United Kingdom · National Curriculum Attainment Targets
Year 12 Economics
This course introduces students to the fundamental principles of scarcity, choice, and the mechanics of competitive markets. Students analyze how individuals, firms, and governments make decisions and evaluate the impact of these choices on national and global economic outcomes.
The Economic Problem and Markets
An exploration of how society allocates scarce resources and the fundamental principles of supply and demand.
Students examine the central economic problem of infinite wants versus finite resources and the concept of opportunity cost.
Analysis of how the interaction of supply and demand establishes equilibrium prices in a free market.
Investigating how responsive consumers and producers are to changes in price and income.
Market Failure and Government Intervention
Examining why markets sometimes fail to allocate resources efficiently and how the state attempts to correct these failures.
Identifying the impact of third-party costs and benefits and the challenges of providing non-excludable goods.
Analyzing how asymmetric information between buyers and sellers leads to market distortions.
Evaluating the effectiveness of taxes, subsidies, and regulations in correcting market outcomes.
The National Economy
Introduction to macroeconomic objectives, the circular flow of income, and the measurement of economic performance.
Modeling the total spending and production within an economy to determine national output.
Exploring the causes of growth and whether GDP is a sufficient measure of human well-being.
Analyzing the causes and consequences of unemployment and rising price levels.
Macroeconomic Policy and Management
Evaluating the tools used by governments and central banks to stabilize the economy.
The use of government spending and taxation to influence the level of economic activity.
How central banks use interest rates and quantitative easing to control inflation and growth.
Strategies designed to increase the productive capacity of the economy over the long term.
Personal Finance and Behavioral Economics
Connecting economic theory to individual financial decision-making and psychological biases.
Understanding the role of financial institutions and the importance of credit in the modern economy.
Questioning the assumption of rationality and exploring how emotions influence economic choices.
Analyzing insurance, diversification, and the economic impact of uncertainty.
The Global Context
Exploring international trade, exchange rates, and the interconnectedness of global markets.
The logic of specialization and the debate between free trade and protectionism.
The factors determining the value of currencies and the impact of fluctuations on trade.
Evaluating the economic integration of the world and its impact on inequality and development.