AS Economics Unit 1 Exam technique

Marks and timings The exam is one hour, 30 minutes, and has 80 marks available That is one mark per minute, plus 10 minutes reading time Section A (multiple choice) = 32 marks; 35 minutes Section B (data response) = 48 marks; 55 minutes

Multiple choice – marks 4 marks in total: 1 mark for correct answer 1 mark for definition 1 mark explaining why correct answer 1 mark for either evaluation, diagram, explaining why the others aren’t correct or further explanations and/or definitions

Multiple choice – tips Answer the easiest ones first, you can always go back to the others You can also go back later and add anything extra and/or a diagram to support your answer Some can be answered by the ‘process of elimination’ Always give definitions Underline/highlight parts of the question to be sure and make sure you are answering the question Draw a diagram where appropriate

Multiple choice – common topics Positive/normative statements PPF Supply and Demand with shifts Elasticities (price elasticity of demand, income elasticity of demand, cross elasticity of demand, price elasticity of supply), including revenue Taxes and subsidies Public goods (and ‘free rider problem’) Functions of price Market and/or Government failure, including externalities Minimum/maximum pricing (including minimum wage) Asymmetric information

Data response – marks 2 = Calculation/good definition 4 = 2 points/definitions + explanations 6 = 2 definitions/points + application and explanations 8 = 2 definitions + 2/3 points applied and explained + 2/3 evaluation 10 = 2 definitions + 2/3 points applied and explained + 4 evaluation 12 = 2 definitions + 3 points applied and explained + 4 evaluation + 2 Quality of Written Communication (QWC)*

Data response – tips Read through both questions 9 and 10 first (5 minutes) and pick which one you are most comfortable with the questions of – indicate which you are answering in the box Underline/highlight key points in the case and the question – make sure you are answering the question Do the first question straight away, it is often the easiest Always give definitions Apply all answers in the context of the question The data is there to be used Develop your points, explaining fully – don’t be afraid to use up the paper! Always, where possible, include a diagram

Evaluation points Argue both for and against Make a reasoned judgment The _________ could depend upon:  Elasticity (of either or some of four)  Time (and time lag)  Magnitude/size of ________ (tax, subsidy, investment, population change – many points)  Opportunity cost (e.g. could be spent on something else)  Impact  Other factors (e.g. how well the economy is doing, other firms in the market, etc.)  Do the advantages outweigh the disadvantages or vice versa?  Which is the stronger case? See the ‘Evaluation phrases’ sheet

Data response – common topics Supply and Demand Elasticities Taxes and subsidies Buffer stocks Externalities (private and social costs, etc.) Market and/or Government failure Effects on individuals and/or firms PPF and opportunity cost Labour/geographical mobility