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9708 Example Candidate Responses Paper 4 (for examination from 2020-w20 qp 42)

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How to write essays for Edexcel A-level Economics

In this post I outline the key requirements for each section (mainly B and C) in papers 1 and 2 for Edexcel A-level Economics A. This is the advice I give to my tuition students to help them achieve improved grades.

From years as an economics tutor and from reading through the examiner’s reports, I have picked up students’ typical mistakes and good general approaches for A-level Economics students.

For an online course on economics exam technique, check out this link here:

For sample answers to 25 mark questions, check out the link below:

Here the total marks – 25

So ideal timing – ideally you would get this section done the quickest, for example around 15 minutes or even quicker. 

Note there is no need to say much about the structure here. It is important to be succinct with short answer questions. 

Also with questions asking to draw a graph, make sure to label axes, lines  and equilibria correctly.

Section B 

Now this section requires the knowledge, application and analysis (KAA) skills as well as the evaluation skills. 

Total marks – 50. Note this is half the marks of the paper for papers 1 and 2.

Here the ideal timing – 60-70 minutes. Note you may want to spend some time reading here.

Below, this table shows the mark allocation for each question.

To summarise, the more marks allocated to analysis or evaluation, the more you need to write. You should remember this table when doing exam questions.

Breakdown of Section B by question

First the 5 mark question. Answer the question quickly and use the extract to support your answer. Keep it succinct, at most an extended paragraph. No evaluation required.

Next the 8 mark question. Here 6 marks for KAA, 2 for evaluation. A good general structure is 2 KAA paragraphs and 2 short evaluative comments (or 1 evaluative comment well developed). See page 24-25 of this examiner’s report for a good example, though the evaluation could be even shorter as the examiner’s report notes: here .

Now for the 10 mark question, 6 marks for KAA, 4 for evaluation. The difference between the 8 and the 10 mark question is the extra marks for evaluation. Again 2 KAA paragraphs but now 2 developed evaluative comments.

For the 12 mark question, 8 marks are for KAA and 4 for evaluation. For the 12 mark question, we need 2 more detailed KAA paragraphs, ideally one where a diagram is being used and explained, and 2 developed evaluative comments. To find a response that received full marks, see pages 27 to 28 on the examiner’s report here .

Finally for the 15 mark question, there are 9 marks for KAA, 6 for evaluation. For this we need 2 KAA paragraphs, ideally with at least one diagram where possible. Note these explanations should be deep with more than one chain of analysis per paragraph. The two evaluation paragraphs should be well explained.

Typical Mistakes in Section B

From students essays I have observed, typical mistakes in section B include:

• Often overwriting;
• Specifically spending too much time on 8 and 10 mark questions. This is often to the detriment of 12, 15 mark questions and the 25 mark question in section C;
• Conversely leaving parts or whole questions blank due to not understanding the question or time constraints;
• Also missing one or more of the criteria – application, analysis or evaluation.

Section C – 25 Mark Essay

Finally for the section C essay, total marks – 25 

Here the ideal timing – 35-40 minutes.

So for the 25 mark essay, the mark allocation is 16 marks for KAA, 9 for evaluation.

Now regarding the structure different teachers have different recommendations on the structure of this question. The simplest way is to:

• First, have a short introduction with one/two key definitions;
• Then two extended KAA paragraphs each with multiple chains of analysis, at least one (if not two) graphs in the analysis;
• Between these KAA paragraphs, two extended evaluation paragraphs with extended chains of analysis;
• Finally there should be a conclusion that directly answers the question, justifies the answer and relates back to the context.

In addition for an example essay that scored in the top bands is on pages 56-60 in this examiner’s report here .

Any spare time you should use to make your answers more complete, filling in any gaps left. This exam is often quite tight for time. So please do practise in timed conditions.

Further Reading

Next, a key criterion for doing well is using examples from the real economy. Tips on how to score application marks for Edexcel Economics A-level:

To practise your essay technique on practice papers, you are welcome to look into the practice papers here:

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Economics Model Essays

Economics Model Essay 1

(a)   Distinguish between the concepts of price elasticity of demand, income elasticity of demand and cross elasticity of demand. [10] (b)   Discuss the usefulness of the concepts of elasticity of demand to a firm that produces a fashionable product. [15]

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Economics Model Essay 2

After reaching a rate of 8.3 percent in 2010, GDP growth in Asia is projected to average nearly 7 percent in both 2011 and 2012, according to the IMF. However, due to the growing unrest in the Middle East sparked by the Egyptian Revolution that began on 25 January 2011, oil prices have started to rise. Discuss how the market for private cars and its related markets in Asia may be affected by the above events. [25]

Economics Model Essay 3

Findings from a variety of studies show that routine consumption of artificial sweeteners such as aspartame, saccharin and sucralose may lead to higher likelihood of heart disease, stroke, diabetes and high blood pressure. Some countries such as the United States and France have imposed a tax on non-diet soft drinks to fight obesity. A rise in the price of sugar has led to an increase in the demand for artificial sweeteners and this has pushed up the prices.

Discuss how the above events would affect consumer expenditure on diet soft drinks and non-diet soft drinks. [25]

Economics Model Essay 4

The production of petrol should be left to market forces. In spite of this, some governments subsidise petrol while others impose a tax on it. Discuss. [25]

Economics Model Essay 5

Discuss the economic effects of a redirection of government subsidy from petrol to education. [25]

Economics Model Essay 6

Discuss whether an increase in savings in Singapore would lead to problems in the economy. [25]

Economics Model Essay 7

Discuss the view that Singapore has few policies to deal with an external shock. [25]

Economics Model Essay 8

“A fall in the terms of trade is undesirable for the economy.” Discuss the statement. [25]

Economics Model Essay 9

Discuss whether globalisation would benefit firms and households. [25]

Economics Model Essay 10

Discuss whether increasing labour productivity in Singapore would be desirable for the economy. [25]

Economics Model Essay 11

(a)   Explain how the different characteristics of the market structures of monopolistic competition and oligopoly affect pricing and output decisions. [10] (b)   Discuss whether the behaviour of oligopolistic firms is consistent with the objective of profit maximisation. [15]

Economics Model Essay 12

(a)   Explain whether the demand for private cars is elastic or inelastic in Singapore with respect to price and income. [10] (b)   Discuss the effects of a sharp rise in the prices of Certificates of Entitlement in Singapore on expenditure by consumers on different types of cars. [15]

Economics Model Essay 13

(a)   Compare the characteristics of the market structures of monopolistic competition an oligopoly. [10] (b)   Discuss whether firms in a highly competitive market are more vulnerable than firms in a less competitive market in a recession. [15]

Economics Model Essay 14

Discuss whether the concepts of elasticity of demand are useful to the government for discouraging the use of private cars. [25]

Economics Model Essay 15

Discuss whether a shift from reliance on foreign workers to improving labour productivity in Singapore would lead to an increase in international competitiveness. [25]

Economics Model Essay 16

(a)   Explain why the government subsidises education. [10] (b)   Discuss whether a reduction in the subsidy on education is justified. [15]

Economics Model Essay 17

Discuss whether austerity measures in the European Union would adversely affect the Singapore economy. [25]

Economics Model Essay 18

Discuss whether a shift from direct taxes to indirect taxes would improve the current and future standards of living in Singapore. [25]

Economics Model Essay 19

(a)   Explain why Singapore chooses to use the exchange rate rather than interest rates as the policy instrument of its monetary policy. [10]

Note: All rights reserved. No part of these publications may be reproduced, stored in a retrieval system, or transmitted by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Economics tutors and teachers who wish to use the materials for teaching may submit a request to Economics Cafe. The content in the economics model essays will be discussed in greater detail in   economics tuition .  

Answers To Singapore-Cambridge GCE ‘A’ Level Economics Examination Questions

Singapore-cambridge gce ‘a’ level economics essay mark scheme.

Economics Tuition Singapore @ Economics Cafe Principal Economics Tutor: Mr. Edmund Quek

How to Write a Good Economics Essay

Governor November 28, 2019 Real World Applications 3 Comments

Many students ask “How to write an economics essay?” This Guide to Writing a Good Economics Essay is applicable to both IB economics as well as the Singapore JC A-Level H2 economics examinations. Many of the pointers here are also applicable to large-mark case study questions.

6 Steps to Writing a Good Economics Essay

Step 1: dissect the question.

Make sure you analyse and fully understand the KEYWORDS and REQUIREMENTS of the question. This is a very important skill that is taught in our economics tuition classes .

For example, “Best”, “Most Effective” are closely related but mean different things.

Paraphrase the question to make it simpler if necessary.

Take note of the command word (eg: Explain, Discuss) as it determines the approach needed for the essay, for example, whether two sides are needed or one side is sufficient. Below are some common examples found in economics essay questions:

Command Words                                      Action Required

Account for                                                 Explain why

Analyse                                                        Break it down into step-by-step explanations

Assess                                                          For & Against. Consider other factors.

Compare                                                      Identify Similarities & Differences

Distinguish                                                   Point out differences

Discuss                                                        Explore both sides

Evaluate                                                       The Good and The Bad.

Explain                                                          Show why and how

Explain whether                                            Cover both possibilities

Examine                                                        Look closely. How so and how not so?

To What Extent                                              Yes…..But….Judgment

Remember to look out for the context in the question. This is usually given in the form of a country (eg: Singapore). The examples in your essay must be tailored to this particular context (for example, do not suggest interest rate policy for Singapore as that is considered infeasible in the Singapore context). If no context is given, any real-world example can be used.

Keep in mind the question throughout the essay and remember to always answer the question. Don’t go off-point!

Common Examiner’s Comment :  Not Answering Question (NAQ))

Step 2: Plan Your Answer

Take some time to consider what economic framework you will use to approach the question. Scribble down your main thesis and anti-thesis points. Ensure they ANSWER THE QUESTION.

Step 3: Essay Introduction

In the introduction, include definitions of keywords in the question and spell out the economic framework you will employ for your answer as well as key definitions.

Step 4: Body of Essay

In the body , there will be several paragraphs. 

The number of points/paragraphs depends on the question. It is common to require 2 main points for each 10 mark essay and similarly for 15 mark essay questions. Under each main point, there may be 1-2 sub-points.

Use one paragraph for each sub-point you are making.

However, do not be too focussed on the number of points or paragraphs. The key is to answer the question.

For each body paragraph , use TET’s PEEL(ED) structure. Include only one main idea per paragraph.

• Point – Write your point in the first sentence so that markers will know what the paragraph will be about. The topic sentence must directly answer the question!
• Explanation – Explain what you mean
• Elaboration – Provide further analysis with clear step-by-step economic reasoning. This part may be done with examples as well as diagrams.
• Link – Link your explanations back to the Point and to answer the question.
• Exemplification – Give an example to support your reasoning. It can be statistics or real-world examples (for Case Studies, evidences from the Case must be uncovered!)
• Diagram – Where possible, araw an appropriate diagram with correct labelling and refer to it in your answer. This is crucial to show economic reasoning. Diagrams are very important for economics essays!

These are of course much easier said than done! Thus, students in our economics tuition classes are regularly honed to achieve such output including with tips and tricks to spark off the correct thinking process.

Our resources including the Study Guides for A Level and IB economics also provide a very powerful and handy reference on the depth of analysis required to score the highest marks.

Common Examiner’s Comment :  Mere statements and claims. No economic rigour.

Step 5: In-Body Evaluation

This applies especially to the 15 mark essays for A-Level Economics. A total of 5 marks is catered for Evaluation. Students should attempt to achieve about 2-3 in-body evaluation marks by pointing out how the thesis and anti-thesis points may not be true due to certain assumptions made that may not hold. Students may write “However,….may not necessarily happen……It would depend on whether….”. This statement can be written after the associated sub-point has been made.

Step 6: CONCLUDING SECTION

This only applies to the 15 mark essay questions.

Earn more evaluation marks by making a reasoned judgement. Deliver your verdict like a Judge! 

Check back on the question before you embark on this. Ensure your judgement answers the question.

So the question now is, how does a judge arrive at and deliver a verdict? Certainly, you should not be summarising or merely paraphrasing your main points in the conclusion. Obviously, you cannot expect more marks by saying the same thing over and over again!

After a verdict and reasons have been provided, consider providing further relevant insights and/or recommendations.

Common Examiner’s Comment :  Repetitive. Mere Summary.

Here are some quite common types of Concluding Sections 

• Consider the relative importance of thesis and anti-thesis factors. Which factors are most important or pertinent in the given context? For example, certain policies better fit specifc types of economies.
• Consider short-term vs long-term pros and cons. Do the short-term benefits outweigh the long-term costs? Is the policy more effective in the long-term, and if so, how pressing is the problem that needs to be addressed?
• Suggest a multi-policy approach, in which each policy has strengths and weaknesses that allow them to complement each other.

There is no way to really memorise evaluation points as every question and context is different. After all, you are being tested on higher-order thinking!

There are other evaluation tips that our students will receive but the key point here is that the training of the mind to think and apply economics is essential. That is where our weekly economics lessons come into play and that is why our students are often asked questions in class and trained to think on their feet. As ex-student Xue Min from YIJC testified, Chief Tutor Mr. Kelvin Hong does not just spoon-feeds our students but mentors them in their thinking to arrive at the answers. This was different from other tutors that her classmates experienced and eventually this was the key to Xue Min’s A grade.

In your essay, write in simple and clear sentences. Everything you write should be value-adding. You do not have to spend time showing off vocabulary as no extra points are awarded for language. Focus on economic reasoning. Use succinct and effective examples which support the point you are trying to make as well as accurate diagrammatic analyses.

For samples of great economics essays, please check out our free Economics Model Essays and sample Past JC A-Level Economics Questions and Answers .

For our econs publications that are sold worldwide, please check out our A Level & IB Economics Study Guides and Model Essays Publications

About The Economics Tutor

Founded by Kelvin Hong in 1998, The Economics Tutor is one of the leading economics tuition in Singapore. We provide a comprehensive program to guide students in understanding complex economic concepts and applying them through case study analyses, essay writing and discussion of real world events.

For 24 years, the way we teach JC Economics Tuition (A Level Economics Tuition) and IB Economics Tuition classes helped learners appreciate economics and everything it entails on a much larger scale. We take things step-by-step, implement effective techniques in memorising frameworks and give every student the chance to nurture their ideas. 

We don’t just solely focus on helping you get stellar grades and perfect scores. We make sure that we also hone the critical thinking skills and investment / business decisions you can use outside the four walls of your classroom.

Looking for a fun, engaging and probably the best economics tutor in Singapore? Look no further—check out our extensive and high quality economics resources on the website such as our IB and A Level Economics Publication. Click here to order .

Book your lesson today and master the nuances of economics in our next class!

its good knowledgeable post regarding ib economics commentaries. i just wanted to admin can i use your blog as reference to my students .

Go ahead. We are all for helping students learn economics well.

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Economics Essay Examples

Ace Your Essay With Our Economics Essay Examples

Published on: Jun 6, 2023

Last updated on: Jan 31, 2024

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Are you struggling to understand economics essays and how to write your own?

It can be challenging to grasp the complexities of economic concepts without practical examples.

But don’t worry! 

We’ve got the solution you've been looking for. Explore quality examples that bridge the gap between theory and real-world applications. In addition, get insightful tips for writing economics essays.

So, if you're a student aiming for academic success, this blog is your go-to resource for mastering economics essays.

Let’s dive in and get started!

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What is an Economics Essay?

An economics essay is a written piece that explores economic theories, concepts, and their real-world applications. It involves analyzing economic issues, presenting arguments, and providing evidence to support ideas. 

The goal of an economics essay is to demonstrate an understanding of economic principles and the ability to critically evaluate economic topics.

Why Write an Economics Essay?

Writing an economics essay serves multiple purposes:

• Demonstrate Understanding: Showcasing your comprehension of economic concepts and their practical applications.
• Develop Critical Thinking: Cultivating analytical skills to evaluate economic issues from different perspectives.
• Apply Theory to Real-World Contexts: Bridging the gap between economic theory and real-life scenarios.
• Enhance Research and Analysis Skills: Improving abilities to gather and interpret economic data.
• Prepare for Academic and Professional Pursuits: Building a foundation for success in future economics-related endeavors.

Paper Due? Why Suffer? That's our Job!

If you’re wondering, ‘how do I write an economics essay?’, consulting an example essay might be a good option for you. Here are some economics essay examples:

Short Essay About Economics

A Level Economics Essay Examples

Here is an essay on economics a level structure:

Band 6 Economics Essay Examples

Here are some downloadable economics essays:

Economics essay pdf

Economics essay introduction

Economics Extended Essay Examples

In an economics extended essay, students have the opportunity to delve into a specific economic topic of interest. They are required to conduct an in-depth analysis of this topic and compile a lengthy essay. 

Here are some potential economics extended essay question examples:

• How does foreign direct investment impact economic growth in developing countries?
• What are the factors influencing consumer behavior and their effects on market demand for sustainable products?
• To what extent does government intervention in the form of minimum wage policies affect employment levels and income inequality?
• What are the economic consequences of implementing a carbon tax to combat climate change?
• How does globalization influence income distribution and the wage gap in developed economies?

IB Economics Extended Essay Examples 

IB Economics Extended Essay Examples

Economics Extended Essay Topic Examples

Extended Essay Research Question Examples Economics

Tips for Writing an Economics Essay

Writing an economics essay requires specific expertise and skills. So, it's important to have some tips up your sleeve to make sure your essay is of high quality:

• Start with a Clear Thesis Statement: It defines your essay's focus and argument. This statement should be concise, to the point, and present the crux of your essay.
• Conduct Research and Gather Data: Collect facts and figures from reliable sources such as academic journals, government reports, and reputable news outlets. Use this data to support your arguments and analysis and compile a literature review.
• Use Economic Theories and Models: These help you to support your arguments and provide a framework for your analysis. Make sure to clearly explain these theories and models so that the reader can follow your reasoning.
• Analyze the Micro and Macro Aspects: Consider all angles of the topic. This means examining how the issue affects individuals, businesses, and the economy as a whole.
• Use Real-World Examples: Practical examples and case studies help to illustrate your points. This can make your arguments more relatable and understandable.
• Consider the Policy Implications: Take into account the impacts of your analysis. What are the potential solutions to the problem you're examining? How might different policies affect the outcomes you're discussing?
• Use Graphs and Charts: These help to illustrate your data and analysis. These visual aids can help make your arguments more compelling and easier to understand.
• Proofread and Edit: Make sure to proofread your essay carefully for grammar and spelling errors. In economics, precision and accuracy are essential, so errors can undermine the credibility of your analysis.

These tips can help make your essay writing journey a breeze. Tailor them to your topic to make sure you end with a well-researched and accurate economics essay.

To wrap it up , writing an economics essay requires a combination of solid research, analytical thinking, and effective communication. 

You can craft a compelling piece of work by taking our examples as a guide and following the tips.

However, if you are still questioning "how do I write an economics essay?", it's time to get professional help from the best essay writing service -  CollegeEssay.org.

Our economics essay writing service is always ready to help students like you. Our experienced economics essay writers are dedicated to delivering high-quality, custom-written essays that are 100% plagiarism free.

Also try out our AI essay writer and get your quality economics essay now!

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Up: Home : Study Guidance > Effective Writing and Referencing > Writing the Economics Essay

• Writing the Economics Essay

An academic rhetoric (or organisation) is important to convince a reader that you understand the topic well – poor organisation can signal muddled thinking.

Thesis – Justification – Support

This is the rhetoric used by Bray et al.

Thesis – the main concept or idea that you are proposing

Justification – the reasons why your thesis is valid

Support – evidence that backs up your justification

Essay structure – your introduction, main body, and conclusion

Box: An example

The Thesis – Justification – Support rhetoric can be applied to an individual paragraph of an essay, or on an entire essay. For example, take the essay question:

‘The accumulation of capital is sufficient for ensuring sustainable growth in per capita living standards’. Discuss.

One possible answer would be:

Thesis: if we define capital as physical capital, the accumulation of capital will lead to diminishing returns

Justification: Demonstration of the Solow model : capital accumulation can result in higher levels of income but after a certain level not higher levels of consumption per capita (due to diminishing marginal returns).

Support: examples, such as India’s heavy investment drive in the 1950s, 1960s which was associated with low levels of ‘Hindu growth’; or econometric evidence, such as that from Mankiw, Romer and Weil (1992), which supports some of the conclusions of the Solow model (but also suggests improvements, see below).

The next section of the essay would play with the assumptions of the Solow model – for example by expanding our definition of capital to include human capital (and, if you’re really trying to impress, social capital and ‘natural’ capital as well).

You might also want to discuss if technological progress (the source of per capita income growth in the Solow model) is related to capital accumulation, for example through ‘ learning by doing ‘ (Arrow, 1962)

Previous: Effective Writing and Referencing

Next: What makes good justification?

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Economics : Model Essays (Second Edition)

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Economics: Model Essays is the 2nd edition of the best-selling revision guide that helps students gain a strong grade in the essay component of the 2023–2025 Cambridge International AS & A Level Economics (9708) examination paper. With over 50 new model essays, the book provides a clear essay structure for each essay, various tips, and conceptual diagrams on basic economics concepts to give an overall insight into each subject topic.

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Use of real data in A-Level economics exams

Readers Question: I wanted to ask if it is necessary to include some facts, figures or information about what is really going on in the world. I am not really sure about it. I’ve seen my friends include details like the National Income figure of some countries or mention recession and what is really going on in the world to illustrate their answers.

As an examiner, I can say it is possible to get full marks without remembering data from the real world. It is certainly not required.

However, having said that, I think a good student should have a reasonable background on the main trends which the economy has been experiencing. e.g. if you don’t know the UK has experienced a recession in the past few years, then this is a limiting factor. You don’t need to memorise the fact GDP fell 6% in 2009, and recovered by +0.6% in Q2 2013 – this kind of detail is not expected (I can’t always remember off the top of my head.)

I remember one A-Level question (2007): Explain the trends in UK unemployment in past 10 years. – If you didn’t know unemployment had fallen in the years 2007-1997, you would struggle. You don’t need to remember any exact figures like the unemployment rate, but you should be aware of the main trends.

As a teacher, you also tend to find there is a very strong correlation between students who take an interest in the real world economy and those students who get good grades. I think this is for a few reasons:

• If people take time to read about what is going on in the economy, they are very likely to spend more time understanding the theory too.
• One of the best ways to learn theory, is to read what is happening in the economy and relate it to the material. I remember as an A-Level student, I always got mixed up about the effects of a devaluation. But, because I read newspapers, I could always remember that when the Pound fell, exporters were generally happy. So I could check that I was writing a devaluation makes exports cheaper and increases the quantity of exports.
• Using examples from the real world can make an answer much stronger. For example, if you have a question:

– Discuss the effect of an interest rate cut

• A satisfactory answer would say lower interest rates should increase spending and AD because borrowing is cheaper. But, if you know about the UK economy, you could add for evaluation:
• However, a cut in interest rates doesn’t always stimulate higher economic growth. When the Bank of England cut interest rates to 0.5% in 2009, there was little increase in spending. This was because consumer confidence was low, therefore, although interest rates were zero, we didn’t see much increase in investment and spending because people still preferred to save. Also, a cut in interest rates will not have much effect if commercial banks don’t pass the interest rate cut on to consumers. In 2009/10 many banks didn’t pass the full base rate cut onto consumers.

This is just one example of how some knowledge about what is happening in the economy can give you ideas for essays – especially evaluation, and you will get credit.

What practical steps to take?

1. Have a look at summary of main trends in the UK economy (I will post a summary soon). But you can have a look at main stats here

2. Don’t waste time trying to remember exact figures. But, try to look at big economic stories and spend time understanding how they can relate to theory. e.g. why was inflation high in 2008? why has unemployment increased? What could explain UK current account?

3. Always make sure your answer includes  basic theory and models like AD/AS diagrams.

• Writing evaluative essays
• Tips for writing essays

2 thoughts on “Use of real data in A-Level economics exams”

Could you please exaplain how Positive externality (external benefit) lead to market failure in property industry?

Thank you RYAN

A positive externality is a positive side effect on third parties as a result of the actions of a producer or provider and / or the consumer. The property industry can be private or commercial. In other words homes or businesses. So when property is provided side effects that are positive might be ….the impact on related businesses and community from the extra business created. Furthermore when consumers invest in their own property by tidying it up or extending it in an aesthetically pleasing way other properties values are enhanced and so there results in a positive seide effect. Hope this helps?

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How to Approach the A Level H2 Economics Essay Section

As a subject that few have encountered prior to entering JC, A Level H2 Economics leaves many feeling daunted. Students often find that Economics is nowhere similar to O Level Social Studies or History or any other humanities subject previously taken. As a Social Science, A Level H2 Economics systematically approaches the study of human society through frameworks that could very well resemble Scientific methodology. Nevertheless, regardless of how you view the subject, studying for the A Level H2 Economics exams can be extremely fulfilling and interesting!

Zenith, Singapore’s top JC tuition center strives to simplify and delineate complex concepts for our students by introducing them to relevant, everyday applications of various Economic principles. Our team of dedicated tutors then equips students with the critical thinking skills essential for applying their knowledge to meet question demands during the A Level H2 Economics exam. In this article, Zenith breaks down the requirements for the A Level H2 Economics essay questions while equipping you with the skills to ace them. The A Level H2 Economics Paper 2 comprises only essay questions which accounts for a whopping 60% of your final grade . As such, it is imperative that you do well for this paper if you want to secure that ‘A’ grade for A Level H2 Economics!

What does the A Level H2 Economics essay paper (Paper 2) require of me?

As with every subject, understanding the demands of the A Level H2 Economics essay questions helps you to develop a clear framework for approaching them. Knowing what is required of you means that you will be able to devise a comprehensive study checklist when preparing for the A Level H2 Economics exam. While a strong grasp of content is important , the A Level H2 Economics essay expects that you will be able to contextualise your knowledge to the given question, while also evaluating the validity of various Economic concepts. You should also be able to introduce relevant examples to support your points .

Fig 1. An overview of the A Level H2 Economics Paper 2 Requirements from the Singapore Examinations and Assessment Board (SEAB)

As Fig 1 shows, you will be required to attempt at least one question on Microeconomics and one question on Macroeconomics. For the third essay, you will be able to choose if you would like to attempt another question on Microeconomics or Macroeconomics. In other words, you will choose one of the following permutations :

• 2 questions on Microeconomics + 1 question on Macroeconomics
• 1 question on Microeconomics + 2 questions on Macroeconomics

As shown in Fig 2 below, any of the subtopics under the three central themes in the A Level H2 Economics syllabus may be tested as an essay question. Only Theme 3, “The National and International Economy”, falls under Macroeconomics. Themes 1 and 2 are under Microeconomics.

Fig 2. The A Level H2 Economics Syllabus from SEAB

Aside from being very familiar with various Economics concepts, it is also evident from the earlier figure, Fig 1, that the A Level H2 Economics essay paper (Paper 2) requires candidates to think fast. Dividing the duration of the paper (2 hours and 15 minutes) between 3 essays, you only have 45 minutes to tackle each essay. To successfully complete the paper, you will need to write fast in a clear and concise manner to cover all the content points which are expected of you.

At Zenith, our team of dedicated educators embarks with students on a rigorous journey to ace their A Level H2 Economics Papers. Our curriculum is meticulously curated to emphasise important key concepts, and “cheat sheets” are provided for all our students to streamline their learning and revision process. Our educators also provide one-to-one consultations and reviews of assignments and assessments for all our students; during these sessions, students are free to bring up any concerns they have. Thereafter, our educators frequently also assist students in devising effective study schedules and techniques by pinpointing specific areas of improvement to focus on.

How do I finish my papers? I am writing as fast as I can, but it just seems impossible!

As Singapore’s top Economics tuition center, Zenith understands that the A Level H2 Economics Paper 2 is a mad race against time. While 45 minutes is an undeniably short amount of time for writing a complete essay, many have overcome the challenge with effective time management skills.

To complete all three essays, Zenith recommends that you do not dwell excessively on each individual point in your essay. Elaborating on your points excessively means that you might not be able to complete the paper. Since the A Level H2 Economics marking scheme awards marks to students not only based on the level of detail in their answers but also based on the number of relevant points they are able to introduce, having lesser or incomplete points puts you at a disadvantage. For instance, to ace an essay question on Market Structure, you will need to have the key content points raised in this article . Explaining only one out of all the required content points in a long-winded fashion will not get you the marks you are hoping for!

How do I know what the question is asking me? The syllabus has so many things that it’s very difficult for me to shortlist the concepts I should explain in my essay!

Another common problem that students face when writing the A Level H2 Economics essays is the sheer depth and breadth of content that they have to constantly grapple with. Having spent 2 years in JC trawling through countless concepts, examples, and specialised terminology, students often find themselves extremely confused when planning their essays. Am I supposed to include this concept…? It doesn’t seem relevant but what IF I need it…? Never mind, let’s just include everything…

The above thought process is not an uncommon one, but it is detrimental to your A Level H2 Economics grade for two reasons:

• Including irrelevant concepts means you’re likely wasting precious time ! For a paper as short as the A Level H2 Economics Paper 2, time is of the essence.
• Including irrelevant concepts shows a poor grasp of the question demands , as well as the topics you have studied. Instead of boosting your marks, approaching your essay this way might actually cause your marks to be deducted.

To ensure that your essay is relevant, incisive, and informative, you should first analyse the essay question in depth. Like any other essay question, the A Level H2 Economics essay questions have keywords. Most of them also consist of a preamble which provides you with a scenario and some statistics. In any case, you should utilise the given information during the planning process and make reference to it in your essay.

There are also two types of question formats that can appear during the A Level H2 Economics Paper 2:

1. One question that is worth 25 marks on its own . For example, this essay question from the 2014 A Level H2 Economics Paper 2:

In 2012 the UK had very poor harvests for grain and potatoes, which are major ingredients of many of the foods of UK consumers and also provide feed for much of Britain’s livestock. At the same time there was a decline in the real incomes of many UK citizens, especially those on low incomes.

Using economic analysis, discuss the impact these events are likely to have had on UK consumers and farmers. [25]

To answer this question satisfactorily, you need to identify the key concerns in the question. The main economic agents in the question are consumers and farmers. Consumers here likely refers to UK citizens instead of international consumers as the preamble specifically mentions that there was a decline in the real incomes of many UK citizens. Since the question alludes to the Demand and Supply concept by mentioning that the poor harvests will need to cater to a wide variety of needs, you will be expected to bring in concepts of Price Elasticity .

For this question, being well read-up on the state of Economic affairs in the world will also benefit you. In 2012, the UK was going through a recession. Being able to provide this piece of contextual knowledge in your introduction will impress upon your markers that you have made the effort to go beyond the theoretical by understanding how Economic forces work in the real world .

2. Two questions, one that is worth 10 marks while the other is worth 15 marks. For example, this essay question from the 2012 A Level H2 Economics Paper 2:

During 2009 the Bank of England engaged in what is known as ‘quantitative easing’ by pumping more than £200 billion into the economy. Record low levels of interest rates have also been maintained within the UK economy. Quantitative easing and low interest rates were also adopted by the US.

(a) Explain why exchange rates rather than interest rates are the preferred choice as the instrument of monetary policy in Singapore. [10]

(b) Discuss the likely impact on the Singapore economy of quantitative easing and low interest rates in the US and the UK. [15]

For questions with two parts, it is important to figure out how Part a) is related to Part b). Knowing how Part a) leads to Part b) will help you to plan a more coherent two-part answer which considers the information provided in the preamble in a critical and logical manner . In Part a), you would have established that exchange rates are preferred over interest rates in Singapore for various reasons. Part b) furthers this line of enquiry by asking you to consider the effects of interest rates in other economies (like the UK or US) on Singapore.

Part a) is a relatively typical question on the theoretical mechanics of monetary policies in Singapore. You would not need to bring in the UK in Part a). Rather, you will need to explain how both exchange rates and interest rates work as instruments of monetary policy. Thereafter, you should apply contextual knowledge to explain why managing exchange rates is more beneficial in the Singaporean context. You can bring in a comparison with a country that utilises interest rates, for instance, the US. In the example, it is also worth noting that the questions focus on Singapore despite the preamble focusing on the UK . This indicates that one or both of the questions might expect you to analyse how external factors affect Singapore’s economy. We have established that bringing in the UK is not necessary for Part a), however, for Part b), the question demands that you consider how low interest rates in the UK and the US might affect Singapore’s economy. You should consider both negative and positive effects in your answer. In essence, the question expects you to examine the Singapore economy’s relationship with the US and UK’s economies.

Again, for this question, possessing external knowledge about the state of Economic affairs in the world might benefit your analysis and evaluation. In 2009, the entire world was going through the end of The Great Recession. Many economists described it as the most severe recession since the Great Depression as many economies, including that of the UK and Singapore, had shrunk so considerably that government intervention was at an all-time high. Having contextual knowledge enables you to base your discussion on more relevant examples that better support your application of Economic theories.

Now that you understand what the essay question is asking of you, the next step is to plan your essay. Planning an A Level H2 Economics essay is not quite the same as planning an argumentative essay. Instead of requiring you to take a stand, the A Level H2 Economics essay is discursive in nature. It demands that you objectively explain the Economic principles that you have been taught. As such, when planning the A Level H2 Economics essay, your focus should be on shortlisting the concepts relevant to the question.

Do you have any tips on how I should plan my essay? My plan often ends up cluttered and confusing, which means I don’t follow it when I’m writing!

The first thing Zenith recommends for you to do is to write things down. Many of us get easily disoriented by our own influx of thoughts which just seem unstoppable . This is especially so at the A Level H2 Economics exams where we are under extreme pressure to perform. Writing down the concepts which come to you spontaneously prevents them from slipping out of your mind again. Thereafter, you should shortlist the concepts you want to mention in your essay. It is likely that some of the concepts which came to you are more relevant than others. In any case, do not overload your essay with too many concepts! You should not be covering an entire theme in one essay! Decide which are important for mentioning, and in what order. Next, briefly jot down how you will elaborate on them, and also remember to note down any relevant examples you can think of. After that, you’re good to go! Start writing your essay and try to complete it within 45 minutes. Where relevant, also include clearly labeled diagrams in your essays!

Here is an example of how you can plan your essay by mapping out what you should include in each paragraph:

Fig 3. An example of an essay plan based on a question from the 2012 A Level Economics Paper 2

For questions with 2 parts, there is one extra crucial step that you must do when planning your essay. You have to make sure that none of your points in either of the parts overlap. Despite being split into two parts, markers typically read your answers as a cohesive whole. This means that any overlapping points are only credited once . If you do not have sufficient content points aside from the overlapped one, your marks will be jeopardised. Avoid this by planning for the entire question before writing. In other words, you should plan your answers for both Part a) and Part b) before commencing to write Part a). It is also advisable that you attempt the questions in the order in which they were set as Part a) typically sets the foundation for Part b), as explained earlier.

Combating the A Level H2 Economic essays can feel frustrating at times, but with Zenith’s comprehensive approach to the essay questions, we trust that you will be able to ace your exams! A Level H2 Economics might not be the easiest subject, but you can definitely get the hang of it with the right guidance and constant practice! Keen to join your peers in a conducive learning environment with round-the-clock support from a team of expert educators who truly want the best for you? Join our H2 Economics tuition programme in Singapore today! Otherwise, you can contact us for a free trial or hear more from our students here !

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A-Level Economics Model Answers (for Edexcel Past Papers)

Download A-Level Economics Model Answers for Edexcel past papers below for A2 and AS. These candidate responses were extracted from Edexcel exam board’s examiners’ reports and were graded by Edexcel examiners. All new specification Economics papers and their model answers are now available including Paper 1 (Microeconomics), Paper 2 (Macroeconomics) and Paper 3 (Synoptic).

Relevant resources: Download Edexcel A2 Economics past papers for students studying A2 Economics in their second year. Download Edexcel AS Economics past papers for students studying AS Economics in their first year. Visit our Edexcel Economics notes & questions by topic for practicing and revising certain areas of the course.

Economics Model Answers for A2 (Year 2)

Edexcel 2018 Economics A Paper 1 Model Answers Download

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Economics Model Answers for AS (Year 1)

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Need help with these Edexcel Economics past papers? Ask our Economics Tutor a free question or get a personalised 1 to 1 online lesson with us today. Alternatively, check out our Edexcel Economics revision notes to refresh your memory.

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Essay Plan: Limits on Monopoly Power

Last updated 30 Oct 2019

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In this revision video we build an answer to this question: “Using applied examples of your choice, examine two factors that might limit the monopoly power of a business.”

In theory, a firm with monopoly power such as Coca Cola which has over 40 percent of the US carbonated drinks market, has huge scope to keep their prices higher than they might be if they faced more intensive competition and therefore earn high supernormal profits. The existence of barriers to entry in the market such as strong brand loyalty, patents and copyrights also means that these abnormal profits persist in the long run generating higher returns for shareholders perhaps at the expense of consumer welfare. Brand loyalty makes demand for a firm’s products more price inelastic and this allows a business to set prices higher and extract consumer surplus turning it into producer surplus.

However, one constraint on monopoly power can be the role played by industry regulators who might act as a surrogate competitor even in markets where the degree of contestability is low. A good example of this in the UK has been the energy price cap imposed by OFGEM on the leading electricity and gas suppliers in what is an oligopolistic industry. A price cap constrains what a firm can charge which - in theory - leads to lower prices and a reduced level of supernormal profit. This is shown in my analysis diagram - we can see that total profit is lower, prices down and output higher than under a single price profit maximising monopoly. The impact of a regulatory price cap depends on where the ceiling is set and also whether suppliers respond to maximum prices by successfully cutting their own operating costs to protect profit margins.

In some industries, monopoly power is strong because established firms can take advantage of internal economies of scale which reduces their long run average cost (LRAC) and gives them a significant cost advantage over smaller rivals and also potential entrants. Economies of scale lead to higher profits and also make it more difficult for competitor businesses to successfully enter an industry. A good example of this might be the leading commercial banks such as Barclays, Lloyds and HSBC all of whom - under normal economic circumstances - make very high profits of hundreds of millions of £s each year. There are some challenger banks in the industry such as Metro Bank, but many are finding it hard to growth quickly enough to become a genuine threat to the incumbent operators. If these new banks make little impact, then commercial banks with market power can continue to offer low interest rates for savers and also charge more for personal and business loans. In some industries - known as natural monopolies - economies of scale are vast implying that only one supplier can fully exploit them. In this case, competition is likely to remain limited and market power will remain strong in the long run.

However, although economies of scale can give established banks a built-in advantage, market power can be eroded by the impact of new technologies. An example of this can be seen in retail banking services with the relative success of tech-savvy businesses such as Starling and the App-only bank Monzo which is currently the fastest-growing bank in the UK with over 2.5 million customers with savings deposits of over £1 billion. Many challenger firms operate with a different business model to existing firms and they can compete aggressively in price and non-price terms by targeting better what larger firms may have ignored. Their operating costs are usually much lower and they are less at risk of experiencing diseconomies of scale or X-inefficiencies that often plague firms with a dominant market position. Indeed in many sectors, technological change is reducing the barriers to entry for smaller enterprises, many of whom can use internet platforms such as Amazon web services to sell direct to customers. If entry barriers are lower, then a market becomes more contestable and monopoly power is diminished.

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