This document provides advice and tips for achieving strong exam performance in A2 Microeconomics. It emphasizes using economic concepts and contextualizing answers with diagrams and data. Key points include defining terms, explaining answers thoroughly, annotating diagrams, and including critical evaluations. Sample multiple choice questions are provided as examples of structured responses. The document also directs students to online resources for additional help from teachers and fellow students on social media.
Best VIP Call Girls Noida Sector 40 Call Me: 8448380779
Stronger Protection for Energy Consumers
1. A2 Micro
Strong Exam Techniques
Stepping stones to great A2 grades
Geoff Riley, FRSA
Tutor2u
2. I love answers that.......
Use the data
well
Please!
Everything in
economics is
contextual
Use A2
concepts!
Put things in
context
Current
knowledge
Evaluate the
point made
Have great
analysis
diagrams
Critical
evaluation!
This is A2 not
AS!
8. Another structured MC example
1.
2.
3.
4.
1.
2.
3.
4.
5.
Revenue maximised when MR = zero
Unsold flowers can be offered at a price
discount to run down stocks. This is a form
of second-degree price discrimination
Likely to be elastic demand, flowers have
to be disposed of anyway
Draw a diagram to illustrate. P1 is profit
maximising price, P2 is a revenue
maximising price – Q1-Q2 sold at the
lower price adding to revenue
One knock-out, predatory pricing is illegal
in UK
Define term
Explain answer
Draw or annotate diagram
One knock-out (rejection)
Price
MC
P1
P2
AR
Q1
Q2 MR Qty
9. Explain how both a firm and its consumers may be
affected by economies of scale
10. Explain how both a firm and its consumers may be
affected by economies of scale
11. Explain how both a firm and its consumers may be
affected by economies of scale
Define
your terms
• Internal EoS
• External EoS
Internal
Economies
External
Economies
12. Explain how both a firm and its consumers may be
affected by economies of scale
Define
your terms
• Internal EoS
• External EoS
Internal
Economies
• Falling long
run unit cost
• Increasing
returns to
scale
External
Economies
13. Explain how both a firm and its consumers may be
affected by economies of scale
Define
your terms
• Internal EoS
• External EoS
Internal
Economies
• Falling long
run unit cost
• Increasing
returns to
scale
External
Economies
• Growth of
an industry
• Lowers unit
costs for
most
businesses
14. Explain how both a firm and its consumers may be
affected by economies of scale
Analyse
No evaluation
needed in this
question!
Impact on
firms
• Lower average costs
• Higher profits (producer surplus)
Impact on
consumers
• Real price
levels
• Consumer
surplus
15. Explain how both a firm and its consumers may be
affected by economies of scale
Price
Economies of Scale – Benefits
for Businesses and Consumers
AR =
demand
LRAC
Output (Q)
16. Explain how both a firm and its consumers may be
affected by economies of scale
Price
Economies of Scale – Benefits
for Businesses and Consumers
Profit at
output Q1
P1
AR =
demand
C1
LRAC
Q1
Output (Q)
17. Explain how both a firm and its consumers may be
affected by economies of scale
Price
Economies of Scale – Benefits
for Businesses and Consumers
Profit at
output Q1
P1
Profit at
output Q2
AR =
demand
P2
C1
LRAC
C2
Q1
Q2
18. Explain how both a firm and its consumers may be
affected by economies of scale
Price
Economies of Scale – Benefits
for Businesses and Consumers
Profit at
output Q1
P1
Profit at
output Q2
AR =
demand
P2
Gain in
consumer
surplus
C1
LRAC
C2
Q1
Q2
19. Explain how both a firm and its consumers may be
affected by economies of scale
Price
Economies of Scale – Benefits
for Businesses and Consumers
Profit at
output Q1
P1
Profit at
output Q2
AR =
demand
P2
Gain in
consumer
surplus
C1
LRAC
C2
Economies of scale have
the potential to benefit
both producers and
consumers – higher
profits and lower prices
Q1
Q2
20. Explain how both a firm and its consumers may be
affected by economies of scale
Price
Economies of Scale – Benefits
for Businesses and Consumers
Profit at
output Q1
P1
Profit at
output Q2
AR =
demand
P2
Gain in
consumer
surplus
C1
LRAC
C2
LRAC2
External
economies of
scale here
Q1
Q2
21. Explain how both a firm and its consumers may be
affected by economies of scale
Price
Economies of Scale – Benefits
for Businesses and Consumers
Profit at
output Q1
P1
Profit at
output Q2
AR =
demand
P2
Gain in
consumer
surplus
C1
LRAC
C2
LRAC2
External
economies of
scale here
C2
Q1
Q2
22.
23. Discuss whether utilities such as train operating companies, water, and
telecoms businesses are better left in the private sector or whether all, or
some, should be taken back into public ownership
24. Deeper evaluation (4+1 approach)
Outline (explain/analyse) and then evaluate 4 separate
points with a brief final reasoned evaluative paragraph
1/ Case for
private sector
• Profit motive
• Dynamic
efficiency
2/ State
ownership
option
• Objectives?
• Outcomes?
3/ Impact on
stakeholders
• Consumers
• Employees
• Taxpayers
4/ Alternatives
to public sector
• Competition
policy
• Business taxation
25. Evaluate the case for stronger action by governments to protect
consumers from the monopoly power of firms involved in
supplying gas and electricity to UK homes and businesses
Please note
the error in
the workbook
Significant rise in average energy bills in the UK –
this is a major policy issue – directly affects millions
of consumers and businesses.
26. Evaluate the case for stronger action by governments to protect
consumers from the monopoly power of firms involved in
supplying gas and electricity to UK homes and businesses
One main point per paragraph
Build an argument, support, then evaluate
Evaluation must relate to the point that has already been made
Case for
Action
High prices
/allegations
of collusion
Tougher
price caps?
Rising fuel
poverty /
complex
prices
Supernorma
l profits
Create
competition
in the
wholesale
market?
Evaluation
1. Large barriers to entry
2. Huge economies of scale
3. Limited contestability is a
feature of the market
Windfall
Tax on
profits
State
Ownership
Cheapest
tariff as
default
Using
windfall tax
to fund
insulation
27. Evaluate the case for stronger action by governments to protect
consumers from the monopoly power of firms involved in
supplying gas and electricity to UK homes and businesses
One main point per paragraph
Build an argument, support, then evaluate
Evaluation must relate to the point that has already been made
Case for
Action
High prices
/allegations
of collusion
Tougher
price caps?
Rising fuel
poverty /
complex
prices
Supernorma
l profits
Create
competition
in the
wholesale
market?
Evaluation
1. Large barriers to entry
2. Huge economies of scale
3. Limited contestability is a
feature of the market
Windfall
Tax on
profits
State
Ownership
Evaluation
1. Abnormal profits used to
fund capital investment
2. Long term energy security
3. Nationalisation &
inefficiency
Cheapest
tariff as
default
Using
windfall tax
to fund
insulation
28. Evaluate the case for stronger action by governments to protect
consumers from the monopoly power of firms involved in
supplying gas and electricity to UK homes and businesses
One main point per paragraph
Build an argument, support, then evaluate
Evaluation must relate to the point that has already been made
Case for
Action
High prices
/allegations
of collusion
Tougher
price caps?
Rising fuel
poverty /
complex
prices
Supernorma
l profits
Create
competition
in the
wholesale
market?
Evaluation
1. Large barriers to entry
2. Huge economies of scale
3. Limited contestability is a
feature of the market
Windfall
Tax on
profits
State
Ownership
Evaluation
1. Abnormal profits used to
fund capital investment
2. Long term energy security
3. Nationalisation &
inefficiency
Cheapest
tariff as
default
Using
windfall tax
to fund
insulation
Evaluation
1. Fewer tariffs but higher
average prices
2. Windfall tax discourages
investment & research
3. Government failure when
using revenues
29. Get help from fellow
students, teachers and
tutor2u on Twitter:
#econ3
@tutor2u_econ