Syllabus: AQA - AS and A Level Economics
Module: 3.1.1 Economic Methodology and the Economic Problem
Lesson: 3.1.1.1 Economic Methodology

Introduction

This article focuses on the AQA AS and A Level Economics topic: 3.1.1.1 Economic Methodology, a foundational component within Section 3.1: The operation of markets and market failure. Aligned directly to the AQA specification, this section introduces students to the distinctive approach economists take when investigating the world, laying the groundwork for analytical thinking, model-based reasoning, and evidence-led decision-making.

For teachers, SLT, and careers leads, this topic offers a springboard into not just economic theory, but how that theory plays out in real-world policies, trade-offs, and human behaviour. It’s also a key moment to build confidence with core vocabulary and scientific reasoning that underpin later topics.

Key Concepts

The AQA specification identifies the following as the core content for 3.1.1.1 Economic Methodology:

• Economics as a social science: Students learn that economics studies human behaviour and interactions, using models and evidence to make predictions and explanations.

• Methodological comparison: Exploration of how economic methodology compares to that of natural and other sciences — for example, economics often can’t use controlled experiments in the same way due to its social context.

• Positive vs normative statements:

  • Positive statements are objective and testable (e.g. “Higher interest rates reduce borrowing”).

  • Normative statements involve value judgements (e.g. “The government should reduce inequality”).

• The role of value judgements: Students evaluate how personal, political or ethical perspectives shape economic decisions and public policy.

• Thinking like an economist: This includes understanding the use of models and assumptions, such as ceteris paribus (all other things held equal), to simplify complex realities.

This section also builds key vocabulary that recurs throughout the course, such as “model”, “hypothesis”, “evidence”, and “assumption”.

Real-World Relevance

Understanding economic methodology helps students engage with some of the most pressing questions in society. For example:

• Cost of Living Crisis: Should the government intervene in energy markets? Positive data can tell us who is most affected, but normative views shape whether and how intervention happens.

• Climate Change: Economists use models to forecast the long-term effects of carbon pricing or green subsidies — but political ideologies influence which models are chosen or trusted.

• Minimum Wage Debates: A classic example of where positive evidence (on employment effects) is debated, while normative statements (about fairness or social justice) dominate public discourse.

Using recent news stories, policy decisions, or even contrasting headlines provides a great way to contextualise the role of evidence versus opinion.

How It’s Assessed

This topic is assessed across both AS and A Level Paper 1, with typical question styles including:

• Multiple Choice Questions (MCQs) testing definitions and distinctions (e.g. identifying a normative statement).

• Short answer questions asking students to explain the difference between economic methodologies or give examples of value judgements.

• Data response or essay questions where students apply methodological concepts to real-world contexts (e.g. evaluating a government decision using both positive and normative reasoning).

Key command words to watch for include:

• Define

• Explain

• Distinguish

• Evaluate

• Discuss

These require a blend of knowledge recall, application, and reasoned judgement — which is exactly what this unit is designed to build.

Enterprise Skills Integration

This unit naturally fosters transferable enterprise skills:

• Critical thinking: Students must distinguish fact from opinion and question assumptions — essential for problem-solving and decision-making.

• Evidence-based reasoning: Encourages learners to use data and evidence, a core skill in both business and policy settings.

• Communication: Making clear, reasoned arguments is foundational in economics and vital in enterprise.

In the Enterprise Skills Business Simulations, students practise these skills by making decisions based on limited information and competing priorities — a real-world echo of how economists operate.

Careers Links

Understanding economic methodology builds a mindset useful across careers such as:

• Policy analysis and civil service: where data-driven, yet ethically grounded, decisions are essential.

• Finance and consulting: applying models and interpreting client needs involves both positive analysis and normative perspectives.

• Journalism and media: distinguishing between fact and opinion is crucial in economic reporting.

• Academic research: this is the core of what economists do — building, testing, and refining models.

Gatsby Benchmark 4 is met through explicit curriculum content connected to real-world decision-making. Benchmark 5 can be supported by case studies from economists or policy advisors invited into the classroom.

Teaching Notes

Top tips for effective delivery:

• Start with real-life debates: Ask “Should tuition fees exist?” or “Should we tax sugary drinks?” and use this to define positive vs normative from students’ own instincts.

• Use accessible models: A simple cost-benefit table or a visual decision tree works well to introduce assumptions and modelling without overwhelming detail.

• Highlight media examples: Cut-out articles where economic claims are made (e.g. news, politicians, influencers) and get students to identify the assumptions and statements used.

• Stretch & challenge: Introduce ceteris paribus and the limitations of models — link back to debates around model reliability in forecasting COVID-19 or climate change.

Common pitfalls:

• Students often think “positive” = “good” and “normative” = “bad” — clarify that it’s about objectivity, not value.

• They may also over-rely on definitions — encourage application and example-based reasoning early on.

Plug-and-play tools:
The Skills Hub includes ready-made explainers, mini case studies, and real-world dilemmas mapped to this unit — perfect for reducing prep time while keeping lessons engaging and curriculum-aligned