1. A Level Economics

2. Today’s Presentation We will focus on
DOs and DON’Ts for writing essays
What examiners look for
A sample of Marked Essays
Tips for Data Response Questions
An Activity
Q & A Session

3. Things You Should Avoid Doing

4. DON’T Write what you can, but what you are asked to
Read what you want to i.e. preempt questions
Alter the question, but modify your answer

5. DON’T
Overspend time on a question or part of a question. Remember, the law of diminishing returns applies here as well i.e. the chances of scoring marks are much higher from the first paragraph of a fresh question than the tenth paragraph of the question you are doing. So, you must know when to move on to the next question.

6. DON’T Write everything you know about a concept
Draw a diagram unless you are certain about its accuracy AND relevance
Use numbers while drawing a diagram

7. DON’T
Forget to properly label the axes AND use arrows to show shifts and changes
Assume that every downward sloping curve is a demand curve
Confuse micro and macro diagrams

8. Things You Must Do

9. Things You Must Do Read the question carefully
Identify Command Words, Key Concepts / Economic Terms, Task of the Question

10. An Example
Explain the link between opportunity cost and production possibility curve
Command Word: Explain
Key Concepts / Economic Terms: Opportunity Cost and Production Possibility Curve
Task of the Question: Establish the link

11. Things You Must Do
Draw a diagram only when the question requires you to
Show your working if the question requires calculations

12. Things You Must Do
Understand if the question expects you to explain what happened earlier (e.g. causes of inflation) or what will follow (e.g. consequences/effects of decrease in exchange rate), and answer accordingly
When you use a diagram, always begin from the position of equilibrium and then go on to discuss changes following a shift in a curve

13. Command Words Explain Provide the definition
Give examples (try to be better than pen and ink)
Give formulae if relevant
Draw a diagram if necessary

14. Command Words Discuss Both sides MUST be covered
A conclusion must follow
Remember, there is no one right answer

15. Identify / State / Outline / List
Command Words
Identify / State / Outline / List
Extremely brief answers are required without any explanation
Describe
Use of words, vocabulary and sentences to interpret a graph, table, chart or figure

16. Command Words Compute / Calculate
Usually the correct answer is enough for full marks, but it is better to show the working and write the complete formula if relevant

17. Command Words
Comment
Examiners often expect candidates to comment on the figure/answer they have calculated
Examiners follow the “own figure” rule
Candidates should comment on the sign as well as the number and should identify where relevant the trend it is showing

18. Command Words To what extent…?
Highlight the usefulness as well as limitations
Do you agree…?
Like the command word discussion, cover both sides, followed by a conclusion

19. Command Words Analyse Discuss the process and its effects
Prioritize the effects i.e. identify effects which are more likely and more important

20. Command Words Evaluate
Again, cover both sides with a conclusion, stating which side you think is stronger
Remember, it is not the side you pick, but the quality of argument you give, which will get you a better grade

21. Which Essay/s to Choose
The essay/s you are most comfortable with
For multi part questions, selection should be based on both parts (don’t get excited if you find one part simple)
Make your own choice, ignoring which essays others may attempt

22. Which Essay/s to Choose
Essays from Micro or Macro components have the same probability of a high score
Multi part questions usually have a greater chance of an overall high score than single part questions (only applicable to paper 4)

23. Essay Writing – Paper II
Section B of paper II gives a choice of 1 out of 3 essays
All essays carry 20 marks, usually 8 for part ‘a’ and 12 for part ‘b’
Part ‘a’ has the command word ‘explain’ and the command word in part ‘b’ is ‘discuss’

24. What Examiners Look For
Part ‘a’ of the Essay
Usually has 8 marks, out of which 4 are for knowledge and understanding (KU marks), and 4 are for application (APP marks)
To score KU marks, give definitions, formulae, and brief descriptions
For APP marks, examples and diagrams may be required

25. What Examiners Look For
Part ‘b’ of the Essay
Usually has 12 marks, out of which 8 are for analysis and 4 are for evaluation
For analysis, both sides need to be covered, as a candidate covering only one side of the argument may score a maximum of 6 marks

26. What Examiners Look For
For evaluation marks, a conclusion should be given
No evaluation marks if only one side is covered

27. Example
Explain why the value of income elasticity of demand for a good can be positive, negative or zero, while the value of its price elasticity of demand is most likely to be negative [8]

28. KU Marks Definitions of PED and MED (2 marks)
Formulae of PED and MED (2 marks)

29. Application Marks Positive MED means Normal goods (1 mark)
Negative MED means Inferior goods
Zero MED means Necessities (1 mark)
Negative PED confirms the inverse relationship between price and quantity demanded (1 mark)

30. Another Example
Explain how a rise in the rate of interest might cause a shift in an economy’s aggregate demand curve [8]

31. KU Marks AD=C+I+G+X-M (1 mark) C=Consumption I=Investment
G=Govt Spending X=Exports
M=Imports (1 mark)
Consumption is expenditures of households (1 mark)
Investment is purchase of capital equipment (1 mark)

32. Application Marks
A rise in the rate of interest reduces consumption (up to 4 marks) and reduces investments (up to 4 marks)
Diagram not required, but credit may be awarded for a correct one

33. Part ‘b’ of the Essay An Example
Discuss whether price elasticity of demand is a more useful concept than income elasticity of demand for a business that is trying to increase its sales revenues. [12]

34. Price Elasticity of Demand
‘Analysis’ Marks
Price Elasticity of Demand
Price should be increased to increase sales revenues for goods with price inelastic demand (1 mark) as higher prices cause a less than proportionate fall in quantity demanded (1 mark)
For goods with elastic demand, lowering price raises revenues (1 mark) as reduction in price leads to a more than proportionate rise in quantity (1 mark)

35. ‘Analysis’ Marks
Correct diagrams (steeper demand curve for goods with inelastic demand and flatter for goods with high elasticity) clearly showing impact on revenues when price is changed (2 marks)

36. Income Elasticity of Demand
‘Analysis’ Marks
Income Elasticity of Demand
Production of normal goods should be increased when incomes rise (1 mark) to increase sales revenues (1 mark)
For inferior goods production should be decreased when incomes rise (1 mark) to raise revenues (1 mark)

37. ‘Analysis’ Marks
A maximum of 6 marks for one type of elasticity and a maximum of 8 for analysis

38. Evaluation Marks
A firm is more likely to influence price than incomes of consumers so PED is likely to be more useful (up to 2 marks)
PED is likely to be more specific to a firm’s situation, whereas effects of MED are rather general and widely spread (up to 2 marks)
Figures of elasticities may not be accurate and reflect only the history (1 mark)

39. Grade Thresholds (Oct/Nov 2014)

40. Data Response Questions
Also known as Stimulus questions
Time management is crucial
Involve a lot of reading so allocate 10 to 15 minutes to the reading and understanding of the data given

41. Data Response Questions
A 20 marks question which needs to be answered in 30 to 35 minutes
Allocate, on average 90 seconds per mark
A multi part question (usually 4 to 5 parts)

42. Data Response Questions
Part ‘a’ usually involves a calculation or description of the data
The last part (usually part ‘d’ or ‘e’) expects candidates to “Discuss”. Usually it carries 30% (paper 2) to 40% (paper 4) of the marks allocated to the complete question.

43. Data Response Questions
The level of difficulty (and usually the allocated marks too) increase as the candidate works towards the end of the question
Read the data at least twice, once before going through the questions and then after going through them

44. Data Response Questions
Some questions refer to a certain portion of the data e.g.“How far is the information in the fifth paragraph of the article supported by the evidence in Table 1?” For such questions, mark the relevant portions and frequently consult them while answering them.

45. Data Response Questions
Some other questions may expect candidates to consult the entire data e.g. “From the evidence given, discuss whether it is ………..”. For such questions, mark and consult portions of the data given which you consider are more relevant, but don’t forget to consult the other information too.

46. Data Response Questions
Some questions are “open ended” and expect candidates to use the data as well as their knowledge about relevant economic issues. For example “Is the evidence given enough for you to determine …?”

47. Data Response Questions
Other than questions requiring candidates to “State, List, Identify”, avoid reproducing information given in the extract
Understand the type of data (index numbers, percentages or absolute numbers) before attempting questions requiring calculations

48. Q 1 of Oct/Nov 2014 of 9708/22 Answer Key

49. 1(a) Compare the rate of inflation in China between 2007 and 2008 with that between 2010 and [2]
= 6.16%,(1 mark),
= 5.66% (1 mark)
So it is lower in (1 mark)

50. (b) Explain briefly how the foreign exchange value of a currency is determined in a free market. [3]
For recognition that the foreign exchange value depends upon supply and demand for the currency (1 mark)

51. For identification of one source of supply of the currency or one source of demand for the currency (Up to 2 marks) For diagram showing a shift in supply or a shift in demand and the change in the equilibrium price in the market (1 mark)

52. (c) The US Treasury report states that China’s strong trade surplus has led to a ‘huge and rising stock of foreign exchange reserves’ in China.
Explain how this justifies the claim that China is manipulating the foreign exchange value of its own currency. [3]

53. For recognition of the link between a balance of payments surplus and rising foreign exchange reserves (1 mark)

54. Explanation based upon the ‘rising stock of foreign reserves suggests that China is accumulating reserves of foreign currency by selling the yuan and keeping its price low. This prevents an appreciation of the yuan which would make China’s exports more expensive and imports dearer which should turn the surplus into a deficit (up to 3 marks)

55. (d) Explain why China’s current account surplus is expected to increase in 2013, despite the rise in prices in China and the appreciation of the yuan. [6]

56. For an explanation of why the rise in prices in China and the appreciation of the yuan might not be expected to be consistent with a rising surplus in China (Up to 2 marks)

57. Up to 3 marks for each factor that might explain why the surplus is expected to increase. Possible factors include: Higher rates of inflation in other countries Marshall-Lerner condition not fulfilled (Inelastic demand for imports and exports)

58. J-curve effect
Non-trade factors in current account that are not price sensitive
The yuan may still be undervalued
Continuing competitive advantage of Chinese goods

59. (e) Do you agree with the view of the US Treasury that an appreciating currency is ‘of overall benefit’ to China? [6]

60. For the advantages to China of the appreciating currency (up to 4 marks) For the disadvantages to China of the appreciating currency (up to 4 marks) Reserve one mark for a conclusion

61. Advantages of Appreciation of Yuan
Imports are now cheaper so that Chinese consumers should enjoy cheaper goods and services and Chinese producers should benefit from cheaper capital imports and raw materials.
The fall in net exports that should result would reduce inflationary pressures in China.

62. Disadvantages of Appreciation of Yuan
China’s net exports should diminish, assuming PED for net exports exceeds unity
Decreased net exports and hence decreased AD is a threat to production and employment in exporting industries.

63. Please email us your feedback on kims@kims.edu.pk

64. Best of Luck! 