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Economics Revision Worksheet
A2 Economics Unit 3
Quick Exam Tips
by Apsara Sumanasiri
Student Name : ……………………………………………
Date: …………………….
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A2 Economics Revision
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Quick Exam Tips for Unit 3:
Business Economics and Economics
Efficiency
Section A: MCQ
1.
Try to make good use of the diagrams given. You can shade area of supernormal profits
or losses, add curves like shifting MC and AC or/ and MR and AR etc
2.
Try to produce a diagram if you think that your answer can be supported by one.
Applicable to topics like cost and revenue, perfect market, monopoly, profit
maximisation, revenue maximisation, sales maximisation, price discrimination, kinked
demand curve, game theory etc
3.
If you are provided with figures, perform calculation. Some relevant topics are like AR,
AC, MC, MR, profits, losses, AVC, AFC etc
4.
You may come up with your own figure if you think that it is relevant to the explanation
5.
You can eliminate up to two wrong answers. Letter of the eliminated options MUST be
stated and a valid economic reason must be given. The whole sentence must be
reproduced
6.
Go for definitions. Maximise your chance of scoring. Many questions these days can have
up to 2/3 definitions
7.
DON'T FORGET RULE NO.1 TO NO.6 
Section B: Data Response
1.
There will only be 4 questions and the total marks are 40
2.
The first question will always carry 4m and it involves definitions e.g. patents, horizontal
integration, economies of scale etc plus a reference
3.
Watch out for the following questions:
a) Contestability. You may say that the industry of concern is not contestable due to
its oligopolistic feature e.g. high R&D expenditures, expensive equipments, high
© 2014 by Apsara Sumanasiri | www.TheRevisionGuide.com
A2 Economics Revision
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advertisements budget, patents etc and for evaluations, it is contestable due to
factors like niche market, internet marketing etc
b) Efficiency. Focus not only on productive and allocative efficiency but also on
other form of efficiency like technical, dynamic and static efficiency
c) Pricing strategy (may involve game theory) and non-pricing strategy. Kind of a
tricky question. Provide the 2x2 matrix and explain that Firm A is undercutting its
rival in order to steal market share and enlarge its super normal profits and then
another non-pricing strategy. Evaluation you may refer back to the game theory
and mention that such price war will lead to a lose-lose situation and hence most
likely to collude
d) Benefits of merger between oligopoly firms
e) Role of regulators e.g. OFT/ Competition Commission/ ECC/ Ofwat/ Ofgen/ Oftel
and price capping
4.
Watch out on how they phrase those questions. Sometimes, the easiest and the most
common question can be phrased into something 'bombastic' and you might think that it
is a new question. For e.g. 'To what extent does the threat of competition change the
behaviour of the firms' is a 'bombastic' version of 'Explain one pricing strategy and one
non-pricing strategy that could be adopted by an oligopoly firm'
5.
You may give different types of economies of scale/ efficiency and it will be regarded as
separate points. This is applicable to questions that are relevant
6.
Explanation and evaluation marks are divided equally (except for the 4m question)
a) 8m = 4+4 (22/13)
b) 12m = 6+6 (33/ 222/ 123)
c) 16m = 8+8 (2222/332/ 44)
7.
For those who are running out of time for revision, focus on monopoly and oligopoly.
Data response will always linger around these two. By the way, focus on some new
topics. They are hits in recent years e.g. PPP (Public Private Partnerships), PFI (Private
Finance Initiatives), rate of return/ profit capping and performance targets
Best of luck with revision…
Ms Apsara 
© 2014 by Apsara Sumanasiri | www.TheRevisionGuide.com
A2 Economics Revision
Page 3