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Home > Edgenie Sunday Schroll: Newsletter >Skipping Steps in Your Analysis? Why It’s Costing You Marks

Welcome to the 64th 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.

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Don't Cut Corners in Your Analysis – Here's Why

Hey Genies,

We see a lot of answers and essays on ​ EdGenie.​

We mark a lot of answers and essays on EdGenie.

 And we give feedback on a lot of answers and essays on EdGenie.

The biggest point of feedback we give?

"Don't skip the steps in your chains of analysis!"

What does that mean?


It means you’re losing valuable marks by not fully explaining your points. It’s about building a clear, step-by-step explanation that takes the examiner through every link in your reasoning.

Here’s an example to show you what I mean.


Example Question:

"Discuss the impact of a decrease in income tax on consumer spending and economic growth."

 Answer with Skipped Steps:


 "A decrease in income tax increases consumers' disposable income, allowing them to spend more. This increase in consumer spending boosts economic growth as businesses respond to higher demand."

This answer isn’t wrong – but it’s not enough for high marks.

 It skips over several steps in the chain of reasoning
, leaving out details that would give the examiner confidence that you truly understand the concept.

 Answer with Full Chain of Reasoning:

"A decrease in income tax increases consumers' disposable income, meaning households have more money left after tax to spend. With this additional income, consumers are more likely to increase their consumption of goods and services, especially on discretionary items that they may not have afforded before.

 As consumer spending rises, businesses experience increased demand, which can lead to higher production levels. In response, firms may need to hire more workers to meet this demand, leading to a decrease in unemployment. This, in turn, further boosts consumer confidence and spending as more people are employed and have stable incomes.

 This cycle of increased spending and production ultimately stimulates economic growth, as seen through a rise in GDP. By enhancing demand across various sectors, the economy experiences a multiplier effect, whereby the initial increase in disposable income leads to greater economic activity than the original tax cut itself.
This can be represented by an outward shift of the AD curve. Initially, the reduction in income tax causes AD to shift from AD1 to AD2 due to the immediate increase in consumer spending. However, because of the multiplier effect, where each additional round of spending induces further rounds of income and consumption, AD shifts out again from AD2 to AD3, amplifying the impact on economic output."

With each outward shift of the AD curve, real GDP rises, moving from Y1 to Y2 initially, and then from Y2 to Y3 as the multiplier effect takes hold. This also puts upward pressure on the price level, as seen by the movement from PL1 to PL2 and then to PL3, although this inflationary pressure is a secondary effect".

Do you see the difference?

In the second answer, we’re walking the examiner through each link in the chain.
We’re not jumping from disposable income to economic growth in one leap. Instead, we’re explaining how each step connects to the next.

This is the depth that gets you A and A* marks. 🏆


So, the next time you’re writing an answer, take a moment to review your chains of analysis.

Ask yourself, "Have I walked the examiner through every link in my reasoning?"

This approach takes a bit more time, but it makes a huge difference. And on ​EdGenie​,

we’re here to help you master this technique, step-by-step.

Because this is what pushes your answers from good to exceptional. 💪

Keep building those chains, Genies.

Best,

Emre



UK regulator paves way for £16.5bn Vodafone-Three merger

Summary

✅ CMA Conditional Approval: The UK Competition and Markets Authority (CMA) has conditionally approved the £16.5bn Vodafone-Three merger, pending competition-related commitments.

📉 Market Impact: The merger, first announced in 2023, would create the UK’s largest mobile operator by reducing the number of operators from four to three.

🚀 5G Network Upgrade Commitment: Vodafone and Three must fulfil an £11bn network upgrade plan, including 5G rollout, under legally enforceable commitments overseen by Ofcom and the CMA.

📊 Consumer Protection Measures: Proposed remedies include retaining certain mobile tariffs for three years, capping price increases on specific phone plans, and ensuring MVNOs with fewer than 2.5 million customers can access the network on pre-agreed terms.

🗓️ Final Decision Timeline:
The CMA is consulting on its remedies ahead of a final decision deadline of December 7, 2024.

🤝 Optimism from Vodafone and Three: Vodafone and Three expressed optimism, stating that the CMA’s conditions allow the merger’s benefits to be realised while addressing competition concerns.

🛡️ Oversight of Investment Plans: In September, Vodafone’s CEO said they welcomed oversight of their investment plan, describing it as potentially pro-competitive for the UK mobile sector.

⚖️ Balanced Remedies: Experts believe the remedies strike a balance, addressing competition issues while enabling the merger’s benefits to materialise.

A Level Economics Questions:

Q. Why did the CMA initially have concerns about the Vodafone-Three merger?
A. The CMA was worried that reducing the number of major mobile operators from four to three could decrease competition, potentially leading to higher prices, reduced service quality, and less innovation for consumers.

Q. How might the merger lead to improved network services?
​A. By combining resources, Vodafone and Three UK plan to invest £11 billion in network upgrades, including 5G rollout. This could enhance coverage, increase speeds, and improve overall network reliability for customers.

Q.To what extent could the merger between Vodafone and Three UK benefit consumers in the long term?
​A. The merger could benefit consumers by leading to better network coverage and faster deployment of new technologies like 5G due to combined resources. However, the potential reduction in competition might offset these benefits if it results in higher prices or less incentive to innovate.

Q. Should regulators prioritise consumer prices over technological advancement when evaluating mergers?
A. Regulators need to balance short-term consumer interests, like affordable prices, with long-term benefits, such as improved services and infrastructure. Prioritising one over the other could lead to suboptimal outcomes; thus, a holistic approach considering both aspects is crucial.

Possible A Level Economics 25 Marker Question

Discuss the potential economic justifications for allowing such a merger despite competition concerns.(25 marks)

Infographic of the Week

Same Populations, Vastly Different Economies

Germany’s real GDP growth has stalled significantly from 1991 to 2024, culminating in near-stagnation post-2019, with only a 0.19% increase since pre-pandemic levels. Factors like declining investment, weak export demand, structural challenges, and competition in core sectors have intensified this slowdown. A Deutsche Bundesbank report in October 2024 suggests that economic activity will “more or less” stagnate in late 2024, though a recession remains unlikely. As Europe’s largest economy, Germany’s lacklustre growth pulls down overall eurozone projections, with predictions by hedge fund manager Ray Dalio estimating Germany’s GDP growth at -0.5% annually over the next decade, tying it with Italy at the bottom among 32 major economies.

Chart of the Week

Economic Complexity Fuels Productivity

Countries with higher economic complexity scores, reflecting the diversity and sophistication of their exports, tend to exhibit greater labour productivity, suggesting a strong link between economic structure and output. Higher-income G-20 nations, having transitioned from agrarian to industrial and service-oriented economies, achieve elevated complexity and productivity. In contrast, many middle-income countries remain reliant on commodity exports, limiting their economic complexity and overall productivity. This highlights the transformative role of economic diversification in driving development.

Macroeconomic Data


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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