Skills are the key to success. The performance of candidates in Cambridge International AS & A Level Economics exams highlights several areas for improvement, particularly revolving around the assessment objectives (AOs) of the course:
Knowledge and Understanding (AO1)
Analysis (AO2)
Evaluation (AO3)
Among these, the skill of evaluation is often the least grasped and frequently mistaken for analysis. It is important that learners not only understand the difference but can also write according to the AO3 Evaluation criteria:
Recognise assumptions and limitations of economic information and models.
Assess economic information and the strengths and weaknesses of arguments.
Recognise that some economic decisions involve consideration of factors such as priorities and value judgements.
Communicate reasoned judgements, conclusions and decisions, based on the arguments.
By focusing on these aspects, candidates can enhance their performance and demonstrate a deeper understanding of economic concepts. Here are some examples:
Essay Question | Analysis (AO2) | Evaluation | Conclusion |
'Market failure can always be overcome to increase economic efficiency.’ How far do you agree with this statement? | An explanation of different forms of market failure and methods of reducing them, such as indirect taxation or subsidies, direct provision or legislation. | Limitations of the role of the government in overcoming market failure, such as problems of imperfect government. | The intervention of the government helps overcome market failure and bring the output closer to the socially desirable level. However, imperfections, such as lack of accurate information, may make government intervention less effective, and market failure may continue to exist. |
Evaluate whether the theory of wage determination can account for wage differentials (i) between a director and a general worker in the same company and (ii) between two workers doing the same job in different companies. | An explanation of the theory of wages based on demand (MRP Theory) and supply curve should be provided. The analysis could be for both perfect and imperfect markets. | A real world exploration of the limits to perfect competition, such as imperfect information, lack of labour mobility, discrimination and monopsony, trade union intervention, minimum wage legislation. | MRP (marginal revenue product) theory is a good explanation for different wages a worker might earn, since firms are often profit maximizing and willing to pay more to workers contributing more in the form of higher MRP. However, factors such as labour mobility, trade unions, monopsonies etc. may lead to wages not fully justified by the classic theory of wage determination. |
Discuss the extent to which the Human Development Index (HDI) and the Measure of Economic Welfare (MEW) provide better measures of living standards than Gross National Income (GNI). | An explanation of per capita GNI, HDI and MEW as measures of the living standard. | The relevance and limitations of GNI, HDI and MEW. | Human Development Index and Measure of Economic Welfare provide more comprehensive measures of living standards and are thus more reliable than simple per capital Gross National Income. |
Discuss whether solving the problem of unemployment should be the main policy objective for the government of a developing country. | Identify possible government policy objective and discuss the significance of unemployment as the only policy objective. | Discuss the significance of alternative policy objectives, such as inflation, economic growth, balance of payments and distribution of income. | Controlling unemployment is an important macroeconomic objective, however, the focus of government policy must shift to other macroeconomic problems, such as stable price level in case inflation is rising and unemployment is showing a decreasing trend. |
Evaluation guide: TESTOL
Comments