Economics
Curriculum Intent
The intent of our Economics curriculum at Harrow High School is to equip students with the necessary knowledge, skills, and understanding to see how economic choices made by individuals, companies and governments affect the UK and the rest of the world. They will learn about the UK economy, government policies and economic situations and be able to appreciate the contribution of economics to current affairs.
Our curriculum is designed to:
- develop critical thinking and analytical skills, enabling students to evaluate information and arguments effectively, particularly in real-world contexts.
- promote students’ understanding of fundamental economic concepts such as scarcity, opportunity cost, supply and demand, market failure, and government interventions.
- connect theoretical knowledge to practice by examining contemporary issues like inflation, unemployment, and economic policy responses, thereby encouraging students to become better-informed members of society.
- instil real enthusiasm about economic phenomena, encouraging students to pose questions and seek evidence-based answers.
Curriculum Sequencing Rationale for GCSE Economics
Year 11: Units Covered:
Continue Unit 3: Economic Objectives and the Role of Government
- Inflation and price stability
- Distribution of income and wealth
- Government policies (fiscal, monetary, and supply-side)
- Limitations of markets and government intervention
Unit 4: International Trade and the Global Economy
Learners begin Year 11 by studying how governments aim to achieve economic objectives and address issues like inflation and inequality. This unit enhances their ability to evaluate economic policies critically.
The course concludes with Unit 4 exploring how the UK economy interacts with international markets and the impacts of trade policies and globalisation.
Fair Distribution of income & price stability
| Year 11 Autumn Term 1 | |
|---|---|
| Skills |
|
| Knowledge |
3.3 Fair distribution of income
3.4 Price Stability
|
| Rationale |
Last term, learners previously studied two measures of macroeconomic performance: economic growth and low unemployment. The topic of inequality is one of the most pressing issues of today. A 2022 report by the Office for National Statistics (ONS) found that the income of the top 20% of households was approximately 4.8 times higher than the income of the bottom 20% of households. Disparities across social groups are not limited to income inequality; they can exist in many forms, including access to education and healthcare. Learners will explore some of the causes of income and wealth inequality, including the role of private capital ownership, taxation, and changes in employment. Additionally, learners will study and evaluate the methods of redistributing income through the taxation system. Why do prices rise? In unit 3.4, we shift the focus to inflation, or rising prices of all goods and services in the economy over time. Learners will understand that when prices rise, the same amount of money will buy you fewer goods – the purchasing power of money falls. We will investigate how inflation is measured using the Consumer Price Index (CPI) and the implications of rising prices for individuals, businesses, government and the overall macroeconomy. The study of price stability (as an economic objective) is a useful prerequisite for understanding fiscal and monetary policy, which will be taught next term. |
Fiscal Policy & Monetary Policy
| Year 11 Autumn Term 2 | |
|---|---|
| Skills |
|
| Knowledge |
3.5 Fiscal Policy
3.6 Monetary Policy
|
| Rationale |
Learners were previously introduced to four out of five important economic objectives: price stability, low unemployment, fair distribution of income and economic growth. The fifth objective, related to the balance of payments equilibrium, will be introduced when teaching 3.5. However, balance of payments will be explored in greater depth in unit 4. This term, attention now turns to how fiscal and monetary policies can be used to try and achieve the four economic objectives. Learners will structure their policy analysis around these objectives. The government must make decisions regarding how much to spend, tax and borrow. This is known as fiscal policy and studied in 3.5. Learners will look at recent publications of the UK Budget and closely examine how these policy actions can impact the economy. Learners will study the difference between taxes such as National Insurance, corporation tax, VAT, excise duties and how the income tax system operates. We will also explore what is meant by a ‘balanced budget’ and examine how the government may wish to expand or reflate the economy to pursue its aims. In unit 3.6, learners will study monetary policy and develop their prior knowledge of inflation, interest rates and the role of central banks. Learners have previously found out that the base interest rate influences all other interest rates, in what is known as the ‘ripple effect’. Thus, if the Bank of England increases its interest rate, all other interest rates will increase. The Bank of England’s Monetary Policy Committee meets at least eight times a year to decide on the base interest rate, reflecting the ever-changing state of the economy, which makes interest rate decisions uncertain. We will explore the role of the Monetary Policy Committee (MPC) and the different policy instruments used to affect total demand in the economy, such as Quantitative Easing. We will also study how interest rates might be manipulated to achieve specific economic objectives. Lastly, we will compare fiscal and monetary policies and evaluate their effectiveness in achieving the economic objectives. |
Supply-side Policies, Limitations of markets & International Trade
| Year 11 Spring Term 1 | |
|---|---|
| Skills |
|
| Knowledge |
3.7 Supply-Side Policies
3.8 Limitations of Markets
4.1 The importance of international trade
|
| Rationale |
Previously, learners studied fiscal and monetary policies aimed at influencing demand in the economy. This term, they will focus on supply-side policies, which drive economic growth. Learners will compare demand- and supply-side policies, examining their objectives, impacts, and potential conflicts, especially in light of the financial crisis of 2008. In 3.8, learners will revisit the price mechanism, exploring why free markets may fail to yield efficient societal outcomes. They will study market failures and externalities, understanding why markets may overproduce harmful goods and underproduce beneficial ones. Policy interventions, such as corrective taxes and regulations, will be discussed, along with the unintended issues these policies may create. Building on the concept of specialisation, learners will apply this to international trade in 4.1. They will explore why countries specialise in certain goods and the benefits of trade. Learners will also examine how trade agreements, like the EU, shape global trade patterns and economic integration. The focus on Brexit will highlight reasons behind the referendum and the arguments for and against it. |
Balance of Payments, Exchange Rates & Globalisation
| Year 11 Spring Term 2 | |
|---|---|
| Skills |
|
| Knowledge |
4.2 Balance of Payments
4.3 Exchange Rates
4.4 Globalisation
|
| Rationale |
Building on their knowledge of imports and exports in 4.1, learners will study how international trade is recorded in the UK through the current account, covering transactions in goods, services, income, and assets. Since 1984, the UK has seen a net outflow in the current account due to higher imports than exports. Learners will explore reasons for this deficit and examine policies to address such imbalances. They will also revisit the balance of payments, understanding why a persistent deficit or surplus can signal external vulnerability. In 4.3, learners will study exchange rate determination. Some countries, like China, actively manage currency values, while others allow market forces to dictate them. Using supply and demand diagrams, learners will see how exchange rates impact competitiveness and the current account. They will also explore how interest rate interventions by the Monetary Policy Committee (MPC) can affect currency valuation and export prices. Finally, in 4.4, learners will examine globalisation. They’ll trace its historical roots and the modern post-WW2 expansion, driven by institutions like the WTO and IMF. Learners will understand why GDP per capita alone is insufficient to measure development, as it overlooks wellbeing and sustainability. To conclude, learners will assess the impacts of globalisation on various stakeholders, linking to themes like sustainability and macroeconomic goals. The term will end with a revision focus. |
KNOWLEDGE ORGANISERS
To support the acquisition of the required knowledge, Harrow High School uses the following student workbook: Knowledge Book for OCR GCSE (9-1) Economics