Evaluation
Discuss the possible consequences of the imposition of an
indirect tax on cigarettes for the different stakeholders in the
market”
In relation to the consequences, producers and consumers see
to lose more with this indirect tax as consumers will pay more for
goods that were previously cheaper and cigarette manufacturers
may see a decrease in demand for their product.
Alternatively, the consequences of cigarette consumption
towards society in the form of passive smoking and health
problems may remain as smokers may not react to the indirect
tax as cigarettes are addictive in nature.
On the other hand, the immediate benefits of an indirect tax are
an increase of revenue for the government which could increase
government spending on the economy.
A reduction in cigarette consumption could also lead to a
reduction in negative externalities of consumption in the
economy as there would be a reduction in passive smoking etc.
etc.”
Overall, upon further analysis, while it’s true that there are
potential drawbacks to multiple consumers for the
implementation of an indirect tax on cigarettes, there are also
numerous more advantages to be considered which could
benefit society and the government in the long run”
Time management
Paper 1 - 1 hour and 30 minutes, 45 minutes per question
allocate 17 or 18 minutes to writing the 10 marker and 28 or 27
minutes for the 15 marker
you could split it into a 15 minute and 30 minute arrangement;
15 minutes for the 10 marker and 30 minutes for the 15 marker.
DEED is an acronym for: Definitions + Explanation + Example
+ Diagram/s…
What I tell my students:
1- Definitions: Make sure you define all key terms that are
‘relevant‘ to the question. Also, writing a vague definition is
always better than writing no definition; but writing
an accurate and precise definition always beats a vague
definition!
Remember, not all ‘relevant’ key terms will necessarily be
mentioned in the question.
2- Explanation: Make sure you explain all economic
concepts/theories that are ‘relevant’ to the
question. Explanations need to be accurate and in
enough detail to demonstrate sufficient knowledge and
understanding. Wishy-washy vague explanations are not very
helpful!
3- Example/s: You defined and explained, now you need to
APPLY and ANALYZE… how? By providing relevant real-life
examples and drawing a diagram/s! Remember, a hypothetical
example is always better than no example at all, but a real-life
example will always beat a hypothetical example! That’s why it’s
important to follow economic news and build a bank of real-life
examples that are relevant to your concepts as you’re studying
the course!
4- Diagram/s: economists love diagrams and models! Think
about it, every chapter has at least one diagram or economic
model in it! Make sure your diagrams are accurately labeled
and the labels are in full detail! Label the axes in full detail
as well as any curves/graphs you draw. It’s also not enough to
draw the diagram, you need to explain it and apply it in the
body of the essay, using the same labels, for example: as
shown in the diagram, the _______ caused the demand curve
to shift from D1 to D2 etc…
Now the real skill is in how your essay flows and how you link
each component of the DEED together, but this basic structure
provides a good starting point!
To sum up:
1- Accurate/precise relevant definitions
2- Detailed and clear explanations
3- Contextualized and relevant real-life example/s
4- Accurate and clearly labeled diagram/s with full explanations!
Here’s a short video to explain in more detail: