AQA A-level Economics Year 13 revision

Topic 1: Individual economic decision making

This topic uses behavioural economics to explain how real people make decisions.

We will look at bounded rationality, self control, habits and biases like anchoring, framing and loss aversion.

Then we explore the influence of other people, nudge policies and choice architecture, and evaluate behavioural economics as a guide for government policy.

1. 1.1Rational decision making and its limits: bounded rationalityFree 30 questions
2. 1.2Bounded self-control, habit and rules of thumb31 questions
3. 1.3Biases in decision making: anchoring, framing, availability and loss aversion30 questions
4. 1.4Influence of others: social norms, herding, altruism and fairness34 questions
5. 1.5Choice architecture and nudge policies: default, mandated and restricted choice, framing and incentives28 questions
6. 1.6Evaluating behavioural economics as a basis for government intervention24 questions

Topic 2: Business objectives and growth

It builds on what you learned at AS in Competitive and concentrated markets, and takes it further.

There are 6 parts: we start with profit, revenue and sales maximisation as business objectives, and finish with constraints on growth and demergers.

1. 2.1Profit, revenue and sales maximisation as business objectives23 questions
2. 2.2Satisficing, managerial and growth objectives30 questions
3. 2.3Social, environmental and ethical objectives: CSR, not-for-profit organisations and social enterprises28 questions
4. 2.4The principal-agent problem and the divorce of ownership from control22 questions
5. 2.5Business growth: organic growth, mergers, takeovers and types of integration24 questions
6. 2.6Constraints on growth and demergers34 questions

Topic 3: Revenue, costs, profit and efficiency

This topic builds the theory of the firm: revenue, costs, profit and efficiency.

We will link marginal revenue to elasticity, analyse short and long run costs, and identify normal and supernormal profit.

Then we compare productive, allocative, static and dynamic efficiency, and explain X inefficiency.

1. 3.1Total, average and marginal revenue and the link to price elasticity of demandFree 19 questions
2. 3.2Short-run production and costs: productivity, diminishing returns, fixed and variable, average and marginal costs43 questions
3. 3.3Long-run costs: returns to scale, economies and diseconomies of scale, LRAC and minimum efficient scale48 questions
4. 3.4Normal and supernormal profit, losses, break-even, shutdown and profit maximisation (MR=MC)52 questions
5. 3.5Productive and allocative efficiency27 questions
6. 3.6Dynamic efficiency, static efficiency and X-inefficiency33 questions

Topic 4: Perfect competition, imperfectly competitive markets and monopoly

It builds on what you learned at AS in Competitive and concentrated markets, and takes it further.

There are 10 parts: we start with market structures and firm behaviour, and finish with price and non-price competition and pricing strategies (predatory pricing, cost-plus, loss leaders).

1. 4.1Market structures and firm behaviourFree 13 questions
2. 4.2Perfect competition: short-run and long-run equilibrium, efficiency and the shutdown point26 questions
3. 4.3Monopolistic competition: characteristics, short-run and long-run equilibrium and efficiencyFree 28 questions
4. 4.4Oligopoly: characteristics, concentration ratios and interdependence32 questions
5. 4.5Non-collusive oligopoly: kinked demand curve, price rigidity, price leadership and price wars30 questions
6. 4.6Collusion, cartels and game theory (prisoner's dilemma and Nash equilibrium)41 questions
7. 4.7Monopoly power: natural monopoly and the costs and benefits of monopoly compared with competition56 questions
8. 4.8Price discrimination: conditions, types, diagrams and welfare effects27 questions
9. 4.9Contestable markets: barriers to entry, sunk costs, hit-and-run competition and limit pricing54 questions
10. 4.10Price and non-price competition and pricing strategies (predatory pricing, cost-plus, loss leaders)30 questions

Topic 5: The labour market

There are 7 parts: we start with the labour market and inequality, and finish with government intervention in the labour market.

1. 5.1The labour market and inequality53 questions
2. 5.2Demand for labour: derived demand, marginal revenue product theory and elasticity of labour demand16 questions
3. 5.3Labour supply: determinants, elasticity of supply, labour mobility and the gig economy31 questions
4. 5.4Wage determination in competitive labour markets, economic rent and transfer earnings67 questions
5. 5.5Monopsony and bilateral monopoly in labour markets62 questions
6. 5.6Trade unions and collective bargaining: effects on wages, employment and productivity25 questions
7. 5.7Government intervention in the labour market: national minimum wage, living wage and wage policy55 questions

Topic 6: The distribution of income and wealth: poverty and inequality

It builds on what you learned at AS in Economic performance, and takes it further.

There are 7 parts: we start with income and wealth, and finish with other policies to reduce poverty and inequality and the equity-efficiency trade-off.

1. 6.1Income and wealth: sources, distribution and measures (deciles, quintiles, wealth inequality)Free 32 questions
2. 6.2The Lorenz curve and the Gini coefficient: construction, calculation and interpretation19 questions
3. 6.3Absolute and relative poverty: definitions and measurement27 questions
4. 6.4Causes of poverty and inequality: wage differentials, discrimination, unemployment, wealth accumulation and globalisation71 questions
5. 6.5Consequences of poverty and inequality for individuals, growth and society30 questions
6. 6.6Redistribution through taxation and benefits: progressive, regressive and proportional systems34 questions
7. 6.7Other policies to reduce poverty and inequality and the equity-efficiency trade-off32 questions

Topic 7: Government intervention: competition policy, regulation and ownership

It builds on what you learned at AS in The market mechanism, market failure and government intervention, and takes it further.

There are 5 parts: we start with competition policy, and finish with government failure in markets.

1. 7.1Competition policy: the CMA, merger control, cartels and abuse of dominant positionFree 34 questions
2. 7.2Regulation of natural monopolies and privatised industries: price caps (RPI-X/CPI-X), rate of return and quality standards75 questions
3. 7.3Privatisation and nationalisation: arguments for and against25 questions
4. 7.4Deregulation, liberalisation and promoting competition and contestability23 questions
5. 7.5Government failure in markets: regulatory capture, information gaps and unintended consequences73 questions

Topic 8: Financial markets and monetary policy

It builds on what you learned at AS in Macroeconomic policy, and takes it further.

There are 7 parts: we start with financial markets and monetary policy, and finish with effectiveness and limitations of monetary policy.

1. 8.1Financial markets and monetary policyFree 29 questions
2. 8.2Commercial banks, credit creation, liquidity and bank balance sheets36 questions
3. 8.3Bond prices, bond yields and interest rates; equity and capital markets56 questions
4. 8.4Market failure in financial markets: asymmetric information, moral hazard, speculation, bubbles, herding and market rigging61 questions
5. 8.5Central banks: lender of last resort and financial regulation (FPC, PRA, FCA, capital requirements)33 questions
6. 8.6Monetary policy instruments and transmission mechanism: interest rates, quantitative easing, forward guidance and inflation targeting44 questions
7. 8.7Effectiveness and limitations of monetary policy: time lags, liquidity trap, central bank independence and exchange rate effects66 questions

Topic 9: Fiscal policy and supply-side policies

It builds on what you learned at AS in Macroeconomic policy, and takes it further.

There are 11 parts: we start with government spending and taxation, and finish with choosing the policy mix.

1. 9.1Government spending and taxation: types, trends and the canons of taxationFree 36 questions
2. 9.2Direct and indirect taxes, tax incidence and effects on incentives36 questions
3. 9.3The Laffer curve and the effect of tax rates on revenue and incentives16 questions
4. 9.4Fiscal policy: stance, discretionary policy, automatic stabilisers and the multiplier73 questions
5. 9.5Budget deficits, surpluses and national debt: causes, consequences and crowding out30 questions
6. 9.6Fiscal rules, debt sustainability and evaluating the effectiveness of fiscal policy61 questions
7. 9.7Market-based supply-side policies: tax cuts, privatisation, deregulation, competition and labour market reformFree 75 questions
8. 9.8Interventionist supply-side policies: education and training, infrastructure, R&D, industrial and regional policy32 questions
9. 9.9Evaluating supply-side policies: effects on LRAS and macroeconomic objectives, costs and time lags44 questions
10. 9.10Macroeconomic policy objectives, conflicts and trade-offs33 questions
11. 9.11Choosing the policy mix: demand-side versus supply-side policy and government failure in macro policy30 questions

Topic 10: The international economy

It builds on what you learned at AS in Economic performance, and takes it further.

There are 19 parts: we start with globalisation, trade and development, and finish with aid, debt relief, Fairtrade, NGOs and the role of the IMF and World Bank.

1. 10.1Globalisation, trade and development57 questions
2. 10.2Absolute and comparative advantage: opportunity cost, specialisation and limitationsFree 21 questions
3. 10.3Patterns of trade and the terms of trade26 questions
4. 10.4Free trade and protectionism: tariffs, quotas, subsidies and non-tariff barriers29 questions
5. 10.5Trading blocs, customs unions and the World Trade Organisation31 questions
6. 10.6The balance of payments: current, capital and financial accounts26 questions
7. 10.7Causes and consequences of current account deficits and surpluses21 questions
8. 10.8Policies to correct imbalances: expenditure-switching and expenditure-reducing policies30 questions
9. 10.9Exchange rate determination in floating systems: currency demand and supply and influencing factorsFree 44 questions
10. 10.10Exchange rate systems: fixed, managed and currency unions; central bank intervention58 questions
11. 10.11Effects of exchange rate changes: competitiveness, inflation, growth, J-curve and Marshall-Lerner condition43 questions
12. 10.12International competitiveness: productivity, unit labour costs and non-price factors44 questions
13. 10.13Purchasing power parity, real and nominal exchange rates and cross-country comparisons53 questions
14. 10.14Economic growth and development: measures including HDI, GNI per capita (PPP) and other indicatorsFree 47 questions
15. 10.15Factors influencing growth and development: primary product dependency, savings and foreign currency gaps, demographics, debt, infrastructure and institutions50 questions
16. 10.16Market-oriented development strategies: trade liberalisation, privatisation and microfinance83 questions
17. 10.17Interventionist development strategies: human capital, infrastructure, protectionism, buffer stocks and industrialisation70 questions
18. 10.18Multinational corporations and foreign direct investment in developing economies30 questions
19. 10.19Aid, debt relief, Fairtrade, NGOs and the role of the IMF and World Bank26 questions

Topic Q: Quantitative skills and synoptic evaluation

This topic practises the calculation and evaluation skills needed across the whole A level course.

We will work through business, distribution, international, macroeconomic and financial calculations.

Then we focus on synoptic essays and data response questions, and how to build strong chains of analysis and evaluation.

1. Q.1Business calculations: revenue, costs, profit, elasticity, market share and concentration ratiosFree 32 questions
2. Q.2Distribution and development calculations: Gini, Lorenz, deciles, index numbers and HDI63 questions
3. Q.3International calculations: opportunity cost, terms of trade, exchange rates and balance of payments data62 questions
4. Q.4Macro and financial calculations: multiplier, tax and debt ratios, real and nominal interest rates, bond yields47 questions
5. Q.5Synoptic essay, data-response and evaluation technique across micro, macro and global themes62 questions

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