Economics Advice for Year 12 EOY exams
● Identify the command word requirements and the key terms that need to be defined.
● Outline the main points of your answer before you start writing, decide on appropriate
diagrams to use.
● Write concise answers, focussed at all times answering only the question.
● Write in short clear paragraphs – always start a new paragraph when you are making a
new point – and leave space for the examiner.
● Assume that the examiner has the opposite views to your own – the last thing you want to
do is upset the examiner – so adopt the approach of a neutral consultant writing e.g. ‘on the
one hand free market/classical economists believe this.. while on the other Keynesians
argue that...’, before giving your own views in your summing up, perhaps using words such
as “I believe on the balance of arguments....’
● Never assume that the examiner, or your teacher will understand as they know Economics
● For part b, be prepared to evaluate the advantages and disadvantages, or costs and
benefits of, or the ‘case for’ versus the ‘case against’ a course of action mentioned in the
question.
● You should finish your long answer with a conclusion relevant to your discussion. The
conclusion might judge the relative strengths of the arguments discussed, possibly
highlighting the most important argument. With many questions it is more appropriate to
conclude whether, on balance, the ‘case for; is stronger than the ‘case against’ and to
provide some justification for your opinion. While the marks awarded only to your arguments,
this approach will allow you to evaluate effectively.
REVISION METHODS/TIPS
● Remember in your revision programme to practice writing explanations of key diagrams!
● Do summary revision notes from revision worksheets and the textbook with the main
points/diagrams in, advantages/disadvantages etc – putting the points onto postcards or
several sheets of A4 is really useful.
● Write definitions of the key terms and concepts from memory – check each of your
definitions against the correct ones in the textbook/your revision notes
● Draw key diagrams from memory and check in the same way
EVALUATION:
1. YOU MUST BE ABLE TO EVALUATE THE EFFECTIVENESS OF THE DIFFERENT POLICIES
TACKLING UNEMPLOYMENT – THE PROS AND CONS OF FISCAL POLICY, MONETARY POLICY
AND SUPPLY SIDE POLICY
2. YOU MUST BE ABLE TO EVALUATE THE EFFECTIVENESS OF THE DIFFERENT POLICIES
TACKLING INFLATION – THE PROS AND CONS OF FISCAL POLICY, MONETARY POLICY AND
SUPPLY SIDE POLICY and reach a conclusion as to the best policies to use
3. YOU MUST BE ABLE TO EVALUATE THE EFFECTIVENESS OF THE DIFFERENT POLICIES
TACKLING ECONOMIC GROWTH – THE PROS AND CONS OF FISCAL POLICY, MONETARY
POLICY AND SUPPLY SIDE POLICY and reach a conclusion as to the best policies to use
More analysis and evaluation tips:
Brainstorm for a few minutes the following perspectives/points of view:
● Effects on different stakeholders: - consumers (keep in mind that consumers ́s incomes
are different, thus the impact will be different from events such as: higher fuel tax, negative
externality); borrowers and savers
(if evaluating tight monetary policy); urban population and rural population; - producers: also not all firms are the
same: large vs. small, domestic vs. multinationals; - government (expenditure/taxation/possible trade-offs
involved)
● Short term and long term effects (these are quite different) (e.g. in the short run a price war
might benefit consumers but in the long run the market will become less competitive as
some firms will disappear)
● micro and macro effects (increase in indirect tax on alcohol will reduce a market failure but
also will provide the government with higher tax revenue and possibility for higher
government spending, thus increasing AD) You may also:
● think of “ unforeseen consequences: e.g. if you suggest that an inflationary monetary
policy (a decrease in interest rates) by the Central Bank will help the economy recover, you
need to take into account time lags and the size of the decrease. By how much should
interest rates be reduced? If too much, inflationary pressures may affect exports and future
growth. If too little, economy might not recover and many people will stay unemployed
longer.