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Home > Wednesday Wisdoms: Newsletter > Are You Predicted an A or A* in A-Level Economics?

Welcome to the 19th edition of Wednesday Wisdoms by EdGenie!

Every Wednesday I send out actionable tips, tricks and real-world application insights from my 13-year experience coaching students to achieve As and A* in their Economics and Business A Levels.

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Are You Predicted an A or A* in A-Level Economics?

Let's Make Sure You Truly Are! 🌟
You might be one of the many students predicted an A or A* in A-Level Economics. 🎓
That's fantastic news! 🎉
But let's pause and reflect – are you genuinely operating at that level? 🤔
Statistics tell us only a small fraction, around 6-9%, actually bag the top grades. 📊
Yet, so many students are predicted A*s. What's the catch? 🧐

The Reality Check:

  • Insufficient Exam-Style Practice 📝: Have you faced enough tests, essays, and homework that mimic real exam scenarios? This is crucial in preparing for what awaits in the actual exams.
  • School Track Record 🏫: Sometimes, the past success rate of your sixth form in securing As and A*s isn't stellar. Check out the stats from previous years.

Bridging the Gap:

  • Seek Regular, In-Depth Feedback 💬: Don't shy away from asking your teachers for detailed feedback on exam-level questions. This insight is invaluable.
  • Consult External Experts 👩‍🏫: Platforms like EdGenie or private tutors can offer a fresh perspective and additional guidance on your work.
  • Own Your Progress 💪: Ultimately, the responsibility to elevate your grade lies with you. Embrace this accountability and strive to perform like a true A* student.

Disclaimer:

This isn't to doubt your potential. In fact, I believe many more of you can hit those top grades. 💫

It's about being self-aware and proactive. 🚀

Make sure you're truly embodying the work ethic and skills of an A or A* student. 📚

Let's not just wear the label of high predicted grades. 🏷️
Let's earn it through hard work, smart strategies, and relentless pursuit of excellence. 🌟

You've got this! 🧞‍♂️


​​'Vote of confidence': UK hails $37 billion of foreign investment

Summary

📈 Major Investment Pledge: Prime Minister Rishi Sunak unveils £29.5 billion private investment in Britain, aiming to reclaim the top spot for European foreign investmen​​t.

💼 Tax Incentives and Economic Revival: Following permanent tax incentives for business upgrades, Sunak seeks to boost the sluggish economy with foreign capital.

🧠 Tech Development: Microsoft to channel £2.5 billion into AI infrastructure in the UK.

🤝 Confidence in Britain's Future: Sunak addresses global executives at Hampton Court, reinforcing their investment as a testament to Britain's potential.

🌍 International Investments Welcomed: Investment minister Dominic Johnson is open to Chinese investments to meet Britain's net-zero transition and infrastructure needs.

🇫🇷 France's FDI Edge: France surpasses the UK in new FDI projects, with President Macron announcing €13 billion investments earlier in May.

🔍 Quality over Quantity: The UK shifts focus to the value and quality of investments to generate high-quality jobs, especially in clean energy and tech.

🤔 Reassessing Attractiveness for FDI: Britain contemplates strategies to enhance FDI appeal post-Brexit, as political and regulatory uncertainty impacts its competitiveness.

💡 Summit of Financial Leaders: Notables like Stephen Schwarzman, Jamie Dimon, and David Solomon discuss Britain's investment landscape at the summit.

👑 Royal Engagement: King Charles to host an evening reception for summit attendees at Buckingham Palace.

🏎️ Subsidy Race Caution: Sunak criticises subsidy races as imprudent, advocating for creating conditions conducive to private sector investment rather than heavy deficit funding.

💷 Increased IFM Funding: IFM's investment plan for the UK escalates from an initial £3 billion to £10 billion, with new projects being announced.

💱 Exchange Rate Note: The government highlights the pound's non-reserve currency status, influencing its approach to deficit-funded subsidies.

🔌 Spanish Energy Giant's Stake: Iberdrola plans to invest £7 billion, with a total of nearly €14 billion by 2028, in Britain's electrical networks.


A Level Economics Questions:

Q: Discuss the potential macroeconomic impacts of a £29.5 billion investment in the UK's economy.
​A: A £29.5 billion investment could significantly stimulate the UK's economy by increasing aggregate demand, potentially raising GDP and lowering unemployment through the creation of jobs. Investment in infrastructure and technology could improve productivity, leading to economic growth. However, it could also lead to inflationary pressures if the economy is close to full capacity.

Q: Evaluate the effectiveness of tax incentives as a policy measure to attract foreign direct investment (FDI).
A: Tax incentives can be effective in attracting FDI by reducing the cost of investment and increasing after-tax returns for businesses, which can stimulate economic growth and job creation. However, their effectiveness may be limited if not paired with other favourable business conditions like political stability, infrastructure, and skilled labour. They may also reduce government revenue and lead to a 'race to the bottom' if countries continuously lower taxes to outcompete each other.

Q: How might the introduction of permanent tax breaks for business modernisation impact the long-term competitiveness of the UK's economy?
A: Permanent tax breaks for business modernisation could enhance the UK's long-term competitiveness by encouraging firms to invest in new technologies and processes, thereby increasing productivity and global competitiveness. It may also attract foreign companies to set up operations in the UK. However, the policy's success depends on the nature of the tax breaks, businesses' responsiveness to them, and the government's ability to offset the reduced tax revenues without harming public services.

Q: Explain how political and regulatory uncertainty post-Brexit might affect the UK's ability to attract FDI.
A: Political and regulatory uncertainty post-Brexit can deter FDI by increasing the risk associated with investment in the UK. Investors prefer stable and predictable environments as uncertainty can affect their expected returns. Such uncertainty may lead to investors either postponing their investment decisions or choosing to invest in other countries with more predictable political and regulatory climates.

Possible A Level Economics 25 Marker Question

Evaluate the potential impact of a £29.5 billion injection of private sector investment on the UK's macroeconomic objectives.

Infographic of the Week

Global Innovation Leaders in 2023: Spotlight on Countries and Tech Clusters

In 2023, Switzerland leads as the world’s most innovative country for the 13th year, according to the Global Innovation Index (GII) by the World Intellectual Property Organization, with a score of 67.6. Sweden (64.2) surpasses the U.S. (63.5) for second place, excelling in business sophistication and research talent. The UK (62.4) and Singapore (61.5), ranking fourth and fifth, stand out for their research institutions and government effectiveness in innovation. The GII measures innovation using seven pillars and 80 indicators, like patent applications, venture capital, and knowledge-intensive employment. Notable tech clusters such as Cambridge in the UK and San Jose-San Francisco in the U.S. significantly contribute to innovation, with companies like ARM and Google leading in patents and research. Brazil and Mauritius top their respective regions, while Cambridge’s high article output and partnerships between companies like LG Chem and global automakers exemplify the impact of these clusters on technological advancement and the broader economy.

Chart of the Week

Autumn Statement 2023: Balancing Tax Cuts and Fiscal Deficit Reduction

The Autumn Statement 2023 announced significant financial decisions, including a tax cut to national insurance and making full expensing of business capital expenditure permanent. The deficit forecasts over the next five years show an average annual improvement of £18bn, benefitting from £41bn in higher inflation receipts, £7bn from additional fiscal drag, and £4bn in other revisions. However, these are offset by £21bn in higher debt interest and £13bn due to inflation-driven uprating of state pensions and welfare benefits. The Chancellor's decision to reduce public spending and focus on tax measures and business growth initiatives results in an average net change of just £1bn a year over five years. Key tax changes include reducing national insurance for employees and the self-employed, costing an average of £9bn over five years, and making full expensing permanent, averaging just over £4bn. Despite these measures, the Office for Budget Responsibility (OBR) revised the forecast for public sector net debt as of 31 March 2028 up by £94bn to £3,004bn, raising concerns about the sustainability of public service quality without additional investment in technology and efficiencies.

Macroeconomic Data


Whenever you're ready there is one way I can help you.

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A huge thanks for hopping on board EdGenie's Wednesday Wisdoms newsletter! 
I'm Emre, and I've got a big goal - to make A* education accessible to all A-level students.
And it Starts With You!

Emre Aksahin
Chief Learning Officer at Edgenie