Cambridge International as and a level Economics Ebook

SELF-ASSESSMENT TASK 
1
1
Make a list, in your own words, of some of the 
economic decisions that:
■
you are facing
■
your family has to take
■
your country has to take.
2
Pick up any quality newspaper or look at any 
quality news website. Look through it systematically 
and make a note of the various micro- and 
macroeconomic problems and issues you fi nd. Did 
you fi nd it easy to classify problems in this way?
Th
e last part of Self-assessment task 1 was designed to help 
you to appreciate that many economic problems and issues 
cannot be satisfactorily classifi ed as micro or macro. In other 
words, such problems encompass both of the main branches 
of Economics. For example, an increase in taxation on petrol 
may reduce the demand for petrol. Depending on the extent 
of this, there is an eff ect on the income of individuals and 
the government and, in turn, this aff ects the economy as a 
whole. So, there can be complex interrelationships coming 
into play. Th
is is one of the reasons that Economics is such 
an interesting subject to study.
As you read through this text, you will be introduced 
to concepts, theories and simple models that are used by 
economists to explain the many economic problems and 
issues that come within the scope of Economics. In time, 
you will build up a portfolio of such techniques, from 
a micro- and macroeconomic perspective. Virtually all 
have their origin in some sort of practical investigation, 
2
Cambridge International AS and A Level Economics

---

i.e., a study of real economic phenomena. Some concepts 
have their origin centuries ago, others are much more 
contemporary or may have been refi ned and revised in the 
light of the growing complexity of the present-day global 
economy. Again, this serves to enhance the interesting 
nature of the study of Economics.
It is appropriate from the outset to attempt to give a 
clear defi nition of Economics. For a start, Economics is 
a social science – it adopts a scientifi c framework but is