1. 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 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”

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

3. 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

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

5. 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
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

6. Key Knowledgebase (Bookmark!)
Edexcel A level (2015 onwards) Specification: levels/economics-a-2015.html (see download pdf specification – picture of 2 squirrels!) Getting started Guide: (aka “Cheat Sheet”/ “Heads Up”) mics-a/2015/teaching-materials/Getting_Started_Guide_new.pdf
Macroeconomics: Theme 4 - A Global Perspective

7. 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

8. 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

9. 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

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

11. 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 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

12. 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

13. 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 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

14. 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

15. 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