HIGHER ECONOMICS
- EXAM TECHNIQUE
Mark Moore
Why Bother?
Because exam
technique can make
a significant
difference to your
final grade
Timings
Allocate your time fairly
Attempt 4 Questions
3 questions, @ 23 marks = 69%
B
4 questions, @ 18 marks = 72%
A
Choose your Questions Carefully
Work out which
2 optional
questions to
answer
‘Ronseal Test’
State the Obvious
•Define the key terms in the questions
•Give formulae
•Diagrams help
•Examples
Plan your Answer
Hints & Tips
Weekly exam
question practice
Weekly round-up quiz
Use of interesting
resources
Summary
• Basic
knowledge
•Exam technique
•Practice
SECTION A – two data response items
– 25 marks each - both must be
attempted.
• Read each item slowly and carefully before
looking at the questions.
• Try to gain an overall understanding of the
passage and any diagrams, tables etc
included.
• Remember that the items are pieces of data
and not case studies.
One paper divided into two sections.
Section A – two data response questions, 25
marks each.
Section B – six extended response questions, 25
marks each; two of which must be attempted.
Duration – 2hours 30minutes
• Discuss ‘stability’ as an economic aim.
25 marks
• Evaluate the effectiveness of economic
forecasting agencies.
25 marks
If a firm increases all its factor inputs by
50% and, as a result, its long run average
total costs rise by 50%, which of the
following has it experienced?
A
B
C
D
Internal economies of scale
Internal diseconomies of scale
Constant returns to scale
A 50% increase in total output
The Importance of correct exam
technique
In Higher Economics exams, a high
percentage of marks are lost because of
poor exam technique rather than a lack
of knowledge or understanding –
especially in Section B.
• Allocate your scarce resource ie time,
efficiently.
• You have 37.5 minutes per question.
• Try not to spend more than 40 minutes on any
question.
• Note the command words – describe, explain,
identify etc – and do what they say.
• Look at the marks for each question and
adjust the length of your answer accordingly.
• If a question is split eg (a) (i) and (ii), read part
(ii) before answering part (i).
• Never leave a question unanswered.
SECTION B - any two of the six
extended response questions – 25
marks each
• Carefully read all the questions in full, and
take time to choose the two you will answer,
to avoid making a wrong choice.
• Look at the marks for the dodgy parts and use
them to decide which question to answer.
• Once you have decided which questions to
attempt, do not change your mind – this
wastes time.
• If an ‘ideal’ question comes up, avoid spending
too much time on it.
• Make sure you answer the question that is
asked – not the one you hoped was going to
be asked.
• Have an open mind and avoid trying to distort
your model answer to fit the question.
• Pay close attention to the command words –
and obey them.
• Make sure you show clearly where one part of
your answer ends [eg part (a)], and the next
one begins.
• Use the marks allotted to each part of the
question to judge how many points you should
make.
• If the question asks for a specific number of
points eg ‘describe two advantages for the UK
of joining the eurozone’, describe two points
only.
• As the bulk of the marks are awarded for
development the main skill students have to
acquire is the ability to develop fully every
answer, without drifting from the point or
repeating previous points.
• Assume that the person marking your paper is
an intelligent adult who knows very little
about Economics.
• Continually ask yourself ‘Is the answer I have
just written really worth full marks?’
• If not, try to think of new, relevant ways of
adding to it.
• The marking in Economics is positive.
• Marks are awarded for statements which are
correct and relevant.
• If a question asks for a diagram, you will not
gain full marks unless you draw one.
• Make sure that all your diagrams are carefully
and neatly drawn and fully labelled.
• It is usually a good idea to begin your answer
by defining the terms used in the question.
• Answer all questions in ink – pencil fades.
SPECIFIC ADVICE
• Scarcity
• ‘What is meant by scarcity?’
5 marks.
• Scarcity is the situation where there are not
enough resources to produce all the goods
and services people would like to have.
• People in every country have unlimited wants
(list the reasons) for goods and services but
in every country the resources (state what
they are) needed to produce the goods and
services are limited.
• Therefore no country in the world has enough
resources to produce enough goods and
services to completely satisfy all its people.
Resource allocation – especially the
price mechanism
• Make sure you know how changes in demand
bring about changes in supply – and do not
forget to mention the key role played by profit.
• Make sure you know the advantages of the PM as
well as the disadvantages.
• Why government’s intervene is mainly because of
market failure and how they intervene is mainly
through some type of government expenditure
funded by taxation.
Efficiency
• Technical efficiency – maximum output from
available inputs; economic efficiency – using
inputs to satisfy as many wants as possible.
• Technical efficiency is a necessary but
insufficient condition for economic efficiency.
PPCs
• Remember that PPCs show combinations of
goods that can be produced.
• All points on the boundary are technically
efficient combinations.
• Distinguish between movements within the
curve and movements outside it
Demand and Price elasticity of
demand
• Beware mixing up their determinants
• The main importance of PED is its effect on
total revenue.
• Do not mention regressive demand curves
unless the question specifically asks about
them.
Price elasticity of supply.
• The main importance of PES is that it
determines the extent to which the price of a
product will change when its demand
changes.
• A major importance of PED is that it
determines the extent to which the price of a
product will change when its ? changes.
Returns and Costs.
• Returns are output in relation to input and
when returns are increasing this reduces costs
and vice versa.
• Practice drawing MC, AFC, AVC and ATC
• ….. on one diagram.
National Income.
• The main problem involves the Multiplier.
• Many candidates fail to explain the link
between spending and income ie one person’s
spending is another person’s income.
Inflation and employment.
• Make sure you know the trends, and the
reasons for the trends in both, for the last ten
years.
Government in the economy.
• Remember that government aims can
complement as well as conflict.
• Fiscal policy – do not confuse Budget deficits
with Trade deficits.
• Understand how Budget deficits and surpluses
affect AMD and therefore affect inflation,
employment, growth and trade.
• Current Monetary policy aims to set interest
rates to achieve the government’s inflationary
target.
• It is therefore aimed at controlling inflation –
not necessarily reducing it.
• Know how and why interest rate changes
affect such variables as: borrowing, saving,
investment, mortgage payments, real income,
spending and exchange rates.
International Trade.
• Absolute advantage and comparative
advantage are easier to explain in terms of
opportunity cost than by using figures.
Balance of Payments
• Need to be able to describe the current and
capital accounts and explain how transactions in
the latter lead to transactions in the former.
• Be aware of the UK B of P over the last few years.
• Know the reasons for our Balance of Trade deficits
and our surpluses in services.
• Be aware of the advantages as well as the
disadvantages of trade deficits.
• If asked about measures to cure trade deficits, do
not base your answer solely on import controls.
Exchange rates
• When describing the factors which influence
the demand for and supply of sterling, make
sure you mention flows of ‘hot money’.
• Be aware of recent trade developments.
The international environment.
• The EU
• Three important aspects.
• The operation and reform of the CAP
• The effects of EU enlargement
• The arguments for and against the UK
adopting the euro
Developing economies
• Questions on developing economies tend now
to concentrate more on the effectiveness of
different types of aid, rather than the
characteristics of developing economies.
• You should also be aware of the benefits and
importance of free trade and debt relief.
• You should note that ‘sustainable
development’ was recently added at the end
of the syllabus.
ALL THE VERY BEST ON
TH
MAY 26
• The multiple choice answer is ……….
B