economics a level essay structure

Tips for writing economics essays

Some tips for writing economics essays  Includes how to answer the question, including right diagrams and evaluation – primarily designed for A Level students.

1. Understand the question

Make sure you understand the essential point of the question. If appropriate, you could try and rephrase the question into a simpler version.

For example:

Q. Examine the macroeconomic implications of a significant fall in UK House prices, combined with a simultaneous loosening of Monetary Policy.

In plain English.

• Discuss the effect of falling house prices on the economy
• Discuss the effect of falling interest rates (loose monetary policy) on economy

In effect, there are two distinct parts to this question. It is a valid response, to deal with each separately, before considering both together.

It helps to keep reminding yourself of the question as you answer. Sometimes candidates start off well, but towards the end forget what the question was. Bear in mind, failure to answer the question can lead to a very low mark.

2. Write in simple sentences

For clarity of thought, it is usually best for students to write short sentences. The main thing is to avoid combining too many ideas into one sentence. If you write in short sentences, it may sound a little stilted; but it is worth remembering that there are no extra marks for a Shakespearian grasp of English. (at least in Economics Exams)

Look at this response to a question:

Q. What is the impact of higher interest rates?

Higher interest rates increase the cost of borrowing. As a result, those with mortgages will have lower disposable income. Also, consumers have less incentive to borrow and spend on credit cards. Therefore consumption will be lower. This fall in consumption will cause a fall in Aggregate Demand and therefore lead to lower economic growth. A fall in AD will also reduce inflation.

I could have combined 1 or 2 sentences together, but here I wanted to show that short sentences can aid clarity of thought. Nothing is wasted in the above example.

Simple sentences help you to focus on one thing at once, which is another important tip.

3. Answer the question

Quite frequently, when marking economic essays, you see a candidate who has a reasonable knowledge of economics, but unfortunately does not answer the question. Therefore, as a result, they can get zero for a question. It may seem harsh, but if you don’t answer the question, the examiner can’t give any marks.

At the end of each paragraph you can ask yourself; how does this paragraph answer the question? If necessary, you can write a one-sentence summary, which directly answers the question. Don’t wait until the end of the essay to realise you have answered a different question.

Discuss the impact of Euro membership on UK fiscal and monetary policy?

Most students will have revised a question on: “The benefits and costs of the Euro. Therefore, as soon as they see the Euro in the title, they put down all their notes on the benefits and costs of the Euro. However, this question is quite specific; it only wishes to know the impact on fiscal and monetary policy.

The “joke” goes, put 10 economists in a room and you will get 11 different answers. Why? you may ask. The nature of economics is that quite often there is no “right” answer. It is important that we always consider other points of view, and discuss various different, potential outcomes. This is what we mean by evaluation.

Macro-evaluation

• Depends on the state of the economy – full capacity or recession?
• Time lags – it may take 18 months for interest rates to have an effect
• Depends on other variables in the economy . Higher investment could be offset by fall in consumer spending.
• The significance of factors . A fall in exports to the US is only a small proportion of UK AD. However, a recession in Europe is more significant because 50% of UK exports go to EU.
• Consider the impact on all macroeconomic objectives . For example, higher interest rates may reduce inflation, but what about economic growth, unemployment, current account and balance of payments?
• Consider both the supply and demand side . For example, expansionary fiscal policy can help to reduce demand-deficient unemployment, however, it will be ineffective in solving demand-side unemployment (e.g. structural unemployment)

Example question :

The effect of raising interest rates will reduce consumer spending.

• However , if confidence is high, higher interest rates may not actually discourage consumer spending.

If the economy is close to full capacity a rise in interest rates may reduce inflation but not reduce growth. (AD falls from AD1 to AD2)

• However , if there is already a slowdown in the economy, rising interest rates may cause a recession. (AD3 to AD3)

Micro-evaluation

1. The impact depends on elasticity of demand

In both diagrams, we place the same tax on the good, causing supply to shift to the left.

• When demand is price inelastic, the tax causes only a small fall in demand.
• If demand is price elastic, the tax causes a bigger percentage fall in demand.

2. Time lag

In the short term, demand for petrol is likely to be price inelastic. However, over time, consumers may find alternatives, e.g. they buy electric cars. In the short-term, investment will not increase capacity, but over time, it may help to increase a firms profitability. Time lags.

3. Depends on market structure

If markets are competitive, then we can expect prices to remain low. However, if a firm has monopoly power, then we can expect higher prices.

4. Depends on business objectives

If a firm is seeking to maximise profits, we can expect prices to rise. However, if a firm is seeking to maximise market share, it may seek to cut prices – even if it means less profit.

5. Behavioural economics

In economics, we usually assume individuals are rational and seeking to maximise their utility. However, in the real world, people are subject to bias and may not meet expectations of classical economic theory. For example, the present-bias suggest consumers will give much higher weighting to present levels of happiness and ignore future costs. This may explain over-consumption of demerit goods and under-consumption of merit goods. See: behavioural economics

Exam tips for economics – Comprehensive e-book guide for just £5

9 thoughts on “Tips for writing economics essays”

I really want to know the difference between discussion questions and analysis questions and how to answer them in a correct way to get good credit in Economics

Analysis just involves one sided answers while Discussion questions involve using two points of view

This is a great lesson learnd by me

how can I actually manage my time

The evaluation points in this article are really useful! The thing I struggle with is analysis and application. I have all the knowledge and I have learnt the evaluation points like J-curve analysis and marshall learner condition, but my chains of reasoning are not good enough. I will try the shorter sentences recommended in this article.

What kind of method for costing analysis is most suitable for a craft brewery, in order to analyze the cost of production of different types of beer_

Really useful!Especially for the CIE exam papers

Does anyone know how to evaluate in those advantages/disadvantages essay questions where you would basically analyse the benefits of something and then evaluate? Struggling because wouldn’t the evaluation just be the disadvantages ?? Like how would you evaluate without just stating the disadvantage?

This is an excellent source of adbvise

Leave a comment Cancel reply

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How to Write a Good Economics Essay

Last Updated: July 16, 2024 References

This article was co-authored by Emily Listmann, MA . Emily Listmann is a Private Tutor and Life Coach in Santa Cruz, California. In 2018, she founded Mindful & Well, a natural healing and wellness coaching service. She has worked as a Social Studies Teacher, Curriculum Coordinator, and an SAT Prep Teacher. She received her MA in Education from the Stanford Graduate School of Education in 2014. Emily also received her Wellness Coach Certificate from Cornell University and completed the Mindfulness Training by Mindful Schools. This article has been viewed 129,369 times.

A good economics essay requires a clear argument that is well-supported by appropriately referenced evidence. Research your topic thoroughly and then carefully plan out your essay. A good structure is essential, as is sticking closely to the main essay question. Be sure to proofread your essay and try to write in formal and precise prose.

Preparing to Write Your Essay

• For example a question such as “Discuss the macroeconomic consequences of rising house prices, alongside falling interest rates” could be divided into 2 parts: 1 part could be on the effects of rising prices, and 1 on the effects of falling interest rates.
• In this example you could begin by discussing each separately and then bringing the 2 together and analysing how they influence each other.
• Be sure to keep the question at the forefront of your mind and don’t veer off topic. [1] X Research source

• Be sure that you understand all the key terms that you are being asked about.
• Try to keep your reading focussed closely to the essay question.
• Don’t forget to look at any lecture or class notes you have made.
• 3 Come up with a thesis statement . A thesis statement is the main argument you will make in your essay. It should be 1-2 sentences long and respond to the essential question that’s being asked. The thesis will help you structure the body of your essay, and each point you make should relate back to the thesis.

• Once you have put together a list of key points, then try to add in some more detail that brings in elements from your research.
• When you come to write out your essay, you can develop a paragraph based on each point.

• All of the evidence and explanation will be in the main body of the essay.
• Order the key points in the body of your essay in such a way that they flow logically.
• If you are writing a longer essay, you can break the main body into different sections. [2] X Research source
• If you have a word limit, be sure to take this into account when you are planning.
• Allocate yourself a rough number of words per section.
• The introduction and conclusion can be just a paragraph each.

Writing the Essay

• What your essay is about.
• What material you will cover in the essay.
• What your argument is. [3] X Research source

• Having this stated clearly at the start can help you to stay focussed on the question as you work your way through the essay.
• Try writing out this one or two sentence statement and sticking it up in front of you as you write, so it’s stays at the forefront of your mind.

• Try to begin each paragraph with a sentence that outlines what the paragraph will cover.
• Look at the opening sentence of each paragraph and ask yourself if it is addressing the essay question. [5] X Research source

• Try to engage with arguments that run counter to yours, and use the evidence you have found to show the flaws.
• It might help to imagine someone reading the essay, and anticipating the objections that he might raise.
• Showing that you have thought about potential problems, and you can make an argument that overcomes them, is a hallmark of an excellent essay. [6] X Research source
• If there is conflicting evidence, discuss it openly and try to show where the weight of the evidence lies.
• Don’t just ignore the evidence that runs counter to your argument.

• In the conclusion you can add a few sentences that show how your essay could be developed and taken further.
• Here you can assert why the question is important and make some tentative suggestions for further analysis.

Proofreading and Making Revisions

• As you read through it, think about how closely you stick to main overarching question.
• If you notice paragraphs that drift off into other areas, you need to be tough and cut them out.
• You have a limited number of words so it’s essential to make every one count by keeping tightly focussed on the main question.

• Think about how you use the evidence too. Do you critically engage with it, or do you merely quote it to support your point?
• A good analytical essay such discuss evidence critically at all times.
• Even if the evidence supports your argument, you need to show that you have thought about the value of this particular piece of data.
• Try to avoid making any assumptions, or writing as if something were beyond dispute.

• Remember an academic essay should be written in a formal style, so avoid colloquialisms.
• Avoid contractions, such as “don’t”, or “won’t”.
• Try to avoid paragraphs that are more than ten or fifteen lines long.
• Think about how it looks on the page. [8] X Research source

• Always include a bibliography, but don’t include references to things you haven’t read or didn’t inform your argument. [9] X Research source
• Your teacher will know if you just add a load of titles into your bibliography that are not evidenced in the body of your essay.
• Always follow the bibliography format used by your department or class.

Community Q&A

You Might Also Like

• ↑ http://www.economicshelp.org/help/tips-economic-essays/
• ↑ http://www.writing.utoronto.ca/advice/planning-and-organizing/organizing
• ↑ http://carleton.ca/economics/courses/writing-preliminaries/academic-essay-writing/
• ↑ https://www.economicsnetwork.ac.uk/archive/lse_writing/page_11.htm
• ↑ https://www.royalholloway.ac.uk/economics/documents/pdf/essaywriting-departmentofeconomics.pdf

About This Article

Before you begin writing your economics essay, make sure to carefully read the prompt so that you have a clear sense of the paper's purpose and scope. Once you have read the prompt, conduct research using your textbook and relevant articles. If you cannot find research materials, ask your instructor for recommendations. After your research is done, construct a 1-2 sentence thesis statement and begin outlining your main ideas so that your essay will have a clear structure. Make sure to leave time to write a draft and revise your work before it is due. If you want to learn more, like how to cite the sources you used for your essay, keep reading the article! Did this summary help you? Yes No

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Mastering the Art of A-Level Economics Essay Writing: Tips and Techniques

25 Oct Mastering the Art of A-Level Economics Essay Writing: Tips and Techniques

One of the paramount aspects of excelling in A-levels Economics is the mastery of the art of essay writing. Many economics students harbor two major fears when confronted with essay-type questions: the specter of time running out and the apprehension of failing to employ the correct writing style. It’s imperative to recognize that your writing style significantly influences your final grade.

In this comprehensive guide, we will explore various key points pertaining to writing styles in economics, how to enhance your skills, and delve into the significance and distinctive features of each technique.

The Significance of a Pristine Writing Style

The A-level economics examination paper encompasses essay writing and case study questions, with the former carrying more substantial weightage. In these essay responses, students are tasked with the critical challenge of articulating their ideas effectively, and herein lies the essence of a sound writing style.

Let’s introduce you to the invaluable “Three Tip Rule” to bolster your essay writing skills.

Tip 1: Precision

Precision in writing equates to crafting concise, straightforward sentences. Embrace the judicious use of full stops to avoid lengthy, convoluted sentences that might impede readability. Moreover, resist the temptation to nestle multiple ideas within a single sentence; this practice can mar clarity and comprehension. In exceptional cases where complexity is warranted, judiciously employ transition words to navigate through intricate notions seamlessly.

Tip 2: Perfection

Aptly chosen, the term “perfection” is emblematic of an area where students can gain easy marks in economics: precision through definitions and diagrams. Economists thrive on precision, and mastering the definitions of key terms is undeniably beneficial. By wielding definitions and diagrams effectively, students can elucidate complex concepts with clarity and finesse.

Tip 3: Be Focused

Another indispensable facet of the writing style in economics lies in unwavering focus on keywords. Upon perusing the question, swiftly underline the pivotal keywords that will shape your argument. This practice keeps your responses aligned with the core tenets of the question, fostering logical cohesion and making your answers more compelling. Furthermore, engender fluency in your writing by establishing thoughtful connections between these pivotal keywords.

Additionally, revisit the question periodically during your writing process. This perpetual reassessment ensures that your essay remains germane, as it reaffirms your focus on the quintessential issues under examination.

Mitigating Common Writing Challenges

Notably, not all students are naturally predisposed to writing fluency, or they may grapple with time management during examinations. Several common challenges arise in essay writing, which, if not addressed, can impede both performance and completion within the allocated time frame.

The Dreaded Time Crunch

The torment of running out of time during an examination is an omnipresent nightmare for many students. Picture yourself in the examination hall, with only ten minutes left to conclude your essay while you linger on the introductory paragraph.

To avert this predicament, it is essential to strategize before you put pen to paper. The practice of preliminary essay planning through techniques such as mind mapping or outlining key points offers a profound advantage. Dedicate the initial fifteen minutes to delineating fundamental ideas for each essay section, thus providing a solid framework for the ensuing writing. Consistently revisit the question during the writing process to uphold focus and forestall the inclusion of extraneous details that may consume precious time.

The Peril of Irrelevance

Failing to answer the question at hand can be a costly error in essay writing. Tangential responses squander valuable time and yield suboptimal outcomes. Precision is paramount; employ memorized definitions or pertinent points with diligence.

To preempt irrelevance, repeatedly scrutinize the question. This practice ensures that your writing remains closely aligned with the question’s specific parameters. Even if you momentarily veer off course, vigilant reassessment allows you to swiftly self-correct and maintain a pointed response.

Mastering These Skills: The Road to Success

As the adage goes, practice makes perfect. Proficiency in these writing skills is cultivated over time and demands dedicated engagement with the subject material. Once you have navigated the breadth of the syllabus outline, undertake the task of practicing as many questions as you can independently.

However, many students may grapple with the subtleties of their writing and may remain oblivious to inherent mistakes. Others may necessitate additional guidance to elevate their writing proficiency. Fortunately, an invaluable resource is readily accessible: JCEconomics by Anthony Fok.

JCEconomics, spearheaded by the esteemed Anthony Fok, stands as a premier economics tuition center in Singapore. Anthony Fok is renowned for his unwavering commitment to his students, providing them with personalized support and comprehensive instruction. His pedagogical approach incorporates real-life examples, elucidating economic concepts with exceptional clarity. By engaging with JCEconomics, students gain access to a wealth of resources and individualized attention, positioning them for success in A-level Economics .

In summation, the ability to craft compelling economics essays is a hallmark of A-level success. By assimilating the principles of precision, perfection, and focus, students can refine their writing style to earn higher marks. Moreover, proactively addressing common writing challenges, such as time management and relevance, is indispensable for optimal performance. When embarking on this academic journey, remember that practice and guidance are your greatest allies. With these resources at your disposal, your mastery of A-level Economics essay writing is well within reach.

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How to write economics essays

All Economics exam papers at A-Level will have a 25-mark essay-style question, which requires evaluation .

There are different approaches that can be taken in dealing with essay questions, and there is not one essay writing 'template' or 'wizard' that can deal will all questions. However, a commonly used method is to use the first half of your essay to complete the analysis and the second half to evaluate - this is an easy approach to master, and can be used to answer most microeconomic and macroeconomic essays. More on this later.

What the mark scheme tells us

The mark-scheme for a 25-mark question is typically based on the ' levels ' method, with marks allocated in the following way:

4 marks for correctly demonstrating knowledge and understanding of economic concepts and models

4 marks for applying your knowledge and understanding to the 'context' put before you - this case a chocolate manufacturer

8 marks for providing an analysis of the decision (in this case, to raise price) - i.e. what are the expected effects, consequences and results

9 marks for evaluating a decision (question, issue, policy, or problem) based on your judgment , with reference to the problems or risks associated with the decision (policy, problem etc.)

Points to note

• Exam boards often state that, in a 25-mark question, definitions are not specifically required , but it is good practice to define key economic terms that are specific to economics, and to the question.
• Application does not happen in one section of your answer, but should run throughout your answer . In other words, answers that are purely theoretical and detached from the context will not earn high marks.
• For analysis and evaluation, developing a chain of reasoning is essential - ( read more on chains of reasoning ) you have to show exactly how you arrived at a point, judgment or conclusion. A carefully chosen, well draw, accurately explained and fully integrated diagram is essential for effective analysis. This is only possible if you start out by making your assumptions clear.
• For evaluation, it is essential that you provide an alternative approach , (alternative decision, policy etc.) and that your conclusion is not just a summary but a 'weighted' judgment .
• While you only have 30 minutes to write, it is essential you plan your route through your answer - 4-5 minutes planning is worth its weight in gold!

So, lets have a look at a couple of ways to deal with a 25-mark question. Both have similar openings and conclusions, but start out with different assumptions.

' Evaluate the decision by a chocolate manufacturer to raise the price of its 'luxury' box of chocolates .'

There are several factors a chocolate manufacturer will take into account when making a decision about its price. Factors affecting this decision depend on the market structure it operates in, the level of competition it faces, its size and ownership structure. These will affect its main business objective, which in turn will affect its decision regarding price and non-price factors.

We will assume that the chocolate manufacturer's objective is to maximise profits and that it is a price maker and facing a downward sloping demand curve. This means that it is not operating in a highly competitive market, and can raise price without suffering a complete collapse in sales. Profit maximisation arises at the output where MC=MR, which in the diagram is quantity Q. At profit maximisation, the area of supernormal profits (SNP) is area p a b c.

At this quantity, marginal revenue equals marginal cost, which means that any change in price or quantity produced will move it away from profit maximisation. For example, if the chocolate manufacturer increases price to P1, demand will contract along the demand (AR) curve, from 'a' to 'v', resulting in equilibrium quantity falling to Q1. At Q1, MR is greater than MC, which means there is an opportunity cost because the firm could reduce price and produce more, which would lead to an increase its supernormal profits.  So, reducung price and producing extra marginal units of output will add to SNP until MC=MR is reached. Hence, in terms of achieving its profit maximising objective, an increase in price above 'P' is clearly counter-productive. This is supported by the probability that demand for 'luxury' chocolates is price elastic, and the producer is operating in the elastic range of the AR curve. As a result, any increase in price will reduce total revenue, and also reduce SNP, which falls to area P1 v w x.

However, there are issues with this analysis. Are the assumptions about the chocolate producer and its market valid? Is the chocolate producer targeting profits, or attempting to achieve a different objective? Will  there be negative, and even unexpected consequences of the price rise?

The assumptions regarding the market structure certainly might not hold - in a less competitive market, with fewer firms, the price rise may have a much smaller effect because consumers have less choice. Demand may be more inelastic than predicted, especially if there is loyalty to the brand of chocolate - even though it is a luxury product.

Also, the chocolate producer may have previously been a revenue or sales maximiser and may have decided to change its strategy from revenue or sales maximising to profit maximising. As a revenue or sales maximiser price will be set at a lower level, to stimulate sales or gain more revenue. Management salaries or bonuses may be connected with sales, hence a low price will help the firm achieve this objective. The price increase will move it towards profit maximisation rather than away from it, and help it achieve its new objective. Alternatively, the producer may be a 'profit satisficer' looking to increase its profits but not maximising them. In any of these cases, the price rise might be a rational decision.

It is not known whether rivals will keep their prices on hold, reduce them or raise them to match the firm's price increase. If the firm has a few close competitors, then these firms may be interdependent, meaning it may be more beneficial to keep prices on hold to reduce uncertainty.

Furthermore, the price rise could encourage unwanted new entrants, attracted by the opportunity presented. Raising price could also send a signal to existing producers to launch their own 'luxury' version of the product.

Of course, there may be alternative decisions to consider to help it achieve its objectives, such as changing its non-price activities. So, the price rise could be justified if an effective marketing campaign could help increase demand (AR) and, diagrammatically, shift the AR (and MR) curve to the right, as shown.

In this case, profits are maintained, or even increased, as shown, with lower supernormal profits at area P1 k r m.

Taking a wider view, price rises reduce consumer surplus, and if personal incomes remain constant, consumer will have less income to spend on other goods and services, and the price rise will cause a negative income effect. Of course, a rise in the price of chocolate would not have the same effect as a rise in interest rates or house prices, so the income effect is very small.

In conclusion, the decision to raise prices cannot be judged without understanding the nature of the market, the level of competition and the firm's current objectives, and compared with alternatives. There is also the wider economic context to consider, such as whether the economy is in a recession, with pressure on disposable income, or whether the economy is growing, with consumers feeling confident. There are clearly risks associated with an increase in price, and it might be less risky not to raise price, and put more effort into non-price strategies. However, if the assumptions that the firm is already a profit maximiser, that there are no other changes to its non-price activity, and that the behaviour of other chocolate producers does not change, then a price rise seems unjustifiable as it would fail to achieve its dominant objective - to maximise profits - and raising price would, in this case, be an irrational decision.

Answer two - the alternative answer

We will assume that the chocolate manufacturer's objective is to maximise profits and that it is a price maker and facing a downward sloping demand curve.  We will also assume that it currently is not profit maximising, but producing at an output greater than profit maximisation, at output Q, and a lower price, at P in the following diagram. Profit maximisation arises at the output where MC=MR, which in the diagram is quantity Q1, and price P1.

At the quantity Q, while marginal revenue is negative at 'f' and below marginal cost at 's',  the chocolate manufacturer still makes a supernormal profit, shown as the area SNP (area Pvwx). Also, at the current price of P, price elasticity of demand is inelastic because, in the diagram quantity demanded, Q at price P is to the right of the mid-point of the demand (AR) curve. Given that, at the mid-point, PED equals (-) 1.0, which is where MR=0, at its current output, PED must be inelastic.

Given these assumptions, a decision to increase price above P will help the manufacturer achieve profit maximisation. Because the firm operates in the inelastic portion of its demand (AR) curve, the planned price rise reduces the quantity demanded, to Q1, but increases total revenue - at least up to the output where MR=0. The reduction in output that follows means that the variable costs of production fall, which means that marginal costs fall (from 's' to 't'), while at the same time marginal revenue increases from 'f' to 't'. Assuming profit maximisation is still the dominant objective, the price rise is clearly beneficial, as it leads to increased profits (area P1a b c) resulting from the lower marginal cost and the higher marginal revenue.

However, there issues with this analysis. Firstly, are the assumptions about the chocolate producer valid, secondly, is the chocolate producer wishing to increase profits, and thirdly, will there be any negative, and even unexpected consequences of the price rise?

The assumptions regarding the market structure certainly might not hold - the market could be much more competitive, and approach perfect competition. This would result in a very different outcome for the producer, especially in terms of a price elasticity of demand, which rises with increased competition. In a more competitive market, there are more choices for the consumer, and any price rise by one firm may result in falling revenue. Demand may be more elastic than predicted, especially because the price rise is for the 'luxury' version of the box of chocolates, where demand is likely to be more elastic.

Also, the chocolate producer may not be a profit maximiser, but may instead be a revenue or sales maximiser, in which case the price rise could move it away from maximising sales or revenue points. If the firm is a large producer where there is a separation of ownership and control, it is more likely that other 'managerial' objectives dominate decision making. If, for example, the firm is looking to maximise sales volume, perhaps because management salaries or bonuses are connected with sales, then a price rise would not be beneficial.

It is not known whether rivals will keep their prices on hold, reduce them or raise them to match the firm's price increase. If the firm has a few close competitors, then the fact that these firms may be interdependent means that it may be more beneficial to keep prices on hold and reduce uncertainty.

Of course, there may be alternative decisions to consider to help it achieve its objectives, such as changing its non-price policy. So, if there is also a successful marketing campaign designed to increase sales, or build a brand, price increases could be postponed until the brand is well established.

In conclusion, the decision to raise prices cannot be judged without understanding the nature of the market and competition and the firm's current objectives, and compared with alternatives. There is also the wider economic context to consider, such as whether the economy is in a recession, with pressure on disposable income, or whether the economy is growing, with consumers feeling confident. There are clearly risks associated with an increase in price, and it might be less risky not to raise price, and put more effort into non-price strategies. However, if all the assumptions listed above are fully met, then a price rise seems justifiable in that the firm can achieve its dominant objective - to maximise profits.

These are two answers which use a similar structure, and common introduction and conclusion - but start with different assumptions, and therefore have a different analysis, and evaluation.

There are other several possible approaches to this question, and other evaluative points that could have been included. For example, there could have been more emphasis on what rivals might do, and there could be more robust questioning about exactly how much the price is being increased by, and whether this is just a temporary strategy. The essay could also have raised the question of the possible external effects arising from less output and consumption (namely fewer negative consumption and production externalities). However, with the time constraint in the examination room, it is not possible to cover every 'blade of grass' and some good points may have to be sacrificed.

Finally, the 'starting point' and assumptions could have been different, which would have led to a different analysis.

Conclusion and key takeaways

Having a structure to help you tackle an essay-style question is very important.

Both essays use the same four-part structure :

• Part 1, the analysis - making assumptions, and using the correct diagram to show how a decision or policy will work to achieve an objective.
• Part 2, the evaluation begins with ' the bridge ' of the essay - assumptions are questioned and probably changed.
• Part 3 the full evaluation , where an alternative or alternatives are explained based on the change of assumptions.
• Part 4, the conclusion , where the evidence or strength of argument is assessed, and the decision, policy or assertion is 'accepted in full', 'accepted in part' or 'rejected' in favour of the alternative(s).

Finally, it is clear how important diagrams are in analysis and evaluation, and helping develop a logical chain of reasoning - so ensure that you have undertaken enough practice in constructing, applying and integrating diagrams to a wide range of past questions.

Other tips:

How to study economics

How to write the perfect conclusion

How to answer data response questions

How to include chains of reasoning

A-Level Economics: A Complete Guide

Dr Rahil Sachak-Patwa

Choosing A-Level subjects is a big step for students, and A-Level Economics is a popular choice. But why pick Economics? It's because this subject helps us understand how the world works, like why things cost what they do and how businesses operate. If you're interested in how countries manage their money, how companies grow, or why we pay taxes, then Economics might be a perfect fit. It's a subject that can open many doors for your future. Find out everything this subject has to offer in our comprehensive guide.

Is Economics a good A-Level to do?

Choosing A-Level Economics is a wise decision for students looking to broaden their understanding of both the global and local economic landscapes. According to education experts, students who pursue Economics at A-Level gain valuable skills in critical thinking, data analysis, and effective communication, making them highly attractive to universities and employers alike.

• Universality: Economics principles apply to a vast array of sectors, from finance and business to public policy and international relations.
• Skill Development: It enhances analytical skills, problem-solving abilities, and quantitative analysis.
• Employability: A background in Economics is highly valued in the job market, with many graduates finding roles in banking, finance, consulting, and beyond.
• Academic Pathways: It provides a solid foundation for further study in various fields, not just Economics but also Law, Business, and Social Sciences.

Here is what an expert A-Level Economics tutor has to say:

"If you are thinking of what subject to choose for your A-Level then I'd say go for A-Level Economics. It's not just about money and markets, it's a great way to learn how to think smart and make good decisions. If you're into the idea of making good money, think starting salaries around £40,000, or even running your own business one day, economics can really help. Plus, it opens up loads of job options. Trust me, it's a choice you won't regret."

Educational statistics indicate that students with A-Level Economics have a higher likelihood of pursuing successful careers in financially rewarding and intellectually stimulating fields. This is backed by the fact that many leading universities prefer candidates with a strong understanding of economic theories and principles.

Graph showing number of students who took A-Level Economics exams in the past 10 years in the UK

Is Economics hard in A-Levels?

The question of whether A-Level Economics is challenging or not is asked a lot. The answer is that it is considered the 8th hardest A-Level subject by students and it does present unique challenges that require dedication and specific skills to overcome.

• Content Complexity: While the content is manageable, it delves into detailed economic theories and principles that require a good understanding and the ability to apply this knowledge critically.
• Analytical Skills: A significant part of succeeding in A-Level Economics involves developing strong analytical and evaluative skills to tackle essay questions effectively.
• Mathematical Elements: The course contains mathematical components, necessitating a decent level of numeracy to interpret data and construct economic models.

Table showing A-level Economics grades distribution

Educational experts highlight that students find A-Level Economics demanding mainly due to the need for high-level essay writing skills and the application of economic theories to real-world situations. However, with the right approach to study and exam preparation, students can excel in this subject. The success rate in A-Level Economics reflects that students who engage deeply with the material and develop a robust exam strategy can achieve high grades, demonstrating that while the subject is challenging, it is by no means inaccessible.

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What is in A-Level Economics?

A-Level Economics encompasses a complete and comprehensive curriculum designed to equip students with a deep understanding of economic principles and their applications in the real world. The syllabus is divided into two main areas: Microeconomics and Macroeconomics.

• Microeconomics: This section explores how individual decisions impact market outcomes. It covers topics like supply and demand, market structures, the theory of the firm, and market failure.
• Macroeconomics: Here, the focus shifts to the economy as a whole, examining issues such as inflation, unemployment, fiscal and monetary policy, and international trade.

CIE A-Level Economics Syllabus

The CIE A-Level Economics syllabus covers microeconomics and macroeconomics, teaching students about market dynamics, policy impacts, and global economic issues. It emphasizes applying theory to real-world situations, developing critical thinking and analytical skills.

• Cambridge International AS Level students study topics 1.1–6.5.
• Cambridge International A Level students study all topics 1.1–11.6.

Table showing CIE A-Level Economics syllabus

Edexcel A-Level Economics Syllabus

The Edexcel A and B specifications for A-level Economics differ primarily in their structure and approach to teaching economics. Here's a general overview of the distinctions:

Edexcel Economics A

• Theme-Based Approach : Economics A is structured around specific themes, with each one focusing on a particular aspect of economics. There are four themes: Introduction to Markets and Market Failure; The UK Economy - Performance and Policies; Business Behaviour and the Labour Market; A Global Perspective.
• Focus on Micro and Macro Economics : The course evenly balances its focus between microeconomics and macroeconomics across the four themes.
• Real-World Application : Emphasizes applying economic theories and concepts to real-world scenarios, including current economic situations and policies.
• Assessment Structure : The assessment typically involves multiple-choice questions, short-answer questions, data response questions, and extended open-response questions.

Table showing Edexcel A-Level Economics A syllabus

Edexcel Economics B

• Business Economics and Economic Efficiency : Economics B takes a more focused approach on business economics, including themes on business growth, business strategy, and market structures.
• Context-Driven Learning : This specification is designed around different business contexts, making it more applied and practical for students interested in business alongside economics.
• Global Economics : While it still covers both micro and macroeconomics, Economics B includes a specific focus on the global economy, including international economics and development economics.
• Assessment Structure : Similar to Economics A, but with a stronger emphasis on context-based questions and case studies, reflecting the course's focus on applying economic theory to business and real-world contexts.

Table showing Edexcel A-Level Economics B syllabus

Key Differences

• Content Focus : Economics A is more traditional, offering a balanced view of micro and macroeconomics, while Economics B leans towards business economics and the application of economic concepts in business and real-world scenarios.
• Approach : Economics A is thematic, focusing on broader economic concepts, while Economics B is context-driven, using business case studies and scenarios to explore economic theories.
• Suitability : Economics A might be more suited to students interested in a broad understanding of economics, including public policy and economic theory. Economics B may appeal more to students interested in pursuing careers in business, finance, or management, where understanding economic principles in business contexts is crucial.

When choosing between the two, it's important to consider your interests, career goals, and the teaching approach that you think will best suit your learning style.

AQA A-Level Economics Syllabus

The AQA A-Level Economics syllabus explores economic fundamentals, including the operation of markets, economic decision-making, and the role of government in the economy. It encourages a critical approach to discussing current economic issues and policies, with a strong emphasis on both theoretical and practical aspects of economics. Students develop analytical skills by applying economic theories to real-life contexts.

Table showing AQA A-Level Economics syllabus

Statistics from examination boards show that students who engage with this diverse range of topics not only gain a solid foundation for further study in economics or related fields but also acquire a versatile skill set that is highly valued across multiple career paths.

What is the A-Level Economics exam structure?

The A-Level Economics exam structure varies slightly depending on the exam board but generally consists of a mix of multiple-choice, short-answer, and essay exam style questions designed to assess a student's understanding of both microeconomics and macroeconomics concepts.

• Multiple-Choice Questions: These assess basic knowledge and understanding of economic principles.
• Short-Answer Questions: These require concise explanations of economic theories and concepts.
• Essay Questions: These are more in-depth and test the ability to apply, analyse, and evaluate economic information and arguments.

CIE A-Level Economics Exam Structure

The CIE A-Level Economics exam structure is divided into multiple papers, focusing on both microeconomics and macroeconomics. Students are assessed through a combination of data response questions, essay writing, and case study analyses to evaluate their understanding of economic theories and their application to real-world scenarios. This structure aims to test students' analytical skills, their ability to interpret economic data, and their proficiency in presenting coherent arguments.

Table showing CIE A-Level Economics exam structure

Note: Paper 3 and 4 questions are based on the A Level subject content; knowledge of material from the AS Level subject content is assumed.

Edexcel A-Level Economics Exam Structure

Economics A Exam Structure :

The Edexcel A-Level Economics A exam features a mix of multiple-choice, short-answer, and extended essay questions across different papers, focusing on microeconomics and macroeconomics. This structure tests students’ knowledge, analytical skills, and their ability to apply economic concepts to contemporary issues.

Table showing Edexcel A-Level Economics A exam structure

Economics B Exam Structure :

The Edexcel A-Level Economics B exam combines real-world business contexts and economic theories, assessed through data response and extended-writing questions. This approach evaluates students' understanding of economics in practical scenarios and their ability to analyse and solve economic problems.

Table showing Edexcel A-Level Economics B exam structure

Key points to note for Economics B :

• For Paper 3, there will be a pre-released context document issued on Edexcel website in November of the previous year. A new context will be given to centres each year and will relate to the examination series for the following summer.
• Students cannot take any of their research or investigation data carried out as part of the pre-release into the examination.

AQA A-Level Economics Exam Structure

The AQA A-Level Economics exam structure includes multiple-choice, short-answer, and essay questions, covering both microeconomics and macroeconomics. This format assesses students' grasp of economic principles, their analytical abilities, and their skill in applying knowledge to current economic issues.

Table showing AQA A-Level Economics exam structure

According to exam statistics, the structure is designed to challenge students to think critically and apply their knowledge to a range of economic issues. This approach helps develop valuable skills for further education and employment, making A-Level Economics a rigorous and rewarding subject to study.

Choosing the Right Exam Board

Selecting the right exam board for A-Level Economics is crucial for aligning with your learning preferences and examination strengths. Each board- AQA , Edexcel (Pearson), OCR , and CIE - offers a distinct syllabus and assessment style that can significantly impact your study experience and performance.

• CIE (Cambridge International Examinations): Recognised as the most chosen board globally, CIE is renowned for its comprehensive coverage and international perspective on economics.
• Edexcel: With approximately 20,000 UK candidates in 2023, Edexcel is favoured for its structured approach and clear assessment criteria, making it a popular choice among students who prefer a more defined study path.
• AQA: Attracting 14,787 UK candidates, AQA is known for its engaging syllabus and emphasis on contemporary economic issues, appealing to students interested in current affairs and their economic implications.
• OCR: Though chosen by 2,860 UK candidates, OCR offers a unique approach with a focus on critical thinking and application, suited for students who thrive on applying theoretical knowledge to practical scenarios.

Experts in education and economics recommend considering factors such as syllabus content, assessment format, and access to available resources when choosing an exam board. This decision can influence not only the enjoyment of your study but also your performance in the exams, ultimately impacting your future academic and career opportunities.

How do you get an A* in A-Level Economics?

Securing an A* in A-Level Economics necessitates a blend of strategic study practices, comprehensive understanding, and proficient examination techniques. Drawing on educational research and expert opinions, key strategies for attaining the highest marks include:

• Consistent Revision: Regularly revising the syllabus content to reinforce understanding and retention of economic theories and concepts.
• Practise with Past Papers: Familiarising yourself with the exam format and question styles by completing past papers and complete revision practise under timed conditions. This practise not only enhances time management skills but also aids in identifying areas for improvement.
• Effective Use of Study Notes: Creating comprehensive and organised study notes that cover key theories, diagrams, examples and case studies. These straightforward study notes including A-Level Economics Q&A Revision Notes , are invaluable for revision and ensuring a complete grasp of complex concepts.
• Engagement in A-Level Tutoring : Considering tutoring to deepen your understanding of challenging topics and refine exam strategies. Tutors can provide personalised feedback and targeted support to address specific weaknesses.
• Active Participation in Class: Engaging actively in class discussions and exercises. This promotes a deeper understanding of economic principles and their real-world applications.

Statistics indicate that students employing these strategies not only excel in A-Level Economics but also develop skills beneficial for higher education and beyond. The practise with past papers and the effective use of study notes, in particular, are underscored as critical for students aiming for an A*, providing the tailored guidance and consolidated knowledge essential for mastering the subject.

Have a look at our comprehensive set of A-Level Economics Study Notes developed by expert A-Level teachers and examiners!

What are the best 5 A-Levels for Economics?

Choosing the right combination of A-Levels alongside Economics is crucial for students aiming to enhance their university applications and prepare for economics-related degrees. The following five subjects are highly recommended by educational experts and university admissions teams for their complementary skills and knowledge:

• A-Level Mathematics : Essential for understanding the quantitative aspects of Economics. A-Level Maths provides the analytical and statistical skills necessary for economic modeling and analysis.
• A-Level History : Offers insights into economic development and historical financial trends, improving a student's ability to evaluate economic policies within a historical context.
• A-Level Politics: Enhances understanding of government policy-making and its impact on the economy, crucial for topics covered, like fiscal and monetary policy.
• A-Level Further Mathematics : Further Maths is ideal for enhancing quantitative skills, crucial for economics degrees. It covers advanced mathematical concepts, improving analytical and problem-solving abilities vital for economic analysis.
• A-Level Business Studies : Business Studies provides practical insights into business operations and economics applied in real contexts. It covers marketing, finance, and management, preparing students for careers in business or entrepreneurship.

Graph showing grades distribution of A-Level Economics in UK 2021-2023

Universities and employers value the breadth and depth of skills developed through these subjects. They not only complement the study of Economics but also equip students with a versatile skill set, opening up a wide range of career paths in finance, economics, and beyond.

Best A-Level Economics Resources

Securing top resources is essential for excelling in A-Level Economics. High-quality materials are instrumental in enhancing comprehension and performance. Below, we outline some of the top resources endorsed by educational authorities and high-achieving students:

• Textbooks and Revision Guides: Always opt for the most recent editions aligned with your exam board. These resources simplify complex economic concepts into more digestible sections and feature practise questions reflective of those in exams. Noteworthy titles include " Exam Success in Economics for Cambridge AS & A Level ", " Edexcel AS/A Level Economics Student book ", " AQA A-level Economics Fifth Edition " and " OCR A Level Economics ".
• Online Platforms and Websites: Resources like EconplusDal offer extensive materials, including video tutorials, case studies, and specific exam guidance tailored to A-Level syllabus requirements.
• Past Exam Papers and Mark Schemes: Vital for familiarising with exam layout and expectations. Practising with these materials from your exam board’s website aids in honing time management and examination techniques.
• YouTube Channels: Paj Holden is renowned for its thorough breakdowns of critical concepts and strategies for tackling exams, making intricate topics more approachable.
• Online Forums and Study Groups: Engage with communities such as The Student Room to share resources, exchange ideas, and discuss complex subjects with fellow students.
• Tutoring Services: Personalised tutoring can pinpoint and address individual challenges, providing bespoke methods to navigate difficulties and deepen subject comprehension.
• Study Notes and Resources: Developing detailed study notes and exploring additional resources from platforms like TutorChase can offer fresh perspectives and clarify challenging concepts. Effective note-taking and the utilisation of diverse resources are crucial for reinforcing learning and ensuring a thorough understanding of the syllabus.

Leveraging a mix of these resources in your study regimen can significantly boost your mastery of economic theories and principles, as well as your capability to apply this knowledge adeptly in examinations. Education experts recommend a balanced strategy, integrating traditional study materials with interactive and digital tools, to optimally prepare for exams while gaining a broad understanding of economics.

Common Challenges and How to Overcome Them

A-Level Economics students often face several common challenges, but with the right strategies, these can be effectively overcome.

• Understanding Economic Theories: Many students struggle with the abstract nature of economic theories. To combat this, actively engage in class discussions and utilise a variety of resources like videos and podcasts that explain theories in real-world examples and contexts.
• Applying Theories to Real Situations: The application of economic theories to current events can be daunting. Regularly reading economic news and practising case studies can bridge this gap, enhancing the ability to critically analyse and apply knowledge.
• Mathematical Elements: Economics involves mathematical concepts which can be challenging for some. Strengthening maths skills through targeted practise and applying them in economic contexts can improve confidence and ability.
• Exam Technique: Mastering exam techniques is crucial for success. Practising past papers, under timed conditions, and seeking feedback on answers can significantly improve exam performance.

Experts suggest that overcoming these challenges requires a combination of regular study, application of knowledge, and the development of exam strategies. Engaging with tutors and peers for support and clarification can also provide a more rounded understanding, ensuring that students are well-prepared to tackle A-Level Economics effectively.

Past Papers and Practise Questions

Utilising past papers and practise questions is a cornerstone of effective A-Level Economics revision. This approach offers several key benefits:

• Familiarisation with Exam Format: Regular practise with past papers helps students understand the structure of the exam, including types of questions and marking schemes.
• Time Management: Completing past papers under timed conditions allows students to develop the ability to manage their time effectively during the actual exam.
• Identification of Weak Areas: Through practise, students can identify areas where they need further study or clarification, allowing targeted revision.
• Application of Knowledge: Practise questions and past papers provide an opportunity to apply economic theories and concepts to different scenarios, enhancing understanding and retention.

Educational experts and exam boards alike stress the importance of incorporating these resources into study routines. Data shows that students who consistently work with past papers and practise questions tend to achieve higher grades. They not only become more adept at answering exam questions but also build confidence in their ability to tackle the challenges of A-Level Economics.

Opportunities with A-Level Economics

A-Level Economics opens a gateway to a great number of opportunities, both academically and in the career sphere, by equipping students with a deep understanding of economic principles and their real-world applications.

Pie chart showing gender distribution across A-Level Economics

Majors in Higher Education:

• Economics: Provides a strong foundation for diving deeper into economic theories, econometrics, and financial economics.
• Finance: Essential for understanding financial markets, investment analysis, and corporate finance.
• Business Studies: Offers insights into business strategy, marketing, and management from an economic perspective.
• International Relations: Integrates economic policies with global politics, ideal for those interested in the global economic landscape.
• Public Policy: Prepares students for roles in government and nonprofits, focusing on the economic impact of policy decisions.

Career Paths:

• Economic Analyst: For those interested in analysing economic conditions to inform business and policy decisions.
• Financial Consultant: Advising businesses and individuals on investment, planning, and economic strategies.
• Market Research Analyst: Involves examining market trends to help companies make informed decisions.
• Public Sector Roles: Working within government to shape and implement economic policies.
• Banking and Finance: A vast sector offering roles from investment banking to financial planning.

Skills Development:

• Critical Thinking: Enhances the ability to evaluate complex problems and economic policies.
• Analytical Skills: Develops proficiency in interpreting data and economic trends.
• Communication: Equips students with the ability to articulate economic concepts clearly and persuasively.
• Problem-Solving: Encourages innovative thinking in addressing economic challenges.

Pursuing A-Level Economics not only boosts academic credentials but also enriches students with analytical and problem-solving skills, making them highly desirable for competitive university courses and in demand in a variety of industries, from finance and consulting to government and international organisations.

Conclusion on A-Level Economics

A-Level Economics is a vital subject that prepares students for diverse futures in both higher education and professional careers by developing critical thinking and analytical skills. It offers insights into economic theories and real-world applications, making students attractive to both universities and employers. Experts affirm the importance of Economics for its role in fostering a deep understanding of global and local economic issues. With the right resources and strategies, students can overcome challenges, excel in their exams, and open doors to numerous opportunities in fields such as finance, policy-making, and international relations, showcasing the undeniable value of this subject in a student's academic and career journey.

Do you need maths for economics A-level?

For A-Level Economics, having a strong grasp of maths is highly beneficial, though not always formally required by all schools or colleges . The subject involves analysing data, interpreting graphs, and understanding models, which are skills rooted in mathematical principles. Some exam boards might include mathematical questions, albeit at a level accessible with GCSE Maths knowledge. It’s advisable to check the specific requirements of the course offered by your school or college, as they can vary.

What is the highest paying job with an economics degree?

With an economics degree, one of the highest paying careers is in investment banking . Investment bankers help their clients raise money in capital markets by issuing debt or selling equity in the companies. Other lucrative positions include roles as an economic consultant, where you can provide expert advice on legal and business strategies, and positions in corporate finance, which involve managing a company's financial activities. Chief financial officers (CFOs), who oversee a company's financial operations, also rank highly in earnings, often benefiting from a background in economics.

What GCSEs do you need to do economics A-level?

To study Economics at A-Level, most schools and colleges require you to have a strong set of GCSEs, typically including Maths and English at grade 5 (C) or above . While specific requirements can vary, a good understanding of Maths is often emphasised due to the analytical and numerical aspects of the subject. It's not uncommon for institutions to also look for grades in related subjects such as Business Studies or History, although these are less frequently mandatory. Always check with the specific entry requirements of the institution you're interested in.

Can I study economics if I'm bad at maths?

Yes, you can study economics even if you find maths challenging . Economics at A-Level does involve some mathematical concepts, but these are generally accessible with GCSE level maths. It's important to focus on improving your mathematical skills through practise, as a basic understanding of graphs, percentages, and equations is necessary. Many economics courses also emphasise theoretical and qualitative aspects, such as understanding economic principles and evaluating policies. Dedication and the right support can help overcome mathematical hurdles in economics.

Do you need economics A-level for LSE?

For admission to the London School of Economics and Political Science (LSE), having an A-Level in Economics is not universally required for all courses but is highly recommended for economics-related degrees . LSE looks for strong analytical skills, which can be demonstrated through various A-Levels, including but not limited to Economics. For specific courses like Economics or Econometrics, demonstrating a strong proficiency in mathematics is crucial. Always check the specific entry requirements for the course you are interested in on the LSE website, as they provide detailed information about preferred subjects and grade requirements.

Is economics a STEM degree?

Economics is often considered a social science rather than a traditional STEM (Science, Technology, Engineering, and Mathematics) degree. It studies the production, distribution, and consumption of goods and services and examines how individuals, businesses, governments, and nations make choices on allocating resources. However, modern economics heavily incorporates mathematical models and statistical methods, bridging it closer to the quantitative aspect of STEM fields. Some institutions and organisations may categorise economics under STEM due to its analytical and empirical research methods, especially in courses focused on econometrics and quantitative economics.

What A-levels do I need to study Economics at Cambridge?

To study Economics at the University of Cambridge, it is highly recommended that applicants have A-Level Mathematics . The Cambridge Economics course is mathematically rigorous, and a strong aptitude in mathematics is essential for success. While A-Level Economics is not a requirement, it can be beneficial for building foundational knowledge. Other facilitating A-Levels, such as Further Mathematics, History, or Physics, can also strengthen your application by demonstrating analytical skills. The University of Cambridge values a combination of A-Levels that showcase your ability to handle abstract concepts and quantitative reasoning. Always refer to the latest admissions guidelines on the Cambridge website for the most current advice.

How much maths is involved in A-Level economics?

The mathematical content in A-Level Economics can be quantified as roughly 20-30% of the curriculum , focusing on statistical analysis, interpretation of graphs, and basic algebra. This estimation aligns with the requirements set by major exam boards, ensuring students apply mathematical concepts to economic theories and data analysis.

How relevant is A-Level Economics for entrepreneurship?

A-Level Economics is highly relevant for entrepreneurship , offering valuable insights into market dynamics, consumer behaviour, and financial planning. It equips aspiring entrepreneurs with the knowledge to make informed decisions, understand economic trends, and develop strategies for business growth. Key topics such as supply and demand, market structures, and the impact of government policies on businesses are directly applicable to starting and running a successful enterprise. Furthermore, economic principles can help entrepreneurs analyse competition, optimise resource allocation, and navigate the complexities of the global economy, enhancing their ability to innovate and adapt in competitive markets.

Can I study Economics without a Maths A-Level?

Yes, it's possible to study Economics without a Maths A-Level , but having a strong foundation in mathematics can significantly enhance your understanding of economic concepts. Many universities prefer applicants for Economics degrees to have Maths due to the quantitative methods used in the course. However, if you're passionate about Economics and lack a Maths A-Level, look for programmes with less emphasis on mathematical content or consider taking a foundation year to build your maths skills. It's crucial to check the specific requirements of each university before applying.

What's the difference between Economics and Business Studies A-Level?

Economics and Business Studies A-Level cover distinct but complementary areas. Economics focuses on understanding how economies operate, including the study of supply and demand, economic theories, and the impact of governmental policies on the economy. It's more theoretical and analytical, often involving graphs and some mathematics to analyse economic models and concepts. Business Studies, on the other hand, is more practical, concentrating on how individual businesses operate, including aspects of marketing, management, finance, and organisational structure. While Economics provides a broader view of economic systems, Business Studies delves into the inner workings of companies and their strategies.

How does A-Level Economics support a career in law?

A-Level Economics offers valuable insights and skills relevant to a career in law, especially in areas like commercial, corporate, and international law. Understanding economic principles can help lawyers analyse and interpret the financial implications of legal cases, regulations, and policies. Economics teaches critical thinking and analytical skills, enabling lawyers to construct compelling arguments and understand the broader economic impact of legal decisions. Additionally, knowledge of market structures, economic policies, and their legal implications can be particularly useful in antitrust cases, financial regulation, and economic consultancy within legal practice.

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Written by: Dr Rahil Sachak-Patwa

Rahil spent ten years working as private tutor, teaching students for GCSEs, A-Levels, and university admissions. During his PhD he published papers on modelling infectious disease epidemics and was a tutor to undergraduate and masters students for mathematics courses.

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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

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A Level Economics

Our extensive collection of resources is the perfect tool for students aiming to ace their exams and for teachers seeking reliable resources to support their students' learning journey. Here, you'll find an array of revision notes, topic questions, fully explained model answers, past exam papers and more, meticulously organised to simplify your search.

AQA A Level Economics

Cambridge (cie) a level economics, edexcel a level economics b, ocr a level economics, wjec a level economics, wjec eduqas a level economics, articles and resources for a level economics students.

A Level and AS Level Exam Dates 2024

Choosing A Level Subjects

Is Economics A Level Hard?

Retaking Your A Levels - Everything You Need to Know

A Level Results Day 2024

Got questions we've got answers, what is economics a level.

Economics is the study of how resources are used in societies and the factors that influence resource use. Microeconomics considers these decisions from an individual and firm's point of view. Macroeconomics considers these decisions from a government, national and international level. Typical topics covered include supply and demand; market failure; market structures; government intervention; fiscal and monetary policy, exchange rates and international trade.

How to revise Economics A Level?

1. Organise your study materials 2. Create a revision schedule 3. Familiarise yourself with your exam papers, format and timings 4. Use active recall techniques to consolidate knowledge 5. Practice past papers/topic questions 6. Balance work with healthy habits and rest 7. Review and self-test on a regular basis

How hard is A Level Economics?

Similar to Mathematics, Economics is a very logical subject. Basic principles are learnt and then these have to be applied to different situations. The difficulty (and enjoyment) in the subject lies in being able to apply theory to a situation and then analyse and evaluate the potential outcomes. 10 Economists may all have different interpretations based on their insight or different interpretation of data.

Why study Economics A Level?

Economics provides an excellent understanding of how economies function. Irrespective of your career, this understanding can help you to make better decisions - decisions about your career, your financial choices, and your health. The study of economics also provides insight into what and how government actions will have an influence on your life. This perhaps will make you a more informed voter and help you to be more connected to the political process in the country.

Traditional Subjects

Aptitude tests, higher learning, how to structure an economics essay.

( A level Economics including AS and A2 for UK Examination Boards – Edexcel, OCR, AQA and CIE) 

Some students are passionate about the subject whilst others simply want to get the highest grades. The most important thing to remember when revising for A-level Economics is that you remain structured in your answers. If you can work out what the examiner is looking for then that is half the battle already won, however to win the other half you need to structure your answers with clarity and precision in order to allow the examiner to see that you have answered and covered all the relevant assessment objectives.

Unfortunately, the education system, the way it currently stands, does not always lead to the most knowledgeable students achieving the highest results. Exam technique goes a long way to helping students achieve their desired grades. One would be foolish to underestimate the importance of exam technique.

Past papers, examiners reports and helpful hints and tips from experienced teachers are equally as important as learning the theory in any given subject. My advice to all students is that you need to master the system as well as the subject if you want to get the results that you desire –

Here are some key areas of improvement for Essay Structure for A-level Economics Students:

Structuring your essays in the correct format:

Whatever your examination board, the longer essay questions always require students to Evaluate. Many students try and make the mistake of evaluating at the end of their essay – this is not advisable. You should evaluate as you go along. However in order to evaluate, we need to know what evaluation actually mean.

To evaluate means to judge the point you have made. Ask yourself the following questions:

– To what extent is the point that I have just made valid?

– Are there any conditions or circumstances under which the point that I have made likely to make my point invalid?

– Are there counter arguments against the point I have made?

– What would someone who always wants to argue with me say with regards to the point I have just made?

Once you have come up with an answer to the above questions, you should write one paragraph immediately after the point that you have made. Therefore good Economics essays tend to be written in the following format:

Introduction

1st Point then evaluation of 1st point

2nd Point then evaluation of 2nd point 

3rd Point then evaluation of 3rd point 

4th Point then evaluation of 4th point

Reasoned Judgement 

How to structure an Economics Essay was written by a Tavistock Tutor

Additional resources:

Economics Personal Statement The General Economic Climate Studying Economics

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AQA Economics A-Level (A* Notes, Essay Examples and Plans)

Last updated

24 April 2023

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Resources included (15)

AQA Economics A-level: example 25 mark essays (A* grade)

AQA Economics A-level: Synoptic paper practice questions

AQA Economics A-level: International Economy

AQA Economics A-level: Fiscal and supply-side policies

AQA Economics A-level: Financial Markets

AQA Economics A-level: Economic performance (macro)

AQA Economics A-Level: Aggregate demand and aggregate supply

Economics A-level: Macroeconomic performance

Economics A-level: Market mechanism, market failure and government intervention

Economics A-level: Income and wealth

Economics A-level: Labour market supply and demand

Economics A-level: Market structures

A-level Economics: Production and Productivity

Supply and demand in competitive markets

Economic methodology and the economic problem

AQA Economics A-level: specification 7135, 7136 *I sat my Economics exam in summer 2018 and achieved A star grades across all three papers. Here is a bundle of all my content/theory notes and 25 mark essay examples and plans!

Paper 1 - Micro

• Economic Problem and Methodology
• Supply and Demand
• Production, Costs and Revenue
• Market Structure
• Labour Market
• Income and Wealth
• Market Mechanism, Market Failure and Government Intervention

Paper 2 - Macro

• Macroeconomic performance
• Aggregate Demand and Aggregate Supply
• Economic Performance
• Financial Markets
• Fiscal and Supply Side
• International Economy

Paper 3 - Synoptic

Synoptic practice questions

AND * A Example 25 mark essays and practice questions covering: **

Includes 25 mark essays:

• Assess whether you agree that governments should subsidize companies who are developing cars which run on clean fuels such as hydrogen (25 marks)
• Assess whether you agree that the government should give financial assistance to firms producing cars in the UK to increase their competitiveness (25 marks)
• Assess whether you agree that the implementation of pollution permits could play a role in reducing global warming (25 marks)
• Discuss the view that falling unemployment will inevitably lead to trade-offs with other macroeconomic policy objectives (25 marks)
• Evaluate policies that the government could use to reduce obesity, referring to classical solutions such as taxes, subsidies and regulations, and behavioural solutions such as nudges and default choice (25 marks)
• Using your knowledge of behavioural economics and neoclassical economics, evaluate the possible policies that could be used to reduce congestion in the UK’s cities. (25 marks)
• Evaluate the view that imposing a tax is the most effective government policy for reducing the market failure arising from overconsumption of unhealthy food and drink (25 marks)
• Using the extracts and your economic knowledge, assess whether you agree that fixing a maximum price for energy that is sold households is the best way of dealing with market failure in the UK energy industry (25 marks)
• Using the extracts and your economic knowledge, assess the view that inequality is ‘good for us all’ (25 marks)

9 and 15 mark essays:

• With the help of a diagram, explain how export subsidies may help promote economic growth in India (9 marks)
• Explain how government policies can reduce the natural rate of unemployment (15 marks)
• Explain why, in a free market, sugary drinks may be overconsumed (15 marks)
• To what extent do you agree that expansionary monetary policy is always effective in creating economic growth? (25 marks)

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2018 Practice Essays for A Level Economics

3rd May 2018

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At this time of year lots of teachers work feverishly through essay plans as a way of revising core content and honing those all-important essay exam skills. Here is a selection of micro & macro essay titles that I have been using in class.

Micro Essays

Home ownership has become increasingly difficult to access, particularly for first-time buyers, as house price growth has outstripped growth in wages. Median house prices in England are now 7.7 times higher than median earnings. In London, the ratio can be considerably higher: in Chelsea & Fulham, it is 24.8.

Assess the policies that might be most effective in improving housing affordability in the UK economy (25)

Evaluate the micro and macroeconomic impact of a significant rise in average UK house prices (25) 

Regulation of monopoly 

Using your own knowledge, evaluate the argument that economic welfare can be best promoted through regulation of businesses with monopoly power (25) 

Barriers to entry and profit

Examine the role of barriers to entry in earning economic profit in industries of your choice. (25) 

Contestable markets

Neo-classical theory of competition implies that more firms in a market is the only way to improve outcomes for consumers”. With reference to examples, to what extent do you agree? (25)

Food prices and consumer welfare

Examine the policies a government might use to make food affordable to lower income groups. (25)

Energy market

Evaluate the argument that consumers would benefit from the government imposing a price cap on household energy bills (25)

Plastic pollution, public bads and externalities

Assess the policies that might be most effective in reducing the scale of plastic pollution in the UK and other countries of your choice (25)

Environmental market failure

Discuss the view that the overuse of common access resources is best addressed by government intervention (25)

The Gig Economy

Discuss the impact of the expansion of the gig economy on UK economic performance. (25)

Trade unions in the labour market

Evaluate the possible effects on the UK labour market of a decrease in trade union membership (25)

Discuss the microeconomic and macroeconomic effects of stronger trade unions on the UK economy (25) 

Assess the argument that a universal basic income is likely to be the most effective policy for reducing the scale of income and wealth inequality in the UK (25) 

Evaluate the micro and macroeconomic causes of inequality and poverty in the UK (25)

Essential Revision Resources to Get Before June!

Revision flashcards for a-level economics students.

Resource Collection

Macroeconomics

Globalisation

Evaluate the extent to which globalisation inevitably leads to a rise in income and wealth inequality in one or more countries of your choice (25)

Exchange rates

Using your own knowledge, examine some of the likely macroeconomic effects of a depreciation in the sterling exchange rate (25)

Trade and the European Union

Discuss the likely micro and macroeconomic effects on the UK economy of leaving the EU customs union (25)

Evaluate the view that membership of a customs union has more advantages than disadvantages for an economy. Discuss with reference to any developed or developing country of your choice (25)

Quantitative easing

Using your own knowledge, discuss the impact that quantitative easing has had on UK macroeconomic objectives in recent years (25)

Monetary Policy

Policy interest rates in the UK have been too low for too long and now risk damaging the health of the UK economy. Assess the validity of this view (25)

Development policies

Drawing on knowledge from countries of your choice, evaluate the argument that sustainable development is best achieved by allowing free market forces to allocate resources (25)

Fiscal policy

Since the 2007-08 financial crisis, increases in tax revenues and, to a greater extent, reductions in public spending have contributed to the UK fiscal deficit falling by 7.5 percent of national income by 2016/17. Revenues increased by 1.7 percent of national income and spending decreased by 5.9 percent of national income between 2009/10 and 2016/17.  

Assess the view that the policy of fiscal austerity used by the UK government over recent years has been damaging to the long-term prospects for the UK economy. (25) 

Macroeconomic trade-offs

UK unemployment has fallen to a 45 year low of 4.2% of the labour force, yet CPI inflation remains relatively stable and close to target.

Evaluate the view that, in the case of the UK economy, the standard Phillips Curve trade-off between jobs and prices is no longer valid (25)

European Monetary Union and the EU Economy

To what extent should the Euro Area be considered an optimal currency area? (25)

Discuss the factors that may have contributed to slow economic growth in the European Union (25)

Financial economics

Examine the view that market failure is inevitable in financial markets. Justify your answer with reference to economic theory and evidence (25)

Assess the policies that have been introduced to reduce financial market failures in the UK economy since the Global Financial Crisis. (25)

Evaluate the view that increased regulation of the banking system can be damaging to the competitiveness of an economy. Discuss with reference with countries of your choice. (25) 

Assess the extent to which the financial sector has been responsible for speculative bubbles in one or more countries of your choice. (25)

Geoff Riley

Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.

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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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AS and A-level Economics

• Specification
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• Introduction

Specification at a glance

• 3.1 The operation of markets and market failure
• 3.2 The national economy in a global context
• 4.1 Individuals, firms, markets and market failure
• 4.2 The national and international economy
• Scheme of assessment
• General administration
• Annex: Quantitative skills in Economics

Subject content

The operation of markets and market failure

• 1 Economic methodology and the economic problem
• 2 Price determination in a competitive market
• 3 Production, costs and revenue
• 4 Competitive and concentrated markets
• 5 The market mechanism, market failure and government intervention in markets

The national economy in a global context

• 6 The measurement of macroeconomic performance
• 7 How the macroeconomy works : the circular flow of income, AD/AS analysis, and related concepts
• 8 Economic performance
• 9 Macroeconomic policy

Assessments

All the question papers are compulsory

Individuals, firms, markets and market failure

• 2 Individual economic decision making
• 3 Price determination in a competitive market
• 4 Production, costs and revenue
• 5 Perfect competition, imperfectly competitive markets and monopoly
• 6 The labour market
• 7 The distribution of income and wealth: poverty and inequality
• 8 The market mechanism, market failure and government intervention in markets

The national and international economy

• 9 The measurement of macroeconomic performance
• 10 How the macroeconomy works : the circular flow of income, AD/AS analysis, and related concepts
• 11 Economic performance
• 12 Financial markets and monetary policy
• 13 Fiscal policy and supply-side policies
• 14 The international economy

Example 15 mark answer in style of AQA Economics

There are several misconceptions about 15 mark questions.

As students have requested this, here is an example 15 mark answer.

There are also tips and common mistakes to avoid.

For more model answers and practice questions, check out the links below:

How to structure a 15 mark answer

Example question, final point 3, most common mistakes, two or three points in a 15 mark question, how long should you spend on a 15 mark question, do you need to evaluate in 15 mark questions, related posts, latest posts.

To my students, I usually recommend three points (but you can also do two points if each point is more detailed). You can also start with a few key definitions.

For each point, complete a chain of analysis. Add some data to show real-world application.

You do not need evaluation in a 15 mark question for AQA.

Here is a practice question I have created in the style of AQA Economics A-level. I have kept the question simple, to focus on exam technique:

Explain how an increase in interest rates by the Bank of England affects the UK economy . (15 marks)

Example answer

The interest rate is the reward for saving and the cost of borrowing. Aggregate demand is the total demand in the economy.

A higher interest rate means greater incentive to save. So consumers save more and spend less.

Consumers also spend less because borrowing is more expensive, so they are less willing to buy goods by borrowing, which could include houses (through mortgages) or cars.

This means consumption falls. Consumption is the largest component, at 65%, of aggregate demand in the UK.

As consumption is a component of aggregate demand (AD=C+I+G+X-M), aggregate demand shifts left from AD to AD1. This means a reduction in the price level from PL to PL1 and a fall in real GDP from Y to Y1.

A higher interest increases borrowing costs for firms. This makes firms less willing to borrow. So firms borrow less, so they invest less.

As investment is a component of AD, AD shifts further to the left from AD1 to AD2. Gross investment is about 17% of aggregate demand for the UK.

This reduces real output further from Y1 to Y2. There may also be a multiplier effect, when a one-off change in a component of AD leads to an even greater change in real national income.

Reduced investment means some companies that would receive these investment flows no longer receive them. So these companies have reduced profits and may cut wages. This further reduces consumer demand, which further reduces real incomes and hence again demand, so AD falls further.

In 2022 the Bank of England’s interest rate, “Bank Rate”, increased from 0.25% to 3%. A higher interest rate relative to other economies means a relatively higher rate of return on savings in the UK. So there are hot money inflows into the UK.

This increases demand for the pound, so the pound appreciates. A stronger pound makes imports cheaper and exports dearer.

This increases demand for imports and reduces demand for exports. Assume the Marshall Lerner condition holds, that is export and import demand are sufficiently responsive to price changes (specifically the absolute values of the PED of exports plus the PED of imports sum to at least 1).

Then the appreciation will lead to a fall in the total value of net exports. As net exports are a component of AD, AD further decreases, shifting further left. So real GDP and the price level fall further.

This answer would likely score full marks or close to it.

The answer starts with two relevant definitions.

Then there are three points, each with well explained chains of analysis.

For more guidance on AQA Economics exam technique, click the link below:

Each point has a relevant fact / piece of data. This satisfies the application requirement.

There is also a graph that is explained in the text. I recommend at least one graph, if not two, per 15 mark question.

If you draw a graph, make sure to explain it in the text too.

For some statistics on the components of real GDP / aggregate demand, see the link here .

1) Not knowing where to start. Think about relevant graphs or ideas you have learnt. Graphs can provide a really good starting point in a lot of answers. For macro, you could think about how you could use AS-AD graphs to answer the question. For micro, think about cost-revenue diagrams or supply-demand diagrams.

2) Forgetting definitions . If you start with two definitions, then this won’t be a problem.

3) Forgetting application . Try to remember to get three pieces of data into your answer from the real economy. Think about what’s going on in the UK economy when you write your answer.

4) Errors in explanation . This is the hardest to fix. You just need to learn the course content well here.

For how to answer a 9 mark question, check out the link here:

Other questions

I recommend three points. But two can also work, provided they are more detailed than the points above.

15-20 minutes. Saving more time for the 25 mark questions will help score well in the 25 mark questions.

No. But may be credited as analysis in this question.

To see more A-level economics resources, check out the links below:

• 2.6.3 Supply side policies – Edexcel Economics notes
• 2.2 Aggregate demand notes for Edexcel A Economics
• 2.1.2 Inflation Edexcel A Economics Notes
• Don’t be fooled! How to understand economic statistics
• 3.3.2 Costs

About the author

Helping economics students online since 2015. Previously an economist, I now provide economics resources on tfurber.com and tutor A Level Economics students. Read more about me here .