All Economists: Exam technique - Analysis and evaluation

Unit 1 & 2: Evaluation skills for AS Micro - A good listen

In this revision webinar we look at ways in which students can build effective evaluation, where required, into their responses to AS Micro exam questions.

 

 Here are the slide that go with the podcast:
 

AS econ webinar micro evaluation skills from mattbentley34

UNIT 1 & 2: How to structure your AS answers.

Two useful presentations on exam techniques for the AS paper. Essential viewing for AS students.

Analysis



Evaluation

Unit 3: Do Monopolies always make supernormal profits?

Click here to access a great piece on the difference between analysis and evaluation: Analysis and Evaluation - do monopolies always make supernormal profits?

The latest figures on the US Post Office came out today so have they managed to turn the business around?


Instead of making improvements, the losses have got much worse, increasing to US$15.9 billion in the latest financial year! As has been the case with some of the big car companies in previous years, having to pay for future retiree health benefits has a huge impact with US$11.1 billion of the loss attributed to this fact. If this and other labour related expenses were taken out of the accounts, the loss would be a paltry US$2.4 billion which is an improvement on the last year!

Having government control and regulation can have its benefits but also significant costs. If USPS were in the private sector, it would have long ago ditched its unprofitable Saturday mail delivery and saved a significant amount of cash. However, current law states that they must deliver on Saturday and while there is legislation before Congress that could change this, it may not happen anytime soon.

The following graphic shows one of the main problems alluded to in the earlier blog piece, although USPS is a statuary monopoly with significant barriers to entry, technology has meant that demand for their product is declining (and the losses are mounting). An excellent example for students to use for evaluating the usual textbook theory!

Unit 4: Evaluating Government Spending

Excellent piece, please, please read...it will give you some context and evaluation ideas when attempting questions/essay on fiscal policy.

When Robert Skidelsky gave his talk on Keynes here in Madrid last October, he spoke at length about the importance of effective government spending emphasising that the focus of the spending should be on capital rather than current.

ie, When aggregate demand is lacking, the government should increase spending on capital projects, even if that means deficit spending, in order to kick start the economy with the accompanying multiplier effect on output, jobs and growth.


This New York Times article takes up the Keynesian argument concerning the economic benefits of starting an “accelerated program of infrastructure repairs” throughout the US and and urges both Obama and the Republican hopeful Mitt Romney to listen up.

Apart from the impact such a program would have on jobs, $335 in annual damage per vehicle on the road caused by substandard roads would be saved. According to a report by the American Society of Civil Engineers, there’s more than $2 trillion in long-overdue repairs. These add to business costs, not to mention injuries and deaths caused by the roads, therefore by fixing them up, the government will also be improving the supply side even if that means increasing indebtedness.

“When prudent investment opportunities arise, families, businesses, and governments can and should spend more than they take in. “

An excellent article which can help A2 pupils when looking for some context when answering questions related to this topic. This also reminds me of this Q&A blog post from Geoff a while ago as it includes some great analysis and the following evaluation points of such infrastructure projects (relating to road building in the UK):

Read this!!!!

1. Skills shortages and spare capacity– the effectiveness of the investment might depend on whether the UK road building industry has sufficient skilled workers and spare capacity to successfully bid for and deliver the contracts to build new roads. If there are persistent skills gaps perhaps due to structural unemployment, wages will be bid higher and firms may have to depend on net inward migration.

2. Government spending on capital projects will help raise AD but needs to be supported by other policies to improve the human capital of the workforce and improve their job prospects

3. No one can be sure about the likely size of the fiscal multiplier effect – for example the propensity to consume domestically produced goods and services of the people and businesses employed to build the new roads

4. The medium term effects of increased government borrowing to fund major roads – might interest rates and taxation have to edge higher – putting a squeeze on the economy?

5. There might be more effective policies in the medium term – for example spending the same money to fund student enrolment at college or university so that they build up their skills?\

6. Long time lags on transport investment projects - see the comment below on the impact of planning objections and delays

'A' Level Economists: Evaluation techniques

Some brief advice on getting higher evaluation marks


Evaluation questions carry the highest marks and ask for more from the student. For the AQA evaluation marks are reserved for the final essay-style question. But for EdExcel, evaluation marks are available in more questions – summarised below:

For students taking EdExcel Unit 1: From January 2011 there is a standard formula for evaluation:

• 6 from 14 marks

• 4 from 10 or 12 marks

• 2 from 8 marks

• 2 from 6 marks

• Evaluation may be spread across three or four of the five sub-questions in the data response.

Here are some thoughts from the examiners

(i) Before you can evaluate you must analyse!

(ii) Evaluate each argument as it is introduced into the answer

(iii) Examiners like students who develop clear chains of reasoning in their answers

(iv) Try to make at least 3 “explicit” references to the data given in the question

(v) “Answers do not always have a clear, logical structure”.

Hints for better marks:

a. Your answer should be around 2 sides in length, including diagrams

b. Identify the area of economics which is being tested in the essay-style question

c. Outline the relevant theory, using a diagram if possible (they really do help!)

d. Evaluate arguments/policies as you go
e. Develop one key point/argument per paragraph (no more) and leave a clear line between each paragraph
f. Remember to come to a ‘final judgement’ including referring back to the data
g. A conclusion is essential and should not just repeat earlier points.
h. Leave yourself 5 minutes for a final judgement of 4-5 lines. This is time well spent. Try to incorporate a new idea, e.g. how a policy may impact on different parties; how the policy may have different short v long run effects

Recent exam reports offer good advice on how to finish an evaluative essay strongly:
• Answers should include alternative points of view and these should be clearly identified

• Some attempt should be made to consider the strengths and weaknesses of the different viewpoints. [Rank them if possible]

• Where possible, use data to provide support for arguments or to refute a point of view

• Final judgements might be qualified by statements that include phrases such as ‘it depends on’.

• Useful evaluative words: “However, nevertheless, it is likely that, on the other hand….”

• Maintain a high quality of presentation, especially in high mark questions and with your diagrams

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