AQA Economics A Level

Microeconomics

3.1.1 The economic problem and economic methodology

Intro video – hope it doesn’t put you off Economics!
Section covers Economic methodology, purpose of Economic activity, Resources, Scarcity, Production possibility frontiers (PPFs)…note we also cover Rationality and Imperfect Information in this section (although officially covered in 3.1.2)

3.1.1 Economics-as-a-social-science.pptx
3.1.1 Opportunity costs PPF.pptx
3.1.1 Positive vs Normative Statements.pptx
3.1.1 The-Economic-Problem-and-Efficiency.pptx

3.1.2 Individual economic decision making (Behavioural Economics)

How do individuals (Consumers) make Economic decisions – Classical economics assumes we are happiness (utility) maximisers – but Behaviourial Economists disagree..

3.1.2 Behavioural Economics for AQA.pptx

3.1.3 Price determination in a competitive market

Determinants of demand and supply; Elasticities of demand, cross, income, supply; Equilibrium prices and Market Interrelationships.

3.1.3.1 Intro-to-demand.pptx
3.1.3.2 Cross-Elasticity-of-Demand.pptx
3.1.3.2 Income Elasticity of Demand.pptx
3.1.3.2 Price Elasticity of Demand.pptx
3.1.3.3 Determinants of Supply.pptx
3.1.3.4 Price-Elasticity-of-Supply.pptx
3.1.3.5 Price-Mechanism.pptx
3.1.3.6 AQA Interrelationship between markets.pptx

AS Micro Diagram Revision.pptx
AS Micro Diagram Revision answers tba.pptx

3.1.4 Production, costs and revenue

Measuring Production, link to returns to scale and law of diminishing returns; Specialisation and Division of Labour; Total, marginal and average Costs; long run vs short run Cost assumptions; Total, marginal and average Revenue; Profit; Technological change

3.1.4.1 Productivity.pptx
3.1.4.2 Specialisation, Division of Labour, functions of money.pptx
3.1.4.3 Law of Diminishing Returns.pptx
3.1.4.3a Economies of scale ACM.pptx
3.1.4.3b Productivity Concepts – Returns.pptx
3.1.4.3c Internal vs Ext Economies of Scale.pptx

3.1.5 Perfect competition, imperfectly competitive markets & monopoly

The market structures: perfect competion and the imperfect forms (Monopolistic competition, Oligopoly and Monopoly); Objectives of Firms (Profit max, Sales max, Cost Min, Revenue max) & Profit satisficing; Monopoly allows Price Discrimination; Competition and barriers to entry/creative destruction; Contestability; Static and Dynamic efficiency; Consumer and Producer Surplus

Key terms for classwork Market Structures.docx
3.1.5 Market Structures – introduction.pptx
3.1.5 Perfect Competition.pptx
Perfect Comp AQA Questions.docx
3.1.5 Monopolistic Competition.pptx
3.1.5 Monopoly.pptx
3.1.5 Oligopoly incl Game theory.pptx
3.1.5 Monopsony.pptx
3.1.5 Alternative Objectives and Strategies.ppt
3.1.5z The efficiencies in market structures.pptx
3.1.5 Competition Policy.pptx

Questions & Helpers:
Question – Find the pricing strategy.docx
Table of efficiencies vs market structures.xlsx
Discuss at least two conditions required for predatory pricing to be successful.docx
Competition Policy example 2 – 25 marker with Answer and ER.docx
Contestability 15 marker_based on 2022 P1 15 marker.docx
AQA Contestability questions AND ALL ANSWERS.doc.docx

3.1.6 The Labour market

Demand for Labour = Marginal Value Product of Labour; Supply of Labour; Wage determination & Employment in a Perfectly & Imperfectly competitive Labour market; Trade Unions; Discrimination; National Minimum Wage

3.1.6 Labour Markets.pptx
3.1.6 Monopsonistic Employer with union or NLW imposed.pptx
3.1.6 National Minimum Wage.pptx
3.1.6 Wage Discrimination.pptx

Questions and Helpers:
AQA 2020 NLW Essay.docx
AQA MCQ Labour Mkt Explainer.xlsx
AQA MCQs Labour Market.docx
Economic effects of Migration on the UK Labour.pptx
Labour Market Case Study – June 2025.pptx
NMW_NLW_Question_AQA inc Answers.docx
Trade Union and Wage Differentials.docx

3.1.7 The distribution of income and wealth: poverty and inequality

Income and Wealth are different; how we measure distribution; Relative and Absolute Poverty, Policies to alleviate Poverty and Inequality

3.1.7 Poverty and Inequality.pptx
3.1.7z UN Sustainable devt goals.pptx

Questions and Helpers
AQA 15 and 25m POVERTY Q and A.doc.docx
AQA Pov and Inequality Q and A Income vs Wealth.docx
AQA Poverty Causes_definition Poverty and Unemployment Traps.docx
Trade vs Aid.docx
Trade vs Aid Essay Plan.docx
Gini and Lorenz curve question.docx

3.1.8 The market mechanism, market failure and government intervention in markets

(Big section – typically takes a big chunk of year 12)
a) Market Failure -> Price mechanism – Signalling, Rationing and Incentive function; What is Market Failure – partial mkt failure (externalities) and complete mkt failure (Public goods). Free rider problem, Tragedy of the Commons and Quasi Public Goods; Positive and Negative Externalities of production and consumption; Merit and Demerit goods; Market Imperfections (Information Failure, Monopoly, Geographical or Occupational Immobility).
b) Government Intervention -> Competition Policy; Nationalisation vs Privatisation
c) Government Failure -> Government intervenes in the economy and fails to improve welfare losses in free markets

Market Failure
3.1.8 Market failure.pptx
3.1.8 Information failure.pptx
3.1.8 Externalities.pptx
3.1.8 Public goods.pptx
AQA Public_Quasi_and_Private_Goods.docx
AQA MCQ Intro to Market Failure.docx

Government Intervention
3.1.8 Government Intervention.pptx
ECON YEAR 12 TEST MKT FAIL AND GOV INTERVN.docx

Government Failure
3.1.8 Government Failure.pptx

Macroeconomics

3.2.1 The measurement of macroeconomic performance

1. Gov’t Policy Objectives: Major objectives are max economic growth, price stability, minimising unemployment and a stable balance of payments on current account.
2. Macro Indicators: real GDP, real GDP per capita, Consumer Prices and Retail Prices Indices (CPI/RPI), measures of unemployment, productivity etc
3. Index Numbers: used to measure changes in the price level and changes in other economic variables like House Prices, or Currencies

3.2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts

1. Circular Flow of the Economy – how it all fits together in simple terms
2. Aggregate Demand (“AD”) and Aggregate Supply (“AS”) Analysis – using AD and AS diagrams to illustrate changes in the price level, demand-deficient (cyclical) unemployment and economic growth
3. Factors driving AD, Short Run AS, Long Run AS, Multiplier and Accelerator Effects

3.2.3 Economic performance

1. Economic Growth and Economic Cycle
2. Employment and Unemployment
3. Inflation, Disinflation and Deflation, Fisher Equation (“The Quantity Theory of Money” -> MV = PQ)
4. Phillips Curve and other conflicts in Macro (ie Gov’t Policy) objectives

3.2.4 Financial markets and monetary policy

1. Functions of Money, Financial Markets and Bond calculations
2. Commercial and Investment Banks
3. Central Banks and Monetary Policy
4. Regulation of the financial markets (results of the Global Financial Crisis “GFC”)

3.2.5 Fiscal policy and supply-side policies

1. Fiscal Policy (Taxes, Gov’t Spending, Budget deficits and size of National Debt, Role of the OBR “Office for Budget Responsibility”)
2. Supply-side Policy (“SSP”) – Interventionist vs Free Market SSP, Impact on Macro Gov’t Policy Objectives and longer term aspect of SSP

3.2.6 The international economy

1. Globalisation and frankly now, Deglobalisation
2. Comparative and Absolute Advantage
3. Trade Blocs, Protectionism (Tariffs, Quota’s and Subsidies) – focus on EU Single Market, role of WTO
4. Balance of Payments: Structure of Current Account, Impact of Persistent Deficits (UK), Expenditure Switching and Expenditure Reducing Policies
5. Exchange Rate Systems (Fixed, Floating and Currency Unions)
6. Economic Growth and Development

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