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Home > Wednesday Wisdoms: Newsletter > If your A Level Economics 25 Markers Suck, do this

Welcome to the 10th 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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Breakdown of Crucial Stages to Elevate Your Essay Writing Skills
​Zombie Britain sees zero growth - and that's the good news​​
Infographic of the Week
Chart of the Week
Macroeconomic Data

If your A level Economics 25 markers suck. Do This👇

Hi Genies 🌟
Struggling to nail those 25 marker questions in A-level Economics?
Aiming for A or A* grades is commendable, but remember, every journey to excellence involves meticulous planning and thoughtful strategies!
Here’s a breakdown of three crucial stages that will elevate your essay writing skills for those high-mark questions:

1. Blurting:

Dump everything! 🧠✍️
Start by jotting down every piece of knowledge, every key term, every profound theory, every practical application, and every evaluation point that floods your mind in relation to the question. Diagrams are your friends, so include them! This stage is about releasing every bit of information stored in your brain that could be relevant.

2. Pre-planning:

Structure it out! 🏗️📑
Once your thoughts are on paper, it’s time to structure them cohesively. Pick the strong points and start layering your answers with knowledge, application, analysis, and evaluation. This is the stage where you’re building a strong backbone for your essay by aligning your thoughts in a systematic flow.

3. Essay Plans:

Build your reasoning! 🖊️➡️
Now, use arrows to outline your chains of reasoning and evaluation. Use EdGenie's Why, What, Who Method to ensure depth and direction. Each arrow should connect a point to its logical successor, creating a clear, coherent argument. This is your roadmap, directing every point to its logical conclusion, ensuring your essay is a cohesive, compelling narrative. With 10-15 links in each of the chain of reasoning and evaluation.

Final Thoughts

Remember, zooming in to get an A* requires more than just aspirations; it requires action. These stages are designed to create a robust process, ensuring you don’t just aim high but also hit right on the mark!

Zombie Britain sees zero growth - and that's the good news​

Summary:

  • UK Economic Outlook for 2024: The UK economy is expected to remain stagnant, moving aimlessly much like a "zombie."
    Government Actions: Fallout from Liz Truss's mini-budget last year combined with the Bank of England's interest rate hikes has contributed to the gloomy economic sentiment.

    Economic Predictions:
  • Independent economists and business groups predict a possible recession in 2024.
  • S&P Global's PMI indicates declining private sector business activity in September at the fastest pace since 2009 (excluding April 2020).
  • An employment trends survey reveals a significant drop in employers actively hiring.

    Contrasting     Views:
  • The Bank of England, IMF, and OECD predict modest growth in 2024.
  • OECD and IMF project 0.8% and 1% growth respectively for the UK in 2024.

    Analyst Insights:
  • Samuel Tombs of Pantheon Macroeconomics suggests that PMI's signaling of downturns might be exaggerated.
  • The trend of "labour hoarding" (keeping employees on board even if not immediately needed) indicates businesses are optimistic about future prospects.

    Economic Indicators:
  • Food price inflation is decreasing and might reach zero by next year.
  • Regional variations exist, with Northern Ireland performing well due to its access to both UK and EU single markets.
  • Retail sales figures remain positive, with companies like Next and M&S reporting good results.

    Overall Assessment:     While there are positive indicators, the UK's economy seems stuck in neutral, with stagnation likely extending for an eighth year, largely due to the aftermath of the Brexit vote.

    Political Implication:     As elections approach, the primary achievement might be that a severe recession was prevented

A Level Economics Questions:

Q: Discuss the potential consequences of the Bank of England raising interest rates on consumer spending, business investment, and overall economic growth, as implied by the article.​
A: The decision by the Bank of England to raise interest rates, as indicated by the article, can have several repercussions:
Consumer Spending: Higher interest rates mean increased costs for borrowing, which can deter consumers from taking out loans or using credit. As a result, spending on credit-financed goods and services may decline.
Business Investment: For businesses, higher interest rates increase the cost of financing investments. This could make some projects less profitable, leading to a cutback on investments, which can further amplify economic stagnation.
Overall Economic Growth: Both reduced consumer spending and business investment can lead to a decrease in aggregate demand, potentially slowing down economic growth or exacerbating economic stagnation.

Q: How does the "labour hoarding" trend highlight businesses' expectations for the future, and what potential challenges could arise if their expectations are not met?
A: The "labour hoarding" trend, wherein businesses retain staff even when they might not be immediately needed, is indicative of businesses' optimism about the future. They expect economic conditions to improve and want to ensure they have skilled staff on hand to meet future demands. However, challenges arise if this optimism does not materialize:
Increased Costs: Businesses may face higher operational costs due to overstaffing.
Potential Redundancies: If stagnation continues or worsens, companies might eventually be forced to lay off staff, leading to potential spikes in unemployment and its associated economic and social costs.

Q: Evaluate the conflicting economic predictions between S&P Global's PMI and institutions like the OECD and IMF. How might the methodologies or perspectives of these organisations differ?
A: S&P Global's PMI presents a more pessimistic outlook based on current business activity and hiring trends. On the other hand, the OECD and IMF forecast modest growth, possibly by considering a broader set of indicators, such as fiscal policies, global economic conditions, and historical trends. The discrepancies might stem from:
Methodologies: Different organizations might prioritize certain economic indicators over others.
Time Horizons: While some might be looking at immediate trends, others might be basing predictions on longer-term perspectives.
Data Interpretation: For instance, while PMI saw downturn signals, Samuel Tombs argued that PMI might sometimes exaggerate these signals.

Q: Using evidence from the article, discuss the potential reasons for Northern Ireland's improved economic performance relative to other UK regions.
A: Northern Ireland's economic upturn can be primarily attributed to its exclusive access to both the UK and EU single markets. This dual access:
Facilitates Trade: Reduced trade barriers can boost both exports and imports.
Attracts Investment: Businesses might be drawn to Northern Ireland to leverage the benefits of trading seamlessly with both markets. However, while the article emphasizes this advantage, it's also crucial to consider other regional factors, such as local policies, infrastructure, and workforce skills, which might play a role in its relative success.

Possible A Level Economics 25 Marker Question

Evaluate the potential impact of interest rate changes on the UK's economic performance (25 marks)​

Infographic of the Week

The Migration of High Net Worth Individuals

In 2023, the migration of High Net Worth Individuals (HNWIs)—those with a net worth of at least $1 million USD—is projected to see 122,000 such individuals relocating to new countries, according to Henley & Partners’ Private Wealth Migration Report. Australia is anticipated to welcome the highest number of millionaires, with 5,200 HNWIs, reclaiming its top spot from the UAE. Conversely, China is expected to experience the largest outflow, losing 13,500 HNWIs, attributed to factors like strict regulations and geopolitical tensions. Other notable countries witnessing significant inflows include Singapore and the U.S., while India and the UK are set to see substantial outflows. The trend of HNWI migration has been generally increasing over the past decade, notwithstanding pandemic-related dips.

Chart of the Week

Oil market faces supply squeeze as output is cut

Saudi Arabia has extended its 1 million barrel-a-day output cut through the year's end, and in tandem with Russia's decision to reduce oil exports, the global oil market is poised for a supply shortage. This expected deficit, indicated to reach 3 million barrels by year-end, coupled with rising consumption, is likely to intensify market tensions, compelling consumers to draw from their stockpiles and subsequently driving up oil prices.

Macroeconomic Data

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

If you or your child are looking to Boost your A level Economics Grades in under 30 days, I'd recommend starting with an all-in-one support network where you get 24/7 access to a SuperTutor:

→ Join EdGenie 🧞‍♂️: Transform your A-Level Economics essays and exam marks (genuinely) with our comprehensive on-demand learning platform. This carefully curated course blends engaging content with effective exam techniques, the same ones that have empowered over 1,000 of my students to achieve an A or A* over the last 13 years. 
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
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