In a nutshell, Economics is "the pursuit of efficiency". The basic economic problem faced by all countries is how best to use their available resources to maximise the happiness of everyone: "unlimited desires, limited resources".

The study of Economics is divided into two areas; macroeconomics and microeconomics. Microeconomics looks at markets and industry. Pupils puzzle over questions such as:

• What determines prices?
• Why do newspapers and supermarkets engage in price wars?
• How can we put an end to congested roads?
• Should workers be paid a minimum wage?
• Should students pay for their higher education?

Macroeconomics looks at the economy as a whole. Pupils study questions such as:

• Why do economies go through cycles of boom and bust?
• What have been the economic consequences of a single currency in Europe?
• Can we ever return to full-employment?
• Does Government borrowing matter?
• Why worry about inflation?

Amy Chapman, Head of Economics and Business Studies