GCSE Economics OCR J320 Economics
Unit A591: How the market works (there are three sets of questions, each set based on a particular theme or case study, questions include data interpretation and extended prose. 1 hour)
Unit A592: How the economy works (there are three sets of semi structured questions each set based on a particular theme or case study, questions include data interpretation and extended prose. 1 hour)
Unit A593: The UK economy and Globalisation (there is a pre-released case study and questions will involve data interpretation and extended prose. 1 hour 30 minutes)
Writing your revision plan Summarise each topic into short points. To make notes on a topic you will need to:
Read the topic carefully Highlight the key point in the topic Identify the important information in each point Decide how to summarise each point into a short sentence so it is easy to remember.
Resources: Economics by Moynihan and Titley www.tutor2u.net www.bized.co.uk www.ocr.org.uk for the full specification, specimen papers, resources. . Verulam School Central Resources Library, Economics/BStudies, GCSE Economics – lots of resources…… use them! There is a complete revision guide in the central resources library BBC bitesize has some useful bits in the business studies and geography sections.
Assessment objectives AO1 You will be asked to demonstrate knowledge and understanding ie recall, select and communicate your knowledge and understanding of concepts, issues and terminology. AO2
You should be able to apply skills, knowledge and understanding to a variety of contexts.
AO3 you should be able to analyse and evaluate evidence, make reasoned judgements, present appropriate conclusions. All these skills will be assessesed in all of the units.
Memory tips In the exam, you will need to remember important facts, information and data that will help you answer the exam questions mnemonics This is a word made up from the first letters of the terms you want to remember –Make up your own!
CELL – capital, enterprise, land, labour = factors of production PASIFIC – population, advertising, substitutes, income, fashion and trends, interest rates, complements = factors causing the demand curve to shift PINTSWC – productivity, indirect taxes, number of firms entering the market, technology, subsidies, weather, costs of production = factors causing the supply curve to shift
And…
Really fun mums try making pies = economies of scale Very silly fools suck their chips = types of unemployment
Memory tips – visual presentation – –
Draw diagrams to help you remember Use a mind map
What does the examiner really mean? The key words in a question
Words such as ‘state’, ‘give’, ‘list’, ‘name’, require simple and often basic facts with no explanation. A specific number of items are usually required by the question. Eg, ‘give two…’.
Questions using these key words can be extended in terms of the detail required from you by the addition of such phrases as ‘state with examples’, ‘give with reasons’. More detail is required.
‘Explain’ is a common key word. The examiners are awarding marks for explanations rather than a list of points. If you are asked to explain methods of increasing profit, you will be given marks for identifying the methods but there will be a maximum mark allowed for this.
If there is a question that starts ‘Should….? Give reasons for your answers’ the examiner is requiring you to make a judgement. The best advice is to argue both for and against and then to reach an overall conclusion (judgement) one way or the other.
Questions with ‘calculate … show your workings’ means that if you get the wrong answer but have the correct method or formula, you will only lose one mark. The ‘own number rule’ applies’.
You may be asked a question ‘with the help of a diagram, explain what would happen to price and sales…’ Do not forget to address the issue of price and sales in your answer. If you simply state that the ‘demand has risen’, the answer is incomplete. If you answer the question correctly, you are applying knowledge.
If you are asked to ‘Compare the costs and benefits of three methods of reducing imports to the UK….’ You need to identify the methods, explain the costs and benefits of each method. When you are comparing, the examiner is looking for evaluative skills.
The common errors
Demand and supply curves reversed. Price and quantity axes reversed. An indirect tax leads to a fall in demand not supply. The equilibrium where demand = supply is ignored. Price elasticity formula inverted. A graph showing a falling rate of inflation is interpreted as falling prices. Real income is confused with disposable income. The four factors of production are confused with the three stages of industry. The government’s budget balance is confused with the balance of payments (as they both have the terms surplus and deficit). The government can do anything! Candidates often ignore the fact that the UK is a market based economy and suggest the government takes what are essentially private sector decision, for example ‘invest more’,’ put wages down’, ‘increase exports’ etc
Quick revision The following questions do not cover all the topics we have covered so far but answering them will help you in your revision. In your exam, you will be asked to explain, give reasons for …. Good luck. Introduction to economics 1. What is meant by ‘opportunity cost’? 2. How does the production possibility frontier demonstrate the concept of opportunity cost? 3. What happens to the production possibility curve when there is economic growth? 4. What are the four factors of production?
5. What are the three sectors of industry? 6. What is a market, planned and mixed economy? 7. What are some measures of economic well being? Demand and supply 1. Draw a set of axis and label correctly so you can draw a demand and supply curve. 2. Draw a demand curve. 3. On the demand curve show: extension and contraction in demand, increase and decrease in demand. What is the difference between the two? 4. Draw a supply curve. 5. On the supply curve show: extension and contraction in supply, increase and decrease in supply. What is the difference between the two? 6. On a demand and supply diagram, show where equilibrium is. 7. What is the formula for price elasticity of demand? What do the numbers mean? 8. What is income elasticity of demand? 9. What is cross elasticity of demand? 10. What is a substitute and complement? 11. What does an elastic and inelastic demand curve look like? Draw them. Production 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
What is break even? How do you work out total cost? What does ‘batch’, ‘flow’ and ‘job’ production mean? What are the advantages and disadvantages of each? How do you work out average cost? What shape is the average cost curve? Why is it that shape? Where on the average cost curve is the best place to produce? What are economies of scale? What are diseconomies of scale? What are internal and external economies of scale?
Taxation 1. 2. 3. 4. 5. 6. 7.
What is a budget? What does it mean when the government balances the budget? What is ‘progressive’, ‘regressive’, ‘proportional’ tax? What are two features of a good tax? What effect does tax have on a supply curve? What effect does a subsidy have on a supply curve? What sort of goods do you think gets taxed heavily and why?
Competition and monopoly
1. 2. 3. 4. 5. 6. 7. 8.
Define monopoly. Define competition. What is oligopoly? Monopoly and competition are the two extreme market forms. How do they differ in terms of price and output? How does a monopoly try to maintain its position? What does the government do to try and prevent them? What does OFT stand for? Sometimes in books you will see the phrase ‘Monopolies and Mergers Commission’. What is the name of it now?
Find out: 1. 2. 3. 4. 5. 6. 7. 8.
What is ‘real income’? What is ‘disposable income’? What is ‘inflation’? What or who is the MPC? How many members in the EU? What is the target inflation rate? What does ILO stand for? Who or what is the ‘old lady of Threadneedle Street’?
….. and these are for starters!!