2022‌‌ECON|‌ ‌THE‌P

‌ 1‌C
‌ HEAT‌‌SHEET‌  ‌
 ‌
 ‌
Time‌|1
‌ h‌‌15‌‌min.‌|‌‌Answer‌|‌1‌ ‌‌out‌‌of‌‌3‌‌questions‌|‌‌Both|‌‌P
‌ art‌‌(a)‌‌and‌‌Part‌‌(b)|‌W ‌ eighting‌|S ‌ L30%&HL‌‌20%‌  ‌
|‌‌Content|‌A‌ ll‌‌Syllabus‌‌|‌‌AO1,‌‌AO2,‌‌AO3,‌‌AO4|‌C ‌ ommand‌‌Terms‌|‌P ‌ art‌‌(a)‌‌|‌2
‌ 5‌‌min.‌‌|‌P    ‌
‌ art‌‌(b)|‌‌‌50‌‌min.‌‌
 ‌
TIPS:‌‌
   ‌
● Read‌t‌he‌‌question‌‌and‌‌‌Plan‌t‌he‌‌answer‌‌(5‌‌minutes)|‌N ‌ ote‌‌down‌:‌‌Terms‌,‌‌Concepts‌,‌‌Theories‌‌  
stated‌‌‌or‌‌‌implied‌.‌‌Sketch‌‌the‌r‌ elevant‌‌diagrams‌.‌R ‌ evisit‌‌the‌‌question‌a ‌ s‌‌you‌‌write.‌‌
   ‌
● Do‌N ‌ OT‌‌‌memorise‌‌answers.‌‌    ‌
● Define‌‌b ‌ riefly‌‌and‌‌precisely‌.‌‌Point‌‌out‌‌any‌‌ambiguities‌‌in‌‌the‌‌question‌‌(e.g.‌‌best‌‌policy‌‌  
means:‌‌best‌‌for‌‌whom‌‌or‌‌on‌‌what‌‌criteria?).‌‌Do‌‌not‌‌repeat‌‌the‌‌question!‌‌    ‌
● Diagrams‌|‌‌Use‌‌a‌‌ruler‌‌and‌‌a‌‌dark‌‌pencil,‌‌Label‌‌fully,‌‌titles‌‌are‌‌not‌‌necessary,‌‌‌EXPLAIN‌,‌‌make‌‌  
them‌D ‌ ynamic‌‌[Initial→Change→Final]‌,‌‌and‌u ‌ se‌‌them‌‌‌as‌‌you‌e
‌ xplain‌‌‌the‌t‌ heories‌. ‌ ‌
● A‌‌new‌‌Paragraph‌i‌s‌‌needed‌‌for‌‌any‌‌new‌‌point,‌‌argument‌‌or‌‌explanation.‌S ‌ hort‌‌sentences‌‌  
rule‌! ‌ ‌
● Nothing‌‌is‌‌for‌‌granted‌!‌C ‌ onstruct‌‌‌and‌e ‌ xplain‌‌‌your‌‌arguments.‌‌Most‌‌‌statements‌‌‌must‌‌be‌‌  
qualified‌(‌ make‌‌them‌‌less‌‌strong‌‌or‌‌general,‌‌eg.‌‌use‌‌usually,‌‌probably,‌‌perhaps)‌  ‌
● Write‌‌as‌‌an‌‌economist‌‌‌not‌‌a‌‌journalist‌‌or‌‌a‌‌politician:‌i‌nstead‌‌of‌‌“the‌‌economy‌‌surges”,‌‌write‌‌  
“there‌‌is‌‌a‌‌rapid‌‌growth‌‌in‌‌real‌‌gross‌‌domestic‌‌product‌‌(GDP)”;‌‌instead‌‌of‌‌“the‌‌government‌‌is‌‌  
crazy‌‌to‌‌spend‌‌so‌‌much”,‌‌write‌‌“the‌‌government‌‌will‌‌face‌‌the‌‌problem‌‌of‌‌a‌‌budget‌‌deficit”;‌‌  
instead‌‌of‌‌“the‌‌economy‌‌will‌‌crash”,‌‌write‌‌“the‌‌economy‌‌may‌‌enter‌‌a‌‌recession”..‌‌    ‌
● Be‌‌careful‌‌with‌‌acronyms:‌‌‌Write‌‌GDP,‌‌but‌‌if‌‌you‌‌write‌‌P‌‌instead‌‌of‌‌price‌‌it‌‌can‌‌be‌‌confused‌‌  
with‌‌product.‌  ‌
● NO‌‌‌Bullet‌‌points,‌‌NO‌‌‌numbered‌‌Lists,‌D ‌ o‌‌not‌‌‌mention‌‌our‌‌mnemonics‌‌e.g.‌‌TOEISS,‌‌STORESS‌  ‌
● Read‌‌the‌‌question‌‌again‌‌once‌‌the‌‌answer‌‌is‌‌written.‌S ‌ ometimes‌‌one‌‌line‌‌needs‌‌to‌‌be‌‌added‌‌  
to‌‌present‌‌a‌‌clear‌‌answer‌‌to‌‌the‌‌question‌‌asked‌  ‌
 ‌
TIPS‌‌ON‌‌P1‌‌Part‌‌(a)‌‌|‌‌25‌‌min.‌‌|‌D ‌ E(E)D‌  ‌
D‌efinitions‌  ‌ AO1|‌‌Define‌e ‌ xplicit‌‌terms‌‌or‌‌implicit‌‌ones‌‌[At‌‌least‌‌2,‌‌no‌‌more‌‌t‌han‌‌3]‌  ‌
E‌xplanations‌  ‌ AO2|‌‌Apply‌‌theories‌t‌o‌‌explain‌‌actual‌‌situations,‌‌identify‌‌and‌‌interpret‌‌  
(E)‌xamples‌  ‌ economic‌‌phenomena,‌‌demonstrate‌‌effective‌‌use‌‌of‌‌information‌  ‌
D‌iagram(s)‌  ‌ AO3|‌‌Apply‌‌skills‌‌‌Draw‌‌correctly‌‌labelled‌‌diagrams‌‌to‌‌explain‌‌concepts‌‌and‌‌  
theories;‌‌perform‌‌calculations‌  ‌
 ‌
- Diagrams‌‌|‌‌At‌‌least‌‌1‌‌maybe‌‌2‌‌even‌‌3.‌‌Dynamic‌‌Diagrams‌‌  
Build‌‌your‌‌analysis‌‌
 
(Initial-Change-‌‌Final),‌‌build‌‌your‌‌analysis‌‌around‌‌the‌‌Diagram.‌‌    ‌
around‌‌the‌‌diagram‌  - AVOID‌‌being‌‌repetitive!‌‌Conclusion‌‌is‌‌not‌‌needed,‌‌esp.‌‌If‌‌it‌‌  
NO‌‌CONCLUSION‌  ‌ summarizes‌‌what‌‌you‌‌have‌‌already‌‌stated!‌  ‌
The‌‌MAX‌‌Mark‌‌band‌  ‌
9-10‌  ‌ •The‌‌specific‌‌demands‌‌of‌‌the‌‌question‌‌are‌‌understood‌‌and‌‌addressed.‌‌
   ‌
•Relevant‌‌economic‌‌theory‌‌is‌‌fully‌‌explained.‌‌
   ‌
•‌‌Relevant‌‌economic‌‌terms‌‌are‌‌used‌‌appropriately‌‌throughout‌‌the‌‌response.‌  ‌
•‌‌Where‌‌appropriate,‌‌relevant‌‌diagram(s)‌‌are‌‌included‌‌and‌‌fully‌‌explained.‌  ‌
The‌‌Economics‌‌Concepts‌  ‌
USE‌‌THEM‌  ‌ Scarcity,‌‌Choice,‌‌Efficiency,‌‌Equity,‌‌Economic‌‌Well‌‌Being,‌‌Sustainability,‌‌Change,‌  ‌
 ‌ Interdependence,‌‌Intervention‌  ‌  ‌

1‌  ‌
 2022‌‌ECON|‌ ‌THE‌P
‌ 1‌C
‌ HEAT‌‌SHEET‌  ‌
 ‌
TIPS‌‌ON‌‌P1‌‌Part‌‌(b)‌‌|‌‌50‌‌min.‌‌|‌C
‌ laspp‌‌
  
[AO3:Synthesis‌‌and‌‌Evaluation|‌E ‌ xamine‌e ‌ conomic‌c‌ oncepts‌‌‌and‌t‌ heories‌‌‌and‌U
‌ se‌e
‌ conomic‌‌
 
concepts‌‌‌and‌e
‌ xamples‌‌‌to‌c
‌ onstruct‌a
‌ nd‌‌‌present‌a‌ n‌a
‌ rgument‌] ‌ ‌
- Again‌‌you‌‌might‌‌need|‌‌Definitions‌‌(2-3)‌‌|‌‌1-2‌‌Dynamic‌‌Diagrams‌‌(Initial-Change-Final)‌  ‌
C‌onclusions‌  ‌ C‌|W
‌ hat‌‌can‌‌you‌‌conclude‌‌from‌‌theory‌‌explained‌‌in‌‌Part‌‌(a)?‌  ‌
L‌|‌‌Is‌‌the‌‌change‌‌good‌‌in‌‌the‌‌SR‌‌but‌‌not‌‌in‌‌the‌‌LR,‌‌Fix‌‌sth‌‌but‌‌create‌‌an‌‌issue?‌  ‌
L‌ong‌‌v‌‌short‌‌Run‌  ‌
A‌|‌‌Challenge‌‌them,‌‌if‌‌they‌‌do‌‌not‌‌hold‌‌what‌‌will‌‌change?Weaknesses‌‌of‌‌the‌‌  
A‌ssumptions‌  ‌ theory?‌‌Is‌‌sth‌‌unrealistic‌‌about‌‌it?‌  ‌
S‌takeholders‌  ‌ S‌|‌‌Impact‌‌on‌‌Gov.‌‌Cons.‌‌Prod.‌‌Workers.‌‌Society.‌‌Concepts?‌‌Compromise?‌‌    ‌
P‌|‌P‌ riorities‌‌for‌‌society?‌‌The‌‌government?‌‌Is‌‌there‌‌a‌‌value‌‌aspect‌‌the‌‌policy‌‌does‌‌  
P‌riorities‌  ‌ not‌‌consider?‌‌Opportunity‌‌costs?‌  ‌
P‌ros‌‌and‌‌Cons‌  ‌ P‌|‌‌Advantages‌‌and‌‌disadvantages‌‌(do‌‌not‌‌memorise‌‌all)‌  ‌

The‌‌Arguments‌  ‌
7‌‌Cs‌E
‌ valuation‌‌Framework‌  ‌ It‌‌might‌‌assist‌‌you‌‌if‌c
‌ ombined‌‌‌with‌‌‌CLASPP‌‌
   ‌
[For‌a
‌ lternative‌p ‌ olicies.‌‌Before‌‌
  •‌C
‌ onsider‌‌using‌‌the‌‌9‌‌Economic‌‌Concepts‌  ‌
and‌‌after.‌I‌mpact‌‌‌on‌‌
  Scarcity,‌‌Choice,‌‌Efficiency,‌‌Equity,‌‌Economic‌‌Well‌‌Being,‌‌Sustainability,‌‌  
Stakeholders.‌‌Conflict.‌‌   Change,‌ ‌Interdependence,‌‌Intervention‌‌    ‌
Economy‌.‌‌Society‌.‌‌Think‌‌of‌‌the‌‌   •‌C
‌ ost‌‌(financial,‌‌opportunity),‌‌Control‌‌(Power),‌‌Conflict‌‌(interest),‌‌Compromise‌‌
 
9‌‌Concepts‌‌‌] ‌ ‌ (not‌‌all‌‌happy)‌  ‌

The‌‌MAX‌‌Mark‌‌band‌  ‌
13-15‌  ‌ •‌‌First‌‌4‌‌bullets‌‌the‌‌same‌‌with‌‌9-10‌‌max‌‌Mark‌‌band‌  ‌
•‌‌The‌‌response‌‌contains‌‌evidence‌‌of‌‌effective‌‌and‌‌balanced‌‌synthesis‌‌or‌‌evaluation.‌  ‌
•‌‌A‌‌relevant‌‌real-world‌‌example(s)‌‌is‌‌identified‌‌and‌‌fully‌‌developed‌‌to‌‌support‌‌the‌‌argument.‌  ‌

Tips‌  ‌
● Start‌‌the‌‌answer‌‌to‌‌part‌‌(b)‌‌on‌‌a‌n
‌ ew‌‌page‌. ‌ ‌
● In‌‌the‌‌intro:‌‌(1)‌‌define‌n
‌ ew‌‌and‌‌implicit‌‌terms‌(‌ 2)state‌‌any‌‌limitations‌‌to‌‌the‌‌answer‌(‌ e.g.‌‌only‌‌the‌‌  
domestic‌‌economy‌‌or‌‌only‌‌short-run‌‌effects‌‌will‌‌be‌‌considered)‌  ‌
● Real-world‌‌example(s)‌‌must‌‌be‌‌included.‌D ‌ o‌‌not‌‌only‌‌mention‌‌it‌‌at‌‌the‌‌end.‌‌Build‌‌your‌‌analysis‌‌and‌‌
 
evaluation‌‌around‌‌the‌‌example(s).‌‌Use‌‌the‌‌example(s)‌‌to‌‌substantiate‌‌the‌‌assertions.‌‌(‌RWIs|‌D ‌ ata‌‌
 
(‌data.worldbank.org‌)|‌S
‌ tats‌‌‌(s‌ tats.oecd.org‌)|‌‌ELDC‌‌v‌‌EMDC‌‌|‌‌Relate‌‌Theories‌‌to‌‌the‌‌World)‌  ‌
● Issues‌‌are‌‌CONTROVERSIAL‌‌(evaluation‌‌+synthesis)=‌‌Address‌‌BOTH‌‌sides.‌‌Every‌‌argument‌‌has‌‌a ‌‌
counter-argument.‌‌Every‌‌loss‌‌has‌‌a‌‌counter‌‌gain.‌‌Every‌‌policy‌‌has‌‌benefits‌‌and‌‌problems.‌  ‌
● No‌‌need‌‌for‌‌a‌‌final‌‌opinion‌‌(eg‌‌“Evaluate‌‌the‌‌effectiveness‌‌of‌‌monetary‌‌policy‌‌…”),‌‌it‌‌is‌‌‌acceptable‌‌‌to‌‌ 
conclude‌‌that‌,‌‌in‌‌this‌‌example,‌i‌t‌‌is‌‌effective‌‌‌in‌‌some‌‌cases‌‌and‌i‌neffective‌‌in‌‌others‌.‌‌Often,‌‌there‌‌is‌n ‌ o‌‌
 
single‌‌“right”‌‌answer‌.‌‌Any‌‌opinion‌‌is‌‌valid‌‌provided‌‌that‌‌it‌‌is‌‌substantiated‌‌by‌‌analysis‌‌and/or‌‌a ‌‌
real-world‌‌example.‌  ‌
● Offer‌‌a‌s
‌ ummative‌‌conclusion‌‌‌for‌‌part‌‌(b)‌‌include‌‌here‌‌the‌m ‌ ost‌‌important‌‌points‌  ‌
● Display‌‌original‌‌thinkin‌g‌‌about‌‌the‌e ‌ valuation‌‌(‌e.g.“The‌‌least‌‌effective‌‌argument‌‌for‌‌using‌‌expansionary‌‌fiscal‌‌
 
policy‌‌in‌‌this‌‌case‌‌is‌‌…‌‌whereas‌‌the‌‌strongest‌‌reason‌‌in‌‌favour‌‌is‌‌…”.‌OR‌‌‌assess‌‌how‌d ‌ ifferent‌‌stakeholders‌b ‌ enefit‌‌
 
or‌‌lose‌‌from‌‌a‌‌policy‌‌to‌‌different‌‌degrees‌‌‌in‌‌the‌‌real-world‌‌example‌‌studied‌‌O ‌ R‌g‌ iven‌‌the‌‌fragility‌‌of‌‌an‌‌economy‌‌that‌‌ 
is‌‌referenced,‌‌the‌m ‌ ost‌‌effective‌‌policy‌‌‌in‌‌the‌‌‌SR‌‌‌might‌‌not‌‌be‌‌as‌‌effective‌‌in‌‌the‌L
‌ R‌)‌ .‌  ‌
● DO‌‌NOT‌‌ADOPT‌‌GENERIC‌‌APPROACHES‌.‌A ‌ VOID‌‌‌predictable‌‌patterns.‌‌‌AVOID‌:‌‌“These‌‌are‌‌the‌‌
 
stakeholders—consumers,‌‌firms‌‌and‌‌government—and‌‌this‌‌is‌‌how‌‌they‌‌are‌‌affected”‌‌or‌‌give‌‌pre-learned‌‌  
lists‌‌of‌‌“Arguments‌‌for‌‌are‌‌…”‌‌and‌‌“Arguments‌‌against‌‌…”.‌‌Ideally,‌‌the‌‌evaluation‌‌and‌‌the‌‌analysis‌‌will‌‌be‌‌
 
related‌‌specifically‌‌to‌‌the‌‌real-world‌‌example(s)‌‌used‌‌and‌‌to‌‌the‌‌question‌‌asked.‌  ‌

2‌  ‌