Paper 1

Paper 1 is the extended response (essay) paper.

It requires two essays; one in micro-economics and one in macro-economics.

At higher level, the micro-economics questions have (so far) included one based on standard
level syllabus (price mechanism or controls, elasticity or market failure) and one based on the
higher level syllabus (market structure, profit maximisation, price discrimination or incidence of
taxation).

At standard level it is simply a question of which of the parts of the syllabus the two questions
will cover; price mechanism, price controls, taxation or subsidy, elasticity, positive or negative
externalities.

For macro-economics (standard or higher level), the questions can be on one of the four major
macro-economic objectives; growth (recovering from a recession), price stability (controlling
inflation or deflation), low unemployment or distribution of income. Alternatives may include
fiscal policy and crowding out or monetary policy and the central bank.

Higher level questions often include parts of the higher level extension in Part A; the Keynesian
multiplier, the Phillips curve or the NRU.

Use the 5 minutes reading time to chose which essays to write and go through necessary
definitions diagrams and possible evaluation.

N.B. the only thing said during the test is:

 "the time remaining is 30 minutes"
 "the time remaining is 5 minutes"
 "the examination is over please stop writing immediately"

There is a clock (so take care of the time yourself):

 Part A of an essay should take 15-20 minutes
 Part B should take 25-30 minutes

The first essay should be finished well before the warning of 30 minutes remaining is given.

If the five minute warning is given and you still haven’t written the evaluation of Part B of the
final essay, then write the plan in note form with bullet points; don’t try to write a hurried half-
finished evaluation as most examiners won’t see this as an attempt at evaluation (just more
explanation of theory).

Part A of an essay should include:

 Definitions
 Explanation of theory
 Diagrams
 Examples

Part A with definitions and a minimal amount of theory has to be given a level 2 worth 4/10
Part A with definitions and a correct diagram with explanation of theory will be given a level 3
worth 7 or 8/10.
The difference between a level 3 and 4 is a clear explanation of theory and definitions

Part B should include the same plus an evaluation:

Evaluation can be:
 Comparing long run and short run
 Comparing two different policies
 Comparing effects on stakeholders - consumers, producers, government and society
(environment).

Part B requires definitions along with theory, diagrams (or reference to the diagram in Part A)
and an attempt at evaluation to reach a level 3 worth 10 to 12/15.
Part B level 4 requires clear definitions and theory along with effective use of examples and
evaluation. Level 4 is 13 to 15/15 and is asking a awful lot of a student and so is unlikely.

The mark scheme for essays can be found in the economics syllabus page 85-86

N.B. these are the levels on the mark scheme - these are the main guide for examiners:

Part A
 Level 1: very little theory, no definitions. 1-3 marks
 Level 2: some theory and definitions. 4-6 marks
 Level 3: theory with definitions and diagram. 7-8 marks
 Level 4: clear theory, definitions and diagrams. 9-10 marks

Part B
 Level 1: very little theory, no definitions. 1-5 marks
 Level 2: some theory and definitions. 6-9 marks
 Level 3: theory with definitions, diagram and attempt at evaluation. 10-12 marks
 Level 4: clear theory, definitions, diagrams and evaluation. 13-15 marks

Having decided which level the answer belongs in the examiner then decides if it is an upper or
lower (or possibly middling) mark within that level: note the possible marks for each level.