What students need to learn:
Content
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Students should be able to:
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Additional Guidance Notes
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Economic growth
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Understand how economic growth is measured and its limitations, for
example:
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An understanding of the following distinctions is required:
Students are not expected to have detailed knowledge of GDP calculations
or the GDP deflator.
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Inflation
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Understand the process of calculating the rate of inflation in the
UK.
Understand the significance of the measure.
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Increases in the cost of living are measured using an index based on
a weighted basket of goods and services. A price survey and a family
expenditure survey are used.
Students are expected to be able to assess the main measure of
inflation currently used as a target in the UK.
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Employment and unemployment
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Understand how unemployment is measured in the UK.
Understand the types and costs of unemployment.
Understand the significance of changes in the rates of employment and
unemployment.
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An understanding of measures to measure unemployment such as the
claimant count and International Labour Organisation (ILO) measures is required.
The significance of migration for employment and unemployment should
be considered.
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Balance of Payments
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Understand the meaning of Balance of Payments deficits and surpluses
on the current account.
Understand the causes and costs of an imbalance in the current
account, at a basic level.
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For this unit, emphasis will be on the current account of the Balance
of Payments and, in particular, on the balance in trade in goods and
services.
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Measures of development
— Human Development Index (HDI)
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Understand the advantages and limitations of HDI in making comparisons
of living standards between countries.
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Students should know the three components of HDI and should to be
able to interpret HDI data. A definition of Purchasing Power Parities (PPPs)
is helpful. Students are not expected to
know how HDI is calculated,
such as the mechanics of PPPs.
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Other measures of development
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Interpret and use other measures of development. For example:
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Students are not expected to know specific figures for various countries
but may have to make comparisons between data provided for various countries.
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