Syllabus: Pearson - A Level Economics
Module: 1.1 Nature of Economics
Lesson: 1.1.1 Economics as a Social Science

Introduction

This article supports the teaching of Pearson Edexcel A Level Economics A (2016 specification), focusing on Theme 1, Introduction to Markets and Market Failure. The first topic—1.1.1 Economics as a Social Science—lays the foundation for thinking like an economist. It encourages students to understand how economic models are built, how they rely on assumptions, and why real-world application isn’t always clear-cut.

This topic is essential because it gives students the tools to analyse problems in a structured way, apply critical reasoning, and begin separating evidence from opinion. It’s also the start of developing the analytical mindset they’ll need across the course—and beyond.

Key Concepts

According to the Pearson Edexcel A Level Economics A specification, students need to learn:

• Thinking like an economist: Understand the process of developing economic models and the need for simplification through assumptions.

• Ceteris paribus: Use and understand this assumption when isolating the effect of one variable while keeping others constant.

• Limitations of scientific methods in economics: Recognise that controlled experiments are often not possible in economics, making it distinct from the natural sciences.

These concepts help students grasp that economics is about human behaviour and decision-making, not just numbers or markets.

Real-World Relevance

One of the best ways to bring this lesson to life is to explore how economists model complex events like the cost of living crisis or climate change policies. For example:

• During the UK energy price spike in 2022, economists used demand and supply models under the assumption of ceteris paribus. But in reality, other factors—like geopolitical tensions, supply chain issues, and government policy changes—made it hard to isolate single causes.

• Economists tried to forecast inflation trends post-COVID using models based on past patterns. However, unpredictable consumer behaviour and global disruptions exposed the limits of those models.

These cases show students that while economic models are useful, they’re not foolproof. They’re simplifications of a messier reality.

How It’s Assessed

This topic typically appears early in Paper 1, often linked to application and analysis questions. Students might be asked to:

• Define or explain economic assumptions.

• Discuss the limitations of economic models.

• Distinguish between economics and the natural sciences.

• Apply the concept of ceteris paribus to unfamiliar scenarios.

Command words such as explain, analyse, and evaluate are common here. For instance, “Explain why economists use assumptions in building models” or “Evaluate the extent to which economics can be considered a science.”

Students should also be prepared to work with data in unfamiliar contexts and link abstract ideas to concrete scenarios.

Enterprise Skills Integration

This unit gives students a strong foundation in analytical thinking and decision-making under uncertainty—both critical enterprise skills.

Encourage students to:

• Build simple models to predict behaviour (e.g. how a rise in train fares might affect commuter habits).

• Reflect on the assumptions they’re making and test them through role play or debate.

• Consider the implications of poor modelling in a business or policy context.

Activities like model testing and “what if” scenarios can help them understand how theory meets practice.

Careers Links

Understanding economics as a social science directly supports Gatsby Benchmark 4 (linking curriculum to careers) and Benchmark 5 (encounters with employers via applied thinking).

Career paths that benefit from this topic include:

• Policy analysts, who must balance assumptions with real-world messiness.

• Business consultants, who use economic reasoning to advise clients.

• Financial journalists, who interpret economic decisions for the public.

• Behavioural economists, who challenge traditional models by exploring how real people behave.

Bringing in guest speakers or using case studies from these fields strengthens the bridge between content and careers.

Teaching Notes

Tips for delivery:

• Use current news stories to show models in action (or failure).

• Set short tasks where students build and test their own assumptions.

• Compare economics with science and sociology to draw out the differences.

Common pitfalls:

• Students often think economic models are predictions rather than frameworks.

• Misunderstanding ceteris paribus as a claim about reality, rather than a simplification.

Extension ideas:

• Debate: “Is economics more art than science?”

• Explore behavioural economics to show how assumptions about rationality are challenged.

Suggested activity: Ask students to write a mock model for a school-based issue, like predicting student participation in a new after-school club. Then discuss the assumptions they’ve made and what could disrupt the model.