What is A Level Economics

Curious about how the world works? Would you love to investigate why prices rise or what drives government decisions? Yes? Then Economics might be the perfect subject for you.

It’s a challenging but fascinating course that develops your analytical thinking and helps you see the bigger picture behind the headlines. On top of that, it’s a subject that’s highly respected by universities and valued in a wide range of careers.

You might wonder then, exactly what is A Level Economics? In this two-year course, you study the actions of consumers, organisations, and governments to understand society. 

But how do you know if it’s a good match for your interests and strengths? Let’s explore what the subject looks like in practice.

Key Takeaways

• You'll study both microeconomics (individual markets) and macroeconomics (the whole economy).

• The course is assessed through three exam papers featuring multiple choice, data response, and essay questions.

• You don't need to be a maths genius, but you should enjoy analysing real-world issues and current affairs. 

• Economics A Level opens doors to top universities and careers in finance, government, business, and data analysis.

What Will You Learn in A Level Economics?

A Level Economics is split into two main areas that work together to give you a complete picture of how the economy works. They are:

• Microeconomics: this area looks at individual markets and businesses. You'll explore supply and demand, market structures, and why markets sometimes fail. For example, you might study why concert tickets cost so much, or how Netflix competes with other streaming services.

• Macroeconomics: this area examines the bigger picture. You'll study inflation, unemployment, economic growth, and international trade. 

You will take a deep dive into key topics such as: 

• Market failure: this is when markets don’t allocate resources effectively from society’s point of view.

  • Example: companies might overproduce plastic packaging because they don’t pay for the environmental damage it causes.

• Competition policy: these are the rules that keep businesses competing fairly and stop monopolies forming.

  • Example: the UK’s Competition and Markets Authority has investigated big tech firms to make sure they don’t dominate online markets.

• Fiscal and monetary policy: how governments spend money and use taxes to influence economic conditions.

  • Example: the UK government used a furlough scheme during the pandemic to help support people and businesses.

• Exchange rates: this is the value of one currency against another.

  • Example: If the pound falls against the euro, holidays to Spain or Greece become more expensive for UK tourists.

• Economic development: the attempt to improve living standards and reduce poverty in a country. 

  • Example: Fairtrade schemes aim to guarantee a fair income for developing countries’ farmers.

It’s an exciting course as you'll analyse real-world examples like housing shortages, climate change policies, and Brexit's economic impact. Seeing these concepts play out in the news every day means you’ll be studying something that’s happening right now. When the Bank of England changes interest rates, you'll understand exactly what's happening and why it matters.

How Is A Level Economics Assessed?

AQA (opens in a new tab), Edexcel (Pearson) (opens in a new tab), OCR (opens in a new tab), and CIE (opens in a new tab) all offer slightly different subject coverage and assessment styles, but the general structure remains similar. Why not head over to our guide for more information on A Level exam boards?

Most A Level Economics courses are assessed through three examination papers. Each paper tests different skills and knowledge areas.

Paper 1 typically focuses on microeconomics with a mix of multiple choice questions and short response tasks. You'll need to interpret graphs, calculate using economic equations, and explain market behaviour.

Paper 2 usually covers macroeconomics using similar question types. Expect questions about unemployment statistics, inflation data, and government spending.

Paper 3 often combines both micro and macro topics through longer essay questions and complex data analysis. This paper tests your ability to evaluate economic policies and make reasoned judgements.

The key skills being assessed are:

• Analysis (breaking down economic problems)

• Evaluation (weighing up different viewpoints)

• Application (using economic theory to explain real situations)

What Skills Do You Need for A Level Economics?

Let’s bust the biggest A Level Economics myth of them all. Many students think they need to be a mathematical genius to do well in the subject. Don’t worry, you don’t. What really counts is curiosity about how the world works.

• Numeracy skills are helpful, but the maths involved is mostly GCSE level. You'll work with:

  • Percentages

  • Ratios

  • Simple graphs

• Written communication is crucial. Economics exams require:

  • Clear, structured essays that present arguments logically 

  • Complex ideas explained in simple terms

• Critical thinking might be the most important skill. Economics is about:

  • Weighing up different viewpoints

  • Spotting assumptions

  • Making balanced judgements

Unsure what to take alongside Economics? The course pairs brilliantly with Maths, Politics, Business Studies, Geography, or History. These subjects share analytical skills and often cover overlapping topics like globalisation or government policy.

And, remember, while basic numeracy helps, you don’t need to be the next Einstein or Lovelace to thrive on the A Level Economics course. The subject is more about logical thinking and understanding human behaviour than complex calculations.

Is A Level Economics Right for You?

A Level Economics suits students who want to understand the world around them and what factors influence the changing economic landscape.

Consider these questions:

• Do you find yourself wondering why petrol prices keep changing? 

• Are you intrigued about how inflation affects your family's budget? 

• Are you interested in how governments develop policies?

• Are you considering subjects like business, politics, finance, or economics at university?

• Do you love a good debate?

If you answered yes to most or all of these questions, A Level Economics could be perfect for you. And, if you like the logical elements of Maths but also enjoy the discussion aspects of History or Politics, you'll probably really enjoy Economics.

Tips for Doing Well in A Level Economics

Success in A Level Economics comes from connecting theory to real-world examples.

• Keep up-to-date with current affairs. Read quality newspapers, follow reputable economics podcasts, and watch documentaries. When you understand how minimum wage increases affect unemployment in the real world, exam questions become much easier.

• Practice essay technique early. Economics essays need clear structure, balanced arguments, and decisive conclusions. Start each paragraph with a clear point, provide evidence, and always link back to the question.

• Master the key diagrams. Supply and demand curves, Phillips curves, and AD/AS models appear constantly. Practice drawing them quickly and accurately under exam conditions.

• Create revision resources that work for you. Flashcards work well for definitions, mind maps help connect different topics, and timeline summaries are perfect for economic policies and their effects. Luckily, you don’t have to reinvent the wheel. Save My Exams has you covered with A Level Economics past papers, exam questions, and flashcards, you’ve got everything you need to prepare with confidence.

• Time management in exams is crucial. Allocate your time carefully between different question types, and always leave time to check your work.

What Can You Do With A Level Economics?

A Level Economics is great preparation for some of the most sought-after university courses and career paths. Keen to discover more university advice? Explore our University Learning Hub section for personal statement tips, UCAS points guidance, and more. 

A Level Economics helps you develop analytical and problem-solving skills that are valued in fields ranging from finance and business to politics, law, and international development.

University options include Economics degrees, PPE (Politics, Philosophy, and Economics), Business and Management, International Relations, and Accounting and Finance. 

Career possibilities are incredibly diverse. Economics graduates work as policy advisers in government, analysts in investment banks, consultants for major corporations, and researchers for think tanks.

The transferable skills you develop include: 

• Analytical thinking

• Data interpretation

• Written communication

• Problem-solving

Even if you don't pursue Economics further, the subject teaches you to think critically about complex issues, understand financial news, and make informed decisions about everything from personal budgets to voting choices.

Frequently Asked Questions

Is A Level Economics hard?

It’s challenging, for sure. But, A Level Economics is very manageable with the right approach. The difficulty comes from applying abstract theories to real-world situations rather than from complex mathematics.

Success depends more on consistent effort and staying engaged with current affairs. Students who struggle initially often improve dramatically once they start connecting theory to real examples.

The key is building understanding gradually rather than trying to memorise everything at once.

Do I need GCSE Economics to take it at A Level?

No, you don't need GCSE Economics to study it at A Level. Many successful A Level Economics students start completely fresh. However, GCSE Business Studies, Geography, or even History, can provide useful background knowledge about how societies and institutions work.

What matters most is strong GCSE English and Maths results (typically grade 6 or above) plus genuine curiosity about economic issues.

What other subjects go well with A Level Economics?

Economics complements many A Level subjects brilliantly.

• Mathematics develops the analytical and statistical skills that make economic analysis easier. Many Economics university courses prefer or require A Level Maths.

• Politics explores similar themes around government policy, voting behaviour, and social issues from a different angle.

• Business Studies shares topics like market structures, competition, and business decision-making.

• Geography covers economic development, globalisation, and environmental economics.

• History develops essay-writing skills and provides context for understanding how economic systems evolved.

Economics is a flexible subject. It works well with both STEM and humanities subjects, keeping your options open for university applications.

Ready for Your Next Step?

If you decide to take the economics plunge, you're in for a treat. You'll discover how everything, from your coffee shop purchase to global trade deals, connects in fascinating ways. You'll develop skills that employers love and can begin to explore loads of exciting career paths, from business and finance to government policy and even tech companies.

If A-level Economics feels like the perfect match for your curious mind and future ambitions, then why not dive right in?

References

AQA A Level Economics Specification (opens in a new tab)
Edexcel A Level Economics Specification (opens in a new tab)
OCR A Level Economics Specification (opens in a new tab)
CIE A Level Economics Syllabus (opens in a new tab)