Syllabus: Pearson - AS Level Economics
Module: 1.1 Nature of Economics
Lesson: 1.1.1 Economics as a Social Science
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Introduction
The Pearson Edexcel AS Level Economics A specification opens with an exploration of economics as a social science. This foundational topic is essential for helping students understand how economic theory applies to the real world, based on assumptions, models, and human behaviour. It sets the stage for critical thinking throughout the course, bridging the gap between abstract concepts and practical applications. By grasping economics as a social science, students begin to see the discipline not only as a tool for understanding the economy but also as a means of explaining decisions, outcomes, and policy implications across society.
Key Concepts
Aligned with the Pearson Edexcel AS Level Economics A Specification, the key concepts in this section include:
Economics as a social science: Understanding that economics attempts to explain and predict human behaviour using models, hypotheses, and empirical evidence.
The scientific method in economics: Observation, hypothesis formulation, testing against evidence, and revision of theories.
Value judgements: Differentiating between normative and positive statements, and recognising the role of opinions and ethical stances in economic decision-making.
Limitations of scientific methods in economics: Acknowledging that controlled experiments are rarely possible in economics due to the complexity of human behaviour and ethical constraints.
Models and assumptions: Simplifying real-world complexities to build workable economic models while understanding the limitations of assumptions.
These ideas provide a theoretical backbone for more applied and evaluative aspects later in the course, such as market failure, government intervention, and macroeconomic policy.
Real-World Relevance
Students can appreciate this topic through examples such as:
Behavioural economics during the COVID-19 pandemic: Economists used predictive models to estimate behavioural responses to lockdowns, but these models were often limited by unexpected human reactions.
Cost of living debates: Positive statements about inflation data contrast with normative statements regarding what the government should do.
Climate change economics: The economic analysis of carbon taxes involves scientific modelling but is deeply influenced by value judgements on environmental responsibility and fairness.
These examples help students see the real-world limits of applying scientific rigour to human decisions, while still valuing the insights economics offers.
How It’s Assessed
In the Pearson AS Level Economics A assessment structure, this topic typically appears in Paper 1: Markets and Market Failure. Students may encounter:
Short-answer questions testing understanding of key terms and concepts (e.g. “Define a positive statement”).
Data response questions involving source evaluation and identification of normative vs positive statements.
Extended open-response questions requiring evaluative discussion, such as “To what extent can economics be considered a science?”
Key command words to highlight include explain, analyse, assess, and evaluate. Students should be encouraged to clearly distinguish fact from opinion and link back to the social science framework.
Enterprise Skills Integration
This topic builds essential enterprise and critical thinking skills:
Decision-making: Understanding how assumptions and models influence economic outcomes supports logical reasoning.
Problem-solving: Identifying limitations in real-world economic models encourages students to suggest improvements or alternatives.
Analytical thinking: Interpreting data and differentiating between types of statements trains students in structured argumentation.
Classroom debates and model-building tasks can enhance these skills by making abstract concepts tangible.
Careers Links
Understanding economics as a social science supports several Gatsby Benchmark-related careers insights:
Policy analyst: Balancing evidence-based research with political feasibility.
Economic journalist: Reporting data while navigating value-laden topics.
Market researcher: Using models and hypotheses to interpret consumer behaviour.
Behavioural economist: Applying psychology to economics in areas such as pricing, health, and public policy.
This topic aligns with Gatsby Benchmark 4 (Linking curriculum learning to careers) and Benchmark 5 (Encounters with employers and employees), particularly when supported with guest talks or video interviews from professionals.
Teaching Notes
Teachers should ensure:
Students grasp the distinction between positive and normative statements early, as this underpins many future topics.
Activities explore how assumptions and simplifications work in practice. Tasks such as designing a basic economic model (e.g. of a local coffee market) can make theory engaging.
Assessment prep includes past paper questions on this section. Use paired discussion to unpack how students justify their evaluative responses.
Common pitfalls include:
Confusing positive with normative statements.
Assuming economic models are ‘right’ rather than useful simplifications.
Overlooking the role of ethics and values in policy debates.
To extend learning, consider cross-curricular links with psychology (decision-making), sociology (social structures), and politics (policy evaluation). Incorporating short video clips or news extracts for analysis helps embed the topic in the real world.
