IGCSE Economics

What is Economics? Economics is the study of how society (people) deals with the problem of using the earth’s limited resources to produce goods and services that satisfy the unlimited wants and needs of an ever expanding global population.

What is Economics not about? How to run a successful business Banking, finance and investment in stock markets (although we do consider the role of banks when looking at monetary policy)

What is the difference between IGCSE Economics and IGCSE Business Studies? Quite simply, Economics is much broader in scope. It looks at issues on a macro-level (e.g. spending and taxation decisions made by the Singaporean government) and on a micro-level (e.g. how rising incomes affects the market for luxury cars in China). Business Studies is much narrower in focus. It concern decisions made within businesses. It looks at issues on a ‘nano’-level (e.g. how market research helps a business develop a new product)

Back to Economics….Course Overview We follow the syllabus set by Edexcel. Students are awarded with a 9-1 grade in their final examinations. Course content: 1. The market system 2. Business economics 3. Government and the economy 4. The global economy

1. The market system The role of supply and demand in markets, pricing and quantities of goods/services produced. How markets often get it wrong.

2. Business economics Production and productivity. Business costs, revenue and profit. Business growth The labour market Competition

3. Government and the economy Economics objectives- e.g. low unemployment, low inflation. Government policies- e.g. fiscal policy, monetary policy

4. The Global economy Globalisation, international trade and protectionism Exchange rates

Assessment- 100% examination Two-paper assessment – testing knowledge, understanding, analytical and evaluation skills around two themes: Paper 1: Microeconomics and Business Economics Paper 2: Macroeconomics and the Global Economy. Broad and deep development of skills – for example students will develop the ability to: read sources to interpret and evaluate economic information write extended responses respond appropriately to a range of question types, including multiple-choice, short-answer, data response and open-ended questions develop an understanding of economic concepts and apply these concepts to real-life situations

What questions will I (hopefully) know the answer to when I finish the course? Why is Lionel Messi paid approx. £300,000 per week? Why do cars cost so much in Singapore? Why are deep sea divers paid more than some doctors? What impact will Brexit have on the value of the Pound? And how might this affect British exports? How can Japan increase its workforce with an ageing population? Why did the government of the Philippines close Boracay to tourists?

So, should I take Economics or Business? It really depends on what you are interested in. Neither subject is required for further study at Diploma or A-Level Neither subject has maths that students find ‘difficult’ If you have an interest in current affairs and politics (e.g. Brexit, Trump’s trade wars, why the Singaporean government builds HDBs) then you should consider Economics. If you an interest in how businesses operate, how the produce and market goods and how manage their employees (e.g. the pricing strategy of Apple, how Dyson will recruit staff for its new car factory in Singapore) then you should consider Business Studies

How can parents help? Encourage your son/daughter to read the news/watch the news- make links between economic theory and reality Talk to your son/daughter about your experiences as a consumer, employee, business owner. Resources: Textbook