aqa economics essay structure

How to Write Essays for AQA A-Level Economics

How should you structure your response to a 25-mark question? This post covers a few possible ways you could structure your answer.

There is no “right” structure. Different structures, including ones not mentioned here, can access high marks. However starting off with a general structure can be a good way to start off writing essays in economics.

What matters most importantly is making sure to show your knowledge, apply to the real world, analyse and evaluate. Having depth to your answers is helpful too.

To practice your essay writing skill on up-to-date questions, see the link below for practice papers for A-level exams in 2024.

Below I suggest one possible essay structure and then apply it to an example essay.

Suggested Structure

Introduction – this is where you should define key terms.

• In each point, you are looking to make your point and explain it through a chain of analysis and (often) a graph.
• Adding a fact or information about the current state of the economy helps achieve application points. For statistics on the UK economy, I usually use the website Trading Economics .
• Particularly where the point feels short or when you have the time, consider an additional chain of analysis to extend the point.

Evaluation: I have discussed evaluation examples in my previous posts. See the blue buttons below for these posts:

Conclusion:

• Answer the question directly, using the wording of the question.
• Justify your answer to the question. For example, is there an important factor that sways your point of view?
• You could also add a bonus evaluative factor that may support your point of view or that could

Example Essay Plan

Consider the following essay title that I have made up:

“Evaluate whether the UK Government should increase the corporate tax rate for the UK economy” (25 marks).

To answer this question using the structure above, we could write about the following:

Introduction:

• Define key terms e.g. corporate tax rate, what the corporate tax rate is in the UK.
• Effect on aggregate demand.
• Reduced incentive to invest means lower investment so aggregate demand shifts left on an aggregate demand – aggregate supply diagram. So real GDP will fall.
• This could be extended by discussing multiplier and/or accelerator effects.
• Add a fact about how the current UK Government has planned corporation tax rates to rise.
• Investment may depend on factors other than corporate tax rates, for example economic growth via the accelerator effect, the expected profitability of the investment, etc. So the fall in investment could be minor.
• Effect on long-run aggregate supply.
• Reduced incentive to grow or start a business, as well as lower investment, may decrease productivity and productive potential. The LRAS may shift left and real GDP could fall.
• It could also mean businesses are more likely to avoid or evade taxes, or even move abroad to an area with lower tax rates. This could further harm productive capacity.
• Adding information about the UK economy’s weak productivity record in recent decades could support this point.
• This depends on the rates of corporate tax in other countries. If other countries raise their corporation tax at the same time, then businesses are less likely to move abroad. Recently world leaders agreed to a 15% minimum corporate tax rate for example.
• Raising corporate tax increases tax revenue for a given level of economic activity.
• This means a reduced budget deficit, reduced future debt interest payments and less of an impact on future generations from current budget deficits.
• A fact about the UK Government’s currently high budget deficit, because of pandemic spending, could support this point.
• This depends on the current position of the UK economy on the Laffer curve.
• If the corporation tax rate is currently raising peak revenue on the Laffer curve, then increasing tax rate may decrease revenue, as it reduces incentives to start a business or expand, reducing taxable corporate profits.

• A final judgement on the question. For example, higher corporate tax rates could be effective at raising revenue.
• A justification: This is because governments have committed to a minimum global corporate tax rate and so there is less likely to be moves abroad to avoid the tax. You could argue the other way round instead.
• A factor that may influence your judgement. For example, the level of interest rates could affect the level of interest payments and in turn whether the Government needs to raise as much revenue in the short term.

Alternative Structure

Other teachers suggest this structure below. This structure allows more depth to points but should also come with a longer conclusion ideally and can be appropriate depending on the essay title:

Introduction

Point 1 – for

Point 2 – against

This can work too, provided the analysis and evaluation is sufficiently detailed.

More Resources

For an online course covering AQA exam technique, click the blue button here:

For practice AQA Economics-style papers, please see the link below (paid resource):

Latest Posts

• 12 Practice Papers for A Level Economics 2024
• The economics of why people give gifts
• 11 Practice Questions in style of Edexcel Economics Paper 2
• What economic theory says about immigration
• 25 Practice Questions in style of Edexcel Economics Paper 1

Tips for writing economics essays

Some tips for writing economics essays  Includes how to answer the question, including right diagrams and evaluation – primarily designed for A Level students.

1. Understand the question

Make sure you understand the essential point of the question. If appropriate, you could try and rephrase the question into a simpler version.

For example:

Q. Examine the macroeconomic implications of a significant fall in UK House prices, combined with a simultaneous loosening of Monetary Policy.

In plain English.

• Discuss the effect of falling house prices on the economy
• Discuss the effect of falling interest rates (loose monetary policy) on economy

In effect, there are two distinct parts to this question. It is a valid response, to deal with each separately, before considering both together.

It helps to keep reminding yourself of the question as you answer. Sometimes candidates start off well, but towards the end forget what the question was. Bear in mind, failure to answer the question can lead to a very low mark.

2. Write in simple sentences

For clarity of thought, it is usually best for students to write short sentences. The main thing is to avoid combining too many ideas into one sentence. If you write in short sentences, it may sound a little stilted; but it is worth remembering that there are no extra marks for a Shakespearian grasp of English. (at least in Economics Exams)

Look at this response to a question:

Q. What is the impact of higher interest rates?

Higher interest rates increase the cost of borrowing. As a result, those with mortgages will have lower disposable income. Also, consumers have less incentive to borrow and spend on credit cards. Therefore consumption will be lower. This fall in consumption will cause a fall in Aggregate Demand and therefore lead to lower economic growth. A fall in AD will also reduce inflation.

I could have combined 1 or 2 sentences together, but here I wanted to show that short sentences can aid clarity of thought. Nothing is wasted in the above example.

Simple sentences help you to focus on one thing at once, which is another important tip.

3. Answer the question

Quite frequently, when marking economic essays, you see a candidate who has a reasonable knowledge of economics, but unfortunately does not answer the question. Therefore, as a result, they can get zero for a question. It may seem harsh, but if you don’t answer the question, the examiner can’t give any marks.

At the end of each paragraph you can ask yourself; how does this paragraph answer the question? If necessary, you can write a one-sentence summary, which directly answers the question. Don’t wait until the end of the essay to realise you have answered a different question.

Discuss the impact of Euro membership on UK fiscal and monetary policy?

Most students will have revised a question on: “The benefits and costs of the Euro. Therefore, as soon as they see the Euro in the title, they put down all their notes on the benefits and costs of the Euro. However, this question is quite specific; it only wishes to know the impact on fiscal and monetary policy.

The “joke” goes, put 10 economists in a room and you will get 11 different answers. Why? you may ask. The nature of economics is that quite often there is no “right” answer. It is important that we always consider other points of view, and discuss various different, potential outcomes. This is what we mean by evaluation.

Macro-evaluation

• Depends on the state of the economy – full capacity or recession?
• Time lags – it may take 18 months for interest rates to have an effect
• Depends on other variables in the economy . Higher investment could be offset by fall in consumer spending.
• The significance of factors . A fall in exports to the US is only a small proportion of UK AD. However, a recession in Europe is more significant because 50% of UK exports go to EU.
• Consider the impact on all macroeconomic objectives . For example, higher interest rates may reduce inflation, but what about economic growth, unemployment, current account and balance of payments?
• Consider both the supply and demand side . For example, expansionary fiscal policy can help to reduce demand-deficient unemployment, however, it will be ineffective in solving demand-side unemployment (e.g. structural unemployment)

Example question :

The effect of raising interest rates will reduce consumer spending.

• However , if confidence is high, higher interest rates may not actually discourage consumer spending.

If the economy is close to full capacity a rise in interest rates may reduce inflation but not reduce growth. (AD falls from AD1 to AD2)

• However , if there is already a slowdown in the economy, rising interest rates may cause a recession. (AD3 to AD3)

Micro-evaluation

1. The impact depends on elasticity of demand

In both diagrams, we place the same tax on the good, causing supply to shift to the left.

• When demand is price inelastic, the tax causes only a small fall in demand.
• If demand is price elastic, the tax causes a bigger percentage fall in demand.

2. Time lag

In the short term, demand for petrol is likely to be price inelastic. However, over time, consumers may find alternatives, e.g. they buy electric cars. In the short-term, investment will not increase capacity, but over time, it may help to increase a firms profitability. Time lags.

3. Depends on market structure

If markets are competitive, then we can expect prices to remain low. However, if a firm has monopoly power, then we can expect higher prices.

4. Depends on business objectives

If a firm is seeking to maximise profits, we can expect prices to rise. However, if a firm is seeking to maximise market share, it may seek to cut prices – even if it means less profit.

5. Behavioural economics

In economics, we usually assume individuals are rational and seeking to maximise their utility. However, in the real world, people are subject to bias and may not meet expectations of classical economic theory. For example, the present-bias suggest consumers will give much higher weighting to present levels of happiness and ignore future costs. This may explain over-consumption of demerit goods and under-consumption of merit goods. See: behavioural economics

Exam tips for economics – Comprehensive e-book guide for just £5

8 thoughts on “Tips for writing economics essays”

I really want to know the difference between discussion questions and analysis questions and how to answer them in a correct way to get good credit in Economics

Analysis just involves one sided answers while Discussion questions involve using two points of view

This is a great lesson learnd by me

how can I actually manage my time

The evaluation points in this article are really useful! The thing I struggle with is analysis and application. I have all the knowledge and I have learnt the evaluation points like J-curve analysis and marshall learner condition, but my chains of reasoning are not good enough. I will try the shorter sentences recommended in this article.

What kind of method for costing analysis is most suitable for a craft brewery, in order to analyze the cost of production of different types of beer_

Really useful!Especially for the CIE exam papers

Does anyone know how to evaluate in those advantages/disadvantages essay questions where you would basically analyse the benefits of something and then evaluate? Struggling because wouldn’t the evaluation just be the disadvantages ?? Like how would you evaluate without just stating the disadvantage?

Leave a comment Cancel reply

This website works best with JavaScript switched on. Please enable JavaScript

• Centre Services
• Associate Extranet
• All About Maths

Inspiring students to explore and succeed

Qualifications

Choose a specification for everything you need to plan, teach and prepare your students for their exams.

GCSE Economics

• AS and A-level

AS and A-level Economics

This month at aqa.

Apply to become an examiner

Equality, diversity and inclusion: find out more

Discover research and analysis

Approved textbooks.

We collaborate with publishers to ensure that you have ‘AQA approved’ textbooks to support you and your students with our specifications.

Find past paper questions so you can make customised assessments for revision, homework and topic tests for A-level Economics.

Go to Exampro

Our joint venture with Oxford University Press and Oxford International AQA Examinations offers a range of international GCSEs and A-levels specifically designed for international curriculum schools outside the UK.

Find out more

Connect with us

Contact our team.

8am–5pm Monday to Friday

Tel: 01483 477863

Email: [email protected]

Subscribe for updates

Receive the latest news, resources and support for your subject area from AQA.

Sign up now for free

Switch to AQA today

Join us and discover why we're trusted by thousands of teachers.

Live revision! Join us for our free exam revision livestreams Watch now →

Reference Library

Collections

• See what's new
• All Resources
• Student Resources
• Assessment Resources
• Teaching Resources
• CPD Courses
• Livestreams

Study notes, videos, interactive activities and more!

Business news, insights and enrichment

Currated collections of free resources

Browse resources by topic

• All Business Resources

Resource Selections

Currated lists of resources

Exam Support

AQA A Level Paper 1 (25 Mark Essays) - Planning the Essay

Last updated 7 Jun 2017

• Share on Facebook
• Share on Twitter
• Share by Email

In the first in a series of short videos on Paper 1 (25 mark) essay technique, I've had a go at providing a worked example of how to plan the two PeCAn PiE paragraph points and AJIM conclusion for a 25 mark essay on AQA A Level Business Paper 1.

AQA PeCAn PiE AJIM Answer Planner

7th June 2017

Practice Exam Papers (Vol 1) for AQA A-Level Business for exams up to 2024

Digital Resource

Year 1 (AS) Practice Exam Papers for AQA A-Level Business for exams up to 2024

You might also like, how to answer a 10 mark question for edexcel a level business year 1 (as), business ethics & managers in plcs (aqa a level business paper 1: example 25 mark essay), anglia bank redundancies (aqa a level business: example 9 mark response), how to answer short context questions for aqa a level business, aqa a level paper 1 (25 mark essays) - two pecan pies, aqa a level paper 1 (25 mark essays) - the essay conclusion, competitive advantage in mass markets (aqa a level business paper 1: example 25 mark essay), training and workforce performance (aqa a level business paper 1: example 25 mark essay), our subjects.

• › Criminology
• › Economics
• › Geography
• › Health & Social Care
• › Psychology
• › Sociology
• › Teaching & learning resources
• › Student revision workshops
• › Online student courses
• › CPD for teachers
• › Livestreams
• › Teaching jobs

Boston House, 214 High Street, Boston Spa, West Yorkshire, LS23 6AD Tel: 01937 848885

• › Contact us
• › Terms of use
• › Privacy & cookies

© 2002-2024 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.

• International
• Schools directory
• Resources Jobs Schools directory News Search

AQA Economics 9 and 15 mark student structure sheet

Subject: Economics

Age range: 16+

Resource type: Assessment and revision

Last updated

1 April 2022

• Share through email
• Share through twitter
• Share through linkedin
• Share through facebook
• Share through pinterest

A step by step, tried and tested structure for students to follow to complete 9 mark and 15 mark exam questions. This has been designed for AQA A-level Economics paper 1 and paper 2. As a regular examiner of Paper 1, I have refined this resource to ensure it allows students to achieve maximum marks on these questions.

Tes paid licence How can I reuse this?

Your rating is required to reflect your happiness.

It's good to leave some feedback.

Something went wrong, please try again later.

This resource hasn't been reviewed yet

To ensure quality for our reviews, only customers who have purchased this resource can review it

Report this resource to let us know if it violates our terms and conditions. Our customer service team will review your report and will be in touch.

Not quite what you were looking for? Search by keyword to find the right resource: