Economics

Economics at HACH is carefully crafted and designed to empower and enfranchise the decision makers of tomorrow. Economics gives our students the toolkit and the framework to look at complex issues and decisions and to carefully consider the arguments and come to rationale and evidence-based judgements. This allows our students to be active citizens, who can champion issues in their local community, challenge injustice and forge the future of the country.  Economics at HACH offers students the opportunity to think critically using the models and lexicon of the subject to enhance their understanding of the world around them and be able to articulate their judgements in a clear, concise and academic manner. It is the ambition of Economics at HACH to make the country, society and the world a better place as a result of the highly educated, thoughtful and evaluative contributions to public life of our student 

As a result, economics develops skills and abilities useful for higher education, higher level apprenticeships and the workplace - preparing them for future careers in a wide-range fields including finance, government, journalism, business management, accountancy and law to name but a few. 

 

KS4 

At the very beginning of Year 10, students will gain an understanding of the foundations of economics by studying the nature and purpose of economic activity, the factors of production and the importance of making choices. Once these foundations have been embedded students will look at how resources are allocated using a market mechanism. However, the central aspect will be an investigation of how prices are determined. This introduces students to concepts such as supply and demand, intermarket relationships and price elasticity. By the end of Year 10, students investigate the impact that competition has on price before going onto to look at the significance of costs, revenue and profit for producers, leading to an understanding of the concepts of production, productivity and economies of scale. Finally, students will look at the role of money as a medium of exchange and what role the financial sector plays in the economy. 

 

As students progress to Year 11, they are introduced to the wider economy from the perspective of the main economic groups: consumers, producers and government. Students first explore the fact that most governments have four main objectives of price stability, economic growth, low unemployment and a fair distribution of income. From there, our learners are then introduced to the policies (fiscal, monetary and supply-side) that are used to achieve these objectives and begin to discover that these polices can have both positive and negative impacts on the three main economic agents. 

 

Students then move away from looking at the national economy to looking at the importance of international trade to the UK. The measurement of UK trade through the balance of trade is examined, as are the causes of current account surpluses and deficits within the overall balance of payments. Students consider how exchange rates are determined as well as the impact that changes in exchange rates have on producers and consumers. Students also explore the advantages of free-trade agreements, their impact and the significance of the European Union. The benefits and drawbacks of globalisation will be looked at, including the moral and ethical aspects associated with the increase in global trade, and the role of the multinational corporations.  

 

KS5 

At the very beginning of the study of economics at A-level, students will be taught “microeconomics’ and ‘macroeconomics’ simultaneously. 

And so, in Year 12 students learn about Microeconomic models such as the production possibility frontiers, demand and supply, the operation of the price mechanism, the causes of market failure as well as the advantages and disadvantages of government intervention and how it can lead to government failure. On the back of this, our learners then start to look at the objectives of firms before coming onto studying the four main market structures of perfect competition, oligopolies, monopolies and monopolistic competition and how they impact costs, revenue, profit, production and efficiency. 

On the “macro’ side of the specification, students will be required to acquire knowledge and understanding of aggregate demand and aggregate supply analysis, the circular flow of income and the multiplier process and how these are important toolkits for economists when analysing changes in the macroeconomic performance of an economy. Therefore, students are then subsequently taught about the four main government macro-objectives of strong, sustained and sustainable economic growth, low inflation, full employment and equilibrium on the balance of payments and how there could be “trade-offs” between these objectives in the short and long run. Following on from this, our learners are then introduced to the policies (fiscal, monetary and supply-side) that are used to achieve these objectives. 

In Year 13, other key micro models are introduced such as operation of labour markets, wage and causes of inequalities in the distribution of income and wealth. Students also learn about Competition policy in the UK and the EU before finishing off by looking behavioural economics. From a macro perspective study the role of financial markets together with the role of the central bank and how financial institutions are regulated. Students then begin to look at the international economy by first analysing the impact of protectionist polices and then studying the costs and benefits of joining a customs union like the EU. The Balance of Payments are then introduced again – this time with students exploring the different policies that could be used to correct any imbalances. Finally, our learners are then taught about the different strategies for promoting  economic growth and development and the positives and negatives of each one.