Economics:

Introduction
Miss Beled

Welcome!
Be ready for
Independent study
Note-taking show initiative!
Reading (I will provide you with some material,
but you should also be on the look out for
relevant material that will help you)
Resourcefulness (use all the resources you
have available the internet, textbooks,
teachers etc.)
Taking risks get out of your comfort zone.
Get involved in debates. Ask questions. Give
every task/activity your all.

My Expectations of You

Respect others
Be on time

Follow my instructions (the first time)

Not call out/speak over others - put your hand up and wait for
permission to contribute to the class discussion
Not leave your seat without permission
Try your best every lesson
Complete/submit Home-Learning to the best of your ability and
on time
Take responsibility for your learning
Help others to succeed and meet their targets
No opt out policy. Listen. Engage. Benefit. It is ok to be
incorrect. Take risks.
Attend study room 2 times/week (once macro-econ, once mirco-

Routine
Beginning:
Arrive on time.
Enter the classroom with the teachers permission
Stand behind your chair silently, with your equipment
out on your table, until your teacher gives you
permission to be seated
During:
Work to the best of your ability
When you would like to speak or you want the
teachers attention, raise your hand
End:
Stop working and pack up when your teacher asks you
to (not when the bell goes)
Stand behind your chair and wait to be dismissed

Consistently making the

right decisions
If you are making the right choices, I will
recognise and reward you for this with:

G
e
t
Vevo points
c
a
ught
Edible treats
Positive phone calls home doi
ng
Letters/postcards home
the
4 Star Students per week (positive phoneriatgthe
call home and 20 vevo points
end of
h
t
the week)
th

Consistently making the

wrong decisions
Detention
Parental meeting
Time spent after school with staff

Always Bring.
A pen, pencil, ruler, rubber and
sharpener.
Exercise book.
Calculator.

Presentation of Work
Always rule off from your previous piece
of work.
Draw a margin on the left hand side of
the page.
Always write the date and underline it.
Always write a heading and underline it.
Always copy out the learning
objective(s).
Write the number of the page of the
textbook you are using and the exercise

DO NOT..
Doodle on pages.
Tear pages out of your book.
Graffiti on/in your book.

Tips

Do not just sit there when you have finished.

Put your hand up if no extension work is
available.
If I go through the answers, mark your work
in class.
If you do not understand the homework,
come and see me at break, lunchtime or
after school. My door is always open!
Do not be disruptive. If you are disruptive,
you lose your right to be in the lesson.
In the situation where you are given a
demerit/detention, do not respond (e.g. kiss
your teeth, roll your eyes or comment). This

Home Learning
You will receive home-learning from me on a
weekly basis.
You will have one week to complete it
You should attempt it the day you receive it so
that you can ask any questions that may arise.
If you are finding it difficult you need to come
and find me before the homework the due
date.

What are your expectations of me?

What is Economics?
A social science - the branch of science that
studies society and the relationships of
individuals within a society

The branch of knowledge concerned with the

production, consumption, and transfer of
wealth.

The study of what constitutes rational human

behavior in the endeavor to fulfill needs and
wants.

Two Branches
Micro-economics = Investigates the little
bits of the economy, namely individual
consumers, firms, markets and industries.

Macro-economics = Examines the

aggregates rather than the little bits of the
economy: the aggregate (total) levels of
output, income, prices, employment and
unemployment, and the trade flows that make
up the balance of payments.

Assumptions
To study these things, economics makes
certain assumptions:
i)

That human beings will aim to fulfill their

self-interests

ii)

That individuals are rational in their efforts

to fulfill their unlimited wants and needs.

Why?

https://www.youtube.com/watch?v=0Yto5fz5Zok

A subject for the inquisitive!

A current-affairs-related subject understand what is going
on in your country/the world
Have the tools/knowledge/skills to make a difference in the
world
The economic way of thinking can help us make better
choices
A great foundation for many careers (politician, account,
investment analyst, business consultant, stockbroker,
entrepreneur, teacher etc.)
Learn skills that will help you in your professional and
personal life (e.g. analysis and evaluation skills, quantitative
skills, cultural awareness skills, communication skills and
problem solving skills)

Useful Web-links
www.tutor2u.net
www.worldbank.org.uk
www.statistics.gov.uk
www.bized.co.uk
www.bbc.co.uk
www.revisionguru.co.uk

Types of Questions
Knowledge/Definition Requires you to show
that you can recognize economic concepts and
terms and be able to define or explain them
Application The skill of being able to use your
knowledge of economics in a wide variety of
contexts
Analysis The process of breaking down
information into relevant parts and then using
this to understand a problem or issues
Evaluation/Assessment Requires you to make
conclusions and argue which courses of action
might be most appropriate in a situation

Economic
Methodology
LO: To understand that Economics is a
social science, and distinguish the
difference between positive and
normative economics

Key Words: Social science, normative

statement, positive statement, value
judgements

Economics: The Social

Science
Social Science = The branch of science that studies
society and the relationships of individuals within a
society
Unlike physicists, economists dont have a laboratory
in which they can conduct experiments that can be
repeated under controlled conditions (one cannot
easily apply the scientific method in economics)
Instead, economists make models of the world, based
on a number of assumptions e.g. ceteris paribus
These assumptions, and the relative difficulty in
applying the scientific method in the study, is what
makes Economics a social science
Other social sciences include: sociology, politics and
anthropology

Positive and Normative

Economics
Economics is concerned with two types of
investigation:
i)

Positive Economics = The scientific or objective

study of Economics

ii) Normative Economics = Concerned with value

judgments

https://www.youtube.com/watch?v=7- LJtRKpPXY
https://www.youtube.com/watch?v= AV_p_QntywA

Positive Statements
Positive Statements = Statements about economics
which can be proven to be true or false. They can be
supported of refuted with evidence and are concerned
with what what is and what will happen.
Examples:
-

The rising price of crude oil on world markets will lead

to an increase in cycling to work

A reduction in income tax will improve the incentives

of the unemployed to find work

A rise in average temperatures will increase the

demand for sun screen products

They may not be true, but can be tested; i.e. they can
be proved to be true or false.

Normative Statements
Normative Statements = Statements which cannot
be supported or refuted. They are opinions about how
economies and markets should work.
Examples:
-

Nobody should have to pay for hospital treatment

The present level of income tax is unfair

The retirement age should be raised to 70 to combat

the effects of our ageing population.

Resources are best allocated by allowing the market

mechanism to work freely

They tend to contain words such as ought, should,

fair, and inequitable.

Normative Economics
As normative economics is sometimes difficult to
prove, it stirs debates among politicians and between
parties.
The majority of economics experts believe that
economics should be based on facts, and, therefore,
should be positive.
However, it is normative economics that drives the
value-based policies that exist in government.
https://www.youtube.com/watch?v= AV_p_QntywA
But firtst
http://www.tutor2u.net/economics/blog/unit-1-micropositive-and-normative-statements

Normative or Positive?
1. More of a good is demanded at a higher price
2. The opportunity cost of spending an extra

hour sleeping is always the same

3. Unemployment benefits should be cut to

prevent idleness in society

4. If pensions are cut, more old people will die of

hypothermia
5. The government must devote more resources

to healthcare