The document provides a summary review of an economics course covering units 1-4. It analyzes student performance on exam questions and provides tips for improvement. Key points include: students performed best on questions about price and income elasticity but struggled with the function of the price mechanism; evaluation marks made up a significant portion of the exam; and accurately drawing and explaining diagrams was important for earning full marks. The review aims to help students achieve success through incorporating feedback on common mistakes.

1. Course Title
GCE ECONOMICS
ACHIEVING SUCCESS
THROUGH FEEDBACK
Course code 10FRE010-2
1

2. Summary Review of
Economics units 1 - 4
June 2011
Slide 2

3. Unit 1: AS Microeconomics
Mean score: 45.1 /80 marks (46.3 in 2010, 45.3 in 2009).
Standard deviation: 14.4 (compared to 13.9 in June 2010 and
14.0 in June 2009).
‘A’ grade boundary: 58/80 marks
‘E’ grade boundary: 29/80 marks
Slide 3

4. Section A: supported multiple choice
Mean score: 19.88 /32 marks (2010 : 20.32, 2009: 20.00)
Possible to score 3 explanation marks even with wrong
answer.
Possible to score 3 explanation marks for rejecting three
incorrect options – very hard to do in practice.
Slide 4

5. Multiple choice questions
Questions varied in difficulty:
 Q3 Price and income elasticity of demand recorded highest
mean mark of 3.11
Q2 Function of the price mechanism recorded the lowest
mean mark of 1.82
Candidates fared better on the market failure questions 7 and
8 compared to previous years.
Slide 5

6. Q3: Price and income elasticity of demand
Mean score: 3.11 out of 4 marks
Define PED or show formula (1 mark)
Define YED or show formula (1 mark)
Application: milk and cheese have positive YED and so are
normal goods (1 mark).
Application: milk and cheese have PED below -1 and so are
price inelastic in demand (1 mark).
Slide 6

7. Q3: Price and income elasticity of demand
How to improve – application to the data on milk and
cheese.
Rejection – options A or C incorrect since inferior goods have
a negative YED.
Slide 7

8. Q2: Function of the price mechanism
Mean score: 1.82 out of 4 marks
Define price mechanism (mechanism to allocate resources
through changes in demand and supply) (1 mark)
Show diagram depicting a surplus and how a fall in price leads
to market equilibrium (1+1 marks)
Slide 8

9. Q2: Function of price mechanism
Price
S
P2
Pe
D
0 Q1 Qe Q2 Quantity
Slide 9

10. Q2: Function of price mechanism
How to improve – use a demand and supply diagram.
Rejection – option A incorrect since an increase in price acts
as a profit incentive to raise supply.
Rejection – option C incorrect as government targets are
associated with a centrally planned economy.
Rejection – option D incorrect since prices vary according to
changes in conditions of demand and supply.
Slide 10

11. Summary of good practice for supported
multiple choice questions
Define key terms throughout.
Consider key concept or model behind question.
Apply the information provided e.g. for Q1 the tax on
cigarettes can be tested: is it more than 75% of the price?
Annotate diagrams provided: Q4 producer surplus; Q6 ad
valorem tax; Q7 buffer stock scheme.
Slide 11

12. Summary of good practice for supported
multiple choice questions
Draw diagrams e.g. Q2 Price mechanism model to show
elimination of a surplus.
Calculate percentages.
Show working for calculations e.g. Q6 incidence of producer
and consumer tax.
Reject incorrect option(s) if answer is brief or dubious, e.g. Q4
option A is consumer surplus; Q7 option C will require a poor
harvest rather than a good harvest.
Slide 12

13. Summary of good practice for supported
multiple choice answers
Time allocation of c.4 minutes per question.
Practice past papers – including papers from old syllabus.
Make use of examiner reports showing candidate responses,
the marks awarded and exam tips.
Slide 13

14. Unit 1 Section B: data response
New format for questions from January 2011
to help maximise candidate performance:
Maximum mark base raised from 12 to 14 marks for
individual question.
Number of sub-questions reduced from 6 to 5 parts in each
data response.
Slide 14

15. Evaluation marks
Significant number of evaluation marks (16 out of 48),
especially for high mark base questions.
Expect evaluation across three or four of the five
sub-questions in the data response.
A standard formula for evaluation:
6 from 14 marks
4 from 10 or 12 marks
2 from 8 marks
2 from 6 marks
Slide 15

16. Data response questions
Both questions were accessible to candidates:
46% selected Q9 on the National Health Service.
54% selected Q10 on the Market for copper.
Mean score for Q9: 24.21
Mean score for Q10: 26.30
Candidates performed better on Q10e (external costs) than
Q9d (external benefits).
Slide 16

17. Q9 The National Health Service
Health care theme tested for first time in data response in
current course – still very popular among candidates.
Candidates often successfully applied concepts to health care
e.g. opportunity cost and production possibilities.
Less successful in applying private and external benefits to
health care.
Slide 17

18. Q9(d) Private and external benefits from
consuming health care
Mean score: 6.05 out of 14 marks
Many responses made basic errors and so restricted the KAA
marks:
- incorrect diagram.
- incorrect definition of private and external benefits.
- failure to distinguish between private and external
benefits in the discussion.
Slide 18

19. Q9(d)
Price
MPC=MSC
M
T
P2
Pe Z
MSB
MPB
Qe Q2 Quantity
Slide 19

20. Q9(d)
Evaluation (2+2+2 or 3+3 marks)
Popular responses discussed:
Magnitude of the private benefits are huge (1m treated every
36 hours).
Difficulty in measuring external benefits.
Opportunity cost of the extra spending on health care.
Slide 20

21. Q9(d)
How to improve
Draw and label diagram accurately ( 4 marks).
Define private & external benefits accurately (2+2 marks)
Explain private benefits (life expectancy / quality of life /
income) (3 marks).
Explain external benefits (healthier workforce / more profits /
tax revenue / less spread of contagious diseases) (3 marks).
Slide 21

22. Q10 Market for copper
A familiar question on commodity prices requiring use of
demand and supply analysis.
Generally well answered especially Q10e on external costs;
however, many struggled with minimum price diagram in
Q10d.
Slide 22

23. Q10(d) Guaranteed minimum price
Mean score 6.78 out of 14 marks
Great variety in quality of answers, full mark range used.
Some confused minimum price with buffer stock scheme.
KAA 8 marks:
Based on diagram and effects: higher output / higher price /
incentives to produce / higher government spending /
increase in costs for consumers of copper/
Slide 23

24. Q10(d) Guaranteed minimum price
Price
S
Excess supply
P1 Minimum Price
Pe
D
0 Q1 Qe Q2 Quantity of
copper
Slide 24

25. Q10(d) Guaranteed minimum price
Evaluation: 6 marks (3+3 or 2+2+2)
Discussion of:
minimum price relative to free market price.
price fluctuations can still occur above minimum price.
price elasticity of demand and supply.
government failure / opportunity cost.
costs of storage and non-perishability.
some producers may remain outside of scheme.
Slide 25

26. Q10(d) Guaranteed minimum price
How to improve
Ensure accurate and fully labelled diagram.
Offer at least two evaluative points.
Consider both positive and negative effects as this
automatically triggers evaluation.
Avoid confusion of minimum price with buffer stocks scheme
– this was a common problem.
Slide 26

27. Summary of good practice for data response
answers
Define key economic concepts in the question.
Use the extract information.
Calculate percentages / percentage change
Draw diagrams accurately and explain them.
Carefully look at question instructions and then attempt to
answer, maintaining relevance.
Practise past exam questions under timed conditions.
Slide 27

28. Summary of good practice for data response
answers
Maintain quality of presentation, especially in high mark base
questions.
Offer evaluative comments when required (especially since 16
out of 48 marks comprise this.
Time allocation – approximately 1 minute a mark.
Make use of detailed examiner reports showing candidate
responses and examiner guidance.
Slide 28

29. Unit 2: AS Macroeconomics
Overall Statistics
Mean score: 53 / 80 marks
‘A’ grade boundary: 63 marks
‘E’ grade boundary: 36 marks
Slide 29

30. Data response
Significant number of evaluation marks (20 out of 80)
especially for high mark base questions
A standard formula for evaluation:
• 12 from 30 marks
• 4 each from two 12 mark questions
Slide 30

31. Data response questions
Both questions were accessible to candidates:
55% chose Q1 (inflation and unemployment)
•
• 45% chose Q2 (interest rates, house prices, savings and
growth)
Mean score for Q1: 53
Mean score for Q2: 53
Slide 31

32. Q1(a)(iii) Usefulness of information when
making interest rate decisions
Mean score 6.48 out of 12 marks
KAA 8 marks:
Most answers identified at least one item of information and
considered its potential impact on the price level
However, some candidates
Did not explain the impact on the price level
Seemed unaware that the MPC mandate only targets inflation
Slide 32

33. Q1(a)(iii) Usefulness of information when
making interest rate decisions
Evaluation 4 marks:
Many evaluated the effectiveness of monetary policy, rather
than evaluating the usefulness of the information.
How to improve –
Make the explicit link between the items of information in the
extracts and their effect on the price level
Slide 33

34. *Q1(d) Fiscal and Supply-Side policies to
reduce unemployment
Mean score 20.33 out of 30 marks
KAA 18 marks:
Candidates understood the main policies and were able to
illustrate their potential impact on unemployment level.
A wide range of policies were considered and knowledge of
recent events in the UK was applied.
Slide 34

35. *Q1(d) Fiscal and Supply-Side policies to
reduce unemployment
Evaluation 12 marks:
Many candidates provided suitable evaluation but some points
were not developed
How to improve-
Avoid generic evaluation points (ceteris paribus, magnitude,
etc) unless applied to the question.
Weigh up relative effectiveness
Consider short term and long term impact such as
• threat of default on the national debt
• fairness of burdening future generations with debt
Slide 35

36. *Q2(c) Conflict between rapid economic
growth and at least 2 other objectives
Mean score 17.49 out of 30 marks
KAA 18 marks:
Vast majority of candidates identified 2 or 3 objectives
Good analysis of conflict with other objectives.
Excellent use of examples from the current situation
Weaker candidates often wrote about a conflict between low
unemployment and high economic growth.
Slide 36

37. *Q2(c) Conflict between rapid economic
growth and at least 2 other objectives
Evaluation 12 marks:
Many candidates
• identified that much depended on the state of the economy
and how close it was to capacity
• had a good and efficient essay technique
How to improve –
• If only two conflicts are identified, then develop each more
fully to earn 6 marks for each point
• Include evaluation points within analysis, not just in a
conclusion.
Slide 37

38. Summary of good practice for data response
answers
Define key economic concepts in the question
Use the extract information
Use knowledge of recent world events and data
Draw diagrams accurately and explain them
Look carefully at question instructions before writing
Practise past exam questions under timed conditions
Slide 38

39. Summary of good practice for data response
answers
Offer evaluative comments when required (especially with
20 / 80 marks for evaluation)
Time allocation – around 1 minute per mark
Make use of detailed examiner reports showing candidate
responses and examiner guidance
Slide 39

40. Unit 3: A2 Microeconomics
The Paper was seen as difficult, but the mean mark (48.4)
was only 0.4 lower than in June 2010.
The mark scheme allowed a wide selection of answers. For
example, marking of question 9 was made more generous
to compensate for what were perceived to be more
challenging questions.
SD Mean
1006 10.4 48.4
1106 10.7 48.0
Slide 40

41. A plea from many of the examiners: make
handwriting legible. The problems in
de-cyphering the scripts this year
seemed far more acute than ever
before, and students are penalised if
their meaning cannot be clearly

Slide 41

42. Grade boundaries: June 2011
A* 63
A 56
B 49
C 42
D 35
E 28
N 21
Slide 42

43. Question 2: Overt collusion KEY: B
There was confusion between tacit and overt
collusion – many describing features of
overt but referring to this as tacit.
A common mistake was to choose A.
Some candidates referred to oligopoly as
having interdependence and therefore
more risk of collaboration.
Slide 43

44. Question 5: Effect of a change in
fixed costs on marginal costs
KEY: A
Very few candidates explained this clearly.
Definitions of marginal and fixed costs were
sound, but many muddled answers linked an
increase in marginal costs to fixed costs.
Some top answers used a diagram to show
the position efficiently.
Slide 44

45. Question 8: Performance targets
in the banks KEY: E
Not many showed confidence in this answer,
and some used the wording in the question
to form their answer – naming “poor
service” and “fines” without adding a great
deal of explanation.
A few attacked banks for “sloppy service”
and unwillingness to lend to needy people.
Slide 45

46. Question 9c Success of competition
policy (12)
Most answers included an explicit definition
of competition policy.
There was little use of the specifics of any
cases beyond those seen in the extracts.
The fines for price fixing and predatory
pricing were seen often.
Slide 46

47. Question 9c continued
Many used patent law as a competition
policy. Price capping (limited relevance)
was common, nationalisation, subsidies to
start-ups, taxation, the 25% market share
threshold and collusion investigations were
all used.
Weaker responses tended to describe
institutions and their procedures.
Slide 47

48. 10d Effects on efficiency of the
merger(16)
This question was similar to 9d, though
game theory gave candidates a base for
their answer.
Some candidates had prepared a game
theory matrix but didn’t use it in context;
better candidates scored 6 KAA marks
easily and used game theory in evaluation
Slide 48

49. 10 d continued
Evaluation usually took the form of saying
that efficiency would worsen (as a counter
argument).
Better answers linked economies of scale to
the context – others gave generic theory.
The best answers on efficiency used varied
data.
Slide 49

50. Reasons for disappointing marks:
8 mark questions often had no evaluation
12 mark questions often had a lone
evaluation point (game theory is highly
appropriate here).
16 mark questions – many did not leave an
appropriate amount of time
Slide 50

51. Final observations
Evaluation earns 50% of marks for the
data questions (except the 4 mark
questions)
Questions 9 and 10 will continue to have
the mark distribution 4, 8, 12 & 16,
although not always in that order.
The number of entries was higher in
January 2011 than June 2011 (both higher
than 2010).
Slide 51

52. Review of Unit 6EC04:
The Global economy
June 2011
Slide 52

53. General observations (1)
Paper proved to be accessible for most candidates
Essay performance was often good but the part (b) questions
were quite challenging
Time allocation was mainly good, but there was evidence of
some rushing in last parts of the data questions
Illegibility is becoming a more significant problem
Slide 53

54. Unit 4: Overall statistics
Mean Score: 60.1
Standard deviation: 13.0
A grade boundary: 67/100
A* boundary: 74
E grade boundary: 39
Slide 54

55. Section A: Essays
Question 3 was the most popular (trading blocs and monetary
union)- 47% of candidates attempted it
Question 1 attracted about 30% of the candidates and 23% of
the candidates answered question 2
Mean marks:
Question 1: 31.4
Question 2: 29.9
Question 3: 33.3
Slide 55

56. Data response questions
Question 5 was more popular than question 4
with 57% of candidates attempting Q5
and 43% attempting Q4
Mean marks:
Question 4: 29.0
Question 5: 27.7
Slide 56

57. Q2(a): Causes of Absolute Poverty
in a developing country
General:
Some impressive responses with many using case study
material to good effect
Wide range of factors included
Some weaker answers saw Africa as a country!
How to improve:
Include definition of absolute poverty
Ensure answer is related to a specific country
Include more evaluative comments e.g. why debt might help to
reduce absolute poverty in the long run
Slide 57

58. Q2(b): Linking reduction in absolute
poverty and economic development
General:
Generally unimpressive answers: too many saw development as
synonymous with growth;
Too many answers simply focused on ways by which absolute
poverty could be reduced
How to improve:
Begin with definition of economic development
Explain ways a reduction in absolute poverty could help
development e.g. more healthcare so better life expectancy
Slide 58

59. ESSAYS: SOME ISSUES
A failure to focus directly on the question set – candidates
often wrote all they knew about a topic
Students tried to manipulate questions to answers they had
pre-learned
Inadequate knowledge of recent economic history e.g. the
banking crisis and recession
A distinct lack of analysis in many responses
59

60. Summary of good practice on essays
Write a brief plan
Define key terms included in the title
Use the context: don’t pre-rehearse
Apply key concepts or models
Include diagrams integrated into the
analysis
Include evaluation
Slide 60

61. Summary of good practice on essays
Time allocation: spend no more than 1 hour on the essay
Use paragraphs for each separate point
At least 3 points and 1 evaluative comment for part (a) at
least 4 points and 2 evaluative comments for part (b)
Make use of detailed report and ResultsPlus showing
candidate responses and examiner guidance.
Slide 61

62. Section B: Data Response
5 part questions – with ‘stretch and challenge’
Part (a): 5 marks for knowledge and application
Part (b): 8 marks for knowledge, application &
analysis
Part (c): 10 marks of which 4 are for evaluation
Part (d): 12 marks of which 5 are for evaluation
Part (e): 15 marks of which 6 are for evaluation
Slide 62

63. Q5(a) Role of the WTO
Mean score: 4.18 out of 5
Answered well
Most candidates considered WTO role in reducing trade
barriers/promoting free trade
2 marks available for data reference e.g. WTO role in settling
dispute between US and Brazil
How to improve:
Refer to role of WTO in settling disputes; have some knowledge
about WTO rounds of talks
Slide 63

64. Q5(c) Extent to which higher savings in
US might eliminate trade imbalances
between China and US
Mean Mark: 4.64 out of 10 – a challenging question
Main weaknesses:
Link between higher savings and lower consumption and
imports not established clearly
Little by way of evaluation
Higher interest rates seen as the cause of higher savings,
followed by discussion of effects of higher interest rates
Slide 64

65. Q5 (c) continued
Best answers:
Used concepts e.g. increase in MPS; link to a fall in C and,
therefore, to a fall in M
Or employed AD/AS analysis
Discussed the link between savings and investment
Evaluated well, e.g. on the significance of the size of the US
trade deficit
How to improve:
Use concepts; include data reference; comment on
significance of other factors which might correct trade
imbalances between US and China
65

66. Q5 (d) Extent to which large trade
balances are a cause for concern
Mean mark: 5.94 out of 12
This proved to be challenging for many candidates
Weaknesses:
‘Trade imbalances’ did not appear to be a term familiar to
many candidates but it is in the specification!
Confusion between trade deficits and budget deficits
Too little analysis and evaluation in many answers
Theoretical answers with no reference to the context
Slide 66

67. Q5 (d) continued
Better responses often focused on issue of trade deficits
-
Lack of competitiveness, implications for unemployment
Loss of comparative advantage
Potential problems of financing trade deficits
Evaluation in terms of surpluses on the financial account;
exchange rate adjustment; imports of capital goods in the short
run which might resolve the problem in the long run
How to improve:
Start with an explanation of the term ‘trade imbalances’
Consider broader issues e.g. danger of increased protectionism;
asset price bubbles
67

68. Data Response Performance –
some areas for improvement
A minority failed to answer all parts of the question
Many candidates simply ignore the data
Some evidence of difficulty in comprehending the data
Many responses jump from identification to evaluation with
little or no analysis
Quality of Written Communication is an issue in some scripts
68

69. Summary of good practice for Unit 4
data response answers
Define key economic concepts in the question
Use the extract information
Make use of the charts/diagrams provided
Ensure analysis goes beyond a superficial outline
Draw diagrams accurately and explain them
Include evaluation in the 3 higher mark questions
Slide 69

70. Final word on ECO4…….
From the general comments:
“Once again it was pleasing to see some superb
responses…….In these answers it was evident that candidates
answered the questions in context and had read beyond the
syllabus.
Such scripts are not only a credit to the candidates
themselves but also to their teachers whose inspiration and
sound teaching must have played a crucial role.”
70

71. TEACHER SUPPORT MATERIALS
www.edexcel.com > qualifications > GCE from 2008 >
Economics
SCHEMES OF WORK
More detail on content & timings
References to texts, websites, activities
GETTING STARTED
Major content/focus areas
Revision sheets
Written with students in mind
71

72. TEXTBOOKS
Teacher and student preferences vary
Current texts still useable
New editions for this specification
Unit guides and activities
Edexcel materials
72

73. USEFUL WEB RESOURCES
BIZED.CO.UK
TUTOR2U & Brynsaseconomicsblog
Anforme.co.uk
BBC.co.uk (Steph Flanders)
Gapminder.org
Statistics.gov.uk
73

74. Examples of extra resources:
THE UNDERCOVER ECONOMIST
[Tim Harford]
THE ECONOMIC NATURALIST
[Robert Frank]
Gapminder.com
GLOBALISATION & ITS DISCONTENTS
[Joe Stiglitz]
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75. GCE 2008 – ResultsPlus
Access to marks from your entry group or
individuals
Visit our ResultsPlus website for further information
on:
how to register for the service
how you can receive email alerts
www.edexcel.org.uk/resultsplus
75

76. Answers to your questions
Edexcel’s Ask The Expert Service – you can ask
questions of the senior examiners who will get back
to you with answers relating to teaching and
learning and assessment.
gcebusinessandeconomics@edexcelexperts.co.uk
Edexcel’s Business Subject Advisor Colin Leith will
answer your questions about all the Economics and
Business specifications. You can contact him on
BusinessSubjectAdvisor@edexcelexperts.co.uk
Regular email subject updates to listed teachers
from Colin.
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77. Thank you for attending this Edexcel Training
Event.
We hope that you have found today’s training beneficial
and request that you kindly complete our anonymous online
evaluation form, which you should receive by email
today.
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