Economics - Technique/Evaluative points

Bounded rationality

Consumers have limited cognitive ability to process all available information, so they don't always make optimal decisions.

Bounded self-control

People know the rational choice but lack the willpower to follow through — e.g. wanting to save money but spending it, or wanting to quit smoking but not doing so.

Anchoring bias

People rely too heavily on the first piece of information they see — e.g. a "was £100, now £60" sale price.

Availability bias

People overweight information that is easy to recall — e.g. overestimating plane crash risk after seeing one in the news.

Social norms bias

People copy what others do — e.g. "90% of people pay their tax on time" messaging increases compliance.

Default choice bias

People stick with whatever option is pre-selected — e.g. staying opted into organ donation if it is the default.

Framing bias

The way information is presented changes decisions — e.g. "95% fat free" vs "5% fat" feel different despite being identical.

Loss aversion

Losses feel roughly twice as painful as equivalent gains feel good — people avoid losses more than they seek gains.

Herding

Following the crowd — e.g. buying a stock because everyone else is.

Inertia / status quo bias

People resist changing from their current situation even when changing would benefit them.

Habitual behaviour

People make routine choices out of habit rather than consciously optimising each time.

Nudge (Thaler)

Changing the choice architecture to steer people toward better decisions without restricting freedom of choice — e.g. auto-enrolment in pensions, organ donor opt-out, healthy default school meals.

MAGIC — M (Magnitude)

How big is the effect? Is it significant enough to matter?

MAGIC — A (Assumptions)

Does it rely on ceteris paribus? Does elasticity affect the outcome?

MAGIC — G (Government failure risk)

Could the policy backfire, create unintended consequences, or be misallocated?

MAGIC — I (In short vs long run)

Does the impact differ over time? e.g. inelastic in the short run, more elastic in the long run.

MAGIC — C (Conflict between stakeholders)

Who wins and who loses? Do their interests clash?

How should every economics essay end?

With a justified judgement — an "it depends on…" conclusion that weighs up the most important factor and reaches a clear verdict.

Command word: Calculate

AO2 only. Show all numerical working step by step. A correct answer with no working shown scores 0.

Command word: Define / State / Identify

AO1 only. State the precise meaning or name something. No application, analysis, or evaluation needed. Keep it concise.

Command word: Explain

AO1 + AO2 + AO3 only. NO evaluation. Write KAA chain(s): state the point, apply to the context, explain the mechanism. Do not waste time evaluating — no AO4 marks available.

Command word: Analyse

AO1 + AO2 + AO3 only. NO evaluation, NO counter-argument, NO conclusion. One-sided argument only. Focus entirely on developing your chains of reasoning. Official Pearson: Analyse questions do NOT require evaluation.

Command word: Examine

AO1 + AO2 + AO3 + AO4. Evaluation IS required. Two KAA chains plus evaluative comments. No conclusion required. This is the typical 8-mark command word in Edexcel Economics.

Command word: Assess

AO1 + AO2 + AO3 + AO4. Evaluation IS required. A conclusion/judgement is NOT required. Official Pearson: Assess questions do NOT require a conclusion or judgement.

Command word: Evaluate / To what extent / Discuss

AO1 + AO2 + AO3 + AO4. Evaluation IS required AND a justified conclusion IS required. Only this command word demands a final "it depends on…" verdict.

What is the difference between Assess and Evaluate?

Both need AO4 evaluation. But only Evaluate/To what extent requires a final justified conclusion. Assess does NOT require a conclusion. This is an official Pearson distinction.

Does Analyse require evaluation?

NO. Analyse is AO1+AO2+AO3 only. One-sided argument. No counter-argument, no evaluation, no conclusion. Adding evaluation wastes time as there are no AO4 marks on Analyse questions.

4-mark question — KAA or eval?

KAA only. No evaluation. Typically a short explain question: one developed point with knowledge, application and analysis. Keep it concise.

4-mark question — what gets full marks?

One fully developed KAA chain: state the economic point, apply it to the context given, explain the mechanism clearly. No evaluation needed.

5-mark question — mark split

5 KAA marks, 0 evaluation marks. Typically a diagram + explain question. No evaluation required.

5-mark question — what gets full marks?

Accurate labelled diagram + a concise KAA explanation applying the diagram to the context. No evaluation. One extended paragraph maximum.

8-mark question (Examine) — mark split

6 marks KAA + 2 marks Evaluation = 8 marks total. WITHOUT evaluation you are CAPPED at 6 out of 8. Verified from official Pearson sources.

8-mark question — what gets full marks?

Two developed KAA paragraphs applied to the extract + at least one evaluative comment. Evaluation does not need to be long — one well-developed point is enough for the 2 eval marks.

8-mark question — structure

2 KAA paragraphs + 2 short evaluative comments or 1 well-developed evaluative comment. Always quote data from the extract for application marks.

10-mark question (Assess) — mark split

6 marks KAA + 4 marks Evaluation = 10 marks total. Verified from official Pearson sources. More evaluation weight than the 8-mark — develop evaluative points more fully.

10-mark question — what gets full marks?

Two KAA paragraphs with clear application to the extract + two developed evaluative points. No conclusion required (Assess command word). Apply data throughout.

10-mark question — structure

2 KAA paragraphs + 2 developed evaluation paragraphs. Quote extract data in both KAA and evaluation. No conclusion needed.

12-mark question (Discuss/Diagram) — mark split

8 marks KAA + 4 marks Evaluation = 12 marks total. Verified from official Pearson sources.

12-mark question — what gets full marks?

Two detailed KAA paragraphs (ideally one with a diagram) + two developed evaluation points. Depth over breadth. For evaluation, two brief points or one well-developed point reaches the top band.

12-mark question — structure

ACE diagram (accurate, comprehensive, equilibria labelled) + 2 KAA paragraphs + 2 evaluation paragraphs. Quote and apply extract data throughout.

15-mark question (Discuss) — mark split

9 marks KAA + 6 marks Evaluation = 15 marks total. Verified from official Pearson sources.

15-mark question — what gets full marks?

Two deep KAA paragraphs each with multiple chains of reasoning and at least one diagram + two well-explained evaluation paragraphs that themselves contain chains of reasoning, not just assertions.

15-mark question — structure

2 deep KAA paragraphs with diagrams + 2 evaluation paragraphs with developed chains. Evaluate in context using data from the extract.

25-mark essay (Evaluate/To what extent) — mark split

16 marks KAA + 9 marks Evaluation = 25 marks total. Verified from multiple corroborated sources.

25-mark essay — what gets full marks?

2 to 3 extended KAA paragraphs each with multiple chains of analysis and at least one diagram + 2 extended evaluation paragraphs with analytical chains + a conclusion that directly answers the question with a justified it depends on judgement.

25-mark essay — structure

Brief intro outlining 3 to 4 points + KAA paragraph 1 with diagram + Evaluation paragraph 1 + KAA paragraph 2 with diagram + Evaluation paragraph 2 + Conclusion with justified judgement.

25-mark essay — top mistakes to avoid

Defining terms in the introduction wastes time and signals Level 1. Not including diagrams. Evaluation without chains of reasoning. Failing to apply to real-world context or extract data.

What does KAA stand for?

Knowledge, Application, Analysis. State the point (K), link it to the context or data in the extract (A), explain the mechanism and consequence step by step (A).

Key rule: depth over breadth

Examiners reward fully developed chains of reasoning over a list of undeveloped points. Two strong KAA chains beats six bullet points every time.

Key rule: always use the extract

Application marks require you to use data from the extract or real-world examples. Simply copying the extract gets no marks — you must use the data within your reasoning.

Key rule: evaluation needs chains too

Evaluation is not just saying however this may not work. It needs its own chain of reasoning explaining why, in what circumstances, and with what effect. Treat evaluation like a mini KAA.

Does Assess require a conclusion?

NO. Official Pearson: Assess questions do NOT require a conclusion or a judgement. Only Evaluate and To what extent require a justified conclusion.