GOVERNMENT AND THE MACROECONOMY
This Module should be read in conjunction with the Programme of Study.
The Programme of Study lists the Topics that are in the Module and gives you the relevant page references to your course book. This Module aims to give you more direction as you work through the various topics. It will aim to highlight the most important items in the Topic, as well as areas that need particular care. It will also point you towards the Resources, that you should be using as well as listing the textbook pages to be read.
Remember to double-check with the Syllabus that you cover all the items that you need to. The Section number of the syllabus is listed on your Programme of Study.
To prepare for this section of your course, please read about Macroeconomics in the following resources:
WATCH - Introduction to Macroeconomics (Crash Course Economics)
Links to an external site.
WATCH - Aggregate Demand and Supply (Khan Academy)
Links to an external site.
WATCH - AD and AS (YouTube)
Links to an external site.
READ - Aggregate Demand and Supply
Download READ - Aggregate Demand and Supply
Topics
This Module is made up of 5 Topics:
Topic One (5.1): The Role of Government
Topic Two (5.2): Macroeconomic Aims of Government
Topic Three (5.3): Fiscal Policy
Topic Four (5.4): Monetary Policy
Topic Five (5.5): Supply-side Policy

Topic One (5.1): The Role of Government
In this topic you will study the following:

• Government roles at local, national and international level.

Reading
For this topic you will need to work through pages124 to 125 in your course book.

Key Points

• Please pay attention to the various roles that governments play in different countries.
• You will need to understand that in all countries the government is an employer, whereas their role as a producer can be very different from one country to another. Think about your country, what role does the government play there?

Links
Please study the following resource for further information on the role of government:
EXPLORE - Role of Government in Economics (BBC)

Topic Two (5.2): Macroeconomic Aims of Government
In this topic you will study the following:

• The five main macroeconomic aims of government.
• Conflicts that can arise in pursuing these aims.

Reading
For this topic you will need to work through pages 126 to 129 in your course book.

Key Points

• Please pay attention to the fact that governments in all countries have similar macroeconomic aims, although the priorities may be different from one country to another.
• You will need to understand the common objectives of full employment, stable prices, economic growth, fair income distribution and international trade, and why these are priorities.
• You will also learn that when pursuing these aims, there may be times when conflicts between them arise, and trade-offs will need to be accepted.

Please study the following resources:

Links
WATCH - Macroeconomic Government Objectives (YouTube)
Links to an external site.
Download

READ - Macroeconomic Policy Objectives

Topic Three (5.3): Fiscal Policy
In this topic you will study the following:

• Elements of fiscal policy.
• Types of taxes and reasons for taxation.
• Types and effects of fiscal policy.

Reading
For this topic you will need to work through pages 130 to 137 in your course book.

Key Points

• Please pay attention to the different policies that a government can use to meet the objectives of full employment, stable prices, economic growth, fair income distribution and international trade, which were introduced earlier.
• Government policies are split into fiscal, monetary and supply-side policies.
• You will need to understand that fiscal policies are set out in the budget and involve the use of taxation and government
• In addition, you will learn about the different types of taxation.
• Finally, types of fiscal policy are examined and the outcomes that they bring.

Links
Please watch the following video:
WATCH - Fiscal Policy (YouTube)

Topic Four (5.4): Monetary Policy
In this topic you will study the following:

• Types and uses of monetary policy.

Reading
For this topic you will need to work through pages 138 to139 in your course book.

Key Points

• Please pay attention to the different policies that a government can use to meet the objectives of full employment, stable prices, economic growth, fair income distribution and international trade, which were introduced earlier.
• Government policies are split into fiscal, monetary and supply-side policies.
• You will need to understand that monetary policy involves controlling the amount of money in an economy (money supply) and the price of money (interest rate).

Links
Please watch the following video:
WATCH - Monetary Policy (YouTube)
Links to an external site.

Topic Five (5.5): Supply-side Policy
In this topic you will study the following:

• Supply-side measures and the effects of supply-side policy.

Reading
For this topic you will need to work through pages 140 to 141 in your course book.

Key Points

• Please pay attention to the different policies that a government can use to meet the objectives of full employment, stable prices, economic growth, fair income distribution and international trade, which were introduced earlier.
• Government policies are split into fiscal, monetary and supply-side policies.
• You will need to understand that supply side policy is designed to make an economy more efficient through such things as better education and healthcare.

Quiz
Now that you have completed all the topics, it is time to check your understanding by taking the multiple-choice quiz. You must pass this quiz before moving on to the next Module. Remember you can do the quiz as many times as you want to practice and learn. Use it as an opportunity to test yourself!

Assignment
When you are fully prepared, feel confident with the material and have passed the quiz, you should complete Assignment Five and submit it to your tutor via Canvas for marking and feedback.

ECONOMIC INDICATORS
This Module should be read in conjunction with the Programme of Study.
The Programme of Study lists the Topics that are in the Module and gives you the relevant page references to your course book. This Module aims to give you more direction as you work through the various topics. It will aim to highlight the most important items in the Topic, as well as areas that need particular care. It will also point you towards the Resources, that you should be using as well as listing the textbook pages to be read.
Remember to double-check with the Syllabus that you cover all the items that you need to. The Section number of the syllabus is listed on your Programme of Study.
Topics
This Module is made up of 3 Topics:
Topic One (6.1): Economic Growth
Topic Two (6.2): Employment and Unemployment
Topic Three (6.3): Inflation and Deflation

Topic One (6.1): Economic Growth
In this topic you will study the following:

• Measuring gross domestic product.
• Economic growth and recession.
• Government policies for economic growth.

Reading
For this topic you will need to work through pages 142 to149 in your course book.

Key Points

• Please pay attention to the fact that Gross Domestic Product (GDP) introduced in this topic is central to economics and you must make sure you understand it. We will learn how it is used to measure economic growth, as well as the different ways it can be calculated.
• In addition, you will learn the difference between nominal and real GDP and how this relates to average earnings through GDP per head.
• You will need to understand the different causes of economic growth before looking at the opposite situation of recession.
• Finally, you will look again at government policies designed to promote economic growth.

Links
Please read the following for further information on Economic growth.
READ - What is Economic Growth? (tutor2u)

Topic Two (6.2): Employment and Unemployment
In this topic you will study the following:

• Patterns and levels of employment.
• Causes and types of unemployment.
• Consequences of unemployment.

Reading
For this topic you will need to work through pages 150 to 159 in your course book.

Key Points

• Please pay attention to the patterns and levels of employment, and how it is measured in terms of the rate of unemployment.
• You will learn and understand what causes unemployment as well as the main
• Finally, the consequences both for the unemployed and society as a whole will be examined.

Links
Please work through the following resources:
EXPLORE - Types of Unemployment (dineshbakshi)
Links to an external site.
EXPLORE - Cost of Unemployment (dineshbakshi)
Links to an external site.
READ - Economic Cost of Unemployment (Economics Help)
Links to an external site.
WATCH - Economic and Social Cost of Unemployment (YouTube)

Topic Three (6.3): Inflation and Deflation
In this topic you will study the following:

• Measuring inflation.
• Causes and consequences of inflation and deflation.
• Government policies to control inflation and deflation.

Reading
For this topic, you will need to work through pages 160 to 171 in your course book.

Key Points

• Please pay attention to what inflation is and how it is measured in terms of the retail prices index (RPI) or the consumer prices index (CPI). In addition, what is its opposite, deflation.
• You will need to understand the causes and consequences of inflation and deflation, as well as who are the winners and losers in periods of inflation and deflation.
• Finally, you will look again at government policies to control inflation and deflation.

Links
Please work through the following resources:
WATCH - What is Inflation? (School of Life)
Links to an external site.
WATCH - Inflation (YouTube)
Links to an external site.
WATCH - Tulips in Inflation (YouTube)
Links to an external site.
Quiz

Now that you have completed all the topics, it is time to check your understanding by taking the multiple-choice quiz. You must pass this quiz before moving on to the next Module. Remember you can do the quiz as many times as you want to practice and learn. Use it as an opportunity to test yourself!

Assignment
When you are fully prepared, feel confident with the material and have passed the quiz, you should complete Assignment Six and submit it to your tutor via Canvas for marking and feedback.

ECONOMIC DEVELOPMENT
This Module should be read in conjunction with the Programme of Study.
The Programme of Study lists the Topics that are in the Module and gives you the relevant page references to your course book. This Module aims to give you more direction as you work through the various topics. It will aim to highlight the most important items in the Topic, as well as areas that need particular care. It will also point you towards the Resources, that you should be using as well as listing the textbook pages to be read.
Remember to double-check with the Syllabus that you cover all the items that you need to. The Section number of the syllabus is listed on your Programme of Study.
Topics
This Module is made up of 3 Topics:
Topic One (7.1): Living Standards and Poverty
Topic Two (7.2): Population
Topic Three (7.3): Differences in Economic Development between Countries

Topic One (7.1): Living Standards and Poverty
In this topic you will study the following:

• Indicators of living standards.
• Causes of poverty.
• Government policies to alleviate poverty.

Reading
For this topic you will need to work through pages 176 to 185 in your course book.

Key Points

• Please pay attention to the different ways of measuring living standards, starting with Gross Domestic Product (GDP). You will learn of the criticisms of GDP as an indicator, with some of these criticisms addressed by the Human Development Index (HDI). Make sure you understand what the HDI is, how it is calculated and why it is seen as a broader measure of the quality of life.
• In the second part of the topic, types of poverty (relative/absolute poverty) are addressed, as well as causes of poverty.
• Finally, you will need to understand some of the government policies tha try to alleviate poverty and promote a better distribution of income.

Links
Please work through the following resources:
WATCH - Human Development Index (HDI) (Investopedia)
Links to an external site.

EXPLORE -EconomicDevelopment Indicators (BBC)
Links to an external site.

READ - Poverty and Inequality Resources (tutor2u)
Links to an external site.

Topic Two (7.2): Population
In this topic you will study the following:

• Population growth.
• Problems of population change.
• Effects of changing population size and structure.

Reading
For this topic you will need to work through pages 186 to 195 in your course book.

Key Points

• Please pay attention to the factors that affect population growth and why different rates of growth are seen in different countries.
• You will also explore the problems caused by population change as well as changing population size and structure in developed and developing countries.
• These changes have an effect not only on the people themselves, but also on the economies in the different countries.

Links
Please read the following resource on population change:
READ - Population Change and Impacts on the Economy (tutor2u)

Topic Three (7.3): Differences in Economic Development between Countries
In this topic you will study the following:

• Different rates of economic development.
• Factors affecting development.

Reading
For this topic you will need to work through pages 196 to 199 in your course book.

Key Points

• Please pay attention to what is meant by the concept of economic development, as well as the differences in income between developing and developed In addition, you will learn about the differences in standards of living within countries, as well as between different countries.
• Finally, factors affecting development are examined, for example, productivity, saving and investment and education and healthcare.

Links
Please work through the following resources:
READ - Measuring the Standards of Living (tutor2u)
Links to an external site.
WATCH - Challenges of Measuring the Standard of Living (YouTube)
Links to an external site.
Quiz

Now that you have completed all the topics, it is time to check your understanding by taking the multiple-choice quiz. You must pass this quiz before moving on to the next Module. Remember you can do the quiz as many times as you want to practice and learn. Use it as an opportunity to test yourself!

Assignment
When you are fully prepared, feel confident with the material and have passed the quiz, you should complete Assignment Seven and submit it to your tutor via Canvas for marking and feedback.

INTERNATIONAL TRADE AND GLOBALISATION
This Module should be read in conjunction with the Programme of Study.
The Programme of Study lists the Topics that are in the Module and gives you the relevant page references to your course book. This Module aims to give you more direction as you work through the various topics. It will aim to highlight the most important items in the Topic, as well as areas that need particular care. It will also point you towards the Resources, that you should be using as well as listing the textbook pages to be read.
Remember to double-check with the Syllabus that you cover all the items that you need to. The Section number of the syllabus is listed on your Programme of Study.
Topics
This Module is made up of 3 Topics:
Topic One (8.1): Specialisation, Free Trade and Protection
Topic Two (8.2): Exchange Rates
Topic Three (8.3): The Balance of Payments

Topic One (8.1): Specialisation, Free Trade and Protection
In this topic you will study the following:

• Advantages and disadvantages of specialisation.
• Globalisation and multinational companies.
• Benefits of free trade.
• Types of and reasons for protectionism.

Reading
For this topic you will need to work through pages 204 to 215 in your course book.

Key Points

• Please pay attention to the concept of specialisation (touched upon earlier in the course), its advantages and disadvantages, and how it can be used to promote trade.
• You will learn about globalisation, its advantages and disadvantages and the role of multinational companies. In addition, you will learn about the merits of free trade and areas in which it operates, as well as understanding what the World Trade Organisation (WTO) is and how it tries to promote free trade around the world.
• Finally, will also need to understand what protectionism means and the various methods that can be used to protect an economy, as well as the benefits and drawbacks of protectionism.

Links
Please work through the following resources:
WATCH - Comparative Advantage and Trade (YouTube)
Links to an external site.
WATCH - Globalisation, Trade and Poverty (YouTube)
Links to an external site.

WATCH - International Trade and Protectionism (YouTube)
Links to an external site.

WATCH - Why Do Countries Protect Trade? (YouTube)
Links to an external site.

Topic Two (8.2): Exchange Rates
In this topic you will study the following:

• Exchange rates and exchange rate systems.
• Causes and consequences of exchange rate fluctuations

Reading
For this topic you will need to work through pages 216 to 221 in your course book.

Key Points

• Please pay attention to what exchange rates are (touched upon earlier in the course), as well as the different systems of exchange rates.
• You will need to understand why exchange rates fluctuate and the consequences of such movements.

Links
Please work through the following resources on exchange rates:
WATCH - Exchange Rates (YouTube)
Links to an external site.

EXPLORE - Understanding Exchange Rates (Economics Help)

Topic Three (8.3): The Balance of Payments
In this topic you will study the following:

• Current account of the balance of payments.
• Deficits and surpluses.
• Government policies to achieve stability.

Reading
For this topic you will need to work through pages 222-228 in your course book.

Key Points

• Please pay attention to how to measure trade, in terms of the Balance of Payments and the accounts that make up the Balance of Payments. You will concentrate on the Current Account.
• You will need to understand how deficits and surpluses arise, and finish by examining how and why governments try to achieve stability on the Balance of Payments.

Links
Please watch the following video on balance of payments:
WATCH - Balance of Payments Explained (Banque de France)
Links to an external site.
Quiz

Now that you have completed all the topics, it is time to check your understanding by taking the multiple-choice quiz. You must pass this quiz before moving on to the next Module. Remember you can do the quiz as many times as you want to practice and learn. Use it as an opportunity to test yourself!

Assignment
When you are fully prepared, feel confident with the material and have passed the quiz, you should complete Assignment Eight and submit it to your tutor via Canvas for marking and feedback.