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 onesentence summary, which directly answers the question. Don’t wait until
the end of the essay to realise you have answered a different question.
Example.
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.
Evaluation
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
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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 demanddeficient unemployment, however, it will be ineffective in
solving demand-side unemployment (e.g. structural
unemployment)
by Tejvan Pettinger
www.economicshelp.org