Sri Lanka G.C.E. Advance Level (A/L) Economics
In the complex landscape of resource management, economics serves as the vital compass for societal progress. This course invites you to explore the mechanisms of wealth creation and distribution by moving from the behavior of individual agents to the performance of the national economy. You will gain a solid command of microeconomic theories and macroeconomic indicators, where you will learn to process statistical data and interpret market fluctuations. Crucially, you will develop the technical ability to analyze the impact of fiscal and monetary policies while ensuring compliance with economic models and logical frameworks. By mastering the evaluation of global trade dynamics and development challenges, you will be equipped to assess real-world economic scenarios using analytical reasoning and make informed predictions based on empirical evidence.
Core Content Areas
The Sri Lankan GCE A/L Economics syllabus is a comprehensive two-year course that provides a deep analysis of economic theory and its application to the Sri Lankan context.
1. Basic Economic Concepts
Focuses on scarcity, opportunity cost, the Production Possibility Frontier (PPF), and the classification of economic systems.
2. Market Mechanism (Microeconomics)
Explores demand and supply analysis, elasticity (PED, YED, XED), market equilibrium, and government intervention (price controls/taxes).
3. Theory of Production and Firms
Covers production functions, cost analysis (short/long run), and market structures including Perfect Competition, Monopoly, and Oligopoly.
4. Macroeconomic Variables
Investigates National Income Accounting (GDP/GNP), the circular flow of income, aggregate demand/supply, inflation, and unemployment.
5. Money, Banking, and Public Finance
Deals with the functions of money, the role of the Central Bank of Sri Lanka, monetary policy, government budget, and fiscal policy.
6. International Economics & Development
Focuses on comparative advantage, balance of payments, exchange rates, and current economic issues facing Sri Lanka.
Assessment Structure
The GCE A/L Economics qualification is assessed by the Department of Examinations via two written papers.
- Paper I (Multiple Choice): A 2-hour exam consisting of 50 multiple-choice questions. This tests the student’s grasp of concepts across the entire syllabus.
- Paper II (Structured & Essay): A 3-hour exam. Part A consists of compulsory structured questions (often data response). Part B requires students to answer 5 out of 8 essay questions.
- Focus: High marks in Paper II require the ability to apply economic theory to the specific context of the Sri Lankan economy and current global events.