ECONOMICS TEACHERS’ GUIDE

COMPONENT: MICROECONOMICS
EXAM LEVEL: A LEVEL
AREA OF STUDY
Growth of Firms
Key Points:
• Learners should understand the advantages and disadvantages of mergers for a firm
• Learners should research real world data on business
Provides an opportunity to develop the following skills:
Speaking, listening and understanding; Reading; Writing; Understanding numerical data;
Carrying out calculations; Interpreting results; Presenting findings; Using ICT systems;
Finding, selecting and exchanging information; Improving own learning and performance;
Developing and presenting information using ICT; Working with others – plan do and review.
INSPIRATION FOR TEACHING
Example
Activity Name : The Purpose of Mergers
• Ask the learners to look at a number of company logos and then to match
up the companies which have merged with one another.
• Learners should identify the type of merger (vertical, horizontal etc.).
• Ask the class to begin to list the reasons why these firms are likely to have
merged, i.e. what were the benefits (e.g. economies of scale, efficiency
gains, dealing with competition, diversification). Also, see if they think of
any potential pitfalls in the mergers (job losses, less choice, diseconomies).
• Stretch activity: ask the learners to match up some of the companies with
an unusual partner (e.g. a large pharmaceutical and a comic book
franchise) and try to see if there would be any benefits in completing them.
USEFUL INTERACTIVE RESOURCES
WJEC Resources > Economics
WJEC > A level Economics > Specification from 2015
WJEC > A level Economics > Specimen Assessment Materials