Scotland Β· SQASyllabus
Economics syllabus, dot point by dot point
Every dot point in the Scotland Economicssyllabus, with a focused answer for each one. Click any dot point for a worked explainer, past exam questions, and links to related dot points. Written by Claude Opus 4.8, Anthropic's latest AI.
Assignment and Skills
Module overview β- How do you handle economic data, make a reasoned judgement, and answer the question paper's command words?Economic skills and decision making: interpreting and processing economic data, applying theory to evidence, making reasoned economic judgements, and answering the question paper's command words.12 min answer β
- What does the Higher Economics assignment ask you to do, and how is it marked?The Higher Economics assignment: an independent research report on a current economic topic, applying economic theory to evidence, reaching a conclusion, and how it is assessed.11 min answer β
Economics of the Market
Module overview β- When do free markets fail to allocate resources well, and how can government put it right?Market failure and intervention: the causes of market failure (externalities, public goods, merit and demerit goods, monopoly power, information failure) and the ways government intervenes to correct it.13 min answer β
- How does the number and power of firms in a market shape prices, choice and competition?Market structures: the characteristics of perfect competition, monopolistic competition, oligopoly and monopoly, and their effects on price, output, choice and efficiency.12 min answer β
- How do demand and supply together set a market price, and what happens when they change?Markets and price determination: market equilibrium where demand meets supply, the effect of shifts in demand and supply on price and quantity, and the price mechanism as a way of allocating resources.12 min answer β
- How sharply do buyers and sellers react to a change in price or income, and why does it matter?Elasticity: price elasticity of demand and its calculation and determinants, the link to total revenue, and price elasticity of supply, income elasticity and cross elasticity.13 min answer β
- How do firms turn inputs into output, and what happens to their costs as they grow?Production and costs: production and productivity, fixed and variable costs, total, average and marginal cost, revenue and profit, and economies and diseconomies of scale.12 min answer β
- Why must every economy choose, and what does each choice cost?The basic economic problem of scarcity and choice, opportunity cost, the factors of production, and the use of production possibility diagrams to model trade-offs.12 min answer β
- What lies behind a demand curve, and what makes the whole curve move?The theory of demand: the law of demand, the demand curve, the difference between a movement along and a shift of the curve, and the non-price determinants of demand.12 min answer β
- Why do producers supply more at higher prices, and what shifts the whole supply curve?The theory of supply: the law of supply, the supply curve, the difference between a movement along and a shift of the curve, and the non-price determinants of supply.11 min answer β
Global Economic Activity
Module overview β- How does a country record its dealings with the rest of the world, and what does a deficit mean?The balance of payments: the structure of the current account, the meaning of a current account surplus and deficit, the causes of a deficit, and policies to correct one.12 min answer β
- What sets the price of one currency in terms of another, and why does it matter?Exchange rates: how a floating exchange rate is determined by the demand for and supply of a currency, the causes of appreciation and depreciation, and their effects on exports, imports and the economy.12 min answer β
- How does the global economy affect rich and poor countries, and which institutions try to manage it?The impact of the global economy: developing and emerging economies and the barriers they face, the effects of globalisation on different countries, and the role of global institutions (the WTO, IMF and World Bank).13 min answer β
- What are multinationals, why do they spread across the world, and who gains or loses?Multinationals and globalisation: the nature and growth of multinational companies, the reasons they locate abroad, and the costs and benefits of multinationals to host countries.12 min answer β
- Why do countries trade, and should that trade be free or protected?Understanding global trade: the reasons countries trade and the gains from specialisation and comparative advantage, free trade versus protectionism, and the methods and effects of protection.13 min answer β
UK Economic Activity
Module overview β- What is the UK government trying to achieve in the economy, and how is success measured?The main macroeconomic aims of the UK government - economic growth, low inflation, low unemployment and a stable balance of payments - how each is measured, and the conflicts between them.12 min answer β
- How does the government raise and spend money, and what does the budget balance mean?Government finance: the sources of government revenue (direct and indirect taxation), the main areas of public spending, and the meaning of a budget surplus, deficit and the national debt.12 min answer β
- What policy tools can the government use to manage the economy, and what are their limits?Government policies: fiscal policy, monetary policy and supply-side policy, how each works to influence the macroeconomic aims, and their limitations.13 min answer β
- How does money flow around the economy, and what makes national income rise or fall?National income and the circular flow of income: the circular flow model with injections and leakages, the meaning of national income (GDP), and the multiplier effect.12 min answer β
- How does Scotland's economy fit within the UK, and what powers does it have over it?The place of Scotland in the UK economy: the structure of the Scottish economy, the division of economic powers between the Scottish and UK governments, and Scotland's key industries and trade.11 min answer β