Economics 101

The ASI is committed to educating the next generation on the merits of a free society and free economy. Through our engagement with schools across the UK, we work to foster an appreciation and a passion for economics. By explaining the basics of economics, we can help students better understand the world around them and become engaged members of society.

Here you’ll find some of our educational resources targeted at UK school children, from informational videos to lesson plans. Covering foundational economic concepts, these resources can be used to compliment or supplement the UK curriculum. While they’re aimed at students, anyone with a budding interest in economics can enjoy them!

Value

What is value? How do we determine the price of objects? What happens if one person values something more than someone else? The conclusion is that value lies in the mind, not in the object, and because we value things differently, we are able to trade and exchange, creating wealth. There are no “fair prices,” only ones that people are prepared to pay.

Wealth and the Zero-Sum Fallacy

Those who suppose that total wealth is in fixed supply will necessarily suppose that some people are poor because others are rich. The reality is that wealth is continuously created, for example, the total wealth in the world today is far greater than it was at the start of the Industrial Revolution. When one country grows rich it is not necessarily at the expense of another.

Taxation

There is a continued debate between those who favour low taxation because it allows people to spend money on their priorities, and those who favour high taxation because it brings in money that can be spent on public services such as roads, education and healthcare. In a democracy, the balance between these conflicting views is determined by what people vote for.

Inequality and the Kuznets Curve

Is inequality always a function of economic growth? Economist Simon Kuznets theorised that as countries became richer inequality would initially increase as workers move from agriculture to industrial production. However, this effect will only be temporary. After a certain point inequality will begin to decrease as the increase in wealth will facilitate government spending on social programs.

National Self Sufficiency

National self sufficiency may appear to be a positive thing, as it ensures that a country is not reliant on another. However, a far higher standard of living can be achieved when countries focus on the goods which they are the best at producing, and buying the rest from other countries. By trying to produce everything we deny ourselves access to specialisation, which allows goods to be produced to a higher standard, for a lower cost.

Unemployment

Often reducing unemployment is seen as a principle economic objective, it reduces dependency on the state and increases tax revenue. However, this misses the key point that employment is only valuable as long as it is producing goods and services. It would be possible to achieve full employment by putting half the workforce out to dig holes, and the other half out to fill them up, but no value would be generated.

Comparative Advantage

Comparative advantage is a theory which states that nations should produce what they are best at. For example, it makes sense for the Scottish to buy French wine, as they produce wine to a higher quality for a lower price. Equally, it makes sense for the French to buy whisky from Scotland.

Protectionism

Protectionism is a form of government intervention which aims to protect domestic producers from foreign competition. This can have a variety of negative effects, including placing higher costs on consumers, creating government dependent industries and risking retaliation.

Innovation

Innovation is what creates economic progress, and makes us richer. It enables us to get more out of the resources which are available. While established industries and professions often oppose innovation, it the long run, it improves the standard of living of the general public.

Student A-level Economics resources

Below are a set of student educational resources on a mix of A level topics. These can be used to supplement learning done in class as further sets of notes, or additional learning resources.

Micro

Teacher Resources

Below are lesson plans and teaching resources on a mix of A level economics topics. These should be used in conjunction with the classroom activities provided, which will help create an engaging and interactive classroom experience.

Classroom Activities

Below are various classroom activities covering A level economics topics. These should be used in conjunction with the teacher lesson plans found above.