1. Improving your Evaluation Skills in Economics

2. The Hierarchy of Skills KNOWLEDGE COMPREHENSION APPLICATION ANALYSIS EVALUATION SYNTHESIS

3. Evaluate Compare a number of possible views about an economic problem or an issue and come to a reasoned conclusion about which view holds most weight E.g. evaluate the record of the Bank of England since it was made independent of government in May 1997.

4. Judging the Bank of England Policy decisions Domestic environment External environment

5. Assess Assess - analyse an economic issue and then weigh up the relative importance of different strands of the arguments E.g. assess the possible effects of a rise in the external value of the pound against the currencies of our major trading partners

6. Rise in the exchange rate How big is the appreciation? How long does it last? Demand versus supply-side effects 2 nd and 3 rd round effects from the currency change Reactions of businesses and consumers to the exchange rate change What does the evidence tell us about what has actually happened?

7. Ten strategies Make good use of the last paragraph – don’t repeat points already made Look out for and refer back to the key stem words in the question Consider the issue from the points of view of different stakeholders Prioritize arguments - “The most important argument against protectionism in international trade is that… or “The least effective argument for protectionism in international trade is…. Be aware that a singular economic event never happens in isolation Question the reliability of the data and detect bias in extracts Provide up to date supporting evidence and examples Consider both short and longer term consequences Drop the “ceteris paribus” assumption and see what happens Try to challenge views and statements – don’t accept the conventional wisdom

8. Key stem words in a question To what extent, if any, is it important for a UK government to restore and maintain a balanced budget? Key stem words? To what extent, if any, is it important for a UK government to restore and maintain a balanced budget?

9. Another example Assess the case for and against the government intervening to raise the disposable income of workers on low pay.

10. A micro question requiring analysis and evaluation Evaluate the view that, because price discrimination enables firms to make more profit, firms, but not consumers, stand to gain from price discrimination

11. Importance of evidence in your answer “Supply-side policies have been more effective than demand-side policies in reducing unemployment.” Evaluate this statement with reference to the UK economy in recent years

12. Evaluation phrases The arguments are finely balanced…. On the other hand…… However, in the long/short term…… The most important cost is….. because…...is somewhat insignificant compared to … Other stakeholders such as…. In reality the theory may not hold true because…. This idea is often criticized for The effects of a change in “A” depend on the price elasticity of demand and supply….. and if the elasticity changes, then the analysis can change The argument is contradicted by evidence which shows that…. Although a fall in M should lead to a rise in N, time lags mean that policy changes take time to work through There may be a conflict involved with this policy because

13. Some more evaluation phrases However Hence Nevertheless Although It is likely that The tendency is But In retrospect With the benefit of hindsight In the short run… but in the long run It depends upon (e.g. Ped & exchange rate) The data suggest that According to the article The writer argues that …… but

14. Developing evaluation skills When factors such as causes, consequences or remedies are asked for, candidates should attempt to identify the most important ones and then to justify the reason for the choice Add evaluation points into your revision notes Revise in small groups - test and question each other Continue to read around the subject to build up a good awareness of current issues Read ‘comment articles’ on a regular basis to see how a writer builds and sustains an argument Cover all topics so that you can see how different topics fit together