A/A* Guarantee

7 Day Money-Back
Guarantee

500+ Grades Boosted

Home > Wednesday Wisdoms: Newsletter > Preparing for A level Economics? This is what I would focus on..

Welcome to the 38th 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.

Jump to Section:


Preparing for A level Economics? This is what I would focus on..

Genies,

As we approach exam season, I want to share some insights that might transform how you prepare for your A-Level Economics. 📘✨

If I were prepping right now, here’s exactly what I’d focus on.

It’s not just about watching videos or reading textbooks; it’s about engaging directly with what you’ll face in the exam hall. 🏫🎯

1. Embrace Question Practice: This is the cornerstone of your revision. Watching videos or reading is passive. You need to be active, testing yourself constantly. 🧠⏱️
2. Structure Your Daily Practice: Divide your practice into four key areas reflecting the exam format:

  • Multiple Choice Questions (MCQs): Start and end each day with a quick session of 5 MCQs. This sharpens your recall and helps you start and end the day with Economics.📊🌅
  • Short Answer Questions: Alternate days, tackle a selection of these. They’re great for honing concise, direct answers.✍️📝
  • Data Response Exercises: Daily practice is crucial here. Learn to quickly extract relevant information and apply it to structured responses. 📈🔍
  • Essay Questions: Plan 3-5 essays per week and write out at least two under timed conditions. Get feedback, revise your approach, and repeat. 📝✏️

Keep the Exam in Mind:

Always study with the exam structure in mind. Know how many minutes you should spend per mark and adjust your practice accordingly. ⏳📚

Remember, if you’re just passively going through materials, you’re not preparing as effectively as you could be.

It’s about active engagement, constant application, and strategic revision.

Make these next weeks count.

Dive deep, challenge yourself daily, and step into those exams with confidence. 💪🌟

Emre

Jeremy Hunt’s scope for tax cuts hit by higher-than-expected borrowing

Summary

💷 Escalating Borrowing: Jeremy Hunt’s potential for pre-election tax cuts has been compromised, as the latest figures reveal that the UK government borrowed £120.7 billion in the 2023-24 financial year, exceeding the Office for Budget Responsibility's forecast by £6.6 billion.

📉 March Borrowing Exceeds Expectations: Despite a reduction from the previous year, March's borrowing stood at nearly £12 billion, surpassing market predictions due to significantly lower tax receipts from income tax and national insurance.

📊 Deficit Dilemmas: The government ended the year with a 4.4% GDP deficit, higher than pre-pandemic levels, limiting the chancellor's fiscal flexibility for tax reductions later in the year.

🗳️ Election Strategy and Fiscal Constraints: Analysts anticipate tax cuts before the upcoming general election, although borrowing has overshot predictions. This sets up a complex fiscal situation for the next government, who might need to increase taxes to sustain public services while maintaining recent tax cuts.

📈 National Debt at a Peak: Public spending has driven national debt to 98.3% of GDP, the highest since the 1960s, raising concerns about the sustainability of public finances as political parties prepare for the general election.

A Level Economics Questions:


Q: Discuss how higher-than-expected borrowing might impact government fiscal policy in the short term.

A:Higher-than-expected borrowing, such as the UK's £120.7 billion in the 2023-24 financial year, can restrict fiscal policy by increasing government debt and interest payments. This limits the government's ability to finance other priorities without further increasing debt. In the short term, this could lead to reduced scope for tax cuts or increased taxes to cover the borrowing, affecting economic growth and potentially leading to austerity measures to control the deficit.

Q: Evaluate the potential effects of persistent deficits on a country's economic health, referencing the UK's deficit of 4.4% of GDP.
A: Persistent deficits can lead to an accumulation of debt, as seen with the UK’s deficit of 4.4% of GDP, which can undermine economic stability and growth. High deficits increase the debt-to-GDP ratio, leading to higher interest costs and crowding out of private investment. Over time, this can reduce fiscal flexibility, forcing the government to either cut spending or raise taxes, which could stifle economic growth and reduce public service quality.

Q:Analyse the implications of reduced tax receipts on government budgeting and economic policy, using the UK's lower-than-expected income tax and national insurance receipts as an example.
A: Reduced tax receipts, such as the UK’s lower-than-expected income tax and national insurance receipts, lead to higher budget deficits if not offset by reduced government spending. This shortfall can force the government to increase borrowing, cut public spending, or raise other forms of taxation, each of which can have adverse effects on the economy. For instance, increased borrowing can raise the interest burden while spending cuts may reduce public services, affecting social welfare and potentially slowing economic growth.

Q: Examine the potential long-term economic impacts of a high national debt level, using the UK’s debt level of 98.3% of GDP as context.
A: A high national debt level, such as the UK’s 98.3% of GDP, can have several long-term economic impacts. It may lead to higher interest payments, which consume a significant portion of government revenue, limiting spending on essential public services and investments. This can stifle economic growth and innovation. Additionally, high debt levels can lead to decreased investor confidence, potentially increasing borrowing costs further and reducing the ability to respond to future economic crises. Over time, this might necessitate austerity measures, including spending cuts and tax increases, which could further slow economic growth and impact public welfare.


Possible A Level Economics 25 Marker Question

Discuss the effectiveness of fiscal policy as a tool for economic stabilisation in the context of external shocks and high public debt.

Infographic of the Week

Surge in Global Debt-to-GDP Ratios: A 24-Year Perspective

Since the year 2000, debt-to-GDP ratios have escalated significantly across the world, particularly following the 2008 financial crisis and the COVID-19 pandemic. An analysis based on IMF data reveals stark increases in these ratios for advanced economies from 2000 to 2024, highlighting how much countries owe in relation to their economic size. Japan, Singapore, and the United States have seen the largest increases, with their debt-to-GDP ratios rising by 116.3, 86.0, and 71.3 percentage points, respectively, reflecting growing financial obligations and the potential stress on future budgets due to higher interest payments. Conversely, Belgium, Iceland, and Israel are the rare cases where the debt-to-GDP ratios have decreased, with Iceland's reduction attributed to robust GDP growth and effective debt management. This evolving debt landscape underscores the varying fiscal health and economic strategies of nations over nearly a quarter of a century.

Chart of the Week

Earth Day 2024: Tackling the Plastics Crisis

Earth Day 2024, themed "Planet vs. Plastics," focuses on combating plastic pollution, a significant environmental issue. Since 1970, Earth Day has mobilized global action towards sustainability. This year, attention is drawn to the rampant increase in plastic use, primarily driven by packaging. From 1990 to 2019, plastic consumption soared by 250% to 460 million tonnes, with projections of further increases. The urgent call is for a 60% reduction in plastic production by 2040, starting with the elimination of single-use plastics by 2030. The day also casts a critical eye on the fast fashion industry, which contributes heavily to the crisis, with the majority of discarded garments ending up in landfills or incinerators.

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