Examination Advice Unit 1 and 2 Data Response. You have a choice of two questions. Pick only one!
Read the data - the clues are there – underline them or highlight them
Question 1 (5 marks) approx. 2mins
What is meant by the term……..
Know your definitions (this will get you all the marks). Remember any formulae. Give an example
of...
E.g price elasticity of demand is the responsiveness of a percentage change quantity demanded to a
percentage change in price. (gets 5 marks)
Question 2 (8 marks) approx. 5 mins
Identify 2 significant point of comparison from the table/chart….
Highest and lowest. Start and end. Biggest rise/fall.
DO NOT EXPLAIN WHY!
DO GIVE THE MEASUREMENT!
DO QUOTE THE YEAR/PRODUCT etc
E.g. The price of fish reached its peak in 2010 of £10 per kilo compared to its lowest price per kilo of
£4.50 in 2001. (would get you 4 marks)
Question 3 (12 marks) approx. 10 mins
Explain with the help of a diagram…..
The diagram is likely to be a choice of demand and supply or marginal social cost/benefit. Likely but
not guaranteed.
DO LABEL THE DIAGRAM FULLY
DO SHOW ANY CHANGE IN EQUILIBRIUM
DO NOT SIMPLY DESCRIBE THE DIAGRAM, DO NOT EVALUATE.
Diagram will get you 4 marks, explanation 8 marks.
Due to an increase in incomes consumers can afford to pay more
for goods as they are better off1. This caused demand to increase at
each price level1 causing excess demand at P01 which forces the
market to adjust1, raising the price to P1 and increasing the quantity
supplied1 to Q1 as the rising price signals to suppliers to supply
more1 as it is more profitable1 to do so. This price rise may make the
good unaffordable for those whose incomes have not risen1. The
size of the price rise will depend on the elasticity of supply1, the
more inelastic the bigger the rise1.
Question 4 (25 marks) approx. 25 mins
Evaluate the steps the government could take to….
Evaluate whether market forces can solve the problem of…
Evaluate the case for and against intervention to solve….
Evaluate the case for and against market forces solving the problem of….
All of these questions are really asking the same thing; Should there be intervention in markets or
not?
Why intervention is needed? (because of market failure)
What intervention should be? (tax, subsidy, max price, min price, buffer stock (commodities like
agriculture), interest rates (housing), regulation (laws), education/information or leave it to market
forces (D and S))
How these would work (the benefits/advantages)
Why these might fail (the costs/disadvantages)
Structure of your answer (6 shortish paragraphs with a line break between each one)
1. Knowledge of terms in the question
2. Analysis of method of intervention – how it would work (refer back to the data whenever
possible e.g ‘as indicated in extract B, ….’) use a diagram.
3. Evaluation of the method – ‘however this might cause a problem of…’
4. Analysis of another method – how this method would work (data, diagram)
5. Evaluation of this method – ‘however this might make the problem worse (government
failure)….’
6. Your final judgement of what should be done to solve the problem (refer back to the
question)
NO MORE THAN TWO METHODS AND TWO PROBLEMS ARE NEEDED (2+1 can achieve level 5)
Must contain the following (examiners use these letters when marking, write them on your paper to
help you to focus your writing)
Knowledge (K) – terminology
Application (Ap) – reference to the data
Analysis (An) – diagram and explanation of how it would work
Evaluation (E) – ‘however’ the problem it could cause (without this you will not get beyond level 3)
Judgement (J) – what would you do?