able to relate supply and demand concepts to real-world markets. Intermarket relationships The concepts of substitutes and complements definitively spelled out. Unit 11, section 1.3 Analyse the impact of changes of demand and supply in one market on other related markets.

5 Price elasticity of demand Understand price elasticity of demand and the factors that affect it. meaning of price elastic and price inelastic demand. Calculate and interpret price elasticity values, and use these values to assess the implications of price elasticity of demand for producers and consumers. Price elasticity of supply Understand price elasticity of supply and the factors that affect it. meaning of price elastic and price inelastic supply. Calculate and interpret price elasticity values, and use these values to assess the implications of price elasticity of supply for producers and consumers.

6 Production, costs, revenue and profit The importance of cost, revenue and profit for producers The concepts of: fixed, variable average and total costs average and total revenue business objectives. Production and productivity The ethical and moral implications underpinning business decisions and the potential conflicts. Calculate variable and total costs and use these calculations to work out profit. Productivity and the factors that influence it. difference between production and productivity and the benefits that arise from increased productivity. Economies of scale The meaning and types of economies of scale. The different types of economies of scale as outlined in the relationship between average costs and economies of scale.

7 Competitive and concentrated markets The importance of market structures on producers and consumers Identify market structures. Understand that the number of producers, for example, linked to the number of firms will define the type of market that the firm is operating in. Competitive markets economic impact of competition on consumers, producers and workers. amount of profits that might be available to businesses operating in such a market. The impact of competition on producers and consumers and the benefits for both groups. Non-competitive markets The characteristics of a noncompetitive market. The meaning of monopoly. The previous specification considers oligopoly in Unit 12. Formally introducing the concept of a monopolistic market.

8 The labour market Look at wage determination using simple supply and demand analysis. Unit 11, section 2.2 Calculate gross and net pay. Market failure Covers the Unit 12, section 1.2 Introduction to the national economy content from the previous specification in both Unit 11, section 1 and Unit 12, section 1. factors that influence the interest rate. Government objectives Economic objectives of the government Covers the Unit 12, section 1.1 Economic growth Covers the Unit 12, section 1.1 Employment and unemployment content from the previous specification in both Unit 11, section 2.3 and Unit 12, section 1.1. Inflation and price stability The difference between demand-pull and cost-push inflation. Unit 12, section 1.2 Calculations using CPI figures.

9 Balance of payments Covers the same content from Unit 12, section 1.1 of the previous Perform calculations using current account balance of payments figures. Distribution of income Covers the Unit 12, section 1.1 How the government manages the economy Covers the Unit 12, sections 1.1 and 1.2 International trade and the global economy Why countries trade and the importance of international trade to the UK Covers the Unit 11, section 3.2 Exchange rates Covers the Unit 11, section 3.2 Free-trade agreements including the European Union The concepts of free trade. The benefits of global free trade agreements as well as that of the European Union. Globalisation: benefits and drawbacks Covers the Unit 11, section 3.4

10 The role of money and financial markets The role of money This new section introduces students to a definition of money and the functions of money. The role and importance of the financial sector for the economy The financial sector. The Bank of England. Other institutions and the financial sector. The Bank of England when looking at monetary policy in Unit 12, section 1.2 and how it influences interest rates. The role that other financial institutions play in funding investment decisions and providing a service for borrowers and savers.