Here’s a suggested structure for answering an 8-mark question:

1. Introduction (1 paragraph)

• De ne key terms: Start by de ning the key economic terms or concepts relevant to the
question. This shows that you understand the topic being discussed.
• State the issue: Brie y introduce the issue or topic being examined.

Example (For a question on the causes of in ation):

• In ation refers to a sustained increase in the general price level of goods and services in an
economy over time. It can be caused by various factors, such as demand-pull in ation, which
occurs when aggregate demand exceeds aggregate supply, and cost-push in ation, which arises
from rising production costs.
2. Main Body – Explanation and Analysis (2 paragraphs)

In these paragraphs, you explain and analyze the two key points or factors being asked about.
For each point, follow this approach:

• Point: Make your point clear.

• Explanation: Explain the point using relevant economic theory or concepts.
• Example: Where possible, use an example to illustrate your point.
• Diagram: If relevant, include a diagram to support your analysis (e.g., AD/AS diagrams,
demand-supply diagrams). If you mention a diagram, describe it brie y.

First Point (1 paragraph):

• Explain the rst key point related to the question and analyze its impact.

Example (For a question on the causes of in ation):

• Demand-pull in ation occurs when there is an increase in aggregate demand (AD), which
may result from higher consumer spending, government expenditure, or investment. If aggregate
demand exceeds aggregate supply, rms may raise prices due to increased demand for goods
and services. For example, during periods of economic growth, consumers and businesses tend
to spend more, pushing up demand and prices.

Second Point (1 paragraph):

• Explain the second key point and analyze its impact.

Example:

• Cost-push in ation occurs when rms face rising production costs, such as higher wages or
increasing raw material prices. These higher costs force rms to raise prices to maintain their
pro t margins. For instance, a rise in global oil prices can increase transportation and
manufacturing costs, causing prices to rise across various sectors of the economy.
3. Evaluation (1 paragraph)

In the nal paragraph, provide evaluation by considering short-term vs long-term e ects,

advantages and disadvantages, or the extent to which the points you made are signi cant.
Evaluation shows critical thinking and helps boost your marks.

• Consider limitations: Are there any limitations or downsides to your analysis?

• Compare factors: Is one cause more signi cant than the other? Why?
• Alternative views: Mention if other factors could also be important.

Example:
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 • While demand-pull in ation can lead to higher prices in the short run, it may be self-
correcting if rms increase production in response to higher demand. On the other hand, cost-
push in ation is often harder to control, especially if it results from external shocks, like a rise in
global oil prices, which are beyond a country’s control. Additionally, cost-push in ation can lead
to a wage-price spiral, worsening in ation further.
4. Conclusion (optional, 1 sentence)

If there’s time and it ts naturally, summarize your points brie y or state your judgment on which
factor or explanation is more important.

Example:

• In conclusion, while both demand-pull and cost-push factors can lead to in ation, cost-
push in ation can be more damaging as it can persist even when demand in the economy is
weak.

General Tips:

• Time Management: Aim to spend about 10–12 minutes on an 8-mark question.

• Clear Diagrams: If you include diagrams (which can improve your answer), make sure they
are neat and labeled correctly. Diagrams often help explain the analysis more e ectively.
• Balance: Provide two clear points of analysis and one strong paragraph of evaluation to give
a balanced answer.
• Use Examples: Real-world examples or hypothetical ones can help illustrate your points.

. Below is a suggested structure for answering a 12-mark economics question:

1. Introduction (1 paragraph)

• De ne key terms: Start by de ning the key economic concepts or terms in the question.
This shows the examiner that you understand the topic you’re discussing.
• Brief context: Brie y introduce the topic or issue being addressed. You don’t need too much
detail here, just enough to provide context for your answer.

Example (For a question about supply-side policies):

• Key de nition: “Supply-side policies are economic policies aimed at increasing the
productive potential of the economy by improving the e ciency and exibility of markets.”
• Context: “Governments use supply-side policies to increase long-term economic growth,
often focusing on improving labor market conditions, increasing competition, or enhancing
investment in capital.”
2. Main Body – Explanation and Analysis (3-4 paragraphs)

The main body should contain three to four well-explained points. Each point should be explained
in terms of economic theory, and where relevant, diagrams should be used to support the
analysis.

First Point (1 paragraph):

1. State the point: Clearly state your rst point or argument.

2. Explain the theory: Explain the economic theory behind your point.
3. Diagram (optional): Use a diagram if it’s relevant to your explanation (e.g., AD/AS diagrams,
demand-supply diagrams).
4. Example: Where possible, use an example to illustrate your point.
5. Analyze the impact: Explain the economic impact of the point you’re making.

Example:
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 • Point: “One bene t of supply-side policies is that they can improve labor market exibility.”
• Explanation: “This can be achieved through policies such as reducing trade union power,
reforming welfare bene ts to encourage people to nd work, or investing in education and training
to improve skills.”
• Example: “For example, Germany’s investment in vocational training programs has helped
increase labor productivity, boosting long-term growth.”
• Impact: “These measures reduce unemployment and increase the economy’s capacity to
produce goods and services, shifting the aggregate supply curve to the right, leading to lower
in ation and higher output.”

Second Point (1 paragraph):

• Follow the same structure as the rst point.

• Point: “Supply-side policies can also stimulate investment and innovation.”
• Explanation: “By reducing corporate tax rates or o ering subsidies for research and
development, governments can encourage rms to invest in new technologies and capital
goods.”
• Impact: “This leads to higher productivity, which can increase the economy’s potential
output, as shown by a rightward shift in the long-run aggregate supply (LRAS) curve.”
Third Point (1 paragraph):

• Continue with another point relevant to the question.

Example:

• Point: “Supply-side policies can take time to have an e ect.”

• Explanation: “Unlike demand-side policies, which can have an immediate impact on
aggregate demand, supply-side measures often take years to a ect the economy as they involve
long-term investments in education, infrastructure, or technological advancement.”
• Impact: “This creates a time lag, meaning that the economy may experience short-term
challenges, such as unemployment or in ation, before the long-term bene ts of supply-side
policies are realized.”
3. Evaluation (2-3 paragraphs)

In a 12-mark question, evaluation is crucial and should take up a signi cant portion of your
answer. You should critically assess the points you’ve made and consider the limitations,
counterarguments, or alternative perspectives.

First Evaluation Point (1 paragraph):

• Assess limitations: Discuss any limitations or downsides of the policy or point you have
analyzed.
• Short-term vs. long-term: Consider whether the e ects of the policy or theory di er in the
short term versus the long term.

Example:

• “Although supply-side policies can increase an economy’s productive potential, they may
not address short-term economic problems such as cyclical unemployment. Additionally, they
often involve signi cant government spending or tax cuts, which can increase the budget de cit.”

Second Evaluation Point (1 paragraph):

• E ectiveness: Discuss how e ective the policy or theory might be in di erent circumstances
or under certain conditions.

Example:
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 • “The e ectiveness of supply-side policies depends on the existing structure of the economy.
For instance, in a country with a highly skilled labor force, further investment in education may
have diminishing returns. Conversely, in developing economies, such policies could yield
signi cant gains in productivity and growth.”

Third Evaluation Point (Optional):

• Alternative viewpoints: Consider alternative policies or methods that might achieve similar
outcomes.

Example:

• “In the short term, demand-side policies such as lowering interest rates or increasing
government spending might be more e ective at stimulating growth and reducing unemployment.
However, these policies may lead to in ation if not carefully managed.”
4. Conclusion (1 paragraph)

• Summarize your analysis: Brie y summarize the key points of your answer.
• Final judgment: O er a nal judgment on the question, weighing the relative importance of
the points you’ve made. You might also suggest which policy is more e ective or under what
conditions the outcome might di er.

Example:

• “In conclusion, supply-side policies can be an e ective way to increase the economy’s long-
term productive potential. However, their impact is often delayed, and in the short term, other
policies might be needed to address immediate economic issues such as unemployment or
in ation. Therefore, a combination of both supply-side and demand-side policies is likely to be the
most e ective approach.”
General Tips:

• Use clear paragraphs: Each point or idea should have its own paragraph.
• Balance analysis and evaluation: Make sure you have a good mix of analysis (explaining
theories and points) and evaluation (critiquing and assessing the e ectiveness or limitations).
• Use diagrams where relevant: Diagrams can help illustrate your points, but always explain
them in your answer.
• Stay focused: Stick to the question and ensure each point you make is relevant to the
question being asked.
• Time management: Aim to spend about 20–25 minutes on a 12-mark question.
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