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Bridging Unit2020ContentIntroductionThe course.Getting Organised –Ready To Learn – Your Folder(s)Taking NotesIn lessonsStudy PeriodDiagramsMicroeconomic notes activitiesMacroeconomic notes activitiesLearning the TerminologyGlossariesRetrieval PracticeIn the NewsHow to stay up to datePractice activitiesResearch ActivitiesSuggested ReadingTask ChecklistIntroductionThis unit of work is designed to get you ready to start your A Level learning journey as successfully as possible. A Levels are different from GCSEs in a couple of ways. Firstly, they study a subject in far more depth. This means that you have much more to learn and you cannot afford to leave that learning to the last minute. Secondly, you are expected to be an independent learner. It will not be enough to turn up to lessons, do the activities, do the homework and feel good about yourself. You must to read up in advance about the work so that you come to lessons with a little learning already. You will need to research topics that you do not understand for yourself. You should then revisit those topics to ensure you have learnt them. A Levels, whichever subjects you choose, can be hugely rewarding if you put the time in. The more you study, the more you will get out of them and not just in terms of grades.The activities in this booklet are to get you ready to study. Read each section carefully and work through the activities as you go. You should aim to do the research activities after results day, but you can do them beforehand if you have time.The Course – Year 12In Year 12 we cover the following topics. Use the specification code and titles on your work and as a guide to how to subdivide your folders.MicroeconomicsTopicContent1.1 Nature of Economics1.1.1 Economics as a social science 1.1.2 Positive and normative economic statements 1.1.3 The economic problem 1.1.4 Production possibility frontiers 1.1.5 Specialisation and the division of labour 1.1.6 Free market economies, mixed economy and command economy 1.2 How Markets Work1.2.1 Rational decision making 1.2.2 Demand 1.2.3 Price, income and cross elasticities of demand 1.2.4 Supply 1.2.5 Elasticity of supply 1.2.6 Price determination 1.2.7 Price mechanism 1.2.8 Consumer and producer surplus 1.2.9 Indirect taxes and subsidies 1.2.10 Alternative views of consumer behaviour 1.3 Market Failure1.3.1 Types of market failure 1.3.2 Externalities 1.3.3 Public goods 1.3.4 Information gaps 1.4 Government Intervention1.4.1 Government intervention in markets 1.4.2 Government failureMacroeconomicsTopicContent2.1 Measures of economic performance2.1.1 Economic growth 2.1.2 Inflation 2.1.3 Employment and unemployment 2.1.4 Balance of payments2.2 Aggregate demand (AD)2.2.1 The characteristics of AD 2.2.2 Consumption (C) 2.2.3 Investment (I) 2.2.4 Government expenditure (G) 2.2.5 Net trade (X-M)2.3 Aggregate supply (AS)2.3.1 The characteristics of AS2.3.2 Short-run AS2.3.3 Long-run AS2.4 National income2.4.1 National income 2.4.2 Injections and withdrawals 2.4.3 Equilibrium levels of real national output 2.4.4 The multiplier2.5 Economic growth2.5.1 Causes of growth 2.5.2 Output gaps 2.5.3 Trade (business) cycle 2.5.4 The impact of economic growth2.6 Macroeconomic objectives and policies2.6.1 Possible macroeconomic objectives2.6.2 Demand-side policies2.6.3 Supply-side policies2.6.4 Conflicts and trade-offs between objectives and policiesGetting OrganisedEquipment for each lessonPensPencilsEraser30cm RulerA4 PaperCalculatorFolderFoldersFolders are a personal to everyone and to start with, you are not going to have much work to put in them, but that will change. You should have a folder for each subject and that folder should have dividers for each topic of your course. See the course content section above as a guide. As you progress through the year, you will have a lot of work. It probably is not advisable to carry all your work around with you in case it is lost or damaged. Therefore, you may want to use a day folder that just contains your notes on the topic you are covering.Going ElectronicOne way around this is to go electronic and use Class notebook to store your notes virtually. That way your will have them all the time. Any handwritten work can be scanned using an app like Office Lens and you will always have it with you. N.B. Your class notebook should be subdivided and all pages correctly titled.Task One – Preparing FoldersBuy a couple of lever arch folders for your work. One for Microeconomics and one for Macroeconomics. For each one by a set of dividers to subdivide each folder into the main topic areas identified in the content section of this booklet.Taking NotesIn lessonsYou cannot write everything down in a lesson, but you should be making notes on what the teacher is saying. You can do this effectively with:Bullets points, Abbreviations for frequently used wordsMind maps of the key issues Noting down key terms and highlighting them. You can check definitions later if you are pushed for timeAlways make a note of what is on the board.You should go over your notes to check for understanding as soon as possible after the lesson. You might need to tidy them up or look up points that you are confusing you. You should also reread your last lesson’s notes shortly before the next lesson. It will help you to make connections in the learning and make the next lesson easier for you.Study PeriodsThis is where the real hard work happens. Get settled in a study sessions promptly. It is easy lose lots of time by drifting in, spending ages logging on, finding your folder and deciding what you are going to do. Have a plan, effective students have a clear “To Do” list and are more productive because of it.You will need to do your pre-reading in your study sessions. The textbook is available on Pearson Activelearn and should be the starting point for your notes. There are a number of additional sources you should access as well.Do not write everything down when you are making notes. Try usingAcronymsTables and mindmaps to summarise dataAnnotate presentation slides with explanationsHighlight points that you need to read up on or ask questions about.Go over your class notes and add to them.DiagramsThese are key in Economics. Drawing them is a skill and you should practice them as much as possible. You need to ACE your diagrams; this means Axes, Curves and Equilibrium points need to be labelled. In addition, do not forget the ABC of diagram drawing. Accuracy (use a ruler and a pencil), Big (no smaller than about 10 cm square) and Clear (it needs to show what is happening without confusing the reader)Finally, you need explain your diagrams and refer to your labelling in your work.Task 2 – Basic Economic Problem notes “in-class” activityWatch this video . Imagine you are in a lesson. Copy what is on the board. Annotate with the information Dal gives you. Use the prompts below to help you.What is the “basic” economic problem?Why does it occur?What do we mean by scare resources?What are each of the factors of production?What are the factors of production use to produce?What choices does this present?Who makes each choice?How do we measure how good a choice is?What is the definition of opportunity cost?Task 3 - Production Possibility Frontier (PPF) notes “pre-reading” activityMake notes on Production Possibility Frontiers using this web page: the prompts below as a guide as to what to write:Identify two things that a Production Possibility Frontier (PPF) can showDraw an example of a PPFAnnotate it to show what happens when you move along a PPF curve – explain it with an example.What is Pareto Efficiency?What is Pareto Inefficiency? What does Pareto Inefficiency suggest about the use of the factors of production? Describe the link between the PPF and Long Run Aggregate Supply in MacroeconomicsShow economic growth using a PPF.How does an economy grow?How does a PPF show Opportunity Cost?If there are any terms that are unfamiliar to you then look them up.Task 4 - Economic Systems notes “pre-reading” activityMake notes on the following economic systemsFree Market EconomiesCommand EconomiesMixed EconomiesFor each one identify:Who owns the resourcesHow they incentivise different economic actorsHow prices are set, the degree of efficiency and equalityExamples The advantages and disadvantages of each. Here are some resources for you to use.Econplusdal – Economic Systems - – Free Market System - - Free Market Command Economy - - Mixed Economy 5 – Money – “Pre reading” activityRead and watch the following sources to answer the questions below: Barter Economy - Money functions and characteristics What is a barter economy?Why do people need fiat money, if barter is still an option? What are the functions and characteristics of fiat money?Within the money supply, what are the three types of money?Task 6 - National Output – “Pre reading” activityRead and watch the following sources to answer the questions below: Bank of England - Suggested brief introductory guide to GDP Office for National Statistics (ONS) - Complete guide to GDP What are the national accounts and for what are they used? (Point one of the ONS guide)Which?are the three sectors of the economy?What is GDP?How does the ONS measures GDP? Mention the three approaches (Point two of the ONS guide)What are some of the limitations of GDP figures?Task 7 – Inflation – “Pre reading” activityBoE - History of inflation: Econplusdal – Benefits and costs of inflation: is inflation?Why are high levels of inflation undesirable for the economy?Which is the independent UK body in charge of maintaining inflation levels low and stable?Why is it important to separate short-term politics from economics?What is the inflation rate target in the UK?How may some level of inflation be good for the economy?Task 8 – Unemployment – “Pre reading” activityEconplusdal – Costs and benefits of unemployment: Tutor2u – Measuring unemployment: What is unemployment?Name the two conditions people must fulfil to be considered unemployed in the UKWhat is the difference between the unemployment rate and claimant account?Why may unemployment data not be completely accurate?Explain the benefits and costs of unemployment.Task 9 – Fiscal deficit and National debt – “Pre reading” activityEconplusdal –budget deficit and government bonds: EconomicsHelp – National debt: is the difference between a budget deficit and national debt?Learning the TerminologyGlossariesThere are many key terms that you need learn. Producing a glossary will help you. This could be done by hand, but also electronically. You should build your glossary as you go. The task below will help you make a start on this.Retrieval PracticeThis is all about regular and systematic testing of your recall of key terms. You can do this very easily, by listing key words and practising writing definitions. We also will be using Seneca to set online tests, but you can use it in between to check your understanding. Whatever method you use, you must go over 10 terms a couple of times a week and regularly go back over older key terms to keep them in your mind.Task 10 – Glossary Use Tutor2u and to build a glossary of the following key terms.Microeconomic TermsCeteris ParibusValue JudgementsSpecialisationDivision of LabourThe Short RunThe Long RunDemandSupplyScarcityPrice Elasticity of DemandPrice Elasticity of SupplyIncome ElasticityEquilibriumUtilityFactors of ProductionMacroeconomic TermsGross Domestic ProductEconomic GrowthInflationConsumer Prices IndexConsumptionNational OutputUnemploymentAggregate DemandAggregate SupplyRealNominalExchange RateCurrent AccountBudget DeficitBase RateIn the NewsHow to stay up to dateIt is key that you know what it is going on in the world at A level. Students that have kept up to date generally perform better in exams as their answers show a higher level of understanding. You can read and watch news from major news outlets. The Economist will also allow you free access to several articles a month. You will be given a scrapbook to record your research. Here you can glue in articles, charts, images and annotate them with explanations using the theory you have covered. You could highlight key terms that you find and signpost further research that you need to do. Try these two activities below to get you started. Practice activitiesTask 11 – Markets in the NewsRead this article and and carry out the following activities:Scan through the article and identify any points where they appear to refer to buyers and sellers of house.Try to explain the impact of what they are saying in each instance on the housing marketWhy might house prices in some areas not fall as much as in others? (Paragraph 4)Explain why this is the case.How will current interest rates affect the housing market – why?Identify any parts of the text you do not understand. Try to research what they mean.Task 12 – The Economy in the NewsRead this article and watch the interview with Rishi Sunak, Chancellor of the Exchequer. is a recession?Explain the term “the economy shrank by 2%” in the first 3 months of 2020What does Ruth Gregory mean by her comments?How does the current situation compare to the Global Financial Crisis (What was this?)What has the Chancellor done to try to avoid a worse outcome?Have all sectors of the economy been affected to the same extentExplain your points How does the situation in the UK compare to other countries?Why can we not be certain about the UKs GDP figures?Identify any parts of the text you do not understand. Try to research what they mean.Extended ActivitiesTask 13 – Adam SmithRead the following article and complete the activities underneath. Adam Smith (1723–1790) Adam Smith is viewed to be the founder of classical economics and was a key advocate of the market economy. The Wealth of Nations, which Smith wrote in 1776, remains a classic book in economics. His key conclusion is that, by pursuing their own self-interest, individuals would be led ‘as by an invisible hand’, with resources allocated in such a way that is in the best interests of society. He was writing at a time when most firms were owned and run by single individual capitalists who had an active, hands-on approach to running their businesses. Like today, most capitalists ran their businesses with the self-interested aim of maximising profit. Consumers also had their own self-interest at heart when making decisions about what to buy.Smith argued that these self-interest objectives, via the operation of the price mechanism, leads to the optimum resource allocation and therefore the best outcome for society. The ‘invisible hand’ enables consumers and producers to interact in the market so that both can achieve their objectives. For example, if consumers suddenly want more robot vacuum cleaners, then this will push up the price in the market: consumers are competing with each other for the existing number of robot vacuum cleaners. Firms currently in the market will react by wanting to supply more of the product since there is greater scope to make higher profits, while new suppliers will be enticed into the market to take advantage of the profit opportunity. (Smith said low barriers to entry were essential to make this happen.) More resources are then being allocated to the production of robot vacuum cleaners, which is precisely what consumers wanted. Therefore everyone is happy.Smith believed that competition in markets ensures that firms, whose main objective is to maximise profits, produce their goods at the lowest possible cost. This benefits society and ensures markets will use resources efficiently. Smith recognised the dangers of monopoly power but at the time of his writing, this was not viewed as being too significant. He also believed prices would end up being ‘fair’ but that competition was essential in achieving this (low barriers to entry are necessary to prevent firms from gaining monopoly power).Smith also wrote about the process of specialisation and the division of labour, and how this production method could increase production and create wealth. By breaking down the production process into smaller, specialised parts, productivity rises. This is because this process helps incorporate some automation into the production process, which speeds up production. Workers also spend less time switching between tasks and the repetition of tasks makes their efficiency increase.Use the following resources to help you understand Smith’s concept of the “Invisible Hand”. This is a 60 second primer , The Invisible Hand . This clip gives you a bit more background on Smith . Macat video on Smith’s Wealth of Nations. . Based upon what you have read and watched write no more than 500 words on the following question.Should the government stay out of market? What would Adam Smith say?Task 14 – Karl MarxRead this articleKarl Marx (1818–1883)Karl Marx was an extremely influential thinker whose ideas ignited the movement by a third of the world’s countries towards communism in the 20th century. Marx provided a criticism of capitalism. Capitalism is a system where the small minority – the ‘bourgeoisie’ (the owners of capital such as machines and factories) – are the ruling class, and the masses – the ‘proletariat’ (the labourers) – provide the labour to produce goods and services. Marx essentially believed that economic systems progress through different stages – capitalism is just one stage in this development process and, due to its weaknesses and flaws, will eventually self-destruct, leading to the final stage of communism.Marx believed that capitalists (the owners of capital), whose objective is to make a profit, must end up exploiting workers to achieve this objective. This means that workers will earn wages lower than their true value. Capitalists will also have an incentive to replace labour with machines, creating both more monotonous jobs as well as unemployment. The combined effect will be to create an exploited and alienated workforce, leading to social unrest. He also believed that competition would cause many firms to go bust, leading to a few firms holding monopoly power which would allow them to further exploit both workers and consumers. This would also lead to owners of the bust firms joining the ever-increasing proletariat majority, causing social tensions to further increase.The capitalist economic system is also weak, Marx said, since it is an unplanned system, which causes one crisis after another. This impacts most negatively on the proletariat. Marx believed that revolution among the proletariat was inevitable. Revolution would enable workers to seize the capital (so that ownership would be among the majority). Economic planning would direct economic activity. As the economic system moves towards communism, there would be abolition of private property replaced by common ownership of resources. However, although Marx wrote a lot criticising capitalism, he wrote relatively little on how communism would work.Marxism has had a resurgence lately. Many global problems, such as the Global Financial Crisis and growing inequalities observed in many economies, may have their root cause in the free market system.Now watch these video clips The World According to Marx from the BBC Two Masters of Money series, by Stephanie Flanders bbc.co.uk/programmes/p00z0yb2 Was Mark Right? from the Economist Write a brief response to the question posed by The Economist. Try to build in what you have learnt about capitalism from your work on Adam Smith.Task 15 – Macroeconomic ComparisonsProduce a table like the one on the next page and find the information to complete it for 2019Here are some websites to help you.(nominal)CountryUKUSAChinaGermanyJapanBrazilLiechtensteinGDP NominalGDP per CapitaUnemploymentInflationBudget DeficitNational Debt as a % of GDPTask 16 – Economic PerformanceBased upon you research which economy was the strongest performer in 2019.Include:Data from your parisons between the countries.Justify your conclusion.Does it depend on other factors?What is the most important reason for your conclusion?Suggested ReadingIt is important that you read as widely as possible about your subject. This is especially true if there is a possibility that you might wish to study it further at university or as a career. Here are some suggested books for you to consider: 23 Things They Don't Tell You About Capitalism (Ha-Joon Chang) – really challenges conventional thinking The Undercover Economist (Tim Harford) – Great introduction to microeconomicsAlibaba: The House that Jack Ma Built (Duncan Clark) – The rise of the Chinese corporate giant Behavioural economics – a very short introduction (Baddeley) Capitalism: 50 Ideas You Really Need to Know (Jonathan Portes) – compact and excellent reference material Doughnut Economics (Kate Raworth) – challenges much of orthodox thinking on environmental issues Game Theory – a very short introduction (Ken Binmore) Great Economists: How Their Ideas Can Help Us Today (Linda Yueh) – perspectives on contemporary issues Growth Delusion: The Wealth and Well-Being of Nations (David Pilling) – antidote to gospel of GDP Misbehaving: The Making of Behavioural Economics (Richard Thaler) – a truly superb biography Task ChecklistTask DescriptionCompleted1Preparing Folders2Basic Economic Problem notes “in-class” activity 3Production Possibility Frontier (PPF) notes “pre-reading” activity4Economic Systems notes “pre-reading” activity5Money – “Pre reading” activity6National Output – “Pre reading” activity7Inflation – “Pre reading” activity8Unemployment – “Pre reading” activity9Fiscal deficit and National debt – “Pre reading” activity10Glossary11Markets in the News12The Economy in the News13Adam Smith14Karl Marx15Macroeconomic Comparisons16Economic PerformanceEnsure all tasks have clear heading and are filed neatly in your folder. ................
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