Advice from Geoff Riley (www.tutor2u.net) about final exam technique for the the AQA AS Economics Unit 1 paper (ECON1)

1. AQA AS Economics
Unit 1 (AS)
Micro Paper

2. Grade Boundaries for AS Micro
• Data is from the Jan 2011 paper (raw mark out of
a total of 75)
• For the paper as a whole – these were the grade
boundaries
• A: 54
• B: 47
• C: 40
• D: 34
• E: 28

5. •Obey key instruction words such as
define, compare, significant, explain and evaluate.
•Start a new paragraph on each occasion that a new argument or
line of reasoning is introduced into the answer

6. Market
Prices
Welfare Market
issues Failure
Govt Policy
Failure Options

7. Data Question (8 marks)
• Start each point of comparison or identification with a
separate paragraph
• Always give unit of measurement (e.g. $billion or % of
GDP)
• Avoid simple “data trawling”
• Take note of the question - e.g. “take note of the word
significant”
• Look for trends / volatility / convergence / divergence /
correlation
• Always put data into your answer
• Always make at least one calculation

8. Explanation questions (12 marks)
• E.g. With the help of a demand and supply diagram,
explain how a tax on the plastic bags distributed by
shops and supermarkets might affect the use of plastic
bags
1. Quality of diagrams matters a lot (labelling, clarity,
accuracy – size – at least 1/3rd of a side of A4)
2. Draw from prompts in the data when explaining
3. Double diagrams often work well
4. Remember the importance of elasticity of demand and
supply in shaping the analysis
5. Explanation requires building a “chain of reasoning”

9. Evaluation Question (25 marks)
• Max mark of 15/25 if there is no evaluation
• Analysis comes first! “good evaluation first requires
sound economic analysis of the issue or problem posed
by the question.”
• Examiners are keen to reward good awareness of
recent or current economic events
• Make good use of the extracts (including the data) to
score marks for application
• Go back to the charts / tables in the 25 mark question
– they are there for a reason!
• “Candidates do need to use the data explicitly when
responding to the context questions”

10. OK ... What to revise – what really
matters in the next 24 hrs?
• Be really prepared with knowledge of key definitions
• The power of market forces (crucial) – i.e. the role of signals
and incentives in driving resource allocation
• Elasticity of demand and supply and price volatility in
markets – and the consequences of this
• State provision versus the market
– Health care
– Public goods issues
• Benefits and costs of monopoly power / competitive forces
• Economic welfare and efficiency (including externalities)
• Supply and demand side interventions and their impact
• Government failure (crucial) – in the short and long run

11. Government failure
1. Decisions made in pure political self interest
2. Poor value for money from public sector
investment
3. Government policy myopia
4. Regulatory capture
5. Disincentives arising from specific policies
6. Information failures in government policies
7. The “law of unintended consequences”
8. The costs of regulation may outweigh the
benefits

12. Unintended consequences
• Higher capital gains tax – reduces new house building -
worsens housing shortages /affordability
• Bank bail-outs – raises the problem of moral hazard
• Bio-fuel subsidy – causes food price inflation and hits the
poorest in society
• Smoking ban – increases demand for and use of energy
inefficient patio-heaters
• Windfall tax on North Sea oil and gas companies led to a
huge fall in investment and exploration – just years before
oil prices surged
• Tariffs on steel – hits domestic car and construction firms
• Targets for treating patients – leads to reduction in the
quality of care e.g. Staffordshire General scandal

13. Wider context – consider the bigger picture
W and use it to weight your arguments
Efficiency – Does this achieve a more/less
E efficient allocation of resources?
Equality – Do some parties benefit more/less
E than others
Scope – How many people are affected by the
S point? Is it wide reaching or narrow?
Time – How long will it last, SR or LR or both?
T
Effectiveness – does it solve the issue that it
E was intended to solve?
Prioritisation – which of your points is the
P strongest and why. Be specific about the
context of the question
Scale or Magnitude – where people are
S affected how strong is the impact?

14. Above all ...... • Be strict on timing
• Develop one argument per
paragraph + evaluate
• Use lots of supporting
examples
• Make sure handwriting and
diagrams are legible
• Use more paper rather than
less
• Always finish with a reasoned
final paragraph – but don’t
repeat points already made
• Give the examiner plenty of
current context

15. For more help, follow tutor2u
on Twitter
tutor2u tutor2u_econ

16. Become a fan of tutor2u on
Facebook!
tutor2u on Facebook

17. Keep up-to-date with economics
stories, resources, quizzes and
worksheets for your business
course. Click the logo!