HOW

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REVISE

FOR
Economics
YOUR

A-LEVELS
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Revising A-level 5
Economics
Knowledge
While there are rarely any stand-alone definition questions at A-level, there is still a significant
amount of credit (typically around 20% of the total marks) throughout most of the exam papers for
demonstrating knowledge and understanding. For example:
• Clarifying key terms at the start of an extended response.
• Demonstrating knowledge of real-world events to support your analysis and evaluation.
• Being able to identify the correct (and incorrect) answers in multiple-choice questions.

Answering quantitative questions

Around 10% of the A-level Economics exams will have a quantitative (i.e. maths) element. With
practice, you can maximise your marks in these questions. Remember the quantitative skills which
can be included in the exams are listed in the specification. Go through this list and make sure
you’ve practised and can apply each skill.
Five key areas of quantitative skills which cause students issues in economics exams are:

1. Showing your working

Examiners often complain that students do not show their working, doing the whole calculation on
the calculator and writing down the final answer. It is important to show all working because you
can still be awarded some method marks even if you get the final answer wrong.

Example
Calculate the income elasticity of demand for a product based on incomes falling by 5% and
demand for a product increasing from 200 to 220 units.
If an answer was stated as ‘+2’ it would score zero as this is incorrect. However, if the workings
were shown as follows: ‘YED = % change in demand/% change in income = +10/-5 = +2’, then the
answer may still get some credit for correct workings even though the final answer is incorrect.

2. Correct units and degrees of accuracy

In calculation questions, the question will often stipulate that the answer should be presented
with specific units, e.g. £, $, % and a specific degree of accuracy, e.g. two decimal places or to the
nearest £. Failing to present your answer in the required format can lose ‘easy’ marks.

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Revising A-level Economics

3. Drawing diagrams
This may seem a straightforward skill, but many students make fundamental mistakes when drawing
diagrams. Use the ACE-U diagram checklist below to help you when practising drawing diagrams:
• Axes – make sure these are clearly labelled.
• Curves – make sure these are correctly drawn and clearly labelled.
• Equilibrium – make sure you draw clear construction lines to show, for example, the equilibrium
price and quantity in a supply and demand diagram. This also applies to showing useful pairs of
coordinates in other diagrams.
• Units – it is sometimes important to illustrate units on a diagram, e.g. specific exchange rates.
An example of a fully labelled diagram can be found below:

(Note that although the diagram here uses currency units, is nearly every case actual numbers will
not be used and abbreviations will be used instead, such as P1, Q2, Y3, etc.)
Another important point is to refer clearly to your diagram and some features of it in order for it to
be given credit as being used to support your written answer. Even if your diagram is otherwise
drawn perfectly, if it is not mentioned, it is unlikely to gain any credit.
As you approach the exam, you’ll see that there are a large number of diagrams beyond the basic
demand/supply and AD/AS diagrams. It is therefore worth spending time practising the full range of
diagrams so that you can draw these accurately from memory in the exam.

4. Understanding index numbers

Students often struggle to interpret or use data presented in index number format:
• Index numbers help economists make large numbers more straightforward to deal with.
• The data associated with a particular year or month is used as the ‘base’ for comparison and is
given the index number 100.
• This means the data from any time period before and after this base period can easily be
compared in terms of a percentage change.
Some students find it difficult to calculate percentage changes. One area of common confusion
is to mistakenly believe that a change in the index number is the same as a percentage change.
For example, a rise in an index number from 100 to 105.2 is a 5.2% rise in the value of the index
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Revising A-level Economics

number. However, a rise from 105.2 to 108.2 is not a 3% rise in the index number. The correct
percentage change would be calculated as a normal percentage change calculation, i.e. (108.2 –
105.2)/105.2 x 100 = 2.85% (to 2 dp).
Therefore, remember the formula for calculating a percentage change:
Change
x 100
Original

5. Interpreting key features of data

Some students struggle in interpreting questions such as ‘Identify two significant features of the
data…’
Most questions are looking for points that give an overview of the whole time series. You could,
therefore, identify the highest value in the time series, the lowest value, the overall change, or the
range of the data. Simply stating that the time series went up, then down, then up again doesn’t
give a sense of overview, and would be regarded as a weak ‘trawl’ of the data.

Application
Application is the ability to apply the concepts, theories and diagrams to a given economic context.
There are a number of ways you can show application in an exam answer:

Description of application Example

Selecting the appropriate If the question is looking for an appropriate response to rising inflation, then the
policies, diagrams, and correct policy would not just be monetary policy (or fiscal policy) but would be
theories contractionary monetary (or fiscal) policy. Diagrams must be appropriate for the
scenario presented. For example, the effect of rising incomes on house prices could
be accompanied by a demand and supply diagram showing a rightward shift in the
demand curve.
Showing knowledge of real- An answer on the consequences of expansionary monetary policy can gain
world events and statistics application marks by referring to the UK (or another similar economy) over the last
ten, or so, years – such as record low interest rates and the Bank of England’s
quantitative easing programme. You should always have a broad knowledge of
the current levels for the main macroeconomic variables, such as interest rates,
economic growth, unemployment and inflation.
Using the written or statistical You should be able to use this to support your written response. It is also important
data provided in the question to select the correct data to support your answer. A table of data may be used to
comment on economic performance, or a written extract may consist of ideas that
can be used to support a particular piece of analysis or evaluation.

Analysis
Analysis involves developing a written explanation of how the effects of a change in some
economic variable (policy, instrument, or indicator) affects various groups in the economy. In an
exam, marks are gained for detailed analysis:
• Producing detailed ‘chains of reasoning’. A chain of reasoning is a step-by-step argument, where
each part of the argument logically progresses from an earlier point made. Logical arguments are
built up from an initial first change to fully explore the consequences, effects and issues which
logically follow (or could follow) from the initial change. For example, an increase in interest rates
would normally lead to a fall in the rate of inflation. A detailed chain of reasoning would explore
how the change in interest rates affects economic agents and other economic variables via the
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Revising A-level Economics

various channels of the monetary policy transmission mechanism so that the explanation is fully
developed.
• Your analysis could also make reference to diagrams that are linked to the argument, as well as
examples/data that illustrate the causes, effects and changes taking place.
• In most written answers, logical, extended chains of reasoning are vital for scoring high marks. In
long-answer questions, at least one fully developed chain must exist for scoring top-level marks
and it is probable that multiple chains of reasoning will be required.

Synopticity
This means showing an appreciation of the interrelationships between economic concepts covered
across the entire A-level course. Opportunities to demonstrate a synoptic approach include:
• Understanding that macroeconomic policies often have a microeconomic dimension.
• Understanding that demand-side policies often have supply-side effects, and vice-versa.
• Remembering relevant concepts from the first year of the A-level.
• Being able to make use of the entire ‘toolkit’ of economic skills.
• Showing an understanding of contrasting schools of economic thought.
• Being able to reflect upon the extent to which the theories you have covered on the course are
supported by real-world events.

Evaluation
At A-level, evaluation will most likely be credited in essays and extended-answer questions.
The best examples of essays will have a detailed final conclusion as well as ongoing evaluation
throughout the answer. Tips for effective evaluation include the following:
• Using evaluative words/terms, such as ‘overall’, ‘however’ and ‘in contrast’.
• Linking an opinion to evidence which might support that opinion.
• Making sure you refer back to the specific question frequently.
• Justifying answers while demonstrating appreciation of alternative points of view.
• Discussing the extent to which theories and models are supported by real-world events.
• Not treating all points as if they are equally important. Identify the points, arguments and
priorities which are more significant than others. This can be done initially in the essay plan, by
rejecting less complex ideas, but also can be referred to in an essay when showing the relative
importance of ideas.

Essays
At A-level, essays are likely to represent the largest proportion of marks on each exam paper. Essay
practice therefore warrants its own specific focus. It is worth practising your essay skills so that you
can produce successful extended responses in the time constraints of an exam.

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Revising A-level Economics

Essay planning
• Creating a very detailed plan is self-defeating. You will be wasting valuable time needed for
actually writing your essay and scoring marks, while a plan on its own tends to score few, if any
marks at all.
• However, jotting down a brief plan can be useful in order to clarify a clear structure for your
essay, helping you to be selective in choosing the most important arguments for and against
government intervention, for example.
• Planning can also be useful in deciding which essay question to choose, whenever a choice
is available. It may be time well spent if a quick plan confirms that you should not opt for a
particular question.
• A plan should not take more than a couple of minutes to create and does not need to be legible
to anybody other than you.
• It is worth identifying the key terms you might define, two or three diagrams you might use
and the main subject of three or four main paragraphs, along with an indication of where your
conclusion might take you. The detail will obviously depend upon the specific question you have
chosen to answer.

Steve Stoddard is an experienced author, examiner and head of department; David Horner is
an experienced author and senior examiner, and currently teaches in Sheffield