Writing Good Economics Essays

7/29/2019 Writing Good Economics Essays

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Writing Good A-Level Economics Essays

The aim of this question is to on how to write a good Economics 'A' Level essays,with macroeconomic problems and objective in Singapore as the context.

No matter for H1 or H2, You can use this sample Economics essay to identify commonmistakes usually made in an essay.

As you can recall, the 5 types of Economics GCE 'A' Level skills are knowledge, comprehension,application, analysis and evaluation.

This example will show you the lower order thinking skills (knowledge & comprehension)should have a smaller weighting while the higher order thinking skills (application, analysis andevaluation) must be greatly emphasised.

H1 / H2 Model Economics Essay (SAMPLE MACROECONOMICS QUESTION):

GCE 'A' Level 2008 H2 Economics Macroeconomics Essay Question:

DISCUSS the relative significance of the MULTIPLIER, the PRICE ELASTICITIES OFDEMAND for imports and exports, and CROWDING-OUT in influencing macroeconomicpolicy decisions. [25]

In my conduct ofhome tuitionas well asgroup tuitionfor Economics (I have classes for

H1Econs, H2 Econs and IB Diploma Econs), I always aim to use the latest questions fordiscussionpurposes, to illustrate and impart the higher order thinking skills, namelyapplication, analysis andevaluation.

To date, the above question seems to be the most "terrifying" question almost everyone ofmyjunior college (JC) students has found it to be the most unmanageable question.

So upon popular request, I've decided to make available here the approach to this question.

Bear in mind that I'll focus on the required examination skills rather than content answers.

Thinking Process - Analysis and Application

As always, the easiest way is to use the 5-step approach that I advocate, in order to dissectthequestion and to fully understand the question's requirements.

This IS the BIGGESTobstacle countless students have when sitting forAdvanced Level ('A' Level)Economics, even for othersubjects such as General Paper, Humanities or Social Sciences such asHistory, Geographyand Literature, not forgetting Project Work.

At first glance, it is not difficult to understand and explain these 3 concepts of MULTIPLIER,thePRICE ELASTICITIES OF DEMAND for imports and exports (The Marshall-LernerCondition), andCROWDING-OUT.

It is also relatively easy to explain how each of the 3 concepts influence the macro policydecisions.
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What is challenging is how to structure your answers so as to make the essay answer flowwelland how to get it organised. You might not realise it, but it is largely your use ofanalysisskills that will determine your structure. This is even more crucial in a 25-mark, no-part essayquestion.

After the required analysis, we have to perform evaluation - todiscuss the RELATIVE significanceof each of the 3 concepts.

Here's how my 5-step system will work:

Instantly, we will be to recognise these 3 concepts are ways to evaluate, i.e. to comment onthecorresponding policies. In other ways, the question has FIXED or chosen the evaluation.

All you need to do is to "work backwards" and figure out the correct macroeconomic

policydecisions they're hinting here.

Right now, I'm going to provide you with the biggest tip you can have for your

answers:remember the following:

IN ORDER TO DECIDE ON THE MOST APPROPRIATE CHOICE OF POLICY, ONE HAS TO

KNOWTHE SOURCE OF THE PROBLEM IN QUESTION.

Hence, for this question, the multiplier has to relate to either FISCAL or MONETARY policy.

And what can these 2 policies solve? It can solve any or all of the problems of

inflation,unemployment, low or negative economic growth and balance of payments (BOP) deficit/surplus.

As for the Marshall-Lerner Condition, it must relate to exchange rate policy only. Recallingyour

content knowledge, it can tackle either BOP problems or combat import-push (imported) inflation.

Crowding out effect must only relate to an expansionary fiscal policy, and it's aim is toincreaseaggregate demand (AD), likely to reduce unemployment and / or raise economic growth.

Organisation Process - Relate Policies to Problems

Without overlapping answers and to also provide a wide variety of answers and balance, the5 stepsystem yields the following:

Multiplier hints at: contractionary monetary policy, and targets to reduce inflation.

Sum of PEDx + PEDm hintsat using exchange rate policy to reduce BOP deficit.

Crowing-Out effects hints at expansionary fiscal policy to raise the level of AD, in order

toreduce unemployment and boost economics growth.

(Other combinations are allowed. However this combination is the sure one to reach yourdesiredLevel 3 answer.)

Now we're on the right track as we've aligned the appropriate policy to tackle the

underlyingproblem.


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Thus, so far the required skills ofAnalysis and Applicationare complete.

The core key economic concepts of the macro goals and the selected policies provide the

maincontent answers ofKnowledge and Comprehension.

What's left is Evaluation, and this is the easiest because it is GIVEN in the question.

So our remaining task is to address the RELATIVE SIGNIFICANCE.

Judgement - How and What to Evaluate

So which evaluative judgement is correct?

(Note that I do not subscribe to the thesis / anti-thesis format of balancing of answers. Ipersonally believe that the method is old-fashioned, out of date, and only mainly suitable

for essay questions that holds a lot of content marks.

Given the newest manner of UCLES Econs essay and case study exams, exam skills istop priority, and thesis / anti-thesis format just DO NOT seem to work anymore.)

i) compare the 3 policies to solve one common problem.

OR

ii) compare the 3 concepts in the influence of policy for a small and open economy likeSingapore,as compared to another like USA.

ORiii) compare how critical each concept in the working of the policy decision in question?

In my opinion, all 3 are possible. However, the 3rd option is the true and complete one,

andunderlines the real purpose of examining each policy.

If I were to rephrase the question, it means:

How critical is the multiplier to the monetary policy?How critical is the MLC to the exchange rate policy?How critical is the crowding out effect to the expansionary fiscal policy?

IF you have followed me so far, you will realise that multiplier is VERY critical to the effectiveness

of demand managementpolicy such as monetary policy (MP). In S'pore, MP is redundant.

MLC is SOMEWHAT critical to the effectiveness of demand management policy such as

monetarypolicy (MP). For eg, in S'pore, we do not engage in devaluation to sell more exports (thisis equal to price competition in micro economics). We actually engage in non-price competition, byfocusing on quality, R&D, etc

Crowing out is NOT critical at all. It only occurs if government borrows from the domestic economy.By simply borrowing from elsewhere such as the World Bank, Asian Development Bank, othereconomies' central banks, foreign commercial banks and financial intermediaries, crowing outeffect can be easily avoided.

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Writing Good Economics Essays