Opening Activity – Refresher on Economics Course structure Please take a seat, open iPad and Google “Edexcel economics A 2015” Pick the top link …Bookmark It! …Look for the Squirrels! - navigate to the Course Specification & Open Scroll to Theme 4 course summary (pages 41-47 of the pdf = p29 of the doc) Read through the overview and content section; skim read the course outline Google any new terms ie “moral hazard” or “externalities”

Welcome to A level Economics Exam Board: Edexcel (9EC0) Theme 4: A Global Perspective September 2016 – May 2017

Welcome and Orientation Welcome, Introduction Theme 4 builds on Theme 2 studied last year (“The UK Economy - Performance and Policies”) Complimentary subjects taken by Students Interests in key Economics Issues: examples – Greed is good? (Business Ethics / Role of the Entrepreneur) Environmental Issues? Corporate and Social Responsibility? Role of Government promoting Business. International Corporations – potential for corruption, influencing political decisions, international relations; Links between Business and Politics (Hinkley Point Power Station, Heathrow Expansion, Overcrowding on Private Sector Trains running on Public Sector Rails – as advertised by J. Corbyn) Macroeconomics: Theme 4 - A Global Perspective

Course Overview (Macroeconomics) This class Macroeconomics: Theme 4 - A Global Perspective

Macroeconomics: Theme 4 - A Global Perspective The Course Macro Theme 4 = 3 hours contact per week + homework Own your learning View scheme of work in advance of lessons @DLS Read at least the relevant textbook section Tell me if you don’t understand HW in on time – if an issue please tell me in advance – hence please don’t leave HW until the night before My expectation - review your last week’s notes for 30 mins at end of each week Please do feedback to me things that worked for you / helped you in the lesson and also things that didn’t work / could be improved Macroeconomics: Theme 4 - A Global Perspective

Key Knowledgebase (Bookmark!) Edexcel A level (2015 onwards) Specification: http://qualifications.pearson.com/en/qualifications/edexcel-a- levels/economics-a-2015.html (see download pdf specification – picture of 2 squirrels!) Getting started Guide: (aka “Cheat Sheet”/ “Heads Up”) http://qualifications.pearson.com/content/dam/pdf/A%20Level/econo mics-a/2015/teaching-materials/Getting_Started_Guide_new.pdf Macroeconomics: Theme 4 - A Global Perspective

Course and Exam Guide Overview Below taken from PDF p41 (see link slide 6) Overview: This theme builds on the knowledge and skills gained in Theme 2: The UK economy – performance and policies, and applies them in a global context. Students will need to build upon the knowledge, skills and understanding developed from Theme 2 in Theme 4, making connections across these two macroeconomic themes in Paper 2, and across Themes 1, 2, 3 and 4 in Paper 3. Students will need to apply their knowledge and understanding to both familiar and unfamiliar contexts in the assessments and demonstrate an awareness of current economic events and policies. Macroeconomics: Theme 4 - A Global Perspective

Course and Exam Guide Content Students will be expected to understand the: Significance of globalisation, international trade, the balance of payments and exchange rates. They will examine public finance, macroeconomic policies and the role of the financial sector in a global context. Students will consider the factors influencing the growth and development of emerging and developing countries. In examining these areas, application, analysis and evaluation of economic models is required as well as an ability to assess policies that might be used to address national and global economic challenges. Students should develop an awareness of trends in the global economy over the last 25 years through wider reading and research so that they can include relevant examples in their analysis and evaluation. Activity 1: describe what the highlighted text actually means in your own words? (do refer back to slide 3 for context and bookmarks on slide 5) Activity 2: What are some of the trends in the global economy in the last 25 years? Macroeconomics: Theme 4 - A Global Perspective

Macroeconomics: Theme 4 - A Global Perspective The Exam (Summer 2017) Paper 1: Microeconomics – 100 marks, 2 hours = 35% Paper 2: Macroeconomics – 100 marks, 2 hours = 35% Paper 3: Micro and Macroeconomics – 100 marks, 2 hours = 30% From page 14 of the specification – work done in year 12 and year 13 macroeconomics is examined in this paper. Macroeconomics: Theme 4 - A Global Perspective

Macroeconomics: Theme 4 - A Global Perspective The Exam (Summer 2017) Macro and Microeconomics from both Y12 and Y13 Macroeconomics: Theme 4 - A Global Perspective

Homework: Orientation on Exam Papers 2 & 3 That Examine This Course Look through sample exam papers 2 and 3 on page 55 and page 97 (OF THE PDF –not the document page numbers) at http://qualifications.pearson.com/content/dam/pdf/A%20Level/economics- a/2015/specification-and-sample-assessment-materials/Economics-A- Collated-SAM-Web.pdf Prepare two factsheets using Word (1 per paper) to share with the class: Clear heading on the factsheet of the Paper being described Part 1: Very clear description of which questions / sections are candidates required to answer. (Description around 2 paragraphs) Part 2: Describe the type of questions being asked per exam section (1 paragraph per section). Part 3: Prepare a table showing the breakdown of marks per each section. Assuming equal knowledge per section, include a column showing the optimal allocation of time per section. (Example below using Paper 1) Macroeconomics: Theme 4 - A Global Perspective

Example Part 3:Breakdown of marks/section The Goal is to understand intimately the structure of the exam papers Paper 1: Markets and Business Behaviour (120 minutes) Section Marks Optimal Time per Section A – answer all questions 25 30 minutes B – answer all questions 50 60 minutes C – answer just 1 question   Total Marks 100 1.2 mins/mark Macroeconomics: Theme 4 - A Global Perspective

Macroeconomics: Theme 2 - The UK Economy - performance and policies HW – part 2 Awareness of trends in the UK economy since year 2000 Please prepare an annotated graph of US and UK economic performance for discussion next time: (will allocate student per topic in the lesson). Site www.tradingeconomics.com has all of the above (click on forecast or market – we will go through this) Unemployment Rate GDP Growth Rate (Gross Domestic Product – the value of all goods and services in the Economy over a given time period) Government Debt to GDP (A Ratio showing how indebted the Government is, relative to the value of a Countries economic activity) Balance of Trade (Net flows of the value of all imports and exports of goods and services in relation to the UK) Population Exchange rates of the British Pound against US Dollar and Euro (GBP/USD and GBP/EUR) EXAMPLES BELOW Oil prices (Brent Crude) for 25 years and UK Interest Rates since 2000 Macroeconomics: Theme 2 - The UK Economy - performance and policies

HW Example: Brent Crude Oil, 25y history Price per barrel in USD 2008 Global Financial Crisis causes Oil Price collapse Quantitative Easing stimulates demand; China continues to buy Higher Oil prices given industrialisation of China Excess supply in Oil Market; Shale Oil reduces US demand Macroeconomics: Theme 2 - The UK Economy - performance and policies

HW Example: UK Overnight Interest Rates since 2000 Pre-Global Financial Crisis an independent Bank of England (“BoE”) maintains stable short term rates to manage inflation On y axis “6” = 6% UK Overnight Interest Rate set by Bank of England Global Financial Crisis, BoE reduces rates to stimulate economy and commences Quantitative Easing Macroeconomics: Theme 2 - The UK Economy - performance and policies