PPM | 9708 — The Ultimate Answering
Guide
Cambridge International AS & A Level Economics
This guide combines every answering technique, mark-scheme principle, and worked example into one
system for Papers 1–4. Master this and you have a repeatable method for data response, structured
essays, and block essays alike.
1. The Exam at a Glance
AS Level
Paper
Duration
Question Type
Max Mark
% of Total
1
1 hour
Multiple choice —
30 questions
30
33%
2 hours
Section A:
compulsory data
response (~6 parts)
Section B: 1 of 2
structured essays
(micro)
Section C: 1 of 2
structured essays
(macro)
20 + 40
67%
Paper
Duration
Question Type
Max Mark
% of Total
3
1h 15m
Multiple choice —
30 questions
30
33%
4
2 hours
Section A:
compulsory data
response (4 parts)
20 + 40
67%
2
A Level
Section B: 1 of 2
essays (micro)
Section C: 1 of 2
essays (macro)
Important: Papers 3 and 4 assume full knowledge of the AS syllabus — A Level questions can (and do)
draw on Year 1 content without warning.
Assessment Objective Weightings by Paper
Component
AO1 Knowledge
AO2 Analysis
AO3 Evaluation
Paper 1
47%
40%
13%
Paper 2
33%
37%
30%
Paper 3
47%
40%
13%
Paper 4
33%
37%
30%
Overall across the full A Level: AO1 = 35%, AO2 = 40%, AO3 = 25%.
Key takeaway: analysis carries the single biggest weighting of any skill in this subject — more than
knowledge, more than evaluation. A perfectly 'correct' answer that never builds a chain of reasoning
will plateau in the middle mark bands no matter how accurate it is.
2. The Three Assessment Objectives — What Examiners
Actually Want
Economics has three AOs (not four, unlike Business) — there is no separate 'application' objective;
application is folded into how well you analyse and evaluate in context.
AO1 — Knowledge and Understanding (35% overall)
Recall and understanding of economic terms, theories, and concepts — and the ability to apply that
knowledge to a situation.
Command words signalling AO1 only: calculate, define, describe, identify, outline, state.
→ These appear mostly in multiple choice and the early parts of data response questions. Keep these
answers short and directly on point — no analysis or evaluation is needed.
AO2 — Analysis (40% overall — the largest weighting)
Breaking an issue into its component parts and establishing the relationship between them, using the
economist's 'toolkit' of concepts, theories, and diagrams.
Command words signalling AO2: analyse, explain.
→ These dominate data response questions and Paper 2/4 part (a) questions. Analysis also underpins
every question that requires evaluation — you cannot evaluate a point you haven't first analysed.
Style tip: write in short, clear sentences. A good analytical answer makes one logical step per sentence
so each link in the chain is unmistakable to the examiner.
AO3 — Evaluation (25% overall)
Economics is a social science, not an exact science — informed people can reasonably disagree.
Evaluation means weighing up arguments, considering counter-arguments, and reaching a reasoned,
justified conclusion — the 'two-handed economist' ("on one hand… on the other hand…") followed by a
clear judgement of which side has more support.
Command words signalling AO3: consider, discuss, assess, evaluate.
→ Mark allocation example: in Paper 2 essays, evaluation carries 6 marks (2 from part (a), 4 from part
(b)). In Paper 4 block essays, evaluation also carries 6 marks.
3. Levels of Response — How Your Essay Is Actually Graded
Knowledge / Analysis Levels (typically out of 14)
Level
3
2
Mark Range
What it requires
11–14
Detailed, accurate knowledge with
relevant examples. The response
clearly and fully addresses the
question. Analysis is developed
and detailed, with accurate, wellexplained use of concepts,
theories, diagrams, and formulae.
Well-organised, logical, and
focused throughout.
6–10
Knowledge of some relevant
concepts, but
explanations/examples are limited,
overgeneralised, or contain
inaccuracies. Addresses the
general theme with limited
development. Analysis is generally
accurate but has little detail;
diagrams/formulae used but only
partially accurate or not fully
explained. Generally logical but
sometimes unfocused.
Evaluation Levels (typically out of 6)
Level
2
1
Mark Range
What it requires
4–6
A justified conclusion/judgement
that directly addresses the
question's specific requirements.
Developed, reasoned, wellsupported evaluative comments.
1–3
A vague or general conclusion.
Simple evaluative comments with
no development and little
supporting evidence.
4. The Universal Structure: PEEL (+ Evaluation)
Step
What it means
Point
State your
argument/concept
clearly
Explain
Build the chain of
reasoning with theory
Example
Use a real-world or datasupported example
AO
What it sounds like
AO1
"An increase in
government spending
can increase the rate of
economic growth."
AO2
"This is because higher
government spending is a
direct injection into AD,
which leads to an
increase in AD…"
AO1/AO2
"…for instance, post-2008
fiscal stimulus packages
in several economies."
Link
Evaluate
Connect explicitly back to
the question
Judge significance /
counter-argument / "it
depends"
AO1/AO2
"This directly addresses
how fiscal policy can be
used to raise the level of
employment."
AO3
"However, this depends
on the size of the
multiplier and the extent
of any crowding-out
effect."
5. Mastering Chains of Reasoning (AO2)
The single biggest differentiator between a Level 2 and Level 3 answer is how many logical steps your
analysis travels before you stop.
Chains of Reasoning Example
Question: Analyse how fiscal policy can be used to increase the level of employment in an economy.
1. Definition: Fiscal policy is the use of government spending and taxation to influence the economy.
2. Mechanism: The government can increase spending, reduce taxes, or both.
3. First effect: This increases consumption and/or investment.
4. Second effect ("therefore"): Which increases the level of aggregate demand (AD).
5. Final effect: Raising the level of employment.
6. Mastering Evaluation (AO3): The "TWO MICE BEARS"
Toolkit
1. Time: Does the effect differ in the short run vs. long run? Supply-side policies may take years to affect
the labour force.
2. Who? (Winners & Losers): Does the policy affect different groups differently? International trade may
benefit high-skilled workers but displace low-skilled workers.
3. Magnitude: Will the effect be large or small — and why? QE far from full output raises AD without
huge inflation.
4. It Depends On…: What other factor changes the outcome? Income tax cuts depend on who receives
them (high vs low MPC).
5. Costs (Including Opportunity Cost): What is given up, and is it worth it? Green investing vs
healthcare/education priorities.
6. Equality: Could the policy be regressive, or affect groups unequally? Indirect demerit taxes are
regressive.
7. Balance: Weigh both sides and reach a genuine judgement. Pair regressive taxes with targeted
redistribution.
8. Elasticity: How does elasticity change the outcome? Inelastic demand means the consumer bears
most tax incidence.
9. Assumptions: What assumption underlies your analysis — and what happens if you relax it? Assumed
no illicit smuggling for tobacco tax.
10. Reliability: Is the underlying data trustworthy? Negative externalities are inherently hard to quantify
exactly.
11. Sustainability: How does the point look through an environmental or long-term lens? Car plants vs
decarbonisation goals.
7. Structuring Essay Questions
Every essay question = command word(s) + content phrase(s). Plan your main arguments and counterarguments before writing to allocate structural focus proportionally to the marks on offer.
8. Data Response Question Strategy
• Never just describe data — explain it economically.
• Look for trends, turning points, and relationships between variables before answering.
• Lower parts are pure AO1; higher 4- and 6-mark parts require fully explained analysis and evaluation.
9. Essay Question Strategy — Common Mistakes & Fixes
• Diagrams must be explicitly referenced in the text ("as shown in the diagram...").
• Identify every single key term in the prompt wording to ensure you address the question fully.
• Don't over-rely on pre-memorised template notes at the expense of answering the specific prompt
target.
10. Common Term Confusions to Avoid
• AS Level: Budget deficit vs Current account deficit; Deflation vs Disinflation; Income vs Wealth.
• A Level: Productive vs Allocative efficiency; Production vs Productivity; Profit vs Revenue.
11. Revision Strategy
• Revision must be continuous. Paper 3 and 4 assume total, clear command of all AS-level concepts.
• Active over passive: practice using actual exam prompts rather than simply reading textbooks.
• Build and run an evaluation bank containing standard 'it depends on...' pivots.
12. Quick-Reference Cheat Sheet
Command Word(s)
AO Tested
What To Do
Calculate, define, describe,
identify, outline, state
AO1 only
Short, precise, no analysis or
evaluation needed
Analyse, explain
AO1 + AO2
Build a multi-step chain of
reasoning (3–4+ steps); reference
diagrams explicitly
AO1 + AO2 + AO3
Analyse both sides, weigh them
using a TWO MICE BEARS angle,
and write a question-specific
judgement
Consider, discuss, assess, evaluate