Cambridge O Level Economics Subject Introduction
The Cambridge O Level Economics syllabus evolves an understanding of economic theory, terminology and principles. The students study Economics of different countries. They also learn to work with simple economics data and to use the tools of economics analysis. Learners apply the understanding of economics to current economic issues.
Why economic is an important subject in O Levels:
The Cambridge O Level Economics syllabus establishes a foundation for further study, including Cambridge International AS & A Level Economics, or the same. It helps students in learning more skills they need for their next step in education or in their professional life.
What does economics have to do with law
Economics has even been applied to criminal law as society tries to develop laws and punishments that deter deviant behavior. A strong economic background can help lawyers to enter the specific areas: Finance, by better understanding how stock, bond, and other financial markets work. Law and economics share with alternative branches of economics the supposition that individuals are rational and answer to incentives.
How you will be assessed
You will be assessed at the end of the course with these two components:
- Paper 1 Multiple Choice
- Paper 2 Structured Questions
Components at a glance
The following summarizes the key information about each examination paper.
Paper 1
Type: Multiple Choice Questions
Duration: 45 minutes
Marks: 30 marks
Skills Assessed: Knowledge and understanding Analysis
Details: There are 30 questions. You have to select one answer from four options: A, B, C and D.
Percentage of Qualification: 30%
Paper 2
Type: Structured Questions
Duration: 2 hours and 15 minutes
Marks: 90 marks
Skills Assessed: Knowledge and understanding Analysis Evaluation
Details: One compulsory question based on stimulus material and three four-part questions form a choice of four have to be answered.
Percentage of Qualification: 70%
Course Contents
The basic problem
- This section introduces you to some of the key ideas in economics and helps you to start to think as an economist.
- It covers the important questions all countries have to answer the reasons why we have to make choices and the resources used to produce goods and services.
The allocation of resources
- This section examines why some products are expensive while others are cheap and why the output of some products are increasing while others are declining.
- You will consider why a change in price has more impact on some products than others and why the government seeks to influence what products we buy.
Microeconomic decision makers
- This section focuses on some of the key economic agents who decide what goods and services are produced and the amount people spend, save and borrow.
- The section examines the role of bank, households, workers, trade unions and firms.
Government and the macroeconomy
- In this section attention switches to the economy as a whole.
- It covers the key indicators of the performance of an economy which are economic growth, inflation, unemployment and the country’s international trade position.
- It examines the government’s aims in relation to these indicators and to the redistribution of income. It also explores the different types of policy measures a government can use to achieve these aims.
Economic development
- This section explores some of the influences on how the quality of people’s lives can be different in different countries and over tie.
- It includes the causes and consequences of changes in living standards, income distribution, poverty, population size and structure
International trade and globalization
- In this last section, the focus is on the global economy.
- The benefits of countries trading between each other are examined as well as why, despite these benefits, governments impose restrictions on this trade.
- How foreign exchange rates are determined and the causes and consequences of exchange rate changes are explored.
- The last topic covered in the current account of the balance of payments. This is a record of what a country sells and buys to other countries and the income it earns form and pays abroad.
