7 Tips for data response questions

have been asked to share some of my tips for writing data response economic questions. I hope this helps! 🙂

1) Know how many mark question they are e.g. I know in my Jan exam for the Data response there are 4 question and the marks they hold (4, 12,  8 and 16 marks)

2) Know how the marks are split e.g. in unit three except for the 4 mark one they tend to be 50% analysis and 50% evaluation.

3) Know how to split that further so if evaluation is worth 6 marks know that you can discuss two factors worth 3 marks each or 3 factors worth 2 marks each.

4) Once you know this all you need to do is write down you points whether analysis or evaluation to marks you allocated above.

5) It is good to know this structure off by heart, memorise it and use it for planning big questions in exams

6) In terms of analysis, you are defining key terms, applying economic theories such as theory of PED to the question and drawing diagrams.

7) In evaluation all you are doing is saying whether this is different in the long-run, is this an actual realistic thing, other factors that affect what you said in evaluation, ceteris paribus (is it assumed that all factors are equal), prioritising and justifying points, if for example you are talking at tax or subsidy then you can discuss that it depends on the size of the tax for the effects to happen etc.

The Cost-Benefit Analysis

This is how I remember the economic calculation of cost-benfit analysis.

Firstly you examine the task been given to you so it might be that the government has limited funds and needs to decided whether it is worth investing in a project like the Olympics.

So they set two sections out – long term and short term effects. They people conducting the process must now try to think of all the possible impacts and outcomes of the Olympics and put them in a category – ‘Short-term advantage’ ‘Short-term disadvantage’ ‘Long-term advantage’ and ‘Long- term disadvantage’.

Once this is done they must now valuate each outcome; for example if the an impact is increased tourism they must calculate exactly how much monetary value this has on the economy.

Then all the advantage values are added and divided by the sum of the disadvantage values.

The number given will firstly show whether the project involved will make a profit or a loss (indicated by the sign of the value (e.g. -60 or +60). The size of the value can be compared to the sizeof the values from other projects and the larger (and positive) the value the more economically fruitful it will be. That is the project you must choose.

So why exactly is this important?

Well if we never weighed up and made decision the government would be making some potentially terrible decisions. The government has limited funds and can’t increase them very easily so for example increasing taxes would create a big controversy. If they made bad decisions then slowly they would see they are running out of revenue and would not be able to function any more.

A good example which is very closely related to us can be seen on youtube: http://www.youtube.com/watch?v=Rh7ygXiR_rs&feature=fvw

Although there are many flaws with this system:

  1. Firstly it is difficult to put a value on non-monetary effects particularly when they are to do with the future (long-term) e.g. increased pollution in the future.
  2. Very lengthy process – it is opportunity cost for the people completing the process.
  3. A lot of the time externalities are missed out and how would you put a value on that?
  4. If you were to put tax how would you know whether that was an advantage or disadvantage; who will be prioritised more the rich or the poor?

7 Tips for Data Response Question

I have been asked to share some of my tips for writing data response economic questions. I hope this helps! 🙂

1) Know how many mark question they are e.g. I know in my Jan exam for the Data response there are 4 question and the marks they hold (4, 12,  8 and 16 marks)

2) Know how the marks are split e.g. in unit three except for the 4 mark one they tend to be 50% analysis and 50% evaluation.

3) Know how to split that further so if evaluation is worth 6 marks know that you can discuss two factors worth 3 marks each or 3 factors worth 2 marks each.

4) Once you know this all you need to do is write down you points whether analysis or evaluation to marks you allocated above.

5) It is good to know this structure off by heart, memorise it and use it for planning big questions in exams

6) In terms of analysis, you are defining key terms, applying economic theories such as theory of PED to the question and drawing diagrams.

7) In evaluation all you are doing is saying whether this is different in the long-run, is this an actual realistic thing, other factors that affect what you said in evaluation, ceteris paribus (is it assumed that all factors are equal), prioritising and justifying points, if for example you are talking at tax or subsidy then you can discuss that it depends on the size of the tax for the effects to happen etc.