Syllabus: SQA - Higher Course Spec Economics
Module: UK Economic Activity
Lesson: Government Aims

Introduction

This article is grounded in the SQA Higher Economics course, specifically the “UK Economic Activity” section. It focuses on one of the syllabus’s core strands: Government Aims. Students explore what the government is trying to achieve economically and why these goals matter for individuals, businesses, and society. The topic is directly aligned with the Scottish curriculum and builds crucial understanding for learners preparing for SQA assessments.

Understanding government aims isn’t just about memorising definitions. It’s about equipping students to interpret economic headlines, evaluate policy decisions, and connect classroom learning to the everyday world around them. That’s what makes this topic essential for both academic success and practical understanding.

Key Concepts

According to the SQA Higher Economics course, students need to be familiar with the following:

• Government income: Understanding types of taxation, both direct (e.g. income tax) and indirect (e.g. VAT).

• Government spending: Distinguishing between current and capital expenditure, and the role of transfer payments (e.g. Jobseeker’s Allowance).

• Inflation:

  • Definition and measurement (e.g. Consumer Price Index).

  • Real vs money values.

  • Causes of inflation (cost-push, demand-pull).

  • Effects on individuals, firms, and the wider economy.

• Unemployment:

  • Definition and how it’s measured.

  • Causes of unemployment (cyclical, structural, frictional).

  • Effects on individuals, businesses, and government.

Note: The syllabus requires understanding the aims, not the policy tools used to achieve them.

Real-World Relevance

This topic has rarely felt more timely. From the UK government’s post-pandemic recovery plans to ongoing cost-of-living pressures, inflation and unemployment are not abstract concepts—they shape daily life.

• Inflation Example: In 2022–23, UK inflation hit levels not seen for decades, driven by energy costs and supply chain issues. Students can analyse how rising prices affect different income groups and business costs.

• Unemployment Example: After COVID-19 lockdowns, sectors like hospitality and retail faced high unemployment. Later, many saw labour shortages. These shifts provide excellent case studies for causes and consequences of unemployment.

By connecting the theory to stories students see in the news, lessons become more meaningful and memorable.

How It’s Assessed

The SQA Higher Economics assessment includes both a question paper and an assignment. Here’s how this topic typically shows up:

• Data handling questions: Students may be given inflation or unemployment statistics and asked to interpret trends or explain implications.

• Explain questions: Expect prompts like “Explain one reason why governments aim to reduce inflation.”

• Evaluate questions: Pupils might be asked to weigh the effects of inflation on households or assess the consequences of unemployment for the government.

Command words to practise include: describe, explain, analyse, and evaluate. Diagrams (like the circular flow of income or inflation rate graphs) may also be required.

Enterprise Skills Integration

Teaching government aims opens doors to essential enterprise skills:

• Problem-solving: Why might high inflation make it harder for entrepreneurs to plan pricing or wages?

• Decision-making: Should a government focus more on employment or price stability during an economic downturn?

• Critical thinking: Students explore how policies can benefit one group while disadvantaging another—there’s rarely a one-size-fits-all answer.

This topic supports learners in becoming economically literate citizens who can evaluate arguments and make informed decisions, whether they’re running a business or voting in an election.

Careers Links

The topic links clearly with Gatsby Benchmark 4 (linking curriculum learning to careers) and Benchmark 5 (encounters with employers):

• Relevant roles: Civil servant, policy analyst, economist, financial journalist, political adviser.

• Sectors impacted: Public administration, finance, business consultancy, research organisations.

• Pathways: Students might explore A-level Economics, Modern Studies, or apprenticeships with public sector organisations.

Consider inviting a local councillor or economist to speak about how inflation or unemployment impacts their decisions—this makes the subject feel grounded and useful.

Teaching Notes

Tips for effective delivery:

• Start with what students already know: prices rising in shops or local job losses.

• Use short news articles or video explainers to illustrate inflation and unemployment.

• Encourage students to debate trade-offs between different aims.

Common pitfalls:

• Learners often confuse “inflation” with high prices, rather than rising prices over time.

• They may struggle to link unemployment to its wider effects beyond the individual.

Extension ideas:

• Analyse historical periods of high inflation (e.g. 1970s UK) and compare to now.

• Use classroom polling tools to simulate government prioritisation—should we focus on growth, jobs, or prices?