Subject Guide
Economics
Diagrams + Explanation + Evaluation. You’re writing “mini-arguments” with a diagram as evidence.
Scoring-7 rule: Define → Diagram → Explain → Example → Evaluate (DEED).
Paper Breakdown
Paper 1
Essay (big reasoning + evaluation)
- Use DEED paragraphs.
- Always include a diagram.
- Final judgement must match your evaluation.
Paper 2
Data response (extract + questions)
- Use data from the extract (numbers/quotes).
- Explain with the right theory.
- Evaluate with real-world constraints.
Paper 3 (HL)
Policy + calculations
- Show calculation steps.
- Interpret what your number means.
- Link back to objectives (inflation, growth, equity).
Core Diagrams You Must Master
- Demand/Supply + shifts (with equilibrium changes)
- Price ceiling/floor (shortage/surplus + welfare)
- Externalities (MSC/MSB) + taxes/subsidies
- AD–AS (SRAS/LRAS shifts + inflation/growth)
- Exchange rate (appreciation/depreciation effects)
- Tariff diagram (consumer/producer surplus + DWL)
Diagram tip: Label axes + curves + arrows. No labels = free marks lost.
Evaluation Sentence Starters
- “However, the policy may be limited by…”
- “In the short run…, but in the long run…”
- “This depends on elasticity because…”
- “There may be unintended consequences such as…”
- “A more suitable policy might be…”
Always finish with judgement: most effective when…, least effective when…
Best Study Method (Weekly)
- 2x/week: Paper 2 data response (timed)
- 1x/week: Paper 1 essay plan + 1 full paragraph
- Daily: 1 diagram from memory + label it
- Error log: missing labels, missing eval, wrong definitions
Common Mark Traps
- No definitions
- Diagram not linked to explanation
- Evaluation is generic / no judgement
- No real-world example
Quick Checklist
- Did I define key terms?
- Did I draw + label a diagram correctly?
- Did I use an example (real or plausible)?
- Did I evaluate and give a judgement?