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. 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. 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. Most students will have revised a question on: 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. It is important that we always consider other points of view, and discuss various different, potential outcomes.
This is what we mean by evaluation. If the economy is close to full capacity a rise in interest rates may reduce inflation but not reduce growth. In the short term, demand for petrol is likely to be price inelastic.
However, over time, consumers may find alternatives, e. In the short-term, investment will not increase capacity, but over time, it may help to increase a firms profitability. 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.
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. 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.
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. Your email address will not be published. Leave this field empty. Understand the question Make sure you understand the essential point of the question.
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. Write in simple sentences For clarity of thought, it is usually best for students to write short sentences.
What is the impact of higher interest rates? Putting them together in a list will help you to determine whether or not they directly relate to your topic. Now that you have determined what information you are going to put in your economic essay, it is time to put all these bits of information in a logical order to ensure smooth narration in your essay. As you know, any essay consists of an introduction, main body paragraphs, and a conclusion. You present the information from your research in the main body of your essay, so right now we are talking only about them.
When planning your main body paragraphs, be sure to take into account the volume of your essay. Once you have all your research materials at hand and a clear understanding of what you are going to write about in mind, you can proceed to writing. Arguably the hardest part of any writing is the beginning, and economic essays are no exception. This is exactly why it is an excellent idea to begin writing your essay with the introduction and get it over with as soon as possible.
As one may suspect, the function of an introduction is to introduce the reader to your writing and to give them a brief overview of what they are about to read. In an economic essay, the introduction will represent an expanded version of your main argument that you have formulated back in step 1.
Now that you have briefly expanded the main argument of your economic essay in its introduction, you have set the tone for the rest of your writing. It should make it considerably easier for you to stick to your topic. What you should do now is put together a more detailed outline of your main body paragraphs.
You already made up your mind as to what exactly you put in these paragraphs back in step 3. Now, having your main argument in the forefront of your mind, you should put all these bits of information in a logical order to ensure the smooth narration in your essay. Each point should be given its own paragraph or a bigger section if you are writing a larger essay. In the outline, it should look like one main sentence of each paragraph, complemented with references to the materials that you are going to use in this particular section.
Once you have a clear outline for the main body of your essay, writing your main body paragraphs should not pose any complications. All you need to do is expand upon the point from your main body outline and present evidence from your research materials to support it. In other words, each body paragraph will consist of its main sentence that you take from your essay outline and the evidence from your research materials to substantiate it.
We could not stress more that, once again, it is crucial to ensure that the narration in your essay flows smoothly and logically. To do that, feel free to use transition sentences at the end of each paragraph to connect it logically to the following paragraph in a way that this logical connection is evident to your reader. The defining peculiarity of an economic essay is that it is much more about facts and data than essays in most other disciplines.
This means that — unlike with most other disciplines — it will not be enough merely to quote another author that you are referencing. You should give some relevant and compelling statistics, facts and figures. This is why it is imperative that you ensure that every single claim that you make in the main sentences of your body paragraphs is well substantiated with factual evidence. When you have written the main body paragraphs of your economic essay, you can consider that the main part of writing is done.
It, however, does not mean that you should relax and expect any conclusion that you come up with to go well with your essay. It is difficult to underestimate the importance of a solid conclusion of any paper, including economic essays.
You can think of a conclusion as a wrapped up version of your entire essay. A fine and proven way to wrap up your essay is to restate your main argument that you have presented in the introduction. It is quite naive to assume that if you have written your essay, your job is done and you are ready to submit it. Every student knows that at this stage it is only a draft which demands some polishing before you submit it - that is, if you want a grade higher than a C.
On the other hand, it is also too early to proofread your draft for spelling, punctuation and other possible mistakes. If you spot any divergences, do not hesitate to trim off all the irrelevant information. Once you have made sure that all the information you present in your essay is directly and evidently relevant to your main argument, another question arises and needs to be answered — is this information sufficient?
First of all, the main argument itself has to be clear to your reader. You should double-check that it can only be understood the way you intend it to.
Economics essay writing Other faculty may have to ask the librarian if the student and institutional factors at university council for educational administration public universities and the small. An example of the process of interpreting data, or search for ideas, is to collect ideas is protected.
Tips for writing economics essays 1. Understand the question. Make sure you understand the essential point of the question. 2. Write in simple sentences. For clarity of thought, it is usually best for students to write short 3. Answer the question. Quite frequently, when marking economic essays.
Up: Economics Network > Writing for Economics Essay writing. The idea of setting essays is to offer you the chance to make a longer, more complex argument. Nonetheless, in the model we recommend, the fundamentals remain the same. 10 Economics Essay Topics That Will Improve Your Bottom Line. Writing an economics essay doesn’t mean that you throw out a bunch of ten-dollar words that you learned in class just to make yourself sound smart. You also shouldn’t add those words just to fill up space to meet word count.
In GCE 'A' Level H2 Economics, the essay paper accounts for 60 per cent of the total marks. Therefore, good essay writing skills are essential for obtaining a good grade in the subject. Although there is no one best way to tackle an essay question, students can use "The 8-Step Approach" to construct a good answer. What makes up for an excellent economic essay? When you study economics in college and get a task of writing an essay in your major, you are expected to present a clear argument and substantiate it with solid evidence that you reference properly. If you want to get an excellent grade for your economic essay, you will first have to conduct .