Micro Exam Revision Booklet
Themes 1 and 3
ALevel
Economics A
How to use this booklet:
Answer on separate paper (so you can do these questions multiple times)
Questions aimed at A2 level only are identified, so only do these if you are in your second
year and you've covered this topic
If you want to do work in timed conditions, the general rule of thumb is 1.2 minutes per
mark. You may want to do a section A more quickly than this and give yourself a bit longer
for the 25 mark questions
Answers are after each set of questions
Contents
1. Exam skills (pages 1-2)
2. Structure for each of the question types (page 3)
3. An overview of the exam papers (page 4)
4. Detailed advice on each question type from examiners' reports (pages 5-16)
5. Example answer mini plans (pages 17-18)
6. Section A practice with mark schemes (pages 19-62)
7. Theme 1 practice questions and example answers: education (pages 63-70)
8. Theme 1 practice questions and example answers: uranium (pages 71-79)
9. Theme 1 25 mark question (alcohol) (pages 79-81)
10. Theme 3 practice questions and example answers:E-Bikes (pages 82-92)
11. Theme 3 practice questions and example answers: brand loyalty (pages 93 -99)
12. Theme 3 25 marker: labour markets (pages 100-102)
,Exam Skills
What is knowledge?
Knowledge refers to knowing your stuffI This could be understanding what the question is asking, defining key terms, using formula or drawing appropriate
diagrams. This is essential for every question.
What is application?
This exam skillinvolves making what you write specific to the context you are given. This could be linking your answer to a specific
firm, industry, country or case
of
study. Often this willinvolve using graphs and extracts provided, though in some questions you won't have this and will need to rely on your own knowledge
examples. It could mean quoting relevant statistics or giving relevant examples. It might involve saying why a theoretical point is particularly relevantinthis
case. For macroeconomics. it may involve linking to things you know about the UK economy (or other economies we may study such as Argentina or Zambia).
Even short questions like 4 or 5 markers need application.
Examples:
The tax may be ineffective as demand for sugar may be price inelastic as it is addictive and a low proportion of incomes. So a higher price may cause a
less than proportional decrease in sugary drinks and tooth decay.
This rise in government spending could be particularly worrying for the UK as the UK has a significant national debt which continues to rise in size
Extract A states that the average bottle of water is £1.10.
This means farmers can afford to invest more e.g. in new tractors to harvest the rice.
However, this industry may be able to manage with falling profits as they had profits of E2bn and E3bn in the last two years so may have enough
retained profit to off-set a small drop in profits this year.
My teacher talks about KAA points and eval points. What are they talking about?
Question of 8 marks and over require evaluation. The paragraphs where you answer the question are KAA points. You need knowiedge, analysis and
application and you are answering the question. So if a question asked for two impacts of a subsidy, your KAA points would be explaining these two
impacts. If a question asked for the drawbacks of something, the drawbacks would be your KAA points
These KAA points then may need to be evaluated ie. questioned. However even evaluation points need knowledge, analysis and application! (analysis and
evaluation is described on the next page.
, Evaluation Ideas
What is a chain of analysis?
which could be of use. Of course you need to
This refers to explaining that one factor leads to another, leading to another ond so on. Usinga Below are some generic evaluation ideas
relevant to the question and context. Often the best evaluation
ensure your points are
diogrom often helps here. uses words such as
points question point
the just made especially if the question
Example: Evaluate the usefulness of a subsidy in correcting the market failure in solar panels.
impacts"or "effects" or "consequences".
E grade answer: A subsidy makes it cheaper for people to buy solar panels so they are more
likely to install them on their house. This reduces the underproduction of renewable energy. term....but in the long term the impact could be different
However, in the short
if..
Agrade answer: the time such as.. (i.e. we stop
However, if other factors change at
same
A subsidy lowers production costs assuming ceteris paribus)
This shifts the supply curve for solar panels to the right from S1 to Ss2 Forecasted? In real terms? Bias?
Criticisms ofthe source O u t of date?
This lowers the equilibrium price for solar panels from P1 to P2
Criticisms of themodel/theory e.g. Keynesian vs classical
Because incentives to produce are higher in the trade cycle, what other
However this may depend on...(elasticity, position
Because the solar panel producers are now having part of their production cost paid response/enforcement, context)
trading partners response, government
for by the government. size of change, how long change
Size/magnitude e.g. size of the multiplier effect,
The lower price of solar panels makes them more appealing to customers as the lasts for/is expected to last for
opportunity cost of purchasing has decreased
Counter-arguments
This leads to an extension in demand for the solar panels and the quantity installed
Depends on the cause/ type of problem
rises from Q1 to Q2
This will mean more production and consumption of renewable energy
And probably less production and consumption from substitutes such as burning coal
This will reduce carbon emissions from non-renewable resources Ideas for judgement:
Therefore there will be less impact on third parties due to less pollution
These could include:
Such as those with respiratory conditions and the NHS/tax payer that normally funds
their treatment
Similarities and differences where as both policies offer this benefit.. the
The subsidy should then correct the market failure, restoring the market to social
the first option is better because...
optimum where marginal social benefits equal marginal social costs, reducing In this case, this factor is (Very/quite/not vert/not at all) important
welfare loss previously imposed on society
because...
Do the
Who wins? Who loses? Consider different stakeholders/countries.
Price of solar
winners win by much more than the losers lose?
ponels $
Targeted recommendations e.g. which farmers should get a subsidy?
in an
Perhaps only those producing healthy food? Only those farming
environmentally efficient way? What size of subsidy?
useful assuming
Providing that...Unless this happens...(e.g. the policy will be
PI **** '' ****** ****' **********
it is well enforced by the government)
Extent to which you agree/think a policy is a good idea.
******"***"" ******
2
the one in the
Could another policy occurring at the same time complement
subsidy and tax? (careful if doing this
-
D question e-g. simultaneous use of a
Quontity of solar must focus the in question)
policy
your judgement on
Q2 panels
Themes 1 and 3
ALevel
Economics A
How to use this booklet:
Answer on separate paper (so you can do these questions multiple times)
Questions aimed at A2 level only are identified, so only do these if you are in your second
year and you've covered this topic
If you want to do work in timed conditions, the general rule of thumb is 1.2 minutes per
mark. You may want to do a section A more quickly than this and give yourself a bit longer
for the 25 mark questions
Answers are after each set of questions
Contents
1. Exam skills (pages 1-2)
2. Structure for each of the question types (page 3)
3. An overview of the exam papers (page 4)
4. Detailed advice on each question type from examiners' reports (pages 5-16)
5. Example answer mini plans (pages 17-18)
6. Section A practice with mark schemes (pages 19-62)
7. Theme 1 practice questions and example answers: education (pages 63-70)
8. Theme 1 practice questions and example answers: uranium (pages 71-79)
9. Theme 1 25 mark question (alcohol) (pages 79-81)
10. Theme 3 practice questions and example answers:E-Bikes (pages 82-92)
11. Theme 3 practice questions and example answers: brand loyalty (pages 93 -99)
12. Theme 3 25 marker: labour markets (pages 100-102)
,Exam Skills
What is knowledge?
Knowledge refers to knowing your stuffI This could be understanding what the question is asking, defining key terms, using formula or drawing appropriate
diagrams. This is essential for every question.
What is application?
This exam skillinvolves making what you write specific to the context you are given. This could be linking your answer to a specific
firm, industry, country or case
of
study. Often this willinvolve using graphs and extracts provided, though in some questions you won't have this and will need to rely on your own knowledge
examples. It could mean quoting relevant statistics or giving relevant examples. It might involve saying why a theoretical point is particularly relevantinthis
case. For macroeconomics. it may involve linking to things you know about the UK economy (or other economies we may study such as Argentina or Zambia).
Even short questions like 4 or 5 markers need application.
Examples:
The tax may be ineffective as demand for sugar may be price inelastic as it is addictive and a low proportion of incomes. So a higher price may cause a
less than proportional decrease in sugary drinks and tooth decay.
This rise in government spending could be particularly worrying for the UK as the UK has a significant national debt which continues to rise in size
Extract A states that the average bottle of water is £1.10.
This means farmers can afford to invest more e.g. in new tractors to harvest the rice.
However, this industry may be able to manage with falling profits as they had profits of E2bn and E3bn in the last two years so may have enough
retained profit to off-set a small drop in profits this year.
My teacher talks about KAA points and eval points. What are they talking about?
Question of 8 marks and over require evaluation. The paragraphs where you answer the question are KAA points. You need knowiedge, analysis and
application and you are answering the question. So if a question asked for two impacts of a subsidy, your KAA points would be explaining these two
impacts. If a question asked for the drawbacks of something, the drawbacks would be your KAA points
These KAA points then may need to be evaluated ie. questioned. However even evaluation points need knowledge, analysis and application! (analysis and
evaluation is described on the next page.
, Evaluation Ideas
What is a chain of analysis?
which could be of use. Of course you need to
This refers to explaining that one factor leads to another, leading to another ond so on. Usinga Below are some generic evaluation ideas
relevant to the question and context. Often the best evaluation
ensure your points are
diogrom often helps here. uses words such as
points question point
the just made especially if the question
Example: Evaluate the usefulness of a subsidy in correcting the market failure in solar panels.
impacts"or "effects" or "consequences".
E grade answer: A subsidy makes it cheaper for people to buy solar panels so they are more
likely to install them on their house. This reduces the underproduction of renewable energy. term....but in the long term the impact could be different
However, in the short
if..
Agrade answer: the time such as.. (i.e. we stop
However, if other factors change at
same
A subsidy lowers production costs assuming ceteris paribus)
This shifts the supply curve for solar panels to the right from S1 to Ss2 Forecasted? In real terms? Bias?
Criticisms ofthe source O u t of date?
This lowers the equilibrium price for solar panels from P1 to P2
Criticisms of themodel/theory e.g. Keynesian vs classical
Because incentives to produce are higher in the trade cycle, what other
However this may depend on...(elasticity, position
Because the solar panel producers are now having part of their production cost paid response/enforcement, context)
trading partners response, government
for by the government. size of change, how long change
Size/magnitude e.g. size of the multiplier effect,
The lower price of solar panels makes them more appealing to customers as the lasts for/is expected to last for
opportunity cost of purchasing has decreased
Counter-arguments
This leads to an extension in demand for the solar panels and the quantity installed
Depends on the cause/ type of problem
rises from Q1 to Q2
This will mean more production and consumption of renewable energy
And probably less production and consumption from substitutes such as burning coal
This will reduce carbon emissions from non-renewable resources Ideas for judgement:
Therefore there will be less impact on third parties due to less pollution
These could include:
Such as those with respiratory conditions and the NHS/tax payer that normally funds
their treatment
Similarities and differences where as both policies offer this benefit.. the
The subsidy should then correct the market failure, restoring the market to social
the first option is better because...
optimum where marginal social benefits equal marginal social costs, reducing In this case, this factor is (Very/quite/not vert/not at all) important
welfare loss previously imposed on society
because...
Do the
Who wins? Who loses? Consider different stakeholders/countries.
Price of solar
winners win by much more than the losers lose?
ponels $
Targeted recommendations e.g. which farmers should get a subsidy?
in an
Perhaps only those producing healthy food? Only those farming
environmentally efficient way? What size of subsidy?
useful assuming
Providing that...Unless this happens...(e.g. the policy will be
PI **** '' ****** ****' **********
it is well enforced by the government)
Extent to which you agree/think a policy is a good idea.
******"***"" ******
2
the one in the
Could another policy occurring at the same time complement
subsidy and tax? (careful if doing this
-
D question e-g. simultaneous use of a
Quontity of solar must focus the in question)
policy
your judgement on
Q2 panels
