IG Economics SchemeOfWork

International GCSE (9–1) Economics Scheme of Work
The following scheme of work is for a 140 hour course. If the course is run on 120 hours then either revision is reduced to 20 or the 100 hours course
content needs working through more rapidly.
The assumption is made that each lesson is 1 hour so if it refers to lesson 1 it is referring to a 1 hour lesson and 2-3 is a 2 hour lesson. The scheme of
work clearly refers to the content coverage and follows the order of the specification which was written in such a way as to develop learning step by
step. Explicit reference is made to what course content needs covering in each lesson. The exemplar activities and resources give advice and tips on
what to do with students to cover each section.
The final two columns look at the skills that are assessed through the examination and include specific examples of questions that do this in the exam.
Also indicated are places where skills can be acquired through teaching and learning within lessons.
Why transferable skills?
In recent years, higher education institutions and global employers have consistently flagged the need for students to develop a range of transferable
skills to enable them to respond with confidence to the demands of undergraduate study and the world of work. To support the design of our
qualifications, we have mapped them to a transferable skills framework. The framework includes cognitive, intrapersonal skills and interpersonal skills
and each skill has been interpreted for each specification to ensure they are appropriate for the subject. Further information on transferable skills is
available on the website. Pearson materials, including this scheme of work, will support you in identifying and developing these skills in students.
The final two columns of this scheme of work indicate which transferable skills are explicitly assessed, and where there are opportunities for them to be
developed through teaching. Our intention is that teachers can use these columns to increase the opportunities for skill development through teaching.
© Pearson Education Ltd 2017

International GCSE (9–1) Economics
Lesson(s) Content Course Exemplar activities and resources Which skills Which skills could
coverage content acquired in this be acquired
lesson are explicitly through teaching
assessed through and delivery in this
examination lesson
1 1.1.1 a) Show images or list a range of

a) The problem
The scarce and more abundant goods-
of scarcity –
economic get them to consider how rare or
where there
problem not they are. Relate these products
are
to being scarce or abundant. Some
unlimited
useful examples are oil, fresh
wants and
drinking water, diamonds, gold,
finite
truffles, gas, cod, and caviar. As an
resources,
extension you may consider how in
leading to
some countries products are scarcer
the need to
than others.
make
Use this to formally define scarcity.
choices.
b) Opportunity
cost and its b) Get students to consider their own
effect on choices and to consider the options
economic they had, what they chose and
agents what they gave up. Relate these to
(consumers, opportunity costs. Getting them to
producers consider the subjects they
and considered for A level and how
government) those they rejected are their
opportunity costs.
Formally define the term
opportunity costs.
2 © Pearson Education Ltd 2017

Scheme of Work
Look at this from the perspective of

consumers in the supermarket, e.g.
if I buy Coca Cola I forgo Pepsi.
Show a chart that summarises the
spending by a government.
Consider the choices they have
made. Link to increasing spending
on one area within the same
budget- question what the
opportunity costs will be.
2-3 1.1.1 c) Give the scenario of a desert island

c) The use of
The diagrams to with a stranded person. Explain that
economic show the island has two products they
problem production can possibly produce. If they focus
possibility on one product show there is a limit
curve to how many they can produce. If
they choose the other there is a
maximum too. Then look at how
they could increase the production
of one good but then have to
sacrifice the other good (link to
opportunity costs).
Construct a diagram to summarise
the combinations of goods. Label as
appropriate.
Introduce capital and consumer
goods and construct a similar
diagram. Highlight that these can
be concave to origin or straight line.
Make sure you define Production

3
d) Production Possibility Curves.

possibility d) On these diagrams label points and
curve then explain that all the points on
diagram the line show he economy at its
should be maximum productive potential and
used
that resources are fully employed.
to show:
Show points below the line where
- the unemployment exists.
maximu
Show a point on the line and show
m
productiv what the opportunity costs is at
e that point, i.e. how many of the
potential other goods have been given up.
of an Show movements between two
economy points and measure what the
- fully opportunity costs will be.
employed Show what happens to the diagram
or when there is economic growth
unemploy shifting the PPC outwards. Similarly
ed
show then negative economic
resources
growth and focus on the whole PPC
- opportuni curve moving inwards.
ty cost
Show points that are unobtainable
- positive on your PPC diagram.
or
negative e) Consider scenarios that might cause
economic
economic growth and economic
growth
that decline. These could include for
shifts the economic decline, war, disease,
productio natural disaster, harvest failure and
n emigration. Equally look at factors
possibility that can lead to economic growth

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frontier e.g. immigration, increasing birth

(PPF) rate, reducing school leaving age,
outwards increasing retirement age,
and
investment in capital goods,
inwards
investment in training and
- possible education, increased quantity and
and quality of capital, research and
unobtain
development.
able
productio
n.
e) Possible
causes of
positive or
negative
economic
growth.
4 1.1.2 a) Ask students what businesses try to Analysis- Looking at

a) The
Economic underlying achieve. Make sure they understand economic issues and
assumption assumptions why businesses will try to maximise offering developed
s that: profits. Why would a shareholder responses that explore
- consumer want maximum profit in terms of in detail a perspective
s aim to the size of their dividend? looking at reasons
maximise Ask them what they try to achieve - consumers and firms
their get them to share the idea of trying may not maximise
benefit to get the best grade, the best benefit.
businesse value deal when purchasing items
s aim to and link this to maximising benefit.
maximise

5
their
profit.
b) Now explore examples where this

b) Reasons why
consumers may breaks down.
not maximise Give examples of where it might be
their benefit: complicated to calculate benefits.
For example, when purchasing gas
- consumer
s are not or electricity, how easy is it
always compare deals?
good at Link consumers having habits and
calculatin using the same gas or electricity
g their supplier, insurance company or
benefits
bank for years and why they might
- consumer not want to change supplier even if
s have better deals are available
habits
elsewhere.
that are
Talk about situations where they
hard to
give up might choose to do something
because there friends do.
- consumer
s
sometime c) In looking at why firms may not
s copy maximise profits, link to managers
others’ who might run a business for the
behaviour owners and why they might like it
. to have higher sales or revenue
than the competitions.
Give examples of public sector
organisations and charities and
c) Reasons what they would prioritise instead in
why producers
terms of caring for others like in the
may not

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maximise their NHS or raising funds to support

profit: particular groups.
 producers
may have
managers
that
revenue
maximise or
sales
maximise
 producers
may
prioritise
caring for
customers
 producers
may
complete
charitable
work.
5-6 1.1.3 Demand Critical thinking-

Demand, a) Ensure students are able to Using various Critical thinking-
a) Definition of
supply and define demand and they economic concepts and Using various
demand.
market understand the relationship economic data to economic concepts
equilibrium between price and quantity. It is synthesise the and economic data to
worth considering products they information to make synthesise the
would be willing to buy or desire judgements. SAM information to make
and to explore the idea of being paper 1 question 2a/ judgements. Using
able to afford it. Some luxury 2b) synthesising given real world data on
cars, designer clothes for data to determine changes in quantity
example they may well desire equilibrium price, demanded or

7
but the ability to buy is limited excess demand and supplied and changes
b) The use of by the affordability. supply. This also in income, price or
demand assesses Critical price of other goods
curve b) It may be worth conducting an thinking- problem to determine and
diagram to auction. Offer a product and ask solving to use interpret elasticities
show: who is willing to buy at a low mathematical formulas of demand and
- changes price and then increase the to solve problems supply.
in price price. Record the numbers that related to economics Problem solving to
causing demand the product at each as they calculate use mathematical
movemen price. Hopefully the relationship equilibrium price and formulas to solve
ts along a
between the price and quantity excess demand. problems related to
demand
curve will follow the law of demand, economics to
whereas as price rises quantity calculate excess
- shifts
falls. Use the data to sketch out demand and excess
indicating
increased a demand curve. supply.
and Draw a demand curve and pay
decrease particular attention to labelling Analysis- Consider
d of the curve and axis. economic issues
demand. Emphasise that price changes using supply and
will see a movement along the demand to help
demand curve. Draw on a analyse likely
demand curve a low price with outcomes. Using
the corresponding high quantity demand, supply to
and then move to a high price find market
showing that the quantity equilibrium.
demanded falls.
Draw shifts to indicate
Innovation- use a
increasing demand (shift
different or
rightwards) and decreasing
unexpected way to
demand (shift leftwards). solve an economic

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problem, calculate
excess demand and
c) Factors that
c) Ask students what they expect excess supply.
may cause a
shift in the to happen if there is an advert
demand for a product and get them to
Self-regulation
curve, draw the effect on shifting
(metacognition,
including: demand curve right.
forethought,
- advertisin Ask them what would happen if
reflection)-
g there income increased in terms
Developing and
income of demand for buying goods.
- refining a strategy
For tastes and fashion you
- fashion over time for
might want to show images of
and applications of
fashionable clothes and more economics, to
tastes
dated clothes and get them to
- price of different micro and
consider how something going macro contexts
substitute
out of fashion or becoming
goods reflecting on the
fashionable affects demand. success or otherwise
- price of Talk through a visit to the shop
complem of the strategy. When
and your favourite brand of a
entary looking at the impact
goods product has increased in price,
of how changes in
how might this affect demand
- demogra factors affect supply,
for its competitors? Similarly, if
phic demand and market
changes. the price of tablet computers fell
equilibrium ensure
how this might affect tablet
that you review with
covers or similar complementary
students to get the
products?
chance to correct
Under demographic changes do
errors.
consider the impact of increased
migration on demand.
Productivity-
Develop a fluency in

9
7-8 1.1.3 using the supply and

Demand, Supply d) Go back to the auction and this time demand model in
supply and d) Definition of offer a price for their pen. Start low various
market supply. and record how many will sell at circumstances. By
equilibrium each price. Construct the diagram being able to use
from the data to show the positive supply and demand
relationship between price and effectively they will
quantity supplied. be able to look at
many economic
e) The use of e) Draw the diagram again illustrating issues using a logical
supply curve the effect of changing the price. approach based on
diagram to Show the effect of increasing supply the model.
show: in terms of a leftward shift and
- changes decreasing supply in terms of a
in price rightward shift.
causing
movemen
ts along a
supply
curve
- shifts
indicating
increased
and
decrease
d supply.
f) Factors that
may cause a
shift in the f) Have a number of scenarios and get
supply students to consider whether they
curve, will cause firms to supply more or
including: less. Discuss the importance of how

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- costs of they affect costs and therefore

productio profit to help decide the impact on
n supply. It is useful to give real
- changes world changes, for example the
in impact of an earthquake, flood or a
technolog government subsidy that is
y currently available.
- indirect
taxes
- subsidies
- natural
factors
(natural
disasters
and
weather).
9-11 1.1.3
Demand, Market
supply and equilibrium g) As a recap, get students to
market g) Equilibrium construct a demand curve, then
equilibrium price and ask them to draw in a supply
quantity and curve. Probe students to explore
how they
where they think this market
are
may end up. Emphasise the
determined.
importance of the market being
in balance.
h) Go back to some of the changes

11
h) The use of listed in c) and f) and get

diagrams to students to explore the impact
show: again but this time on where
- how supply and demand may need
shifts in changing.
supply Talk about what happens when
and a business has a price that is
demand
too high. Illustrate that the
affect
equilibriu demand has contracted,
m price compared to market
and equilibrium, as the price was too
quantity high. Talk about what
in real- businesses will do in reality to
world
shift excess stock in terms of
situations
sales. Equally talk about the
- excess impact on businesses having a
demand
really low price and how the
- excess demand has extended but firms
supply. are unwilling to supply at the
lower price. Ask students what
businesses will do to encourage
suppliers to supply more.
i) Define,
i) As well as drawing a diagram,
calculate
and draw students need to be able to
excess define excess demand and
demand and excess supply. It is worth giving
students tables that list the

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excess price, quantity supplied and

supply. demanded at each price and the
students working out if it shows
excess demand, excess supply
and then calculating the
quantity of the excess.
j) The use of
market forces
to remove
excess supply
or excess
demand.
j) When drawing diagrams to
illustrate excess demand and
supply ensure students can
draw how the market can get
back to equilibrium and what
will happen to price to do this.
12-14 1.1.4 Price Critical thinking- Problem solving to

Elasticity elasticity of a) & b) Students need to be able to Using various use mathematical
demand (PED) define or give the formula for price economic concepts and formulas to solve
a) Definition of elasticity of demand. It is worth economic data to problems related to
PED. emphasising the need to refer to synthesise the economics for
quantity demanded and not just information to make example to calculate
b) Formula of quantity and the preferred formula to judgements. SAM elasticities using
PED. learn is: paper 1 question 2cii) formulas- PED, PES
%∆ in QD synthesising data and and YED.
%∆ in P knowledge of elasticity

13
to calculate PED. This Analysis- Consider

Emphasise that the answer will always also assesses Critical economic issues
be negative. thinking- problem using supply and
solving to use demand to help
c) Calculate mathematical formulas analyse factors that
the PED c) Students in the exam will be given to solve problems influence elasticities.
using given the percentage changes in both related to economics Interpretation-
percentage quantity demanded and price and will as they calculate PED. Interpret price
changes in not be expected to calculate the Also critical thinking is elasticity of demand,
quantity percentage changes. Give them assessed in SAM paper price elasticity of
demanded
opportunities to practice calculations. 1 question 3b) supply and income
and
percentage Take particular care to give them the synthesising data in elasticity of demand.
changes in value of the quantity demanded and income and price
price. price the wrong way round to ensure elasticity of demand Innovation- use a
they still apply the correct formula. It is and interpreting of different or
unexpected way to
also worth encouraging learners when elasticities assesses
solve an economic
completing the calculation to write interpretation. problem, particularly
down the formula first as this is often those using
worth the first mark. Whilst it would be calculations. This
useful to give information on changes may involve
in quantity demanded and price in table rearranging formulas
to calculate it is also important to give to calculate
d) The use of elasticities using
the data in sentences as this is what
diagrams to formulas- PED, PES
they are likely to see in the exam. and YED.
show price
elastic and
price d) With the diagrams it is important Ethics and personal
inelastic that they are clearly elastic and and social
demand. inelastic so making sure that the responsibility
elastic is close to horizontal and the - appreciate ethical
inelastic close to vertical. issues relating to
economic issues.

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e) Interpret Looking at the

numerical significance of price
values of and income
PED that elasticities of demand
show: to businesses and the
e) Students often find it helpful to government.
- perfect have a table with the different
price elasticities and the values. It is
inelasticit
worth using the opportunity to find
y
some estimates of real price
- price elasticities of demand and then to
inelasticit
interpret what type of good they
y
are.
- unitary
price
elasticity
- price
elasticity
- perfect
price
elasticity.
f) The factors
influencing
PED,
including:
- substitute
s
- degree of f) When looking at the factors
necessity influencing PED it is worth exemplifying
- percenta with examples. For example, visiting
ge of the supermarket to buy vegetables,

15
income such as cauliflower to find the price has

spent on risen and consider the fact they can
goods or substitute to other vegetables like
service
cabbage or broccoli. Explain why this
- time. might make it more elastic.
Alternatively look at milk and how it is
more difficult to find substitutes to add
to your cereals in the morning making
it relatively more inelastic.
When considering degree of necessity it
is worth considering more addictive
products like tobacco and why the
elasticity is likely to be inelastic.
I find it useful to compare an
inexpensive item like paperclips or
staples and then compare to cars.
Show then the effect of a 100%
increase in price and get them to
consider why the paperclips might end
up being more inelastic.
For time it is useful to look at fuel for
motor vehicles. If you are running low
g) Use of total on fuel and the price has risen why are
revenue you still likely to purchase fuel? If the
calculations price remains high over time why might
to show the people substitute to riding a bike, a
relationship more economical car or an electric car?
between a
change in g) Students first need to be able to
price and calculate total revenue. Give students
the change the price and quantity before and after

Scheme of Work
in total a price rise or fall for an elastic good.

revenue, to Get students to calculate the price
determine changes impact on total revenue before
whether and after the change.
demand is Do the same for an inelastic good. Give
price elastic other examples for elastic and inelastic
or price and explain the rule that for elastic
inelastic. goods a price fall increases total
revenue and for an inelastic good a
price rise increases total revenue.
15--16 1.1.4
Elasticity Price (h - l)
elasticity of It is worth writing down the
supply (PES)
definition and formula for PED, then
h) Definition of make minor adjustments to show
PES.
similarities to the PES. Emphasise
i) Formula of
that these values will also be
PES.
positive as firms seek to profit
j) Calculate the
maximise. Again make sure the
PES using
given diagrams show elastic as close to
percentage horizontal and inelastic close to
changes in vertical.
quantity
supplied and
percentage
changes in
price.

17
k) The use of
diagrams to
show price
elastic and price
inelastic
supply.
l) Interpret
numerical
values of PES
that show:
- perfect
price
inelasticit
y
- price
inelasticit
y
- unitary
price
elasticity
- price
elasticity
- perfect
price
elasticity.
m) The factors m) For factors affecting PES it is worth

influencing PES, considering a business which is fully
including: using its building, workers and
machines. Relate this to the factors of

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- factors of production and make the point that

productio they will find it difficult to increase
n output in response to a price rise.
- availabilit Look at a farm with a stockpile of a
y of crop. If the price rises ask what they
stocks can do with the stock. Key here is that
- spare they can release the stock enabling
capacity them to responds to the rise in price
making supply more elastic.
- time.
Talk about a factory with lots of space,
workers who are often idle and
machines not in use. Why will they find
n) Use it easier to react and why will this
examples to make supply more elastic.
show the likely Lastly look at how factors of production
PES for are fixed in short run and how it is hard
manufactured to react but in the long run more
and primary factors of production can be found to
products. respond to price rises.
n) It is worth giving real world

examples of products that are
manufactured and primary products to
consider the elasticity.

19
17-19 1.1.4 Income

Elasticity elasticity of
demand
o) Definition of o – q) Again put on the board the
income definition and formula for PED and
elasticity of show how closely they relate to YED.
demand. With calculations frame it both in a
p) Formula of table but also in writing as it likely to
income
appear in an exam.
elasticity of
demand.
q) Calculate
the income
elasticity of
demand
using given
percentage
changes in
quantity
demanded
and
percentage
changes in
income.
r) Interpret r) Again give estimates of elasticities

numerical and get them to consider whether the
values of goods are inferior, normal or luxury.
income Consider why this is the case, For
elasticity of
example why might demand for buses
demand that
show: fall as income rises but the demand for
motor vehicles rise. Similarly for

Scheme of Work
- luxury foreign holidays why is the YED likely

goods to be highly elastic making it a luxury
good.
- normal
goods
- inferior
goods.
s) Consider products that have elastic

s) The and inelastic demand and look at the
significance impact of imposing an indirect tax or
of price and
subsidy and compare this to the
income
elasticities response when demand is elastic. Do
of demand similar for supply. For rising incomes
to link to how it will affect inferior, normal
businesses and luxury goods.
and the
government
in terms of:
- the
impositio
n of
indirect
taxes and
subsidies
- changes
in
income.
20-21 1.1.5 a) Definition of a) It is important that students Reasoning/argume

The mixed mixed understand the importance of ntation- give
economy economy. both the price mechanism in reasons and
terms of supply and demand arguments on both

21
and the government in sides related to an

allocating resource. Getting economic issue
them to list products produced looking at the effects
by governments in their own or of privatisation.
other economies, which may
include health, education, roads Ethics and personal
and streetlights. Ask them why and social
government might need to responsibility
provide these. - appreciate ethical
issues relating to
b) Definition of b) A useful activity after defining economic issues.
public and
the public and private sector is Looking at the mixed
private sector.
to list examples of each and economy- including
getting them to match them. inefficiency and why
governments need to
c) Difference c) Having identified examples from intervene.
between
each, students should then
public and
explore the ownership, control
private
sectors in and aims of each. Ownership
terms of here is focused on whether it is
ownership, owned by private individuals or
control and not. A key focus is on the
aims. different aims of such
organisations. It will be useful
here to connect to profit
maximisation assumption and to
where it might not apply.
d) How the
problems of d) It is worth considering the

Scheme of Work
what to government’s role in deciding

produce, what to produce, how to
how to produce and for whom to
produce and
produce. For example, decisions
for whom to
produce are they make in terms of the
solved in production of health services.
the mixed Equally private sector firms will
economy. be led by the profit motive in
making decisions on what to
produce, how to produce and for
whom to produce.
e) Concept of
market e) Essentially students need an
failure – awareness of market failure,
linked to they need to be able to define it
inefficient and also give examples.
allocation of
resources.
f) Why
government f) Students need to look at why
s might
governments need to intervene
need to
intervene in terms of correcting market
because of failure.
market
failure.
g) Definition of g) Public goods need to be defined

public goods and linked to the free rider

23
– non- effect. It is worth giving

excludability examples and explaining how
, non-rivalry non-excludability and non-
and how
rivalry exist. Giving images of
this causes
the free public goods and considering
rider how one person’s consumption
problem. has little impact on others
consumption (non-rivalry) and
one person can pay to consumer
but others can benefit at the
same time (non-excludability).
It is important they can give
examples and explain why they
are public goods.
h) The role of h) It is worth identifying examples

the public of goods and services and
sector and getting the students to identify
private
whether they are public or
sectors in
the private sector in selected
production countries.
of goods
and
services.
i) The relative i) It is useful to present data on

importance your own and other countries on
of public the relative size of the
sector and
government as a percentage of
private
sector in GDP. It may be useful to put

Scheme of Work
different this on a continuum so they can

economies. compare the relative importance
of public and private sector in
each economy.
j) Definition of
privatisation j)- k) Students need to also be able
k) Effects of to define privatisation. They should
privatisation also look at examples and consider
on: how they have affected consumers,
 consumers workers, businesses and the
 workers government. Case studies might be
 businesses useful here.
 government
22-23 1.1.6 External costs Critical thinking- Analysis- Looking at

Externalitie of production Using various economic issues and
s economic concepts and offering developed
a) Definition of a & b) Following on from market failure economic data to responses that
external costs. is external costs. Students need to be synthesise the explore in detail a
able to define external costs. It is a information to make perspective for
b) Examples of
external costs, good idea here to share images that judgements. SAM example exploring
including show examples of external costs and paper 1 question 4b/ externalities.
pollution, then get them to identify who is the 4c) data given on
congestion and third party and how are they affected. external costs of Ethics and personal
environmental It would be worth looking at different clothing production and social
damage.
types of pollution including visual, air, and understanding of responsibility
water and noise pollution. both external costs - appreciate ethical
and policy. issues relating to
economic issues.
Looking at 1.3.6

25
External Analysis- Looking at externalities-

benefits of economic issues and external costs and
consumption c & d) Students should look at external offering developed benefits.
benefits and consider with education, responses that explore
c) Definition of healthcare and vaccinations how others in detail a perspective.
external would . For example the benefit if they For example, in SAM
benefits. had a vaccination or if they became paper 1 question 4b)
educated and then for example used analyse the external
d) Examples that to become a doctor. costs in clothes
ofexternal production.
benefits,
including
Interpretation- SAM
education,
Paper 1 question
healthcare
and 4b/4c) interpret data
vaccinations on external costs.
.
Adaptive learning in
looking at unfamiliar
e) Definition data in SAM paper 1
and formula question 4c) evaluate
for: e) To understand the true costs and the impact of
• social costs benefits of consumption or production, government policy to
= private students need to be able to define reduce external costs.
costs + social costs and social benefits. It is
external worth considering a product with Ethics and personal
costs external costs and then list the costs to and social
• social the firms in terms of private costs and responsibility
benefits = then consider all the external costs. - appreciate ethical
private They may look at how an individual issues relating to
benefits + would benefit from education and then economic issues, for
look at how others might benefit. example SAM paper 1

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external question 4b/4c

benefits. external costs of
clothing production.
24-25 1.2.1 a) The factors a) It is worth getting students to think Problem solving to
Production of production: of the production of a good. They use mathematical
should then think what a firm would formulas to solve
- land
need to produce the product. Put their problems related to
- labour ideas on the board and then try to economics. SAM paper
- capital separate out those that link to each 1 question 4a)
- enterpris factor of production. calculate percentage
e. Formally define each factor of change in
production and then choose a different employment.
good and then get them to identify the
examples of the factors of production.
For example, land might be potatoes
for a manufacturer of potato chips.
b) Sectors of
the economy: b) It is a good idea to define the
sectors with examples. Then give
• primary
examples of firms and get them to
• secondary place them in different sectors. At first
• tertiary start with those that are clearly within
a sector. The start to introduce some
that might operate in more than one.
For example, McDonalds both
manufacture in the secondary sector
and offer a service in the tertiary

27
c) Changes in sector.
the importance
of these sectors c) It is worth looking at data over time
in terms of for developed countries to show the
employment growth of the tertiary sector. It is also
and output over worth showing current data for a range
time in of developed and developing countries
developing and and getting students to identify which
developed is which.
economies.
26-27 1.2.2 a) Definition of a) Clearly define productivity in terms Analysis- Looking at

Productivity productivity of output per unit of input. economic issues and
and division b) Factors offering developed
of labour affecting b) Look at each of the factors that responses that
productivity: affect productivity. Ensure students are explore in detail a
able to explain how each affects output perspective for
- land– use of
per unit of input. example exploring
fertiliser,
factors affecting
drainage,
productivity.
irrigation,
reclamation
Decision making-
- labour – evaluate data and
quality of economic issues to
labour, draw conclusions,
including which are consistent
improved with evidence for
human example looking at
capital advantages and
through disadvantages of
education division of labour.

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and training
and impact
of migration
- capital –
increased
quantity and
technological
advances.
c) Definition of
division of c) to understand the division of labour
labour. it is useful to complete a practical
activity. Give students the task of
working alone and for a set period of
time producing paperchains. Measure
the length of the paperchains. Then,
working in teams of 3, get them to
work together for the same length of
time to see the impact of working
together. Key after this is to measure
the length. Talk about why the output
increased. Make the link between
d) Advantages specialisation on tasks, the division of
and labour and the increase in output.
disadvantages
of the division d) Consider the advantages and
of labour to disadvantages by reflecting on their
workers and experiences. With probing look at how
businesses. much training is needed to become
expert at one job. Similarly link to the

29
likely monotony and ensuing boredom.

At the same time the benefit from
productivity and average costs.
28-30 1.2.3 a) Definition a) Key is that students can define, Problem solving to Problem solving to
Business and use of know the appropriate formulae use mathematical use mathematical
costs, formulae to and actually be able to calculate formulas to solve formulas to solve
revenues calculate: using given data. problems related to problems related to
and profit • total Formulae are not provided in economics. SAM paper economics. To use
revenue the exam. It is important to test 1 question 1b) formula to calculate
• total costs that they remember the calculate total revenue revenue, costs and
formulae. and SAM paper 1 profit.
• total fixed
It is worth creating tables where question 1f) calculate
costs
from some given date such as profit. Analysis- Looking at
• total the price and quantity, variable economic issues and
variable
costs and fixed costs that they Innovation- use a offering developed
costsaverag
then calculate each of the different or responses that
e (total)
costs revenues, costs and profit. unexpected way to explore in detail a
solve an economic perspective being
- profit
problem, particularly able to analyse types
those using of economies and
b) Economies of b) – d) It is worth starting by calculations. This may diseconomies of
scale: drawing the diagram and involve rearranging scale.
• definition of explaining where economies and formulas. For example
economies of diseconomies of scale are in SAM paper 1 Reasoning/argume
scale happening and to then use this question 1b) calculate ntation- give
• definition of to help define each. It is total revenue. reasons and
internal important that they can SAM paper 1 question arguments on both
economies of distinguish between internal and 1f) calculate profit. sides related to an
scale external economies of scale. For economic issue, for
each type of internal economy example advantages

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• types of of scale give an example to help and disadvantages of

internal explain how they help them to division of labour.
economies of lower average costs.
scale: Give examples of where Innovation- use a
- purchasing external economies of scale are different or
(bulk achieved and get students to unexpected way to
buying) consider how better transport solve an economic
- marketing links, skilled labour will help problem, particularly
- technical lower costs for all businesses. those using
- financial One useful activity when looking calculations. This
- managerial at communication problems may involve
- risk bearing under diseconomies of scale is rearranging formulas
to play Chinese whispers to for example to use
- definition of
external show how messages can be formula to calculate
economies of changed. revenue, costs and
scale profit.
- types of
external
economies of
scale:
- skilled
labour
- infrastruc
ture
- access to
suppliers
- similar
businesse
s in area.

31
c)
Diseconomies of
scale:
• definition
of
diseconomi
es of scale
• types of
diseconomi
es of scale:
- bureaucra
cy
- communic
ation
problems
- lack of
control
- distance
between
top
managem
ent and
workers at
bottom of
the
organisati
on
- the use of
long run
average
cost
(LRAC)
curve

Scheme of Work
diagram,
annotated
to show
internal
economies
of scale
and
diseconom
ies of
scale and
where the
business
will be
most
efficient.

33
31-33 1.2.4 Competition a) When looking at competition, Critical thinking- Analysis- Looking at
Business a) Advantages students need to consider how a Using various economic issues and
competition and competitive market will help economic concepts and offering developed
disadvantag deliver lower prices, working economic data to responses that
es of through how businesses will try synthesise the explore in detail a
competition to undercut each other. Firms in information to make perspective to look at
to firms, competitive markets are unlikely judgements. SAM factors influencing
consumers
to become complacent and are paper 1 question 3e) growth of firms and
and the
economy, likely to waste fewer resources synthesising data on a reasons firms stay
including: in being efficient. When merger with the small. Also looking at
considering markets with lots of economic concept of factors influencing
- efficiency
businesses involved, consumers economies of scale and growth of firms and
- choice end up with a choice between diseconomies of scale. reasons firms stay
- quality competitors’ products. The need small.
- innovatio to improve your product you’re Reasoning/argumen
n your competitors helps improve tation- give reasons Reasoning/argume
quality, although questions need and arguments on ntation- give
- price.
to be asked over profitability both sides related to reasons and
and the ability to invest in an economic issues arguments on both
research and development and tested in SAM paper 1 sides related to an
therefore to achieve innovation. question 3e) assess economic issues and
merger. This question decision making
will also provide an when looking at
opportunity to use advantages and
b) It is worth giving students adaptive learning in disadvantages of
examples of firms or markets to looking at unfamiliar competition,
b) Advantages
and consider the advantages and data and creativity advantages and
disadvantag disadvantages. For example, where students apply disadvantages of
es of large consider companies like existing knowledge of large firms and small
firms and Microsoft, Dyson and Apple to economic concepts to firms, advantages
small firms. consider how their existence and disadvantages of

Scheme of Work
causes advantages and situations set in an monopoly,

disadvantages. unfamiliar context advantages and
c) Factors disadvantages of
influencing the c) When looking at factors that oligopoly.
growth of firms: help or hinder the growth of
- governm firms, students should look at Ethics and personal
ent how governments try to avoid and social
regulatio firms getting too large and how responsibility
n they will, for example, reject - appreciate ethical
- access to mergers that will cause a firm to issues relating to
finance become too large and powerful. economic issues.
- economie Similarly, it is useful to look at Looking at business
s of scale news stories that identify small competition-impact of
businesses struggling to access monopoly/ oligopoly.
- the
desire to loans and overdrafts from
spread banks. Question students on
risk how a lack of finance will make
it difficult to grow. Consider
- the
desire to businesses where economies of
take over scale means only one firm can
competito operate, such as with a natural
rs. monopoly. Similarly consider
small local stores where they
offer a niche market where few
economies of scale can be
reaped.
Consider why firms merge and
takeover into different sectors
and how this helps spread risk.
This could consider firms in a
country that is in recession and

35
another country that is

experiencing boom this spreads
risk.
It is also important to consider
why firms decide to take over
others and in doing this real
world examples are important.
For example, why Kraft wanted
to buy Cadburys; or why Orange
d) Reasons and T-Mobile (mobile phone
firms stay companies) merged in the UK to
small: create EE.
- size of d) Reasons firms stay small is best
market
considered by looking at small
- nature of local businesses and what
market – prevents them from growing.
niche
Factors to consider include the
- lack of size of market, the nature of
finance market – niche. It is well worth
- aims of considering niche products and
the why these markets can best be
entrepren served by focusing on smaller
eur. numbers of customers. Students
also need to consider
constraints such as lack of
finance but also linked to
behaviour economics the aims
of the entrepreneur which may
be to focus on a smaller
manageable market.

Scheme of Work

37
34-36 1.2.4 e) - g) The definition of monopoly

Business Monopoly normally needs to explore two features
competition e)Definition of of the market. These include that one
monopoly. business dominates the market, they
f)Main features offer a unique product, act as price-
of monopoly: makers. It is worth considering how
barriers to entry will limit the ability of
- one the competition to enter the market. It
business is worth considering why government
dominate allow patents in terms of helping
s the encourage new products but how this
market might cause excess profits. It is also
- unique worth showing adverts for large
product businesses and to consider how it
would be difficult for new firms to enter
- price- that market to compete with them.
maker Apple computer and McDonalds for
Barriers to example are worth considering in terms
entry: of how competing with them as an
unknown business will be hard. It is
o legal
worth considering something like
barriers
aeroplane production and how this be
o patents an expensive market to enter in term
o marketin of the need for skilled staff, high tech
g budgets machinery, large factories and huge
o technolo investment. Advantages and
gy disadvantages of monopoly should
consider how they might become
o high
complacent and inefficient. This might
start-up
also link to quality if they do not have
costs.
to improve the product to keep ahead
g) Advantages of competitors if there are none. How
and only one producer leaves little choice.
disadvantages However profits generated do enable
of monopoly: firms to invest in research and

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- efficiency development and to improve

production processes and products to
- choice improve the products available to
- quality consumers. With no-one to undercut
them they may also charge higher
- innovatio prices. However larger businesses may
n benefit from economies of scale by
- price being so large.
- economie
s of
scale.
37-39 1.2.4 Oligopoly h)- j) As well as ensuring students can

Business h) Definition of define oligopoly. In doing so they need
competition oligopoly. to refer to two of the main features of
oligopoly. In that there are few firms,
i) Main features
that these large firms dominate the
of oligopoly:
market, that products they offer are
- few firms different, enabling them to be price
makers. Barriers to entry also need
- large
linking to oligopolies. A basic
firms
understanding of collusion is needed in
dominate
terms of how this will help them
- different increase joint profits. Oligopolies will
products often use advertising and branding as
non-price competition methods to avoid

39
- barriers getting in to a price war with

to entry competitors. Students also need to
know about firms that try to offer
- collusion competitive prices I order to secure
- non-price customers.
competiti Advantages and disadvantages of
on oligopoly needs to also consider choice
in terms of there being few firms
- price
offering competing products. The
competiti
quality may be higher as they have to
on.
improve products to make them stand
out against competitors offer. This links
j) Advantages also to the need to be innovative. If
and oligopolies cooperate and there is
disadvantages collusion and cartels fixing high prices
of oligopoly: then how this harms customers need
considering. However, often this breaks
- choice
down and students need to consider
- quality the possible benefits and problems of
price wars between oligopolies. For
- innovatio
example, lower prices in the short term
n
but higher prices when competitors are
- collusion removed.
and
cartels
fixing
high
prices
- price
wars
between
oligopolie
s.

Scheme of Work
40-42 1.2.5 The a)Factors a) In supply and demand the Critical thinking- Analysis- Looking at
labour affecting the demand comes from households Using various economic issues and
market demand for and the supply from firms. It is economic concepts and offering developed
labour: important that students economic data to responses that
 demand for understand that now households synthesise the explore in detail a
the final supply labour and firms demand information to make perspective looking
product their labour. Understanding this judgements. SAM at factors influencing
(derived will help them grasp what is paper 1 question 2g) demand and supply
demand)
likely to happen when changes synthesising data on of labour including
 availability happen in the economy. The minimum wage in labour market
of understanding of derived Bangladesh with diagrams.
substitutes,
demand and how it affects the economic concepts.
including
demand for labour is critical Reasoning/argume
machines
here. Giving examples here that Reasoning/argumen ntation- give
 productivity shows rising demand for a good tation- give reasons reasons and
of and arguments on
and how it affects the firms arguments on both
workforce.
wiliness to make more and the both sides related to sides related to an
need to employ more people. an economic issue, economic issues
b) Factors
Likewise showing falling demand tested in SAM paper 1 including impact of
affecting the
supply of and then how the labour market question 2g) assess trade union activity.
labour: is affected. If the demand for increase in minimum
Chinese steel falls then they wage. Ethics and personal
 population
size need to produce less and this and social
has caused a fall in demand for responsibility
 migration
steel workers. Likewise it is - appreciate ethical
 age worth showing images of labour issues relating to
distribution economic issues.
intensive production and
of Looking at the labour
population comparing this to robots being market- issues
used on a production in place of relating to migration,
 retirement people. It is not just that the participation and
age
machines exist but that they are trade unions.

41
 school- affordable that is important. The

leaving age productivity of labour being
weak would limit demand and a
 female
participation productive workforce would
mean firms can produce more
 skills and
so they will demand more
qualification
s labour.
b) Supply comes from households
 ability to
and to maximise their benefit
move
geographic they will tend to work more as
locations/m wage rise. Students should be
ove to encouraged to look at real world
different changes and how these will
types of affect the supply of labour. For
employment example, give real world or
hypothetical scenarios to
c) Importance consider how changes will affect
of the the labour market in terms of
quantity and demand. It should be
quality of reasonable to find data on
labour to
population, the school leaving
business.
age but more recently with
d) Impact of
significant level of migration it is
education
and training worth looking at the impact of
on human this as well as the other factors
capital and listed in the specification.
quality of c)-d) It is useful to look at practical
labour. ways the quantity of labour can rise in
terms of population changes such as
increasing birth rates, immigration and
raising of the retirement age. Equally

Scheme of Work
ways the quality of labour can improve

in terms of education and training
developing the skills so that staff can
be more productive.
e) The use of e) – f) Key when looking at the labour
labour market market is that they remember to label
diagrams the y axis wages and not price. It is
showing: also useful that they know the axis can
 supply of be labelled quantity of labour or
labour, employment. A worthwhile activity is
demand giving them scenarios and then the
for students sketching the impact on the
labour, diagram and summarising the impact
market
of the wage and employment.
equilibri
um wage f) Trade union involvement in the
and labour market needs considering.
quantity Examples of trade unions and an
of labour understanding of what they want to do
(employ in terms of improving working
ment) conditions and wages,
 effect of
shifts in
demand
for
labour
and
supply of
labour.
f) Trade union
involvement in
the labour
market:

43
 impact of
trade union
activity to
improve
working
conditions
and increase
wages.
43-46 1.2.6 a) Government a) For each policy it is important Critical thinking- Reasoning/argume
Government policy to deal they can define what it is, Using various ntation- give
intervention with explain how it works in order to economic concepts and reasons and
externalities: reduce or limit externalities. economic data to arguments on both
 taxation Most policies link to external synthesise the sides related to an
costs although subsides can be information to make economic issues as
 subsidies
used to encourage production of judgements. SAM well as decision
 fines these goods with external paper 1 question 1i) making when looking
 regulation benefits. synthesising given at advantages and
 pollution data on sugary drinks, disadvantages of
permits. information on each government
external costs and intervention.
b) Advantages b) For each policy the students government policy.
and need to be encouraged to Executive function-
disadvantages discuss at least two advantages Analysis- Consider planning how to solve
of each and disadvantages. It is useful economic issues using economic problems,
government
to consider the policy and how it supply and demand to considering the
policy.
affects consumers, producers help analyse likely process and impact
and government which helps outcomes. SAM paper of the plan and
them to look in depth at the 1 question 1e) analyse reviewing the likely
impact. the impact of the outcome. When
introduction of an looking at

Scheme of Work
47-48 c) Government c) For each policy it is important indirect tax and SAM government
regulation of they can define what it is, paper 1 question 3d) intervention- policy
competition to: explain how it works in order to analyse the impact of to deal with
 promote promote competition. Most increased spending on externalities,
competition policies link to limiting monopoly education and training. regulation of
power. Students should be able competition, labour
 limit
monopoly to discuss to discuss advantages Reasoning/argumen market.
power and disadvantages of each tation- give reasons
government policy. and arguments on Leadership skills
 protect
consumer both sides related to can be developed
interests an economic issue and amongst learners by
decision making, getting them to look
 control
tested in SAM paper 1 at economic policy
mergers and
takeovers. question 4c) evaluate and to consider the
the impact of impact including
government policy to advantages and
reduce external costs. disadvantages of
49-50 d) Government d) Government intervention in the policy. It may be that
intervention in labour market focuses on the minimum Adaptive learning- some learners are
the labour
wage. Firstly they need to identify why Apply understanding of given responsibility
market:
there might be a need for a minimum economic issues in to ensure that in a
 reasons for wage. Then they need to look at the familiar situations and group exercise all
minimum
advantages and disadvantages of the adapt these to use contribute and a final
wage
minimum wage and it would be useful them in new and outcome is produced.
 advantages to consider the impact on employees, unfamiliar situations Get students to
and
employers and the government. for example in SAM present their ideas
disadvantag
es of It is important that the students can paper 1 question 2g) with their peers. By
minimum draw diagrams to show the impact of assess increase in putting in the context
wage the introduction of a minimum wage minimum wage. of a debate then they
 the use of and the increase of a minimum wage. may argue about one
diagrams to In questions many will draw the side to demonstrate

45
show impact diagram for the introduction of a Executive function- assertive

of the minimum wage rather than an increase Planning how to solve communication
introduction even though the question may ask economic problems,
of a
them to look at where an economy has considering the Ethics and personal
minimum
wage and increased its minimum wage. It is also process and impact of and social
the increase useful to teach them to explain that the the plan and reviewing responsibility
of a minimum wage if binding causes the the likely outcome. - appreciate ethical
minimum demand to contract as costs for firms Questions on SAM issues relating to
wage. rise and the supply of labour extended paper 1 question 1i) economic issues. This
due to higher wages. It is important indirect tax. SAM includes considering
that you explain that when analysing paper 1 question 2g) government policy to
minimum wage they will look at its question minimum deal with
impact on a particular labour market wage. externalities, labour
for example the labour market for SAM paper 1 Question market and
agricultural worker or other lower paid 3d) education and competition.
jobs. Ensuring in lesson that students training on the quality
look at labour markets likely to be of labour.
affected by the minimum wage, will SAM paper 1 question
help. 4c) policy to reduce
external costs.
Creativity- apply
existing knowledge of
economic concepts to
situations set in an
unfamiliar context. For
example in SAM paper
1 question 2g) assess
increase in minimum
wage. SAM paper 1
question 4c) evaluate

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the impact of
government policy to
reduce external costs.
Ethics and personal

and social
responsibility
- appreciate ethical
issues relating to
economic issues, for
example SAM paper 1
question 1h) subsidies
to support farmers,
SAM paper 1 question
1i) indirect tax on
sugary drinks and SAM
paper 1 question 2g)
minimum wages.
51-53 2.1.1 a) Economic a) Ensure students can define Problem solving to Critical thinking-
Macroecono growth: Economic growth in terms of use mathematical Using various
mic increasing real GDP. We will formulas to solve economic concepts
 definition of
objectives focus on increasing GDP as the problems related to and economic data to
economic
key measure for growth. economics. SAM paper synthesise the
growth
2 question 4a) information to make
 measureme It is important to consider how
calculating the judgements. Looking
nt using GDP has limitations as a percentage increase in at Economic growth
increases in measure of growth. It does not
GDP. from different
gross take account of population perspectives e.g.
growth suggesting that GDP per

47
domestic capita might be better. It Interpretation make explicit the

product ignores subsistence farming and assessed in SAM Paper connection here
(GDP) the informal sector. It says 2 question 3e) between 2.1.1 using
nothing about who is interpret regional the economic cycle
 limitations
of GDP as a experiencing the growth as a unemployment data. diagram to show
measure of very unequal society may see growth and 1.1.1
growth very few benefit. Other factors using the PPF
 the use of are important in terms of diagram to illustrate
diagrams to education and healthcare to economic growth.
show the determine the quality of life Also looking at
economic also. impact of economic
cycle: activity on the
annotating It is useful to show students
environment in 2.1.1
boom, data on economic growth for
and 1.1.6 looking at
downturn, your country or another.
recession external costs of
Comment on when things seem
and production.
to be going well and not so well.
recovery
Start to build in the terms
 the effect of including boom, downturn,
each stage Analysis- Looking at
recession and recovery. Then
of the economic issues and
get them to draw the diagram
economic offering developed
and to label each of these
cycle on responses that
economic points. It is also useful to draw
explore in detail a
growth, a table which has each stage
perspective looking
inflation and and to write in the table what is
unemploym at limitations of GDP
happening at each stage to
ent for measuring growth
economic growth, inflation and
and impact of
 the impact unemployment.
of economic economic growth,
growth on: It is interesting to look at how inflation,
economic growth affects other unemployment,
 employment
variables. It might be useful

Scheme of Work
 standards of again to show real world data on current account

living economic growth and to deficits, also reasons
 poverty compare this over time to for deficits.
 productive unemployment to how the
potential inverse relationship between the Reasoning/argume
 inflation two. ntation- give
 the reasons and
It is worth questioning how
environment arguments on both
rising GDP should help increase
sides related to an
standards of living. However it
economic issues
is also worth considering that
including impact of
higher incomes do not
economic growth,
necessarily mean all are
inflation,
benefiting or that quality of life
unemployment,
is improving if for example
current account
prices in the shops are rising.
deficits.
One significant success story
has been the falling poverty Interpretation-
levels, especially for absolute interpret what is
poverty. Showing the correlation
happening at each
between the two might again stage of economic
help here. For example the
cycle, interpret data
dramatic growth in China has on economic growth,
contributed in part to the
inflation,
poverty reduction in China. unemployment,
Being able to identify that current account of
productive potential grows when balance of payment.
there is economic growth is
important. Interpretation- for
It is worth questioning how example, look at data
growth might affect inflation. on inflation and

49
Students should be able to ensure they know

consider why prices may rise, when there is
ceteris paribus. Focusing here inflation, deflation
on demand pull inflation. and disinflation.
There are numerous case
studies that show the impact of Ethics and personal
rapid economic growth on the and social
environment. Is it worth looking responsibility
at one of Brazil, India or China - appreciate ethical
and how rapid growth has issues relating to
impacted on the environment. economic issues.
Impact of growth on
54-55 2.1.1 environment, impact
b) Low and b) It is important that students
Macroecono stable inflation: of unemployment,
understand that the aim of
mic protection of the
 definition of governments is to have low and
objectives environment,
inflation stable inflation. Key is how this
redistribution of
 definition of helps with investment decisions and
income and poverty.
deflation certainty. Students need to be able
to define both inflation and
 measureme Initiative-
deflation. Key is the need to be able
nt using encourage student to
consumer to look at data and see when this is
look at real world
price index occurring, It is really worth
stories in
(CPI) following a nation’s inflation rate
newspapers, on news
Types of over time and clearly identifying on
and online. Get them
inflation: this when there is inflation which is
to share these news
- demand any point above the 0% line and
stories and data to
pull when there is a deflation when it is
help develop all
- cost push below the line. The big problems
students’ awareness.
students face is when the inflation
- relationsh
rate is falling at they say prices
ip
may be falling when in fact the rate

Scheme of Work
between of price increase is just dropping.

inflation This confusion with disinflation is
and common and needs addressing with
interest
students.
rates
The measurement students need to
Impact of
focus on is the consumer price
inflation on:
index (CPI) and it is worth them
- prices
seeing this in any data you present.
- wages
The two types of inflation, demand
- exports
pull and cost push need to be
- unemploym
understood. It is worth giving
ent
examples from the real world. For
- menu costs
example when commodity prices
- shoe leather
rise this causes imported food and
costs
drink prices to rise and this drives
- uncertainty
up costs and pushes up inflation as
- business
firms are forced to pass on cost
and
increases in higher prices. Or look
consumer
confidence at a booming economy and consider
- investment from a micro level how increased
demand affects price and then
relate this to the macroeconomy.
Students need to understand the
relationship between inflation and
interest rates. They need to
understand why high prices will
lead to higher interest rates and
why this happens.
Key is that students understand the
impact of inflation and should relate

51
to how inflation measures average

prices, so of course if inflation is
high prices are rising. Inflation
means the costs of living rises and
they need to understand that
employees may start asking for pay
rises to maintain their standard of
living. Rising prices when prices
are not rising abroad may lead to
falling exports. It is worth relating
to the real world and why when
prices go up a lot, restaurants and
catalogues will need to reprint
menus and price lists. Similarly if
the prices are rising regularly,
people will spend time searching for
the best deal which is a shoe
leather cost. Higher prices and
unstable prices also make it more
difficult to predict the future to help
make investments decisions more
risky and this uncertainty is likely to
stifle growth.
It is also important to consider how

low stable inflation will help with
predictability and help boost
business and consumer confidence
and thus lead to higher growth.

Scheme of Work
56-57 2.1.1 c)Low c) It is important that students

Macroecono unemployment: know the importance of
mic
 definition of targeting low unemployment.
objectives unemploym They need to be able to define
ent unemployment and this means
 measureme understanding the importance of
nt of being both willing to work and
unemploym unable to find suitable
ent using
employment. The measurement
Internationa
l Labour of unemployment should use
Organization the International Labour
(ILO) Organization (ILO) measure.
measure
Students need to be able to
Types of explain the different types of
unemployment: unemployment. It is worth
- cyclical returning to the business cycle
- structural here and identifying the cyclical
- seasonal nature of this.
- voluntary
More worrying is structural
- frictional unemployment and students
should consider sectors that
Impact of have declined in their economy
unemployment and why it is difficult for the
on:
unemployed to transfer sectors.
- output
- use of Less worrying is seasonal
scarce unemployment as this is just
resources following the peak season.
- poverty Frictional unemployment is
where people are between jobs.

53
- government It is worth getting students to

spending on work in groups here to identify
benefits
what they think are the impacts
- tax revenue
of unemployment. You may
- consumer want to give them ideas to think
confidence
of linked to: output, use of
- business scarce resources, poverty,
confidence
government spending on
- society.
benefits, tax revenue, consumer
confidence, business confidence
and society for example linked
to crime and mental health.
58-60 2.1.1 d) Surplus or d) It is perfectly acceptable for

Macroecono balance on students to consider the
mic the current objective to achieve a surplus
objectives account of
on the current account of the
the balance
of balance of payments or a
payments: balance. Students need to be
able to define the current
 definition of
account on the balance of
current
account on payments. On the International
the balance GCSE this is the focus of the
of payments work and knowledge of other
 current accounts is not required. We are
account interested in current account
deficits and deficits and surpluses. Show
surpluses students current account
positions and get them to

Scheme of Work
 trade in identify whether they are

goods surpluses or deficits.
(visibles) Ensure students understand
and services
trade in goods (visibles) and
(invisibles)
services (invisibles). It will be
 relationship worth showing them data for
between each to see how the overall
current
position is made up. Particularly
account and
exchange useful is where one is in surplus
rates and the other a deficit.
 examples of Students need to understand
real-world the relationship between the
exchange current account and exchange
rates rates. Understanding how a
Reasons for depreciating exchange rate
deficits and might lead to an improvement
surpluses: in the current account in the
 quality of long run is important. At
domestic International GCSE there is no
goods need to consider the j-curve
 quality of effect although an
foreign
understanding of it will enable
goods
deeper analysis.
 price of
domestic It is important to make students
goods familiar with a range of
 price of examples of real-world
foreign exchange rates.
goods
It is helpful to look at countries
 exchange
rates with large deficits like the UK,
USA and large surpluses like

55
between Germany and China and to

countries explore reasons for deficits and
Impact of surpluses including
current account o quality of domestic goods
deficit:
o quality of foreign goods
o leakagefrom
the economy o price of domestic goods
o can be o price of foreign goods
inflationary if o exchange rates between
prices rise
countries
abroad
o low demand For the same countries it is also
for our useful to look at the impact of a
exports current account deficit in terms
o problems of a leakage from the economy.
finding Detailed knowledge of the
foreign circular flow is not needed but
reserves to an understanding that when you
fund the import goods and services
deficit.
money leaves the economy. It
is also important that they
understand that deficits can be
inflationary if prices rise abroad.
It is important to look at how
low demand for exports might
be a problem. Importantly it is
important to look at problems
finding foreign reserves to fund
the deficit.

Scheme of Work
61-63 2.1.1 e)Protection of e) It is worth relating here to

Macroecono the external costs and why it is
mic environment: important for protection of the
objectives  business environment. Students need to
activity that look at business activity that
damages
damages the environment.
the
environment Students need to consider visual
pollution, including litter, noise
Ways
pollution, air pollution and water
businesses
damage the pollution. In the microeconomic
environment: section government intervention
 visual to protect the environment was
pollution, considered and students need to
including know that they need to revise
litter taxation, subsidy, regulation,
 noise fines and pollution permits. The
pollution only area that is added here is
 air pollution government provision of parks.
 water
pollution
Government
intervention to
protect the
environment:
 taxation
 subsidy
 regulation
 fines
 pollution
permits

57
 government
provision of
parks.
64-66 2.1.1 f) Redistribution f)The final macroeconomic objective is

Macroecono of income: redistribution of income. After looking
mic at definitions of income inequality,
o definition of
objectives income absolute poverty and relative poverty it
inequality is important to consider reasons to
o definition of reduce poverty and inequality in terms
absolute of meeting basic needs such as food,
poverty shelter and clothing, raising the
o definition of standards of living and for ethical
relative reasons. It may be worth getting them
poverty to discuss reasons we would want to
Reasons to reduce poverty or inequality and to
reduce poverty present arguments for this. Following
and inequality: this, government intervention to reduce
o meetbasic inequality and poverty is considered.
needs Students need to look at how the
o raise following will help reduce poverty and
standards of inequality. Progressive taxation,
living redistribution through benefit payments
o ethical and investment in education and
reasons healthcare.
Government
intervention to
reduce
inequality and
poverty:

Scheme of Work
o progressive
taxation
o redistribution
through
benefit
payments
o investment in
education
and
healthcare.

59
67-68 2.1.2 a) Fiscal policy a) After defining fiscal policy it is Critical thinking- Critical thinking-
Government – worth giving data or government Using various Using various
policies government revenue and expenditure. If not economic concepts and economic concepts
revenue and available for your own country this is economic data to and economic data to
government provided in the UK budget each year synthesise the synthesise the
expenditure
(for example can be found at information to make information to make
:
https://www.gov.uk/government/publ judgements. SAM judgements.
o definition of ications/budget-2016- paper 2 question 2g) Relating 1.1.5 The
fiscal policy
documents/budget-2016) synthesising mixed economy and
o government They can start to look at how the information on relative 1.2.6 government
revenue – country raises revenue and the poverty in the UK and intervention and
direct and
teacher can identify examples from policies to reduce 2.1.2 government
indirect
this data that are direct or indirect poverty. Also SAM policies (fiscal,
taxes
taxes. paper 2 question 3e) monetary, supply-
o government synthesising side and government
expenditure
It can also be interesting to look at information on regional controls).
– main
areas of the main areas of focus of unemployment and
focus government spending. Questions on economic Analysis- Looking at
why the expenditure might be as they understanding of economic issues and
o fiscal
deficits and are is useful. supply side policies. offering developed
fiscal responses that
surpluses It is important that students can Analysis- Looking at explore in detail a
identify fiscal deficits and surpluses economic issues and perspective on the
o impact of a
fiscal deficit and there is much data available offering developed impact of fiscal
and fiscal showing deficits given the large fiscal responses that explore deficits, fiscal
surplus deficits that have been prevalent in detail a perspective surplus. Impact of
o the impact following the financial crises. Key is for example in SAM fiscal policy,
of fiscal that they look at the impact of any paper 2 question 1h) monetary policy and
policy on deficit on the economy. Considering analyse how fiscal supply side policy.
macroecono impacts like crowding out might be policy stimulates
balanced against how this would be growth.

Scheme of Work
mic injecting more money in to the

objectives. economy than you are taking out in Reasoning/argumen Reasoning/argume
tax. It is also important to look at tation- give reasons ntation- give
how a fiscal surplus might impact the and arguments on reasons and
economy in terms of having more both sides related to arguments on both
leakages than injections. an economic issue sides related to an
It is important that students consider tested in economic issues and
the impact of increasing tax or SAM paper 2 question decision making
reducing government spending in 2g) assess policy to when looking at the
contracting the economy or of reduce relative poverty impact of fiscal
decreasing tax or increasing and in policy, monetary
government spending in SAM paper 2 question policy, supply side
stimulating/expanding the economy. 3e) assess policy and
effectiveness of supply government controls.
side policies.
69-72 2.1.2 b) Monetary b) It is important to start by Executive function-
Government policy – defining monetary policy and interest Adaptive learning - planning how to solve
policies focused on rates in terms of the cost of Apply understanding of economic problems,
interest rate borrowing. Students just need to economic issues in considering the
changes: focus on the central banks in setting familiar situations and process and impact
o definition of interest rates normally to meet an adapt these to use of the plan and
monetary inflation target. them in new and reviewing the likely
policy It is worth thinking through a simple unfamiliar situations. outcome. Look at
o definition of transmission mechanism in terms of SAM paper 2 question government
interest how increasing or decreasing interest 2g) assess policy to intervention to
rates rates affect the macroeconomy and reduce relative poverty protect the
o central looking at how it will affect savers, and assessing the environment,
banks role borrowers and how this stimulates or effectiveness of supply government
in setting reduces spending by consumers. It is side policies. intervention to
interest important that they consider the
rates reduce poverty and
impact of interest changes on

61
Impact of macroeconomic objectives. Executive function- inequality and

changes in It has become more common for Planning how to solve government policies
interest rates asset purchases to be used by central economic problems, including fiscal policy,
on banks. With some finding interest considering the monetary policy,
macroeconomic rates less effective in impacting process and impact of supply side policy
objectives:
macroeconomic objectives central the plan and reviewing and government
o the banks looked at other ways of the likely outcome. controls.
mechanism
stimulating the economy. Key is that Questions on SAM
by which a
change in students understand that asset paper 2 question 2g) Leadership skills
interest rates purchases encourage banks to lend policy to reduce can be developed
affects more and stimulate the economy. relative poverty. amongst learners by
consumers SAM paper 2 question getting them to look
and 4b) supply side at macroeconomic
businesses
policies. government policy
o awareness of SAM paper 2 question and to consider the
asset
3e) policy on tariffs. impact including
purchasing
used by advantages and
central Creativity- apply disadvantages of
banks. existing knowledge of policy. It may be that
economic concepts to some learners are
situations set in an given responsibility
73-75 2.1.2 c)Supply-side c) Having defined supply side policies it unfamiliar context. to ensure that in a
Government policy: is important that they understand Tested for example in group exercise all
policies how they attempt or improve the SAM paper 2 question contribute and a final
 definition of
supply-side productivity of the economy. They 2g) assess policy to outcome is produced.
policy need to look at each policy and look reduce relative Getting them to
at how they help raise productivity. poverty. present their ideas to
 supply-side
policy and Then how each policy impacts on SAM paper 2 question others. By putting g
its impact macroeconomic objectives. 3e) assess in the context of a
on debate then they
productivity

Scheme of Work
and total effectiveness of supply may argue about one

output side policies. side to demonstrate
The impact of assertive
supply-side communication
policies on
macroeconomic
objectives:
o privatisation
o deregulation
o education
and training
o policies to
boost
regions with
high
unemploym
ent
o infrastructur
e spending
o lower
business
taxes to
stimulate
investment
o lower
income tax
rates to
encourage
working.
76-78 2.1.2 d) Government d) In previous sections regulation,

Government controls: legislation, fines and pollution

63
policies Advantages and permits are discussed. These areas

disadvantages can be tested from a
of: macroeconomic perspective in terms
o regulation of how they affect the objectives. It
o legislation would be a useful revision activity to
o fines get students to present on the
o pollution advantages and disadvantages of
permits. each policy.
79-80 2.1.3 a)The impact of a) The trade-offs listed need looking Critical thinking-
Relationships policies and the at. Using various
between trade-off Relating to the Philips curve would economic concepts
objectives between be interesting for unemployment and economic data to
and policies macroeconomic and inflation. synthesise the
objectives:
Considering also how rapid growth information to make
 unemploym impacts inflation and then the judgements. Looking
ent and environment would be useful. For at trade-offs at
inflation
the latter, reminding students of macro level 2.1.3
 economic earlier work on countries with rapid trade-offs between
growth and growth and pollution would be macroeconomic
inflation
useful. objectives and relate
 economic to micro level 1.1.1
growth and Opportunity costs.
environment
al protection
 inflation and
the current
account on
balance of
payments.

Scheme of Work
81-83 2.2.1 a) Definition of a) - b) The required definition is Critical thinking- Using Analysis- Looking at
Globalisation globalisation stated in the specification. various economic economic issues and
: increased Student need to explore reasons concepts and economic offering developed
integration for globalisation. A useful data to synthesise the responses that
and activity is to get students to information to make explore in detail a
interdepend research these factors and to judgements. SAM perspective for
ence of present them to others in the paper 2 question 4c) example considering
economies. group. synthesis of data on reasons for
c) Impacts of globalisation and FDI and understanding globalisation, impact
b) Reasons
global companies is a topic that of the impact of FDI. of globalisation,
for
will be useful to research for reasons for FDI.
globalisation:
students. In looking at the Reasoning/argumentat
 fewer impacts they should consider ion- give reasons and Reasoning/argume
tariffs the impact on individual arguments on both ntation- give
and countries, governments, sides related to an reasons and
quotas producers and consumers, economic issue and arguments on both
 reduced workers and the environment. decision making tested sides related to an
cost of This may be advantages or in economic issues and
transpor disadvantages for each. SAM paper 2 question decision making
t 4c) evaluate the when looking at the
impact of FDI. impact of
 reduced globalisation,
cost of Interpretation- SAM advantages and
commun Paper 2 question 4c) disadvantages of
ication interpret data on FDI. MNC and FDI.
 increase
d Creativity- apply In looking at the
significa existing knowledge of impact of FDI and
nce of economic concepts to MNCs it will be a
multinati situations set in an useful opportunity to
onal unfamiliar context. develop teamwork

65
corporati Tested in SAM paper 2 and collaboration

ons question 4c) evaluate skills. Getting them
(MNCs). the impact of FDI. to work in a team to
c) Impacts of develop
globalisation communication skills
and global in communicating
companies concepts to others
on individual verbally. Students
countries, will collaborate in
government terms of peer review
s, producers the work of others
and within a group to
consumers, offer supportive
workers and feedback on
the strengths and
environment weaknesses of the
: work. They will also
need to develop
 rising negotiation skills in
living
working within a
standard team negotiate the
s
aspects of an
 greater economic issue each
choice person will research
or present on.
 lower
prices
Ethics and personal
 reduced and social
costs of responsibility
commun - appreciate ethical
ication issues relating to

Scheme of Work
 closing economic issues. This

of will include the
tradition impact of
al globalisation- closing
industrie of industries and
s environmental
impact, advantages
 environ and disadvantages of
mental
FDI.
impact.
84-86 2.2.1 d) Definition of d) Having defined multinational

Globalisation multinationa corporations (MNCs) and foreign
l direct investment (FDI),
corporations students need to look at the
(MNCs): reasons for the emergence of
MNCs/FDI. It might be useful to
 definitio
look at the motivations of real
n of MNCs. It is also important to
foreign
consider the advantages and
direct disadvantages of MNCs/ FDI.
investme
Getting students to evaluate the
nt (FDI) impact of specific MNCs on
 reasons nations.
for
emergen
ce of
MNCs/FD
I:

67
o to
benefit from
economies of
scale
o to
access
natural
resources/che
ap materials
o lower
transport and
communicatio
n costs
o to
access
customers in
different
regions
 advanta
ges and
disadvan
tages of
MNCs/
FDI:
o creating
jobs
o investing
in
infrastructure

Scheme of Work
o developi
ng skills
o developi
ng capital
o contribut
ing to taxes
o avoiding
paying taxes
o environ
mental
damage
o moving
profits
abroad.
87-89 2.2.2 a) Advantages a) Students do not need to explore Analysis- Looking at Analysis- Looking at
International and comparative advantage but they should economic issues and economic issues and
trade disadvantag be able to explain advantages and offering developed offering developed
es of free disadvantages. You may want them to responses that explore responses that
trade, look at this for developed and in detail a perspective, explore in detail a
including: developing countries. for example, in SAM perspective on
paper 2 question 4b) reasons for
 lower
analyse why higher protection.
prices
tariffs might be used.
and
Reasoning/argume
increase
Interpretation- SAM ntation- give
d choice
Paper 2 question 4b) reasons and
for
interpret data on arguments on both
consume
tariffs. sides related to an
rs

69
 lower economic issues and

input decision making
costs when looking at
 wider advantages and
markets disadvantages of free
for trade, advantages
business and disadvantages of
es tariffs, quotas and
subsidies.
 foreign
competit
Ethics and personal
ion
and social
harming
responsibility
domestic
- appreciate ethical
business
issues relating to
es
economic issues. This
 increasin
will include reasons
g for protection-
unemplo protect from
yment.
dumping, infant
industries, protect
employment, protect
90-92 2.2.2 b)Reasons for b) Put your students in control of a consumers from
International protection: country get them to explore why unsafe products.
trade they may want to put in place
 prevent
protection. Share ideas and
dumping
summarise argument son board.
 protect Amy from specification missing
employment
then add them.

Scheme of Work
 protecting
infant
industries
 to gain tariff
revenue
 protect
consumers
from unsafe
products
 reducing
current
account
deficits
 retaliation.
c) Methods of c) In looking at methods of protection

protection: students need to understand how they
 tariffs work and use supply and demand
diagrams to show tariffs, quotas and
 quotas
subsidies. Advantages and
 subsidies disadvantages of each method of
 advantages protection is needed.
and
disadvantag
es of each
method of
protection
 supply and
demand
diagrams to

71
show tariffs,
quotas and
subsidies.
93-95 2.2.2 d) Modern d) It is useful to give information on

International trading blocs: trading blocs and how they work.
trade Students would then look at the impact
 impact of
trading of trading blocs on member and non-
blocs on member countries. Students need to be
member and able to give examples of a range of
non- trading blocs.
member
countries
 examples of
trading
blocs.
e) Role of the
e) Role and actions of the World Trade
World Trade
Organization Organization (WTO) needs exploring. It
is worth looking at some of the cases
(WTO):
that the WTO has looked into.
 actions by
the WTO.
f) Trade f) Students need to look at trade
patterns of patterns of developed and developing
countries.
developed
and
developing
countries.

Scheme of Work
96-100 2.2.3 a)Definition of a) Defining exchange rates in terms of Critical thinking- Problem solving to
Exchange exchange rates. the value of one currency in terms of Using various use mathematical
rates another. economic concepts and formulas to solve
economic data to problems related to
synthesise the economics including
b) Factors b) Get students to draw a supply and information to make calculations relating
affecting demand diagram and explain that
judgements and to exchange rates.
supply and for exchange rates it is the price of problem solving SAM
demand of one currency in terms of another.
paper 2 question 1e) Analysis- Looking at
currencies: Factors affecting supply and demand synthesising data on economic issues and
of currencies include interest rates,
 interest exchange rates with offering developed
currency speculators, imports and knowledge of responses that
rates
exports of goods and services.
 currency exchange rates and explore in detail a
speculators calculating. perspective looking
at factors affecting
 imports and
Analysis- Looking at exchange rates,
exports of
economic issues and impact of
goods and
offering developed appreciation and
services
responses that explore depreciation.
 supply and in detail a perspective
demand for example in SAM Reasoning/argume
diagrams to paper 2 question 3d) ntation- give
show analyse the impact of reasons and
determinatio appreciation on current arguments on both
n of account. sides related to an
exchange economic issues
rates. Interpretation- SAM including impact of
Paper 2 question 3d) appreciation and
c) Definition of c) It is helpful for students to define interpret exchange depreciation.
appreciation: appreciation and revaluation and to rates.
consider the impact of appreciation

73
 definition of of exchange rate on import and Innovation- use a

revaluation export prices, demand for imports different or
 impact of and exports and the current unexpected way to
appreciation account on balance of payments. solve an economic
of exchange problem, particularly
rate on: those using
calculations. This
o import
may involve
and export
rearranging formulas
prices
to calculate exchange
o demand
rates.
for imports
and exports
o current
account on
balance of
payments.
d) Definition of
d) Having done the previous it is worth
depreciation:
emphasising we now move in the
 definition of opposite direction. Definition of
devaluation depreciation or devaluation.
 impact of
depreciation
of exchange
rate on:
o import
and export
prices

Scheme of Work
o demand
for imports
and exports
current account
on balance of
payments.
101-140 Revision Give students a copy of the Self-

specification content and get them to monitoring/self-
RAG rate it. Areas they feel confident in evaluation/self-
mark in green, in need of a little work reinforcement- get
amber and struggling with red. students to look at
the specification and
Collate this information in a RAG rate their
spreadsheet or similar. understanding of
concepts. Where they
Students who are confident in an area are confident they
get to create revision sheets highlight green,
summarising knowledge for others. unconfident highlight
red and amber when
Students who are confident use this to they feel they need a
help them to teach those that are little more work.
struggling with topics.
This can then guide
Students create postcards summarising the revision
content of topics identified as red, programme.
moving to amber when complete
Integrity in taking
Create key word booklets then get ownership for own
them to write definitions against each work and willingly
key word. respond to questions

75
and challenges.
Create a series of questions for Having RAG rated
students to work through to develop their work focus on
knowledge. areas in red and
amber to close gaps
Create writing frames for different in knowledge.
styles of questions to show what the
examiner will look for. Productivity-
Develop a fluency in
Complete ‘walking talking’ mocks using technical
where you walk students through a economic terms in
mock exam and talk through what the various
examiner will look for and test their circumstances.
knowledge. Ensure students can
precisely define key
Ask students to complete mocks, use a terms. Give them
spreadsheet to show average scores on opportunities to
each question and then work through match key words and
weaker questions to look at where they definitions. Being
were going wrong and how to improve. able to define to
others and talking
about how to make it
more precise will
help.
To develop
intellectual interest
and curiosity,
ask students to
research an economic
issue looking at

Scheme of Work
exploring the causes,

consequences and
possible solutions.
Getting students to
choose a topic of
interest will hopefully
encourage them to
look at this in more
depth.

77

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International GCSE (9–1) Economics Scheme of Work

Why transferable skills?

© Pearson Education Ltd 2017

1 1.1.1 a) Show images or list a range of

2 © Pearson Education Ltd 2017

Look at this from the perspective of

2-3 1.1.1 c) Give the scenario of a desert island

© Pearson Education Ltd 2017

d) Production Possibility Curves.

4 © Pearson Education Ltd 2017

frontier e.g. immigration, increasing birth

4 1.1.2 a) Ask students what businesses try to Analysis- Looking at

© Pearson Education Ltd 2017

b) Now explore examples where this

6 © Pearson Education Ltd 2017

maximise their NHS or raising funds to support

5-6 1.1.3 Demand Critical thinking-

© Pearson Education Ltd 2017

8 © Pearson Education Ltd 2017

© Pearson Education Ltd 2017

7-8 1.1.3 using the supply and

10 © Pearson Education Ltd 2017

- costs of they affect costs and therefore

h) Go back to some of the changes

© Pearson Education Ltd 2017

h) The use of listed in c) and f) and get

12 © Pearson Education Ltd 2017

excess price, quantity supplied and

12-14 1.1.4 Price Critical thinking- Problem solving to

© Pearson Education Ltd 2017

to calculate PED. This Analysis- Consider

14 © Pearson Education Ltd 2017

e) Interpret Looking at the

© Pearson Education Ltd 2017

income such as cauliflower to find the price has

16 © Pearson Education Ltd 2017

in total a price rise or fall for an elastic good.

© Pearson Education Ltd 2017

m) The factors m) For factors affecting PES it is worth

18 © Pearson Education Ltd 2017

- factors of production and make the point that

n) It is worth giving real world

© Pearson Education Ltd 2017

17-19 1.1.4 Income

r) Interpret r) Again give estimates of elasticities

20 © Pearson Education Ltd 2017

- luxury foreign holidays why is the YED likely

s) Consider products that have elastic

20-21 1.1.5 a) Definition of a) It is important that students Reasoning/argume

© Pearson Education Ltd 2017

and the government in sides related to an

22 © Pearson Education Ltd 2017

what to government’s role in deciding

g) Definition of g) Public goods need to be defined

© Pearson Education Ltd 2017

– non- effect. It is worth giving

h) The role of h) It is worth identifying examples

i) The relative i) It is useful to present data on

24 © Pearson Education Ltd 2017

different this on a continuum so they can

22-23 1.1.6 External costs Critical thinking- Analysis- Looking at

© Pearson Education Ltd 2017

External Analysis- Looking at externalities-

26 © Pearson Education Ltd 2017