Welcome to the 66th edition of our Newsletter EdGenie's 📜 Sunday Scroll...

Every Sunday I send out actionable tips, tricks and real-world application insights from my 15 year experience coaching students to achieve As and A*s in their Economics A Levels via EdGenie.

Hey Genies, 🧞‍♂️

Here’s a truth bomb for you:

Every Economics question you’ll face is scenario-based.

From the smallest MCQ to that dreaded 25-marker.

And yet, so many students get stuck. Why?

Because you’re learning Economics in theory and trying to jump straight into exam questions without building the link between the two.

Here’s what happens as a result:

1️⃣ You struggle to understand what the question is actually asking of you.
2️⃣ You struggle to answer it with clarity or depth.
3️⃣ And ultimately, you struggle to get anywhere near full marks.

Oh, and there’s another problem…

You run out of time.

Why? Because you’re sitting there trying to come up with points instead of already having them ready in your arsenal.

Let me tell you how to fix this—because this is a problem that applies to most of you.

Step 1: Learn in Context

Whenever you learn a topic, don’t just memorise theory—apply it.

For example: Negative Externality in Consumption.

Think about vaping.

Why is vaping overconsumed? What are the external costs? What policies could the government introduce to reduce its consumption?

This could easily be a question in your exams. And if you’ve already built this context in your mind, answering it becomes second nature.

Step 2: Use Real-World Application

If you’re not exposing yourself to real-world Economics regularly, you’re doing yourself a disservice.

Questions are based on current events. Always.

 Free resources like the BBC and Guardian are a good place to start. But if you’re serious about your A/A* game, you need proper Economics-focused news.

That’s why, at EdGenie, we provide free access to The Economist and Financial Times (saving you over £700!).

This is where the real exam questions are coming from.

Step 3: Practice with Purpose

Once you’ve connected theory to application, take it one step further:

Write out questions based on both the theory and the real-world example.

For example: Evaluate whether the government should intervene in the market for vaping products to reduce overconsumption.

Then practice answering it. Over and over.

This isn’t just theory anymore—it’s preparing you for exactly what the examiners will ask.

Again, at EdGenie, we help you with all of this—from pre-prepped topical questions to essay plans and marking feedback.

The key takeaway?

Stop seeing theory and questions as two separate things. They are one and the same.

The more you practise this, the faster and better you’ll be in the exam room.

Cheers to making every question count!

Best,

 Emre

P.S. Ready to connect theory to real-world application and level up your grades? Join EdGenie today and let’s get to work. 🚀

🌍 Large Capital Exports: The EU exports hundreds of billions in savings yearly, financing global investments while facing major domestic investment shortfalls.

💡 Policy Options: Redirecting savings through domestic borrowing, incentivising private investment, and stimulating aggregate demand can address the imbalance.

📜 Regulatory Reforms: Simplifying banking rules, reducing cross-border financial barriers, and encouraging trade invoicing in euros can retain capital within the EU.

🏭 Corporate Investment Shift: Policies to incentivise corporations to invest rather than save, such as tax breaks and super-deductions, can enhance growth.

🏦 Sectoral Focus: Creating investment funds and encouraging private sector borrowing can redeploy capital effectively towards domestic use.

⚖️ Balanced Trade Approach: A smaller export surplus, driven by higher imports and domestic use of resources, could align trade with investment goals.

🛠 Fiscal and Monetary Tools: Running the economy hot through fiscal spending and targeted interest rate cuts can boost domestic investment incentives.

🤝 Political Coordination: EU-wide legislation must support national governments in implementing these policies while navigating external relations, particularly with the US.

🏗️ Economic Growth Potential: Redirecting savings towards productive investment can build capital faster, stimulate income growth, and avoid reducing consumption.

🔍 Strategic Importance: A comprehensive EU approach to address savings imbalances could strengthen economic resilience and global competitiveness.

Q.Explain why the EU exports large amounts of its savings abroad.
A. The EU exports large savings because its domestic savings exceed investment needs. This surplus is the result of high savings rates, particularly in the private sector, combined with relatively lower domestic investment. As a result, these savings finance foreign investments, reflecting the EU’s trade surplus.

Q. Explain how redirecting savings from foreign investments to domestic investments could boost the EU economy.
​A. Redirecting savings to domestic investments can enhance capital formation, leading to increased productivity and economic growth. It ensures resources are utilised within the economy, reducing investment gaps without compromising current consumption levels, and supports long-term development.

Q. Discuss whether running the EU economy ‘hot’ through fiscal and monetary measures would address its investment shortfall.
​A. Running the economy hot could raise aggregate demand, boosting domestic investment and consumption. Yet, risks include inflationary pressures and over-reliance on government intervention, which might not yield sustainable private sector-led growth.
​
​Q. Discuss the potential drawbacks of using tax incentives to encourage corporate investment within the EU.
A. While tax incentives can stimulate corporate investment, they may reduce government revenues and lead to uneven benefits favouring larger firms. Additionally, poorly designed incentives could result in inefficient allocation of resources or increased public sector deficits.

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